Fly Buy: $TC, $ATML

I bought into the mirage, adding to TC and starting a new position in ATML.

Eleven years ago today, I was reading The Book of Better Business Wisdom on an express bus from Brooklyn to my office in midtown Manhattan. As the bus pulled up to the world trade center a thunderous noise rattled the streets. It sounded like 10 cars had exploded at the same time. Shortly thereafter, paper confetti began to sprinkle atop the vehicle and a wide hole of fire was visible at the top of the trade center.

The era of 9/11 had begun.

Since then our politicians have disgraced themselves in ways unimaginable, through corruption and stupidity, we now have $16 trillion in national debt and our markets can’t survive without QE-life support.

Since 9/11, I’ve given up all hope on our federal government. I used to be a patriotic conservative, arguing the purposeful mandates of the republican party at dinner parties–kicking liberal colleagues in the shins and guts. After a while, however, I realized both parties were corrupted by the same thing and neither of them cared about the American people. My brother in-law did 4 terms in the Iraq war, risking his life for reasons unbeknownst to me.

Truth be told, I’ll never waste my time and money on politics again. I chalk it up to a youthful excursion into the bane and jejune.

As for the market, I hope it rallies today–but don’t expect anything grandiose ahead of the Fed. Fun fact, the iPhone 5 may boost GDP by 0.25-0.5%, according to an analyst report. Amazing.

I sold out of PLCM, raising my cash position to 20%. Like I said earlier, I am a seller into the Fed meeting. Depending on the amount of carnage or gains absorbed ahead of the Fed will determine my level of selling. I was tempted to sell more, but opted for a methodical approach instead.

Also, I am eying to buy FSLR, due to strength in the solar sector–an Obama (go Solyndra!) 2nd term play, if you will.

Members of The PPT know we were flagged OVERBOUGHT on thursday and friday. Thus far, those signals have proven accurate. Generally speaking, OB signals preempt a 1-3% sell-off in the SPY, over the next 10 days. With today’s 0.6% drop, I am looking for another 2% down to reallocate funds.

Trust me, I know this sounds chaotic, bullish one minute and bearish the next. Right now I’m sort of neutral. I embody the stock market, in all of its forms. The reason why I am able to crush my peers and indices, year after year, is due to my malleability with regards to opinion. My recent forays into the market have proven to be profitable, yet not pretty and more of a grind than anything else. One percent here, two percent there, and I’m +27% for the year.

Early going I had some macro-thesis plays in WNR, ALJ, YELP and others. But I’ve moved past them, as prices have appreciated beyond reason, in exchange for oversold momentum plays. Cognizant of the nature of double edged swords, I remain steadfast in nothing but preservation of my gains and will literally kill a roomful of humans to make sure that I accomplish stated goals.

http://www.youtube.com/watch?v=4g8cjYTIVes

I am seeing a lot of China-centric names running higher, particularly steel and copper–even aluminum. Names like CENX, MEA, RS, FCX and a slew of cement stocks are strong. On top of that, domestic retailers are near new highs. If I didn’t know any better, it looks like the global growth story is back in play.

Now that doesn’t mean get long MTL in size and never look back. For fucks sake, this market is almost as bipolar as “The Fly”–switching from one macro-thesis to the next, without a care in the world.

Two new stocks on my radar are BYD and MEA. Actually, I’ve been eye-fucking (no pervert) MEA for a few days now. I haven’t bought any yet because I already own NAK, CVO, TC and PPC. Next thing you know, BAM!, the market gets lit up and I’m caught long a portfolio worth of shit micro-caps.

For the young punk motherfuckers out there: remember to lighten up when shit is rising to the top. It’s always a precursor to a nice stiff correction. In this case, there is a strong chance we will sell off after Thursday’s Fed meeting. Why the fuck not?

At the moment, I am rolling the dice, 90% invested long. I will not add to any positions from here, as I am looking to unload into strength.

TITN is getting poleaxed because corn has been eliminated from the American diet, thanks to the catastrophic weather patterns this summer. The time to be long ag, based upon expensive corn prices, is over. Now we have to deal with the after-effects, which is onerous to the ag industry. The illusion, for lack of a better word, is finished. It’s time for reality to set in.

However, as one illusion dissipates, another emerges.

The protein trade is alive and well. My favorites are PPC, SAFM and SFD. The headline risk of surging corn is behind us. Now we can transfix on Thanksgiving and the fat, gluttonous nature of this country.

PPC for the win, fuckers.

The market is weak, but nothing too hysterical. Until there is some news for the bears to chew on, expect markets to grind higher.

Top picks: PPC, CVO, TC, VHC

The easiest trades are the ones done using magical powers of illusion. For example: buying into natural gas or refinery stocks ahead of a giant hurricane; or, into rumors of war, buying into munitions stocks can prove to be profitable. How about buying into biotech stocks ahead of ASCO or tech names prior to CES?

