Rotto No More

Fuck the leprechauns. No one gives a shit about the drunken degenerates from Ireland. I feel it is my right and duty, as a half Irish American, to tell it like it is. They got drunk on their own stupidity, borrowing money like Americans and spending it like Brits.

It looks like the market is due to bounce here; but the market has changed. There is a more serious tone to this tape. The market has “an adult feeling” to it, whereby shit-faced chicom plays are decidedly out of favor. I sold the majority of my Chinese Lotto names on Friday. There is a lot of bullshit being flung around, regarding Chinese accounting fuckery, in a number of names. I much prefer to buy names that do not have that stigma, if you know what I mean.

Having said that, I like WFR, FTK, GMXR with a short oil via SCO here.

If you’ve been reading this blog for the past week, you know I was on top of the muni collapse in California. As a matter of fact, similar pinless hand grenade action can be found in NY, Maryland, Illinois etc. Of course this is all following the lead of U.S. Treasuries, best represented by the share price of TLT.

However, let’s call a spade a spade here: rates were artificially low to begin with. What if the rising yields are simply a reaction to an improving economy? I mean, it’s fucking possible, right? Or are we stuck in some sort of endless murderhole, where the economy gets pillaged over and over again, until we all die. WTF.

Granted, rapidly rising rates at a time when the Fed is actively pursuing an artificial environment to reduce yields is counter-intuitive.  But then again, market forces are supposed to trump all of this government bullshit anyway, right? Is it possible that the Fed is spinning their wheels with QE2 and Wall Street is simply forecasting a better than expected economy 6 months out, via rising yields? As a consequence , commodity prices have been crashing too; but they had a terrific run.

After thinking about this situation all weekend, I just wanted to throw a few ideas out there, especially since every motherfucker with a keyboard seems to be hellbent on declaring the end of the world is near, yet again.

If recent history has taught us anything it is to watch out for the other hand, for the one in front of you is merely a diversion.

Going into tomorrow’s tape, I am 5% short, 50% cash and 45% long.

Let’s see if you idiots can handle it.

UPDATED: This is a current chart.

That was The PPT range chart, prior to today’s bloodbath. As you can see, from the very extreme levels of 3.32, the market has been trading down. Typically, in past OVERBOUGHT cycles, we’d position inside of VXXcycles and FAZmobiles, while laughing it up, choking on pork chops along the way. However, since my recent decapitation in VXX, I am somewhat, shall we say, “apprehensive” about buying into such lemons. The easier, more reliable bet, in my estimation, is via crude.

Across the board, commodities are being flogged today. If this market is due to correct, 3-5% from here, oil will trade under $80. That’s why I am buying SCO.

In addition to that, I am shorting STI, based around the idea that banks may get the stuffing kicked out of them, sometime soon. Don’t forget who warned you about California munis first. Take a look at PCK. Thus far, it is down 10% for the month, worst since the 35% one month decline in 2008, when the fucking world was ending.

What does it all mean?

Well, a thinking man would surmise that Wall Street is telling THE BEARDED CLAM to go fuck an exhaust pipe. Yields are rising, dramatically, as QE2 commences. Also, Ireland will need a bailout soon, else their drunk asses are going out.

On the other hand, POMO, QE2, TURKEY, CHINA, INDIA, NO INFLATION etc may save us all from damnation, which is why I am going very easy on the shorts and still hold a good amount of longs. Let me just say this: I have never been as bullish as I am right now, regarding the prospects of FTK. I may need to hold it for another 3-6 months, in order to see my $3+ price target. Or, I maybe the waiting period might just be a few weeks. Either way, the underlying fundamentals are smoking hot now. Those are the type of names that you want to buy on dips. I’m not saying FTK is for you. However, I am saying, keep a nice list of stocks that you want to buy on dips and wait for the opportunity to buy them. If we are lucky, we get a small dip from here to Turkey day, then springboard into X-mas.

NOTE: The PPT‘s new Raw Commodity Index is down 4.6% today. Hello Ben, we need more inflation!

UPDATE: I bought 10,000 FTK @ $2.60 and 50,000 WFR @ $13.00.

UPDATE: I bought another 10,000 SCO and sold half of my BORN position.

IMPORTANT QUESTION: Why does Yahoo give heavily coveted news credentials to SeekingAlpha, in their finance section? Those stupid bastards from SA are publishing one short story tale after another, by short sellers, targeting thinly traded stocks, for personal profit. I call bullshit on them and Yahoo.

I sold short 10,000 STI @ $25.09.

Fuck this fiesta, I am heading for a siesta. I am booking profits, losses and everything else in between.

I sold out of EJ, FORM, CAAS, HEAT, CFSG, SNIC and CRK.

It’s real fun being long those names during cocaine induced rallies. I imagine they would not be so cool should reality begin to sink in.

