Could it Possibly Get Any Worse?

I’m going to keep my thoughts focused here.

I am incredibly glum and regret, very deeply, buying into this headfake. My choices were made out of hubris and desire, instead of logic.

Here are the headwinds:

The Facebook ipo is a disaster. Moreover, it’s an ongoing disaster that will likely get worse.

Morgan Stanley is viewed in a negative light because of Facebook. Due to the 25% allotment to retail in the offering, main street is pissed the fuck off and sentiment for the market has plunged, literally because of the Facebook offering.

Our best bank, JPM, is one giant question mark. They fucked up and no one knows the true damage.

Europe is more of a mess now than ever before. After tanking last year due to Greece, until a bailout was reached, everything has been undone with one simple election.

Aside from Greece, Portugal, Ireland, Spain and Italy hang in the balance.

The basic resource sector, once the best way to play reflation, has been ravaged beyond repair.

Our largest producer of natural gas provider, CHK, has a degenerate gambler as a CEO, who was running a fucking hedge fund on the side, as his stock price tanked.

For the most part, all high flying tech stocks have corrected, some very severely.

Our employment data is not improving fast enough.

A giant tax hike looms for us in 2013, if they are not extended before the end of 2012.

The global debt bubble is getting bigger and bigger and bigger and will pop one day–but no one knows when.

Go away in May

Here are the tailwinds:

Apple.

Ben.

When Obama ran for President, he told us that oil was stupid. He promised to diversify us away from oil, in favour of grandiose alternative energies, like “clean coal”, natural gas, wind, nuclear, solar–even biofuels!

The ultimate barometer of the health of any business is its share price. Wouldn’t you agreed? Indeud.

Let us have a look at some returns of alternative energy names, over the past 3 years.

How’s the fucking solar sector doing?

Eek, that sucks.

Maybe the coal and nuclear sectors are doing better?

How about natural gas?

Ouch, that fucking sucks too.

I know. I bet biofuels have done well.

Unreal.

Just for fun, let’s have a look at oil.

Odd no?

In just three years, for whatever set of circumstances, Obama has accomplished what Cheney, and his evil band of Halliburton bloodsuckers, could have only dreamt of accomplishing in a lifetime. He has eliminated ALL competitors for big oil. Back in the Bush days, when he was out and about war mongering for oil, causing havoc and shit, there was a myriad of new players threatening to compete with big oil. Lo and behold, Mr. Super Fucking Liberal aka “The O”, hater of the fossil fuel, savior of the planet, has done nothing but foster a healthy environment for big oil, while creating circumstances to fucking poleax and demolish anyone who dared to threaten them.

The beauty of this decapitation is the fact it has gone entirely unreported by the propagandist main stream media, who are too busy sucking his dick, than to take a step back to see what is going on.

Long live big oil.

If I told you I was humbled by today’s trading action, I’d be lying to you. There are many things that make up “The Fly.” Lying is not one of them.

Today I took razor blades to the fucking face. No, I was not fucking humbled, slumped over like some schlep in a museum. I WAS FUCKING CRUMBLED. I was taken from my seat and compressed like a fucking accordion. I WAS FUCKING FACEBOOK’d god-damn it. My great big, bountiful, chestful of pride, position in social media company YELP was urinated on. It was shit upon by apes dressed in astronaut gear.

All of today’s buys were decimated. The Goldman upgrade of MTW was wasted, as it barely went up today. MY TEX buy ended up for shit. My NXPI buy, for shit. But my TDC buy held its own, due to the non-degeneracy of the stock. The old man stocks held their ground and my bold calls in silver were humiliated in front of billions of gawkers.

Hell, even my small Facebook purchase was absolutely clown raped.

I don’t mean to be this volatile and I certainly do not enjoy having to eat my words just a few short hours after posting some ridiculous prediction: but this market is HORSESHIT. It’s made from lose. Every single sector is under fire. The coal, solar, natty, wind and nuclear sectors are going to be washed away in the sands of time. There is going to be capital destruction like you cannot imagine, UNLESS things turn around NOW.

How much exposure do the banks have in the coal space? I imagine a great deal of money.

Perhaps we snap back tomorrow. Maybe my YELP will show some resiliency; but I doubt it. I cannot think of a worser case scenario, a more anti-climatic one, than what happened to me today. The proverbial winds were taken right out my sails and the knife of stupidity is twisting in my stomach.

Oh, by the way, the fucking market closed flat for the day.

