Enjoy it While You Can

I closed out Friday 120% long, exercising leverage because I felt “nothing could go wrong.”

In case you’re wondering, no one is doing it like me now. I am at new highs, painting a masterpiece in real time. Have a look at some of my work.

With Friday’s melt up in stocks and subsequent melt down in bonds, I suspect there will be extreme volatility and ‘ultra-violence’ next week (no Egypt). All of the bond gimps are gonna get checked out of their positions. Money is clearly flowing into equities; but that will not last forever.

Once the 10 yr breaches 3%, panic will ensue. Why invest in a stock with a 3% dividend when you could buy some rapidly depreciating government paper?

I think I answered my own question.

I think the market will trend higher in July, then drop in August and September. There will be a sharp bounce in bonds, but not until August–traditionally an exceptionally strong month for TLT.

Eventually the japery will end and buccaneers will force markets sharply lower. But predictions are nothing more than leaves bustling in the wind. They look nice for a short duration, then people forget about them and continue to live their lives. Take everything with a grain of salt.

Most of the time, I view life superciliously, as I am keen to the game and know how it works. It’s true what they say: with age comes wisdom. When I was a young pleb, like many of you, I viewed things sardonically, as it suited my rebellious demeanor. I’ve never been one to respect rules, as most are concocted by jackasses with a sub-human moral compass.

Back to stocks: I like AMBA and of course IMMR into a strong tape. I have an animalistic appetite for IMMR on dips. The solars are– completely– in a world of their own. SOL wants higher, no doubt about it. With higher rates comes bigger margins for banks, particularly for the regionals. I like FITB, HBAN and SBNY.

My largest positions are IMMR, GS and O.

[youtube:http://www.youtube.com/watch?v=fQ7QfOby3Vs 603 500]

The damn economy got better. The better than expected jobs reported only lends to the idea that rates should go higher. Who released that report? He should be fired!

Anything with a yield is getting hit, including my REIT, ticker O. Housing is going to get penalized, based upon the theory that higher rates means no one buys homes anymore. And, finally, 10 and 30 year bonds will get smashed. Have a look at TLT, then get back to me–pal.

I wish there was something positive to say, aside from the fact that banks make even more money with a higher rate environment, thanks to the ‘spread.’ But, all in all, this is a disappointment for me.

We should still make some money today, since we missed out on the massive Draghi-inspired rally on the 4th. But there will be nothing cartoonish about it. I expect a mixed market, one that throws some investors through the windshield, while others chill in an air conditioned cabin listening to the latest Rick Ross rap song.

I might make some changes today. Stay tuned.

I don’t find it to be useful to discuss news anymore, especially when it pertains to stocks. The pattern has repeated itself so often, I feel like a fool– attributing some “news event” as a catalyst that seemingly and magically boosts stocks higher. Stocks trade higher because they’re mandated to do so. The game is rigged and in our favour. US market are outperforming all other markets. Our wars are going according to plan and we’ve managed to upset almost every single nation in the middle east, without blinking an eye. So much for worrying about lighting a match inside of a powder keg.

Ladies and gentleman of the interwebs: S&P futures are up more than 15. The Dow is scheduled (British accent) to open up more than 140 points. This isn’t a game anymore. It never has been a game, even though a great lot of you treat it as one.

I stand to make pornographic gains at the onset of trading.

A great man once said: “It’s gonna be a hot summer.”

NOTE: As you white trashed out losers suck down budweiser cans and blow your arms off with blockbusters, choking on overcooked beef, Le Fly is drinking his usual Earl Grey, listening to a little Glass.

Have a listen, if you dare to be so bold, yet distinguished.
[youtube:http://www.youtube.com/watch?v=q2-QkG8Zkh4 603 500]

Try not to blow your fingers off, tossing those m-80’s around the neighborhood. I once knew a girl who fell victim to that, blew her fingers clean off her hand. Such a shame, being that she was a pretty girl.

We all made money and have positioned to profit from any and all rebellions in the middle east. Let’s not go back and forth about the markets for the next 24 hours, ok?