I am still holding the entirety of my FTK, CGA, GMXR, C, TEVA, WNR and WFR positions. My cash position is now 55%.

UPDATE: I bought 10,000 SCO

As The PPT and newly furnished 12631 deal with debilitating server issues, “The Fly” is eating foods fit for a fat King. Just so you know, “The Fly” is not fat and holds a good amount of contempt for those of you who are a bit portly. It’s not the fact that fat people are inherently lazy, but selfish. They want all the food to themselves and their gluttonous ways causes them to murder themselves vis a vis clogged arteries. How selfish of them!

With regards to this market: I am a bit distracted right now, due to the overwhelming response to 12631. It has effectively crippled a few servers and is now threatening the very life of our server guy, “Vincenzo.” You see, prior to launch, Vincenzo had placed his oversized barrels of extra virgin olive oil on top of “the iBC server farm,” inside the cold room. Once 12631 launched, the servers got so busy, so fast, that they began to shake, almost as if an earthquake was tossed down from the heavens into Vincenzo’s office. Because of all of the rattling, the olive oil fell to the ground, effectively drenching all of the iBC servers and ruining Vincenzo’s custom made sweater from Milan. As we speak, he is cleaning up the mess and will be working all weekend to make sure things are up to speed on Monday.

This market looks plain old bad. It has all of the hallmarks of the beginning of a down turn. The only thing that keeps me from selling everything and going to cash is recent history. Each minor blip has been met with pornographic buying sprees, by Wall Street’s degenerate money managers. Let’s give those fucking perverts some more time to get their cocks in order.

We dipped, then we recovered. Now we’re dipping again. After looking at CSCO’s numbers, one thing is abundantly clear: we’re gonna need more money, Uncle Ben. Please crank up the presses and send states like NJ and IL more money, so that they can buy more CSCO shit. Plus anyway, the market has been rather lackluster as of late. As a tax paying citizen, this is unacceptable. I expect to make money in the market EVERY SINGLE FUCKING DAY OF MY LIFE, mainly because I’m American and entitled.

As for my positions: I may be forced to raise some cash, due to my knee-jerk feelings towards all things to do with QE2. As you know, I fucking despise it.

At any rate, I am a bit busy right now. I will check back in later, or not.

UPDATE: I sold out of the SCOK.

Tomorrow marks iBankCoin’s 3rd year anniversary. It should come to no surprise, to any of you, that my largest position exploded to the upside, just one day prior to this joyous event. All of these things happen for a reason, as I am blessed by the stock Gods. I am built to win and I do so repeatedly. However, I am not exempting myself from future losses. In an oddball way, real life losses hit “The Fly” all the time, whether it comes in the form of idiotic neighbor seeking revenge or by egregiously poor service from my local barber. At the end of the day, the Gods bless me with stock market splendour [sic]. To this day, Mrs. Fly is puzzled by the whole ordeal. She really has no explanation as to why or how I do what I do, repeatedly, over the years. We’ve been from basement broke to penthouse rich, back to “hey, you might lose it all again” to God status, all in a decade. Yet here I am bowling on you fucking misfits.

I am not posting this to remind you how awesome Senor Tropicana is through meaningless words, relayed in a grammatical way that is almost morse code for the senses. No, instead, I am here to say Happy Anniversary to iBankCoin, staff and readers alike.

On this joyous day, I am happy to launch 12631 for Ragin’ Cajun and chessNwine, two solid/honorable and loyal people that I am happy to be in business with. At the end of the day, like all things in life, business is about relationships—the ebb and flow between people. I know RC from the old days on Flyonwallstreet.blogspot.com. Through the years, he and Jeremy (aka Vincenzo the IT guy) has helped me every step of the way to build iBC to where it is today. More importantly, he has some sort of space alien magician like gift for picking stocks, often times better than me.

When I was younger, I’d go for the quick kills, like RC. But, to be honest, my comfort zone is for more longer term oriented ideas, built around a general thesis. However, Ragin Cajun’ is simply talented, the best you will find, for identifying imminent breakouts. Couple that with Chess’s innate ability to pick stocks and excellent habits for risk management, I am confident they will provide a top notch service for all subscribers, for many years to come.

For those of you who are interested in signing up to 12631 (remember, you must be a PPT sub first) stay tuned for I might launch it tonight.

Here is an old video that Spyder Crusher aka Danny made, back in the old days, introducing iBankCoin.

Enjoy.

UPDATE
12631 is now available to PPT subscribers. (Note: You must already be logged into The PPT before you can register for 12631. Also, since your 12631 acct. is separate from your PPT account, you’ll want to go ahead and re-register.)

Big day for Plutonium Petey, up more than 5%. I cut losses on FUQI and bought BORN, WFR and WNR. All in all, today was a “space alien magician” day, as my accounts all hit 52 week highs.

Off to drink single malt Scotch.