Get Ready For the Steam Roll

I speak to you from the not-so-distant future. Do not be afraid, for I will not tell you too much in this short blog. I come here, from the future, to tell you that stock prices are higher and that my winship remains intact and flawless. Just in case you were worried, “The Fly” had a terrific final two weeks of 2010, led by gains in some of the positions he talk about now.

Your sideways bets against him will lead to great failures, amongst other things. It’s like you have an infection in your brain, which causes you to bet against a man who zips across the galaxy in a fucking space rocket. What’s wrong with you? Was your Mother a caveman?

In short, relax, kick back, and enjoy the show. The greatest money train to ever present itself to the internet, iBankCoin, is about to cut limbs off. Prepare to be steam rolled, under a 20 tonne carriage.

I added to my EXK position. And, I doubled my position in CCJ.

Throwing in the towel: minute loss.

The holiday’s aren’t gonna be good for all of you. Some of you clown-fuckers held down your accounts through stupidity. Some of you piker brokers get by doing 10 gross and call yourselves “successful.” I have news for you little fish: if you’re not taking down 50k per month, you should just quit the business and become a waiter. Looking at my year to date runs, I can tell you they are bigger than yours. I say this, not to rub it in, but to motivate you. See, while all of the poor folks of the world unite, in an effort to fleece me, I outstrip them via egregious tax shelters and outsized income. Plus, let’s not forget, Obama hooked me up with a nice extension of Bushies tax cuts.

As far as I am concerned, the nations balance sheet is of no concern to me. They fucked it up. Why should I pay the price? It’s a big world out there and if our policy makers are too stupid to figure this shit out, I know a nice place in Australia for sale.

Early going, the dollar is strong and oil is weak. Munis are getting hit again and treasuries are trading down. While it’s true, rising yields ARE GOOD for banks, as their profit margins increase with the spread. It’s also true, it’s happening a little too fast.

Early this morning, I booked profits in DMND and CIEN. With the proceeds, I added to my REXX position and started new ones in CENX, VLNC and TTWO. At the present, my cash position stands at about 35%. Quite frankly, I am having a difficult time finding names to invest in, due to a certain standard that I am forced to uphold. Having said that, I am comfortable trading light into this bond scare, which could result in a panic sell off at any moment.

With regards to REXX: it’s too perfect on paper, with a larger than life short position, 7% interest by Goldman Sachs and rising oil and gas prices. It has “squeeze” written all over it.

Top picks: VLNC, REXX, EXK, CENX, AKS and CCJ

I added to my REXX position and started a new one in TTWO and VLNC.

Disclaimer: If you buy these stocks because of this post, the next time you visit a farm a stray peacock will attack you. And, you may lose money.

I sold out of both CIEN and DMND.

“you’re gonna love my nuts.”

News Alert: our resident gold-bug, “Senator Gint” has surrendered his Chairmanship of the Gold-Bug committee, due to exogenous events inside of his brain. Effective immediately, “Senor Tropicana” aka “The Fly” aka “Platinum Petey” is your new resident gold/silver bug, as evidenced by his splendid EXK position.

Let it be known and heard throughout these halls.

That is all.

Yields are fucking soaring in Bernanke’s face. Take a look at munis or treasuries: ouch. One might say “rates are normalizing” because the economy is roaring back. It’s not coming back, but ROARING. However, if that’s the case, then why do we have QE2? Conundrum.

With my money, I stepped up and added to my EXK position, when it was down 5%. On Jupiter’s Stone, that motherfucker responded to my emotions and ripped higher. Moreover, I added to my REXX position into bullshit weakness. That came back a little too. As of now, EXK and REXX represent #1 and #2 positions by size.

Two Chinese ipo’s worth noting: YOKU and DANG were stellar outperformers today. This bodes well for investment banks. Not only are they busy with mergers and acquisitions, but their ipo desks are humming. At some point, YOKU is a must own, for the long term.

All I have to say to you dirty bastards: indeud.

I bought 25,000 REXX, as idiots sell.

I added to my EXK position, making it my largest position by size. With today’s slide, I am down about 3% on it, so far. Additionally, I added to my REXX position and started a new one in AKS. Oddly enough, I sold out of my second largest position, CLF, in order to raise more cash, following this mornings give back. Essentially, I am conflicted between the Asshole Dip Buyer thesis and something that has much to do about black flags, smoke and bustling metal. Needless to say, because of my confusion, I have opted for my 40% cash position to remain intact, as well as my SCO hedge.

While tech, banks and select oil trades, like HERO, look good to go, other sectors are struggling. There are many people out there nervous about buying into this market. However, I implore you to understand something: there is a strong bid underneath this tape, thanks to end of year bullshit. This is not imaginary, but a fact.

Sometimes the quick money, through fast trading, spoils a person rotten. Next thing you know, you are unwilling to hold stocks that trade lower, for fear of giving back. Well, I am guilty of such crimes right now. However, I am not willing to sell everything, since I think we have upside left. Plus anyway, I have no issues, whatsoever, with giving back some gains, in order to stay the course. I am the George Bush of investing up in this bitch.

Basically, I am shutting the trading software down for the day. SHUT THAT SHIT DOWN! I will continue to blog, giving you ingrates updates. But as far as buying and selling is concerned, I have made my bed and it’s not a very bad bed at all. As a matter of fact, the mattress is quite nice, fitted with small sticks of dynamite and hot coals.