It’s time to get “our white trash on” and inebriate ourselves to the point of being poisoned.

Life for most is very short, unlike The Fly who is immortal. So make the best of it and never, ever, let inhibitions infect your psyche. We are all entitled to magnanimous success and spoils.

When I was a young punk broker, pumping out 100k per mo in commissions, unhappy at my firm because I felt “neglected”, my old CEO gave me a piece of advice that sticks with me to this day. He said “Fly, the squeaky wheel gets the oil.”

Life isn’t going to come to you. You need to go and get it.

Drive safely.

The Arab Spring continues, redundantly, yet again!

CNBC is reporting a military coup is ‘in progress’, with the arrest of several players inside of the psychopath Morsi administration. Naturally, this is ‘good news’, as war always is. Moreso, the carnival clowns who were ruling Egypt with a Koran will soon be under arrest and sent to receive their virgin wives.

I told you Portugal was a non-factor. Now how many suckers bought into the futures market, going short, thinking the US was about to nosedive? Whoever did, especially when the SPY futs were down 12, now find themselves floating around in outerspace, locked in a ‘fagbox‘.

I am 120% invested, long, without a care in the world. I told you yesterday, the market isn’t chasing higher, but simply resting or “taking it easy” ahead of the 4th of July festivities. Mark my words, we are setting up for another leg up.

The FRO is running again. There will be winners and losers in this Egyptian unrest situation. Just know, FRO doesn’t bother taking stupid crude from the middle east and delivering it to China or the US. PFFFFFF. There isn’t any money in that, believe it or not. They prefer to do business with the Africanus, a much more pleasurable route, albeit a money loser as well. So perhaps the specter of the Suez canal closing has people in the bit of a frenzy to own oil tanker stocks? Perhaps.

However, they’d be remiss to believe this run up is sustainable. I am a net seller of FRO into what I consider to be “another gift.” It’s not that I do not like FRO. It’s just that the time and the place for it to really go higher isn’t now.

In other news, AAPL looks encouraging and OCZ is always of interest to me. I’ve been thinking about buying into this stock for weeks now. With 40% of its cap in cash, no debt, and its peer, STEC, being bought out at a 100% premium, OCZ looks intriguing.

For now, top picks are IMMR, O and FWM.

This is truly orchestrated. Do not believe anything other than what you see on the surface.

Portuguese yields are soaring, up 150 bps, above 8%– thanks to something we already knew about that no one really cares about.

Egypt is readying to throw hard liner Muslims into the Suez canal to drown and oil is soaring, as a result– just in time for summer!

Pardon my sarcasm.

Refiners work under these conditions. Watch the Brent-WTI spread. If it widens, buy WNR, HFC, DK, ALJ and CVI with both hands and testicles.

May the French fry eaters in Portugal die hard.

I am painting a masterpiece and you bozos are making too much noise in the studio.

Did you see FWM and O shoot higher into the close? Indeud.

Have you taken a look at FRO and OWW today?

I had a good day.

Stay tuned, small punks. I have a lotta more for you (clubber lang).

I sold out of UNXL and OWW, one for a 4% loss, the other for an 11% gain. Let’s be frank, as well as clear, one of those picks came from the mind of a financial genius, the other from a vagrant.

With the proceeds and a little bit of leverage, I bought into the fat faced American, going long FWM.

In addition, I bought O, the REIT, intended to protect my gains during the arduous months of July and August.

Yes, it is my belief that rates will drop again. Hence, any REIT purchased now can and will be sold later at a profit.

So far, the market isn’t showing any signs of let up, despite what the stick eaters in the comments section like to say. You have your cocaine, gorilla, train raping markets and then you have this, something a bit more austere. How do I say, something more relaxed, discrete, ceremonial even.

Try to avoid being stupid by going against the trend all the time. It works until it doesn’t work anymore. Get it? You can get lucky only so many times. Eventually, markets go higher and you will be left holding your nuts.