MURDERHOLES

Much props to David Einhorn for nailing the GMCR short. His timing was sublime.

Stocks like GMCR, ROVI and NILE should pose as a serious warning to all investors: do not stay long companies with high expectations into earnings. It is a recipe for cataclysm.

My target names for purchase is very small and I am most interested in gold and silver, despite today’s carnage.

But let’s be clear (no Obama), we are at the point of no return. The ECB will step in and buy incredible amounts of Italian debt when the crisis is at its apex. Why?

Answer: to make money.

Why should they buy Italian debt @ $95 when they can wait it out and buy it for $75? This is where the crisis is heading. Things will seem so incredulous, so unbelievable, then BAM: the ECB will pull a Puma Punku on the world and flood the bond markets with cheap money while socializing with high priced hookers.

Truth be told, I am so fucking sick of this roller coaster. I want to kill the people who do this to me but I don’t know where they live. Can you help me with that?

Thanks in advance.

I’m not afraid of the whole deck of cards being burned to dust. Despite my positioning, I am as bearish as can be. As a matter of fact, inside of my soul, I make the psychopath from Zerohedge look like Mother Theresa.

It’s all coming to a head now, isn’t it? This is the main event. The side shows of Ireland, Portugal and Greece are over. Welcome to the death match, starring Italy and France. After we are done with Europe, the contagion will spread to South America, then Asia and eventually America. But the policy response will be the same: more free money.

Do not think for a second they will allow for sanity to take hold after years of propping up this dead system. We know who pays the penalty and it’s not people with money. Everyone else gets taxed through artificial inflation, doubled with wage deflation. It’s the worst of all worlds for the middle class bus driver trying to put his kids through college. This, mind you, is not the message of the fucktards down at Occupy Wall Street–because they’re not part of the system.

VXX and FAZ are ripping higher, yet oil is flat. Banks like DB, ING, BCS, JEF and MS are in the heart of this current mess. Any sell off will hit those stocks hardest. On the flip side, any upside reversal will send shares soaring just as quick as the dropped.

I can’t add to any non-precious metal names here, with Italian yields so high. And, I can’t short stocks, based upon the laws of Turkey. For now, I am obligated to sit here and take my lumps, like a man, while accumulating gold and silver like a greedier version of Senator Gint, if at all possible.

I bought 10,000 RGLD

Disclaimer: If you buy RGLD because of this post, Germany will withdraw from the EU and tell Italy and the world to fuck itself. And, you may lose money.

Okay, this is going to be a very simple trade.

First let me start off by saying this is not a surprise. We saw this train coming for weeks, if not months. The Italian locomotive of death and despair is here and it wants blood. Everything gets marked down because a full fledged crisis is now materializing.  However, this is going to be resolved shortly. Let me tell you what is going to happen.

Italian 10 yr yields were hitting 7.6% earlier this morning, now trading at 7.26%. Spanish 10 yr yields are at 5.8%, approaching dangerous levels. And, believe it or not, French yields are widening, now 3.2%–record levels versus Germany. The ECB must monetize its debt or else pandemonium will hit the EZ and world markets are going to crash. The reason why markets are behaving like a gentleman with a top hat and white gloves, gingerly falling down a flight of stairs with grace, is because the nuclear option is on the table.

The nuclear option is the decision to monetize the debt in a non-sterile way aka printing of money.

Question for you to ponder: Will Germany walk away from the EU now and let the shit hit the fan?

If so, short oil with reckless abandon. WTI will fall $30 in a matter of weeks from current levels. On the other hand, if the nuclear option is initiated, gold and silver are your best plays. The denigration of paper money will funnel asset managers into hard assets.

Nothing else matters.

I will be taking this dip to add to my silver positions.

That was the last tweeted words of old school rapper “Heavy D.” He passed today at the age of 44, reasons are still opaque.

About 6 months ago, I unfollowed Heavy D on Twitter because he was too damn positive. I refollowed him again today. I’m fucked up that way.

For example, he posted this on 11/4/11:

@Heavyd
Back in the USA.. I love my life.. Only because I always have!!! BLESS UP!

A “normal” person wouldn’t have an issue with such words of positivity. Part of the cynic in me says “see where all of the positivity got you, dead at 44.” Then again, my Father died when he was just 30. For me, it’s hard to take people at their word, trusting the intentions of others. I view people as diseases, spreading their own version of plague through habits and influence. I am a big advocate of the right to bear arms and use said arms on vagrants indiscriminately.

