We’re Living in a Costanza World

So the bankrupt Greek economy has produced a bull market in 2012, with the Athens exchange up 25% year to date. On the other side of the ledger, creditor nation, China, is down 10%. We live in interesting times.

The new head of the BOE is a good ol’ chap from Goldman Ballsachs. Such a brazen act of patronage calls for a 5 second golf clap.

The status quo is the desired outcome here. The power elite want the market to go up, and they want countries like Greece to default, without having to actually declare it. Essentially, they want to have their cakes and eat them too. It’s clear to me, as of right now, the market has no intention of trading lower. Perhaps it can trade lower tomorrow, amidst rumors of war and fiscal malfeasance. But for today, we are going north.

I purchased shares of UA–because I like large cap short squeeze ideas. Other stocks that fit the criteria are LEN, LULU and FB. Out of 4,000 stocks in The PPT database, just 4 fit the large cap short squeeze criteria–definitely something to behold.

I added to my SWHC position because the south is going to secede from the union and march an army of militia into DC to arrest President Obama. I cannot think of a reason to sell RGR, SWHC into economic and social upheaval.

Lastly, I’m a big fan of the homebuilders, and anything to do with construction. I haven’t ‘sacked up’ yet to buy into the bull run, aside from the occasional BZH trade. But it is my belief that residential construction is on the rise again. Homies like BZH, HOV, LEN, RYL, PHM and SPF should continue to rise as credit becomes available to qualified buyers. Inventories are low and rates are a steal.

I started a position in UA.

The ultimate show down approaches, with the month of December. Billions of hedge fund dollars will go back to work this holiday season, in a last ditch effort to chase performance and salvage the year. The overall economy is “meh”, but the stock market is fixed–helped by the Fed. That’s the upside.

The downside is a tragic amount of tax hikes looming in 2013. Most people believe there is no way the government will let it happen. Why not? It will add $500 billion to the “revenue side”, alleviating budget constraints, so that the government can spend even MOAR.

Ask yourself these questions:

Did the government fuck up with the TARP vote?

Did the government fuck up with the debt ceiling extension?

Those were simple, straightforward propositions. The fiscal cliff is far more complex. I am expecting a dysfunctional government to once again reemerge as the dominant factor in fucking shareholders.

I’m already at 40% cash, so there isn’t much for me to sell up here. I might even take out a few trades, providing the uptrend continues. But rest assured, your government will fuck this up and markets will panic because of it.

Markets that defy gravity are perfect for squeezing shorts–because they cannot hold onto their shares as the market performs illogical feats of magic. Case in point: VHC ripped the chest hairs off shorts today, for little to no reason. It’s true the stock shouldn’t have been sold off in the first place. Nevertheless, today’s punch in the face makes for good conversation.

You know my position: 40% cash, 60% long, of which half of that is in VHC. I am very cautious here, but will never entertain the idea of going short. Short selling is for fucktards. I’d rather be in cash, watching everyone else die, than get my hands dirty.

At any rate, courtesy of The PPT, here is a group of stocks that have been identified as being in ‘short squeeze mode.’

I sold out of WNR this morning, putting me at 40% cash. AAPL is leading the nasdaq higher and complacency is very high. I don’t expect the market to get crushed, until AFTER the New Year’s. Consider the period between now and then a twilight of sorts.

On a more optimistic note, I like smartphone derivative plays heading into the pagan holidays, specifically NXPI, AVGO and RFMD.

Despite the tepid tone to the market, breadth is under 40% for the day and utilities are the top performers. This is not exactly a healthy backdrop for a continued run.

I am holding large positions in VHC, EXK, NXPI and SWHC. I regret not buying YELP when it was lower. And I am shocked to see DECK all the way back, following a horrendous quarterly report. The market is always filled with surprises, so one never knows exactly what’s in store. All we can do is make educated guesses, try to avoid making stupid errors, and bet big when the odds are optimal.

Last month, almost to the day, the markets topped out–leaving bulls strewn across Wall Street, like some sort of degenerate trash. The fat faces on CNBC didn’t know what the fuck was going on, but I did. Over the past two weeks, markets have stabilized and surged into light volume, tryptamine induced, gluttony.

The bad news (fiscal cliff, really fucked up economy for another 4 years etc) has magically morphed into a catalyst to drive stocks higher–based upon the hopes of a deal. But you know our government, always opting for the dramatic course of action instead of the logical. We have elected monkeys dressed in fancy suits, who throw bananas at one another and ask us to clean up the mess. They intend to “tax the rich” in order to “create jobs”, spearheaded by unions, who will then finance their reelection campaigns. It is the ultimate circle jerk.

So as the markets figure out that the fiscal cliff is not only a risk but a reality, I strongly suggest ‘vamoosing’ out of high risk plays in exchange for a “Hugh Hendry” styled portfolio.

We had a nice respite, courtesy of the Turkey Gods. But now it’s time to sit back and enjoy watching an illiterate America get pushed over “the fiscal cliff.” Dicks will be removed and accounts destroyed. Satan Claus is coming and there is nothing you or your stupid friends can do about it.

Pagan X-mas shopping is underway, so losses will be muted. But rest assured, as soon as 2013 arrives the market is going to be in catastrophe mode, leaving the lot of you– conversing about the markets on homosexual social networking sites– in a state of catatonic stupidity.

I will be selling this week.

From storming the beaches of Normandy to storming Walmart for 15% discounts. This is America now.

No discount is worth being herded like an upright walking pig.

You were warned, weren’t you? From your housing tenements, desperate, cold, and without electricity–you sold short the market because Obama is a communist. You told tall tales, read Zerohedge and planned for the economy to thrust lower, amidst violent revolt and european sovereign debt crisis.

Understand something, you are the very dumbest the world has to offer, not because your IQ is low–but due to your inability to learn from past mistakes. You bastards are accustomed to tripping over live claymore mines, aren’t you?

You touch the oven and burn your hands. You recover from the wounds and touch the oven again.

DO NOT TOUCH THE OVEN ANYMORE, fucked face.

Lounged up in a dimly lit room, shrouded by a cloud of marijuana smoke, Benjamin Bernanke, in an unusual animated composure, is yelling at the CNBC, saying “I told you motherfuckers I was gonna get you real good this time. You thought this shit was over, didn’t you? POMO for life you fucking homos (puff, puff, puff–exhale).”

I was up 0.8% for the day.

http://www.youtube.com/watch?v=DPID2gwQSXM

The markets have been bailed out by the splendour of mashed potatoes. As we speak, a gluttonous populous are raiding retail shoppes, tripping over one another, in order to “save” coin by spending money for X-mas items. The day we call “Black Friday” is upon us and “Cyber Monday” lurks in the crevasse.

Just know, today’s low volume melt up is one of the few “dunk shots” of the market. If retail sales come up short, Santa Claus will get kicked off his sled and beaten senseless. It’s also worth noting that every single crisis in the market is used to fuel short covering frenzies–this time circling around the specter of “The Fiscal Cliff.” Bulls will use rumors and rumors of rumors of a soon to be inked deal to frighten short sellers into mercy positions, breaking the shorts over their knees like pretzel rods. Once the reality kicks in, markets will fall. However, until the moment of truth is delivered, it’s casino time–courtesy of a hyper malfunctioning government body.

If you’re new to the site, looking for a hot hand, run over to Ragin Cajun’s blog. He just hit a grand salami long RIMM. The boys from 12631 are having a phenomenal year.

In short, the Santa Claus rally is in full retard mode. Let’s just hope the upright walking pigs have enough credit to fuel this rally until year end.