Has anyone ever bought into chicken wing stocks ahead of March Madness and profited from it? I have.

When was the last time you bought PII ahead of the winter ski season? Last year, short sellers made a killing on DECK, because the winter was mild. Due to the hot as shit summer, corn and ag plays have done superb, while chicken and beef stocks languished.

Going into the Presidential elections, there are many opportunities to make money off perception. The perception of a Romney win will make consumer discretionary stocks rise, as well as oil and anything that can benefit from a friendlier EPA. Case and point: NAK.

As you can see from the news clipping above, the EPA doesn’t want NAK to mine in the 3rd largest copper/gold property in the world because it might harm the watershed. Due to the EPA, NAK’s stock price has been crushed to drill-bits, down from $20 to $2. Providing Romney wins the election, it’s entirely possible that NAK will be granted permission from a business friendly EPA, no?

The illusion of a friendly EPA will make the stock soar, well before an actual decision can be made.

If Obama gets reelected, I believe healthcare stocks will rise. I know it sounds counter-intutitive, but BIG government in healthcare equals BIG profits for healthcare companies, like ABC, MCK and ESRX. Last election, stem cell stocks doubled days before Obama’s victory. It’s worth noting, the FDA has been lenient under the Obama administration and has been reflected in massive share gains in biotech stocks.

In short, now is the time to place your bets, BEFORE the media starts hyping poll data. Keep in mind, the ax swings both ways and it swings low–low enough to cut off your cocks if you’re not careful.

I don’t haggle for prices because gentlemen do not worry about money. If you have to ask how much something costs, then you shouldn’t be buying it. Truth be told, luxury goods in this country are in exceedingly high demand. I realize some of you live in 0hio where everyone is poor; but this is an incredibly rich country, with millions of millionaires.

Guys like me are a dime a dozen. I am an inch of dust compared to the guys with 400ft yachts with helicopter pads on them and ghost yachts tailing behind with toys, 30,000 square foot homes, employing over 100 people to manage the house.

What do you think these people are spending money on?

Understand these people are sick in the head. They are obsessed with consumption and feel incomplete unless they outdo their friends with new, expensive, toys. Having a Benz or a BMW is a joke. The new upper class are driving Bentleys and Phantoms.

Personally, I’d rather have my dick chopped off before I spend 350,000 on a fucking car. To each his own, I suppose.

Paintings are fetching for $100 million plus at auction and anything Picasso is selling for high 8 figures, even his late/bullshit work.

This is being reflected in the shares of JWN, LULU, KORS, TIF, BID, ULTA, APPL, BC, SKS etc.

The funny shit is, the new upper class, guys like Zuckerberg and Thiel, dwarf the net worths of the old money, social registry, class. There is a lot of friction between old and new money, more so than ever before. Everyone is aspiring to be rich and most fake it until they make it, or not. I know so many people who make $500k per year who are flat broke. They spend all of their money because they make so much and endeavor to live life to the fullest. It is no surprise to me to see retail stocks leading the market higher.

In short, don’t get caught up in the big lie that is country is broke. That’s wrong. The government is broke, but the people are rich as fuck. Sure, there is an underclass and the divergence between well to do and dirt poor has never been wider. But that is not my concern, when trying to figure out asset prices.

If you follow the money closely and respect it, you will end up getting some of your own.

There is no confusion. The market is clarity at its highest fidelity. We are at new highs, pressing forward, foot pressed firmly down on the pedal inside of a car made from dynamite sticks headed for the sun.

If you’re sitting there wondering when the market will correct, you are playing the wrong game. What you should be doing is finding the next micro-cap that is fixing higher, with your eyes set on leisure.

Make coin now, while you can. It gets harder from here.

Basic materials are screaming higher because everyone thinks the Fed is going with QE3 next week. Silver, gold, copper, even coal, are making wealthy men out of new shareholders. God knows the sector has been bludgeoned to death and is due for an oversold bounce.

With that in mind, I bought a little TC today, a mere 200,000 shares, just to test the waters. Most of these companies are impaired and are not worth holding, long term. But, in the short run, they can and will go higher, providing the Fed adds liquidity.

I booked a 6% gain in LOGM, despite the fact it wants higher. It was never central to my thesis and I’d hate to see a small gain turn into a loss. In addition, I sold 100,000 NAK for a 30% gain. I will hold the remainder of my shares into October.

Lastly, I added to PPC because it’s cheap and the protein trade is young. By the time Thanksgiving comes around, all of you buttfuckers will want in. By that time, I will be selling to you for magnanimous gains.

NOTE: Take notice of yet another grande IPO, ADNC. Unreal.

I started a position in TC.