Sometimes, the Less You Know, the More You Make

I don’t find it to be coincidental to see Chinese burritos stocks outperforming all others. After all, bitcoins are fetching for more than $1,000 now, luring in degenerate anarchists by the busload.

Last year was orderly, with large capped stocks leading the way. The buy and hold strategy held true and old men made a bundle of coin in their stupid toilet paper stocks. I believe 2014 is going to imbue a different quality in the investing public, something far more debauched than 2013. If last week was a preview of things to come, expect to see speculation run rampant in small cap, low brow, stocks, whilst the mainstream of Wall Street lags behind and gets flogged with wet towels upon correction.

For people who pride themselves on stock picking prowess, this is a welcomed development. I don’t like it when my dentist makes bundles of coin in his stupid 401k plan, managed by mutual fund hacks. I’d much rather see him destroyed, unable to deal with the market, cashed out and looking for real estate. This doesn’t make me an evil man, of course, only one that is interested in seeing the complete destruction of my dentist’s retirement account.

So as you bear witness to bitcoin breaking $1,000 again and Max Keiser displaying his virtual erection on Twitter all day long, just know, this is exactly what the latter part of civil society looks like: the basest of society running amok, naked, celebrating their victories over law and order. The barbarians are at the gate and they all look like Max Keiser.

The great top will come when no one expects it and billions will be thrown into the fires of despair. However, until that happens, there is speculation to be had, of the fantastic sort, pikers running about the yahoo message boards getting rich as men of industry suffer the pangs of setback.

THE CHINESE LOTTO GUYS, 2014

Once again, friends from the internets, it’s CHINESE LOTTO TIME, starring the unsuspecting investing public.

Today’s winners are: SEED, CHNR, CALI, SCOK, JRJC, LAS, BSPM, CNTF, CCIH, YY and DHRM.

Potential future lottery winners are: LITB, XIN, PWRD, GAME, NOAH and CREG.

Thanks for playing.

NOTE: I cashed in my lotto winner YY today and own a good deal of LITB.

I started a new position in TXTR.

A perfect example of dealing with losers is what I am doing with ANGI: absolutely nothing, at least at the moment. Often times stocks fall fast for a reason. Someone, somewhere, has inside information and is selling the liver out of a stock. Or, every so often, some bozo blew up his business and needs to “force liquidate” his holdings, sending your stock, and his, decidedly lower. On rare occasions, stocks fall for no reason at all, more apathy mixed with indifference if anything at all. If you are holding onto a loser, you want to be sure the former isn’t true. The first order of business is to find out when earnings are being reported and if there’s a chance your loser might offer downside guidance. Instead of guessing, call the company and ask them outright. You’d be surprised by how much you could learn from loose lipped executives who are trying to please.

Usually when a stock drops by more than 10% below my basis, I make a decision to either add to the position or ditch it. This sort of discipline eliminates the risk of blowing up in a single position and offers peace of mind in the form of “clean slates.” Sometimes the best ideas are the one’s you never planned for.

In the case of ANGI, I am down 11% from my basis and haven’t decided what to do with it yet. I am taking into consideration the fact that many momemtum names are being discarded into the spartan fires, so there isn’t anything unique about ANGI’s drop. Also, I like the fact that it’s dropping like a stone, instead of a methodical drop lower. This tells me someone is either being forced to sell or ominous news awaits.

Ultimately, this is all a gamble, short term trading of this sort. There isn’t anyway to know, for sure, if ANGI will trade up from here or continue its electric slide lower. The good news is that my other positions are fairing well and ANGI isn’t a big one. This gives me time to feel it out, instead of making a hurried decision. It’s the beginning of the year and if I am going to make a mistake, I’d rather it happen now than later.

My gut tells me ANGI is gonna bounce soon. Just last week, she looked great, decked out in fur coats and diamond jewelry. Now she’s a little disheveled, taking on the look of a hooker from the South of Bronx. However, this can change in a heartbeat and I happen to like the company.

If it dips a little bit more from here, I will add to it. If it bottoms here, I might buy into momentum, hoping for a short squeeze.

I started a new position in VEEV.

It served its purpose. I am moving on.

It could be worse. Many of the brand name stocks are down again, but many, many, smaller capped stocks are ripping higher today. Frankly, it has the feel of speculative hubris, people buying stocks because they want to make 20% in a day. These people aren’t real investors, but moonlighters. If you are in one of their stocks that turn from hot to cold, you will get ANGI’d.

Airlines, REITs, 3-D printing. Let’s not forget about the Chinese burritos. Speculation is running strong, with little signs of being abated. People want to make annual sized returns today and they want them yesterday. What does it all mean? Are we setting up for a massive comeuppance?

Perhaps.

But in the meantime, I really like the way my YY is trading.

Seriously, have you looked at today’s internals, from marijuana stocks to no-name biotechs–massive melt ups of monumental proportions. There were about 60 stocks up more than 10% today, at a time when only 25% of stocks were up–singularly weird.

How are we to be scared out of stocks when YGE “bounces” 25% just for the sake of bouncing?

It looks like a bullish start to me, despite what the filthy animals on the darned television had to say.

I love how so many of you ball jugglers are bearish on ANGI. Even more, I love how you get to excited, to the point of ejaculation, when it trades lower, say by 11% on no news–whatsoever. Just the other day, I was feeling mighty boastful about my ANGI position. I bought more and bragged about it to the world, declaring it to be “a buy” because my feelings said so. Fast forward one trading day and my feelings, for lack of a better expression, are being raped.

That’s alright, see, as I have room for more enemies, people whom I will eventually murder in cold blood. I have RBCN, YY, TC and LITB putting brains on fire, heaters letting off rounds at your dome like this was an urban centre and you had gold chains on.

I’m up for the day, not because of luck or because “things went my way,” but by design.

You can try your hand at betting against me, others have tried and failed. “The Fly” owns a graveyard, filled with the bones of his enemies. There isn’t anything you can do, stupid. Just sit there and watch the wins pile up, starting with TC–punks.

I am busy now and I’m not having a horrific day like most of you. Nevertheless, the market has offered a giant penis to investors on the first day of the new year.

If you recall, I expected a weak January, which will be followed by a giant February surge and potential top in March. All of these things, ideas and strategies, have been stolen from the past. Previous trends do in fact repeat. It pays to be a student of the market.

But that’s not gonna make me sell, ahead of what might be a mildly weak January. There is too much potential upside to sell after a do-nothing trading day, like today.

ANGI and SHLD are both in the hurt locker, but everything else is fine.

More later.