Coasting

At this point, “The Fly’s” days are spent coasting, enjoying delicacies such as lobster, shrimp and 2 1/2 thick rib eyes, heavily salted, lightly peppered. Nothing scares me, thanks to free money and a lot of courage. While looking at today’s sell off, I piss on down 30 points. Should we go down another 70, I will spit on it.

See folks, when living in “the land of plenty,” things, for lack of a better word, are easy. I am buttressed by a government, or a global government rather, who is ardently opposed to loss. Please take note of today’s dollar decline and behave yourselves when dining at Michelin rated restaurants.

“The Fly” has the incense burning to the point where his neighbors believe there is a 5 alarm fire taking place. And of course, the white robe and sandals are in effect and slaps of hot pizza are being distributed evenly amongst all employees. I mock those who sell short, or bet against me, because there is nothing you can do. See how I am writing this blog in a way that vexes you? Yes, I do this on purpose because the dogs never bark and the milk is always delivered on time. There will be no set-backs, at least from my vantage point, as I am always 10 steps ahead of the unwashed (you).

I am making so much money, my face is numb. I can’t even see my monitors, due the over-abundance of champagne bottles blockading my line of sight.

Finally, I sold out of RBCN because there was too much noise, after the LEDS debacle. After all, why fight with fists when you can simply shoot someone in the face?

I bought both BORN and KNDI for my personal accounts.

Disclaimer: Just a simple game of Chinese lottery. Nothing more or less.

I sold out of RBCN for a small gain.

Can you feel the tension in the air?  There is a heightened consciousness with regards to this tape, a classic battle between the bulls and the stubborn bears. Today’s economic non-event (weekly jobless claims) has emboldened the bearshitter, dressed in green velcro pants, to sell short this market, even though it may go up by another 25% based upon 2012 EPS estimates.

It seems the slightest declines flushes out retail investors. Gone are the days of the 15% stop loss. I am seeing people stop out of good stocks, with strong trends, after just -2-3%. Frankly, that’s fucking ridiculous. Naturally, we all have our own style and some of you even day trade for a living, something that I find to be distinctly reprehensible. Nonetheless, I implore  you to take a greater interest in learning about the stocks/sectors you are buying. This way, when a 4 letter stock drops by 3%, you will know why you should buy more, or dump it.

Aside from that, it’s important for you to know, and acknowledge, my #2 position (TEX) going apeshit to the upside. As a matter of fact, 6 of my top 7 positions are green today. I do not alert you of this winship for your accolades or some sort of weak kneed compliment. I tell you this because I intend to demonstrate, through even greater transparency, that “The Fly” is the absolute best manager of other people’s money, in the world.

In a word: MYFISHINGPOLEISLONGERTHANYOURS.

NOTE: I sold out of CRIC and added to MOTR

Top picks:  OXY, TEX, PH, MOTR, SFLY, FMC, PWER, IMAX

ASSHAT!

On earnings call, LEDS mgmt says the see a sustainable gross margin range of 44-46%… Mgmt noted that they are experiencing pricing pressure that they did not see a month ago. They said this is primarily due to a customer moving to a competitor, due solely to better pricing. This quarter, the company will remain focused on new high performance products, and improving pricing power. They expect to produce an additional 10 mln chips per month from the Taiwan facility, doubling capacity… During Q&A, when asked about which competitor the customer went to, mgmt says there is only one competitor producing high performance LEDS like they do. Says the loss of the customer was in Taiwan… LEDS is -34% in the pre-mkt, currently trading -33% at 19.18.

Early in the day, for my personal account, I sold out of SOHU and UTA, due to strange trading behavior. I didn’t like the way they were trading. As a matter of fact, I do not like how any of the chicoms are trading. With the proceeds, I bought boat loads of RBCN and IMAX, at $22.80 ish and $27.70ish respectively. Let me tell you right now, I will not relent on these two until my blade is stuck firmly into your jugular, twisting away at your arteries.
If you are short these names, your head will soon be mounted inside of my fucking garage (’cause it’s not good enough for my office).

For managed accounts, I sold out of PWRD (chinese fuckery) and loaded up on TEX. Milk the farmer. Destroy the peasant!

The dollar got crushed today, alongside treasuries and munis. Risk is back on, in a big way. The European debt crisis will be neutralized and stocks will trade up, in my humble opinion of course.

Most of my positions charged higher today, allowing me to gain about 0.5%. Year to date, I’m up about 2%, while my personal psychopath account is down about 5%. There are two sides to the 240% leveraged blade, trust in that.  Nonetheless, I will make all of it back, very quickly, and much, much more. Watch me do it.

I bought 50,000 TEX

I bought 10,000 IMAX and 10,000 RBCN, both for my personal.

Disclaimer: out of my way.

I sold out of both.

Moving on.

Assume the market is correct. Cast aside your visions of imminent disaster and imagine the U.S. economy growing at a 4% clip, with a sharp decrease in unemployment. Let your mind wander free to believe the European “debt crisis” is nothing more than a dog and pony show, which will be dealt with and satisfied. Let’s assume Asia and Latin America stay on its current course, without any hiccups. If all of these conditions are met, where do you think stocks are going?

Answer: much, much higher.

I know, it’s annoying to suggest stocks can trade much higher, especially following such a big two year run. But then again, look at the shares of CRM or NFLX. I thought those stocks made big runs 50% ago. If I am to base my investment decisions on the numbers in front of my face, 2012 S&P EPS of $110, then I need to get prepared.

How does one get prepared?

Well, for me, it’s utilizing The PPT to isolate stocks, by industry, with high growth, high ROE, solid fundies (debt/eq., gross margins etc, and relatively low FPE’s). I call this list Growth At a Reasonable Price (GARP).  I am casting a wide net that will include 100+ names, so that I may cross reference this list with my momentum indicators. Building this reservoir of high quality stocks will keep my investments isolated to the very best names and help me avoid getting stuck in egregious murderholes. It’s like being able to choose from the best whorehouse in the world, as opposed to some disgusting rats nest in DC.

Naturally, I will set aside a certain amount of coin to buy/sell lower quality scorchers. But, my focus is now switching from trading on a whim, to something more with purpose.