Look at the people down near Wall Street. I know many of you nice liberals agree with their core message, as did many wealthy socialists agree with the Bolsheviks. But it’s the people who are delivering the Occupy Wall Street message who are your true enemy. They will stunt any and all progress because they are vagrants. I can confidently declare that 90%+ of the people who opt to be homeless and throw urine tainted blood at local food cart owners are degenerates. Our government and police are allowing this to carry on and it is a disgrace to this country.

Some of you are skeptical of me, due to my anonymity and coarse behavior. The truth of the matter is, I don’t care enough to hoodwink anyone. I find people like TIM, and other internet personalities, to be distasteful and the bane of society. I just want to document my experiences and help people along the way, without the spotlight or notoriety. You will never see or hear me on Fast Money or any radio show, not due to lack of eloquence or oratory skills, but because I want to be left alone. So you know, “The Fly” is one handsome devil.

Some investors believe to be successful they must read every fucking news article and research report available. They comb over the balance sheets of every company featured on CNBC and desperately try to find “the next big winner.” When they finish up their research and get long NILE, they are SHOCKED to see the stock down 8 bucks on an earnings miss. What is the lesson?

We don’t know anything. Sometimes less information is more. After all, by reading all of that research, you are infusing your psyche with the flawed opinions of others. I probably read more research than all of you combined, and post plenty inside of The PPT. However, I view research as comedy relief, not so much an investment catalyst.

My best ideas were concocted after hours of quiet thinking, imagining how the future might look. There are clues everywhere you look, from anecdotal evidence at the mall to the demeanor of a CEO on a conference call to Dow 30 component gross margins to the investor sentiment here on iBC to the algorithms inside of The PPT. Everything should be considered when molding an investment thesis.

As I get older, for the sake of my family, I am trying to be a positive person; but it’s hard. I much rather carry sawed off shotguns under my overcoat and menace at old fuckers when waiting for the red light to turn green. Space Alien Magicians (SAM) aren’t nice. They abduct fuckers from 0hio and launch them into outer space for fun. But we make great investors and that’s good enough for me.

GOOG, AAPL and GS look great.  The market is pissing on those who are fading this rally. It truly is a sight to bear witness.

I didn’t make money today, however, as shares of silver stocks slumped–alongside NFLX. WNR went up, but DK negated it with assholish losses. Ultimately, “The Fly” will win in glorious and grande fashion. I am patient enough to wait for my wins to be served hot, on  the finest china, alongside the very best silverware.

I took a heinous loss in BORN and shuffled the proceeds in BZH and made back 4% in the process. These small trades do not effect my NAV so much. They are more for sport than substance.

I am a firm believer in the GSVC business model, despite its latest decline. The moon and the stars shall align under the auspices of The Fly soon. The stock Gods have informed me of great wins and horrendous losses for my enemies, all to be told here on the first class blog.

At the time of this post, my YTD gains stand at 16%. My goal, believe it or not, is to make an additional 20% in Q4, which will serve as a reminder to all of my haters and doubters that Senor Tropicana reigns supreme on these internets. Failure to acknowledge these facts shall lead to the disposal of your “virtual world” and elimination of your skeleton by way of bone shattering gravity hammers to your person.

http://www.youtube.com/watch?v=p9kdRQv4m5Q

I bought BZH.

I’ve been scouring the market all day, trying to find some stocks to buy. All of the precious metal stocks are up too much to chase. The semis have gone parabolic and financials are landmines. I sort of like MAS here. And, if it wasn’t for their horrible balance sheet, AKS is interesting.

Nevertheless, I am finding it extremely hard to chase stocks, even though I feel we move higher.

Gold and silver is due for a pullback. Instead of freaking the fuck out, I will use any decline as a chance to buy more. RGLD, an olde Senator Gint fav, is of great interest to me.

My food and beverage theme is not ripe yet. The fruits are low hanging and they will be delicious when picked. But it’s not time for that trade to be put on yet.

NFLX is selling off, following THE COMMODITY KING, Dennis Gartman, announcing he is building a short position. Really? I will remain long.

This whole Berlusconi resignation rally is fucking retarded. Mussolini isn’t going anywhere. This is NOT a reason to chase stocks.

In summary, today is a good day to eat a sandwich and do nothing. Perhaps tomorrow will prove to be a more fruitful day.

Italian yields are now north of 6.7%. At the same time, the Ragin’ Cajun is absolutely killing it inside 12631. Both Chess and RC are extremely talented in catching swing trades. If you are a PPT member and haven’t given them a shot, you are missing out on raw talent.

As you can see, I am stubbornly holding onto my silver and refiner positions. I could switch it up and delve into some other low brow names. But I need to stay focused.  I really hate being disorganized, or invested without a theme. My whole life is about a theme. Before I do anything, I like to have it planned out to the minute. Without organization, there is chaos. With chaos, you get the sort of productivity seen by the vagrants at Occupy Wall Street. Seriously, what kind of fucking revolution is that? George Washington would shit on their faces.