Intra-day, the market is in danger of giving it all back and diving lower, typical of recent trading action. Europe enjoyed a grande old day and we’re on the verge of getting “ghetto jabbed” in the fucking face with a knife.

FB has certainly poisoned the well and now AAPL is about to go negative, after being up 10.

Couple that with the fact that a once booming coal industry is about to go belly up, with the direct help of the Obama administration and the EPA; America stands to lose a lot of jobs if that happens. I will be discussing “the oil man” Obama later on, and how he has managed to destroy every form of energy but oil in 3 fucking years of idiocy.

I am not retreating from my “BIGGEST FUCKING RALLY OF YOUR PATHETIC LIVES” call. However, I am worried about the tea leaves, at least on an intra-day basis. Either way, this bitch needs to giddy up now and quit dicking around. On the bright side, financials are strong and the FAZmobile is getting hit with anvils, with only a windshield wiper as protection.

The wall of worry is very high. As a matter of fact, the iBC news section is outstripping my blog in traffic, over the past two weeks, something that has never happened before. You macabres love this shit. You want it all to burn down, starting with FB and JPM, ending with a fucked up Zombie Jobs AAPL crumbling into the Pacific.

Guess what?

You’re a fucking idiot.

We have central banks printing money; what do you have?

Oh, you have debt and Greece?

Well, we have assassins and Euro-bonds–coming soon to a homosexual euroland near you.

Big Ben “The Bearded Clam” Bernanke is on his way (no Santa), blunt in hand, ready to get you bitches. The P in POMO stands for permanent. Get it? Good.

To play this spike, and salvage my fucking year, I am bulking the fuck up on splattered China plays, like MTW and TEX. I added to NXPI for semi exposure and bought back TDC because it never trades down. Plus they had a blow out quarter and came back to my original sale point. I like owning names that have recently smashed earnings, down only because of the market.

Finally, there is YELP. What can I say, other than I have the patience of a camel.

UPDATE: Here is my current roster of positions, subject to change of course. All updated in real time inside of The PPT.

There is weakness permeating the tape thanks to bankruptcy rumors regarding PCX. The commodity sector is selling off. Regardless, I like the Goldman upgrade of MTW today, especially since I own it. But if they like MTW, they have to love TEX down here.

With the WNR proceeds and some of my cash reserves, I bought TEX, NXPI, TDC and initiated a very small position in FB.

With regards to FB: I will not buy more unless it trades down to $28.

Why did I buy it?

Two reasons:

Eventually the post ipo carnage will cease and it will bounce. Also, I find it humorous to own it 5+ points below its ipo price. Blame it on vanity.

I sold out of WNR, near the highs.

Apple versus Facebook.

Apple wins.

Facebook is being marginalized and ignored by the overall market and more importantly, the social media space. I added to my fucking gigantic YELP position, not because I think it is going higher. Instead, I know it is.

My MTW caught a Goldman upgrade this morning, citing the stock being cheap as balls. Thus far, I am up around 0.75% for the session, eagerly waiting for YELP to reverse and go higher.

In general, the market looks like it wants to run. If you are looking for names, consider silver, as it correlates tightly with the SPY off bounces, with vigor and leverage. After silver, you will want to target tech names, specifically semis and networkers. Names like CIEN, RVBD, SNDK and even AAPL are of great interest to me. You cannot let this bounce escape you, for we may not get an oversold condition like this for the remainder of 2012 (although I doubt that). Nevertheless, the future has not been written yet and for all we know, Greece will be saved (again), Romney will gain traction in the polls and the economy will accelerate to the upside.

With my money, I am actively seeking to position in oversold names with large short positions.

More on that later.

First the company was supposed to come public at $28; then they upped the price range to $34-38. That wasn’t enough for the insiders and greedy underwriters, who collected bountiful fees (1.1%) based on the size of the deal, so they sweetened the pot. Said pot wasn’t sweetened for the unknowing public, who listened to sweet melodies of Facebook’s web dominance by the propaganda outfit known to you as CNBC. The pot was saccharined for the direct benefit of selling insiders, who put an additional 25% more shares on the market, to be dumped at the ipo price of $38– valuing the company at $104 billion. Just a few weeks prior, the company was allegedly worth just $96 billion, according to lead underwriter Morgan Stanley.

What’s $8 billion between friends, no?

