Yearning For a Fresh Bubble Burst

You fucking software engineers will be homeless inside of 5 years. You little fuckers are feeling all high and mighty now, billing out $150 per hour, pilfering, mind you, honest and hardworking Blogfather’s for personal gain. It’s egregious and soon enough black smoke and shards of metal will cover your person, when the new dot com bubble bursts all over your faces.

Although I value the efforts of professionals, mind you, the pricing structure is out of control. You’re not a tax attorney or surgeon. You’re a fucking video game dork, fucking around on the computers, hacking away like a robotic monkey on speed.

As an aside, DON’T BET ON CONGRESS HOOKING YOU UP.

I want you to remember who you are dealing with, ladies and gents. The Tea Party people think they were “duped” by overzealous bankers into approving TARP. They really believe nothing would have happened if we let the banks fail. These people are dangerous. Listen to the rhetoric. They are laughing at S&P and all of the people who are warning against default. Listen, they believe, emphatically, that NOTHING will happen if we default. Do you understand? It’s fucking madness to bet that Congress will do the rational thing.

Whether you know it or not, I am telling you now, this is the TARP vote all over again. This time, the fuckers from Fantasy land want revenge on the bankers by way of clown raping the whole country, stuffing us into carnival cannons, and squeezing in hungry lions to keep us company.

Disclosure: I am now 80% cash.

I sold BPFH.

And, I added to DECK.

Shares of GSVC are taking a hit today, down 5% on no news. Although I am annoyed by the decline, I am not surprised. There are 3 million shares in the fucking float. You get 2 or three guys near the Jersey shore selling the stock in order to finance home renovations and this is the result.  When I bought the stock, I told you the current price was irrelevant. I am in it for the story, the glamor of it all.

I am not adding to the position for two reasons.

1. It’s going down.

2. It’s too thinly traded.

I sized this position so that I could trade around it, make up losses elsewhere— if need be. And, most importantly, make sure it wasn’t too big, in order to avoid converting my position into a roach motel, where only fucktards get to sell into the bidless ether. My attitude is let it come in and let’s wait for the story to develop.

In other news, FLS is getting hammered. I’m always interested in FLS. I would like to buy some sub $97 if possible.

CLF made a decent recovery. And, DECK is trading with the jitters ahead of earnings. Remember, Q2 is their light quarter. Don’t expect fireworks.

Until the debt ceiling shit is resolved, I will continue to throw hot slices of pizza out of my window, at the pedestrians below.

As predicted, the VXX is collapsing, as the market bounces, spurring my puts forward by 28%. I got my DECK, BPFG and XIV common going, GSVC is sucking dick, and the sun is shining bright outside. This is revenge trade to the extreme on VXX and I intend to slay the bitch every which way but loose. I added to my VXX put positions, stated inside The PPT and 12631 earlier this morning, around $1.70.

The market looks great. I’ve expanded my watchlist and will be adding to equities, AFTER the cocksuckers in Congress fuck the world over tonight.

I have so much cash right now, my arms involuntarily punch people in the face when walking down the street. I was going to deploy cash today because, traditionally, this is the time to go long, following a steep decline on nebulous news. However, upon further review, I am out of my fucking mind.

Congress is voting on the debt ceiling deal tonight? PFFFFFFFFFFFFFFFFFFFFFFFFF

There is no fucking way I am betting on those dogs. If you are buying stocks today, you are betting on Congress. Are you willing to do that? Well, are you?

I didn’t think so.

I have DECK going into earnings today and I still own BPFH, GSVC and some VXX puts, alongside other small positions. But I’m not buying today, or shorting.

Trade accordingly.

So jobless claims registered below 400,000 for the first time in 16 weeks. WOO-HOO! Rally fucking on, Jack. Who gives a shit about LOGI or JNPR? We have momo going in GMCR, as people get their coffee on.

I must say, the earnings season has been dreadful for a variety of industries, especially communications equipment. I thought we had a boom going in fiber? GLW, CIEN, FNSR, JNPR, CSCO all suck goat balls. It’s really hard to get long that sector. However, the market doesn’t need that sector to bounce, in order to apply “the iron lotus” to the heads of bears.

Providing we stabilize this morning, I will be deploying cash into a variety of stocks. For personal,  I am getting long more XIV and VXX puts, betting that volatility, as always, will compress.

Finally, the steel sector is dead, fucking dead. AKS, X, CLF are all horrible, just to name a few. This market is really hard to navigate, due to the bouncing betty landmines littering the field.

Be careful out there, you nebulous pancake flippers, and try to avoid those murderholes.

Why are we going lower? Is it because the economy is weak? No. How about the Euro debt crisis? Nope, not that either. Are we trading lower on valuation? Funny, definitely not. Think for a second and tell me, why are we trading lower?

Is it the debt ceiling? NO.

I am sure you expected me to say yes. The truth of the matter is, even without the debt ceiling, we’d still be trading lower now, sans the added bonus of panic. The market is stuck in a range because we are digesting massive gains. That’s it. We need a catalyst to trade up to new highs and the economy is not good enough to provide one. Coupled with the dreadful earnings coming out of the tech sector, there are zero reasons to chase stocks. We keep continuing this circle of carnage, where big money sells to retail near tops and buy it back from them at bottoms. The sad truth is, the playing field is not equal, mostly due to resources.

Look, when you’re managing $10 billion, you have room for error. Retail guys with $500k in stocks can’t handle the extreme lower ranges and always opt out near the bottom. I would not be surprised to see people dump out here, ahead of a debt deal and miss out on an epic debt ceiling deal rally.

See, that’s what just happened today. If a deal got done last week, we’d sell off on that news. However, now that we are much lower, we have all but guaranteed a massive short squeeze rally upon confirmation of a deal. What you have to ask yourself now is “what is the high probability trade?” Granted, your bet may be wrong and you’re simply going to have to deal with the consequences. There is no room for mediocrity.

I will try my best and position wisely, with the intention of growing my +16% to 25% on the next upswing.

Remember, the market is uncertain until it isn’t. Everything is a mathematical equation. I try to focus less on the individual names these days, in favor of macro moves. If I sense we are going to spike higher, I have a handful of “go to” stocks that will get the job done for me, irrespective of underlying fundies.

My sense, an inflection point is coming soon. Stay light, but don’t get caught short, else end up on the receiving end of a “fuck you, you’re dead” funeral card.

This is what you get paid for, to nail tops and bottoms with space alien magician precision. I closed out my TZA position today because I captured the “fat middle.” I am not interested in the scraps. Now, I will turn my focus, over the coming days, to buying the blood.

I know your natural instincts are to run for cover in such a barbaric tape. But, just know, this too shall pass. It will become nothing more than a memory or a blip on your little charts, in the big scheme of things. I am not interested in following the herd, which is why my gains stand at 16% year to date, while my peers catch homo-hammers to the cranium.

Some stocks of interest to me include: FLS, WNR, EXK, ROSE, IPGP, CLR, ULTA, PLAB, HFC, ALJ and CVI.

I suspect we might dip another day or two, thanks to weak handed fund managers responding to CNBC. However, as they liquidate, it is your responsibility as a person with strong cognitive thinking to buy the blood and urinate on the heads of those who trade against you.

Into the bell, I faded volatility, buying XIV and August 23 puts on VXX.

NOTE: I will be live on StockTwits tonight, answering your pathetically pressing questions, from 11:30pm to midnight. $FLY Stream. Be there.

I bought a small amount of XIV and VXX puts.

I sold TZA for 125% gain (calls).

FLASHBACK to last week: As seen only in The PPT