I am fully invested with 10% in cash, for a rainy day. I still have that bastard short, EXH, only because it is small. I really should have covered it last week. And, I have little to no desire to add new names to the mix. Although I sense the markets want higher, several shoes could drop at anytime, sending this circus packing. That is why I want to remain focused, long in names I have confidence in.

Top picks: EXK, AG, NFLX, WNR, DK

I told you about the first time I got fired. Now let me tell you about the time I got fired after I quit my fucking job.

I had left a boiler room operation because, well, it was a fucking boiler room. They ripped people off and the brokers were dicks. I was unlicensed and never sold stock to anyone. I went to a small start up firm, got my series 7, then left after 6 months because my boss was a fucking pussy and I couldn’t learn anything from him. However, I did learn a great deal from a gentleman and “professional account opener” and prolific cocaine addict named “Ed Motta.” However, that’s another story.

Anyway, after I got licensed, I went to another start up firm. Back in the late 90’s, Wall Street was littered with boutique investment banks. I was hired and assigned to their biggest broker. Let’s call this prick Neil.

Neil was in his mid 40’s and was doing about $110k in gross commissions per month. Even back then, despite living on a cold callers salary of $200 per week, I looked down on such a number, mainly because the biggest broker at my previous firm was doing $300k per month. Then again, that was a boiler room and Neil was selling NKE.

By the time I met Neil, I was fairly adept at opening new accounts. On average, I’d get about 7 new accounts per month, with hardly any renegs. Other people did more, most did less. But my new accounts were usually big guys, due to my ability to hold a conversation with intelligent life-forms, unlike Neil. The first morning working for him, I was handed a sales script. This did not surprise me, since scripts were commonplace in any brokerage house. However, what did shock and appall me was his insistence that I follow it, verbatim, like some sort of idiot robot.

In Neil’s small brain, there was a canned response for any possible objective. If Mr. Jones said “not interested” or “go fuck a chuck wagon”  Neil wanted me to reply with an exact set of words, strung together by dicks, without deviation–no matter how retarded it seemed. Basically, he was the FOXCONN of the brokerage industry. He had this shit down to a science. Any objection you could think of, this fucking sociopath had a canned response to defeat you, then cajole you into sending him money. Every morning and afternoon, he’d call me into his office to “skill mill” and he was never happy. I was always stubborn and refused to use his “straight-line” approach, which ironically was invented by the scumbags at Lehman. We’d get into heated arguments and it always ended the same way.

“Fly, who’s the fucking millionaire here and who is the piker cold caller?”

After three weeks, I called the owner of the firm from home and told him that I quit. In a fury, Neil called me back, trying to address my objections  with his patented canned pitch. It was hilariously pathetic. I told him I wasn’t anyone’s doormat and I’d do just fine without him. The truth of the matter was, I had no money– other than some account set up by my Mother that I used to purchase American Online stock. I had just moved out into a basement apartment with my wife and newborn baby and relied upon the $200 per week check to buy food.

The owner of the firm called me back and said “fuck Neil, come work for me.”

I kind of liked that idea on several levels. One, I knew bouncing around from firm to firm would look horrible on my resume. And, secondly, I needed the money and wanted to get my shot at “going on my own” by managing my own book.

I agreed.

The next day I reported to the owner and Neil just glared at me, like “WTF is this piker with the bullshit money tie still doing here.” I didn’t care. I put my head down and went to work on a new iPO the firm was underwriting. That same day, Joe Montana (football legend) came to the office for the roadshow. He was on the board of directors of this company and I got him to sign my prospectus. It is likely worth something today, as only 50-75 of these fuckers exist.

Anyway, I did some calling and got about 30 “indications of interest” for the bullshit deal. It was 5pm and the junior brokers were all called into a meeting. In the middle of the meeting, the owner of the firm barged in like Jack Nicholson in the Shining and said “where is Fly?” About 20 other people looked at me, as I raised my hand, and he said “you’re fired. Come with me.”

This really shocked me, since I thought the owner was “cool.” The truth of the matter is, no one is cool. The owner convinced me to not quit, just so that he could humiliate and fire me. I was young, naive and I thought I was special. These guys were making millions of dollars and couldn’t care less about my plights, goals and aspirations. As a matter of fact, I wasn’t even mad for the affront. I viewed it as a game of chess and I got mated.

I picked my shit up, made a few phone calls and had a new place to work the next day.

http://www.youtube.com/watch?v=RS_ux2H473I&feature=fvwrel