The sophists on the television paraded well known venture capitalists and stupid pundits onto the tube, who praised Facebook as the next Google. They only had pleasantries for Facebook, things to do with the social media giants 900 million userbase and how they haven’t even scratched the surface in a seemingly endless pool of online advertising dollars waiting to be had.

Facebook was the answer to the Greek crisis, market malaise, promised by all to usher in an new era of American excellence.

The “generosity” of the lead underwriter, Morgan Stanley, and the selling Facebook employees/venture capitalists, continued until the very night prior to going public. The $18.4 billion raised by the ipo would have record retail participation.

What does that mean?

That meant Joe Schmoe with $50k at E-trade was allocated shares. That meant the ipo was not exclusive to institutional clients, for some odd reason. Maybe they just wanted to help the little guy out?

Lo and behold, upwards of 25% of the Facebook ipo was allocated to the unwashed, brainwashed and sedated public, who believed every word of sweet hominy molasses spoken by the journalists at CNBC. The stock opened at $45 and was quickly “sold to you” by institutions. Every brokerage firm I know, who was given 1 million shares or more, sold every single share at or near the opening tick.

The stock plummeted within minutes, causing a ripple effect in the market, sending the shares of fellow social media stocks lower, in horrific, pinless hand grenade fashion. Investment company SVVC traded below cash, swooning more than 27% in a single session–all because they owned 600,000 shares of FB at $31.

The syndicate then scrambled to save face. They feverishly bid for the stock with millions of shares, also having to deal with unprecedented software glitches at Nasdaq, which caused trades to go unreported for hours–putting traders in the dark. If Facebook’s ipo price fell below $38 on its first day of trading, they would have been exposed for thrusting a great crime upon the America people, through the outrageous pricing of a hyper-marketed ipo onto an unsophisticated investor.

At $104 billion, Facebook traded more than 25x sales. In comparison, social networking company YELP, who is often ridiculed for being overvalued, trades at about 12x.

The rest is history. Today, the market opened and the syndicate could not control the purblind mobs of angry and beguiled retail investors, who were hitting the bid in an effort to salvage their investment, burned badly by the fucking investment banks–yet again. Within 15 minutes of trading this morning, Facebook was down $5 or 13%, staggering an already injured retail client base and lighting fire to an already scorched social media space.

In all of my years on Wall Street, I’ve seen plenty of bad deals. Usually at boutique deal shops, ipo’s would trade flat its first day and sustain that level for weeks, if not months, afterward, before dropping. Most honest brokers avoid those deals because there is no incentive to put client money into an ipo that will likely trade flat, unless of course said broker is only interested in a concession. But this Facebook ipo steals the cake. This deal was worse than any bucket shop deal I’ve ever seen. What makes it exponentially worse is the size of the scam and the money it literally stole from retail investors.

If this deal was priced at $28, with the original amount of shares, everyone would have made money. Retail would have been happy. The market would have gone higher and the social media sector would not have been ravaged to drill bits. Instead, we got more of the same from Wall Street: greedy fuckheads who pushed the envelop and LOST (again), not only tarnishing their reputation in the process, but damaging the repute of America worldwide–viewed as a bunch of fucking gunslinging piggish idiots who cant’t even celebrate the public offering of their most popular, lauded and successful American company with a fair deal.

One day those fuckers will get what they deserve. We all do.

NOTE: Insult to injury- Morgan is likely short 63 million shares of FB at $38.

http://www.youtube.com/watch?v=d9CQXMNko8Q

In the midst of all of the turmoil, after all of the shame the Facebook ipo has inflicted upon the American people, the WNR stood tall. It stood tall in a sea of green, as investors reversed early losses into a full-fucking-rout of the bears, in pleasant “fuck you, you’re dead” afternoon trading.

My positions closed much higher for the day. But more impressively, I was able to shift 15% of my old man money into high beta crack juice, just prior to some pretty big runs. The thought process was very simple for me today. The price action in YELP, ZNGA, MTW, NXPI and AAPL have been so nonsensical, so unbelievable, the only reasonable course of action was to buy and buy big.

Look, YELP was down 25% in two days when I averaged down today. It used to be 30% of my assets. However, since the decline, let’s just say the market has reduced my weighting in YELP to a degree that I was able to buy more.

My best picks into a full fledged sentiment reversal are EXK, AG, YELP, MTW, AAPL and ZNGA. But the truth is, I like everything here and have all of my positions listed inside of The PPT, for your perusal.

http://www.youtube.com/watch?v=pifrWs18AiU