Gold is My Only Option

I am sure my money will be invested in a variety of industries inside of a few weeks. That’s just the way I roll. However, for now, the only industry that makes sense is gold. It’s worth noting silver has become a playground for speculators and is less reliable. Although the potential gains in gold are less attractive, so is the downside.

I do not like stocks here, save GSVC. I bought GSS on the prospects that QE3 may become an option. Look for the Fed fuckers to talk it up during next month’s meeting at Jackson Hole.

For now, I am long TZA via calls, EDZ (small size), MWW, GSS and a few other small dicked positions.

My cash position is 80%.

I bought 100,000 GSS.

Disclaimer: QE3 may be coming.

I am in great, barbaric danger of allowing my brain get in the way of making coin. It’s embedded in my head that the market will not be able to bail out Italy and Spain. However, equity prices tell a different story. Put the macro stuff aside, this is a buying opportunity. Pardon me while I vet out my feelings in real time.

My EDZ is higher and TZA is hardly down. My little GSVC made 5 acquisitions today, all well known private companies. Don’t look now, but GSVC is becoming the one stop shop for playing the private equity market, and the as an extension, the booming ipo market. Hypothetically, GSVC could double and still be considered a “value”, when considering their business model is unique to the equity markets and is without competition. Stocks like KKR and BX do what GSVC does, but much, much bigger. Hence, the upside is less. Naturally, there are two sides to the coin. Should the U.S. equity markets freeze up, the ipo market will shut down, alongside GSVC’s prospects.

I am still hanging onto MWW, if only by a thread. With the Italian 10 year near 6%, and $2 trillion in debt, I am having a hard time buying stocks here, despite the decent price action.

Do not be chagrined or surprised that the market is up or flat now, following -150 on the futures. “They” do not like it when stocks trade down. We’ve discussed this matter before and it is a fairly simple subject. The United States is the stock market. Without equity prices, we have a bunch of Mcdonald’s workers and Senator Gint.

Having said that, do not be lured into a false sense of security, for the European debt crisis is far from over. The only resolution available is the ECB buying Italian and Spanish debt, outright. But this is a very poor solution for the issue at hand: insolvency. Like I said before, “The Fly” is not playing the Italian game. I am not short the market, aside from a few TZA calls in my personal and EDZ stock, nor am I long.

Although I can see the market bouncing, due to the overzealous nature of the U.S. investor, I choose to sideline myself and eat oatmeal all day.

I will not bore myself to death in cash forever. Eventually, if this market refuses to drop, I will step in. I just want to see what happens this week, especially when the Italians go to auction on Thursday.

Can’t you fucking idiots see I am on fire? Don’t you understand that when I catch fire, I need to stay 100% focused on my energy and not be distracted by the scatter brained shit that you toss onto the table?

This is high level money management you are witnessing. Do not piss me the fuck off, else I will find you and I will have your legs punched the fuck off. You’ll be trading from a fucking wheel chair in no time at all. Let me catch your “wheely-ass” in the middle of an intersection and I will kick you into an 8 axle truck.

Having said that, I do appreciate your participation on some levels. Just don’t get carried away, like offering me advice of any sort. When I was a young boy, I never listened to anyone, not even my own mother. As an adult, I literally fume over the idea that someone of cabin class status dares suggest an idea to me, even in the most mildest of forms.

The market is going lower. That’s all you need to understand. Do not ask why or when it will get better. I fucking warned you that if we got hit with another load of bad economic data, we’d nosedive lower. Not only did we get that but now the cock-sucking meatball makers from Europe are about the throw pomodoro sauce all over the world, thanks to their fucked up finances.

There is no paper over for Italy and Spain. This is not Greece, but the beginning of the end for sovereign debt holders. I am going to play this with space alien magician precision, coming out of the other end a +25% winner, while your pathetically ill-prepared hedge fund managers blow the fuck up, Hiroshima style.

Wait and see.

Cheers. All the best.

I made over 240% on my TZA July 33 calls today and more than 11% in my GSVC position. I am mostly out of the market now, including WNR. I will close out today +15% with a 85% cash position. In my personal, I am loaded with TZA calls and GSVC. I am still long MWW, if only for one more day. And, I am in no rush to buy this dip.

TLT is rising, alongside UUP. Volatility is on the rise and risk aversion is back, BIG TIME. Unlike the Greek problem, I cannot foresee any short term resolution for Italy or Spain. This is the big one that shouldn’t be taken lightly.

Naturally, the market is full of surprises and “they” always find a way to mark up prices. However, the Dow is still at 12,500. If I might be so bold, there is clear and smooth sailing room to 12,000, maybe even lower. This issue will not take a backseat to WORSE THAN EXPECTED Alcoa earnings, which are sure to be revealed after today’s close. If you have learned anything from iBankCoin over the past 4 years it is “The Fly” is always right, even when he appears to purport exact falsehoods. I want you to understand what is at stake, prior to delving into dips, like some sort of doped up monkey playing an accordion in Brazil.

My winship is about to get largess. Wait and see.

I rolled over my TZA 33 calls to August and started a new position in EDZ. And, I bought another 25,000 shares of GSVC.

In an effort to lure some of you into permanent banning, I’ve enacted the following rules.

1. PPT OVERSOLD flags may no longer be shared on iBC, unless granted permission.

2. PPT OVERBOUGHT scores may no longer be shared on iBC, unless granted permission.

Out of respect for the hundreds of paying members, these valuable signals will no longer be shared on iBC, until after the fact. I hope you understand there is no such thing as free lunches, particularly when it pertains to sublime harmony of mathematical precision (SHOMP).

A final look for some of you cellar dwelling internet leeches.

On a side note: GSVC, bitches.

Poof! Your bullshit market rally is over.

-Merlin

Clearing the shelves. Going to 85% cash.