Only the Best

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.

I am trimming my WNR position, full disclosure. Right now, I am heavily long WNR, AXU and MWW. That’s about it, aside from the myriad of other stocks in my portfolios. I am mostly cash, chilling, while your blood is inexplicably spilling.

Spanish, Portuguese and Italian bond yields are blowing out. However, the market is manipulated. The only trade, as of now, is cash. As an aside, I am also emphatic about GSVC, such a small float, such a great story. The current valuation of GSVC indicates their portfolio of privately held companies is only worth 55 million. They raised 50 million. Do you mean to tell me the private internet market is dead? PFFFFFFFFFFF.

GSVC trades up from here.

Additionally, I still like ULTA, DECK, DVR and PFCB. I own all of these stocks and will not sell them until the shadows near my favorite urinal give me the nod. You must understand, I am never scared. Volatility is my friend and I yearn for market losses, so that I can make it all back and more. However, I am opting to remove myself from the fire, due to the severity of the situation. The worst case scenario is a full blown market calamity. Instead of playing with all of my chips, I am fucking around with a handful, while the lion-share of my assets are in the safe.

Let’s be clear about Italy. Their debt is 120% of GDP, but owned domestically. They are not like Greece, but then again, who is? However, I want you to notice a pattern here. The bond vigilantes are not going to stop until they kill someone. They tried Ireland: didn’t work. They took a shot with Greece: close but no cigar. Cleverly, instead of going after Portugal, they went after a large EU country, in the hopes of overwhelming the IMF/ECB.The result, thus far, is a spiraling Italian stock market and rising Italian yields. Being a trader in Italy must feel like someone is throwing meatballs at you all day long. Fucking ridiculous.

To make matters worse, Italy is now demanding short sellers who own more than 0.2% of a companies market cap file papers. With every 0.1% increase in short sale representation, you have to file more papers (office space, TPS reports style). In other words, they are getting desperate. In my experience, when agencies start going after short sellers, they are scared that the truth will cut their dicks off. For me, this is a no brainer trade: stay the fuck out.

This doesn’t end with Italy. It ends with us in a pineapple coffin.

Right now, I am 65% cash and 20% of my 35% equity exposure is in WNR. I am all WNR, basically. I am not buying into this shit storm and strongly advise many of you ham and eggers out there sit this one out.

GSVC is the next CMGI of this generation of degenerate internet stocks. With 3 million shares in the float, and a high profile investment in Facebook, as well as others sure to come, I can see this stock raping clowns for months.

Granted, the valuation is a bit whacky. But, you cannot assign traditional valuations to something that cannot be replicated. This is the best way, in my opinion, to play the burgeoning IPO market. Don’t be surprised if the stock goes to $10 or $50. Just know and understand, as this story gets out, people will be trading the shit out of this stock, for better or for worse.

So you know, I took a position in the stock today and feel it trades much higher than today’s price.