SINNERS REPENT!

I warned you this would happen. You simply chose to ignore THE PROPHECIES OF THE FLY, in exchange for your silly bullshit. Now, before you go ahead and shoot yourself in the face with a howitzer, let’s examine the situation, shall we?

Like it or not, China is slowing. Without a doubt, that is bad for stocks. Here in the U.S., there appears to be something wrong with our semiconductors names, which are leading indicators for the economy. Despite record low yields, the housing market is dead in the water. The Yen is going up too much. As a matter of fact, it may severely hamstring the Japanese economy, which is still pretty fucking big. That’s assuming the “yen-carry trade” no longer exists, which I know for a fact it still does. The Euro is getting “Charles Manson’d” today. Oil is so extended, I piss on it, via SCO. Food commodity prices are through the roof, another big negative for U.S. consumers.

On the other hand, the bullish case: the Federal Reserve’s policy is to reflate. Therefore, all increases in commodity prices are expected and welcomed. WTF!!?? Yes, it’s true. China is slowing, but still growing incredibly fast. The Yen is some sort of fucked up anomaly. Let’s ignore it. The dollar will continue lower, effectively giving a boost to U.S. equities and all things denominated in dollars. Finally, tech firms have record cash on hand. The majority are coming off of record quarters and will likely use said cash to make acquisitions.

See, there is always two sides. Who do you believe?

Answer: Both.

It’s important to be flexible; but not malleable to the point where you have no soul.  Clearly, the market is overdue for a pullback, as evidenced by the repeated 3.00+ scores in The PPT. Now, are we setting up for some sort of cataclysmic drop?

Answer: yes, but not yet.

It’s a rare event to witness stock market crashes. It makes no sense betting on them. With my money, I am betting on price declines through the Fall, leading up to a grande [sic] buying opportunity. In other words, you and I may have a lot in common, just not now.

Into the shitstorm, I booked an 8% overnight profit in EDZ and will hold the reminder of my VXX/SCO until further notice.

This will be auctioned off at Sotheby’s the Friday after next.

BEHOLD!

Each and every one of you little trollops will die one day. Some of you will die with gold bricks in your closet. Others will perish under hookers and large bags of cocaine. Naturally, “The Fly” will never die, as he is immortal and will live forever. As you are reading this, I insist that you stop skimming over my blogs, as they are the most important writings since the Bible was concocted.

Let it be known, you will all pay for your sins, some more than others. Whether it be via painful leg amputations or ridiculous poverty, you will pay. In general, people are disgusting life forms, always out to fuck one another. Do not think for a second the Federal Reserve, or your political party, cares about you. You are nothing more than a set of digits, until you die. After you die, they will curry the favor of a new set of digits, so that their power is preserved. I realize some of you believe in apple pie and American dreams; but there is no such thing. All you have is your wits and your physical frame to outmaneuver your neighbors for the last piece of steak. Those motherfuckers are trying to steal from you. They plot against you as they shake your hand, due to inferior genetic make-ups and sinister souls. Be the better person and smash them with your claw-hammer (I am assuming everyone owns a clawhammer).

As I write this, news just hit, regarding Federal aid to the states. Actually, that is good news for stocks, since that was one of the big dark clouds overhanging above.

Nevertheless, I do not like the action in the yen. I do not understand why oil is gapping higher. However, I know why the dollar is falling. It is NOT falling due to our policies, at least not now. It is simply a reaction to the unprecedented short squeeze taking place in the euro. End of story; try not to over think it.

As the summer winds down and the economy continues to drag along, people will lose patience and attempt to smash each others brains out—just in time for Halloween.

Bank on it.

NOTE: I sold out of SWN and FAZ. I added to VXX and started a position in SCO.

The Federal Reserve is a criminal organization and should be treated as such. Their decision to “reinvest” into U.S. Treasury debt is tantamount to conducting a grand ponzi scheme. Nonetheless, investors like these policies, due to their misguided beliefs that free money equals inflation and inflation means higher equity prices.

These people are fucking lying to you.

Higher inflation is NOT good for stocks. As a matter of fact, the type of inflation that many gold bugs are clamoring for will ruin the United States. Now, if you are simply in it for a trade, so be it. However, nothing good can come from policies that extend the nonsensical policies in place, instead of moving forward with something that can actually help my neighbors buy more Coach bags.

NOTE: For the record, I am positioned to buy dips, with a cash position north of 40%. While my personal accounts are entirely bearish, I would like to see this market decline, so that I can put money to work. At the moment, for clients, I have a slight bearish tilt, but nothing too aggressive.

Top picks: GLW, VXX

UPDATE: I swapped out my FAZ position for SCO

As much as I want to sell all of my longs and embrace the horror (shout out to Krull) of the stock market, I know better. Ahead of the Fed, it makes little sense to trade anything. Additionally, the initial reaction of the market, after the Fed news, is usually a head fake. ROFL. It’s so fucking stupid; but it’s true.

Anyway, let’s pick this conversation up after the Fed, shall we?

There are illogical answers to just about everything. For example: why is oil going higher?

Answer: people need it.

Or, why was housing going up in 2006?

Answer: land banks.

If you trade for a living, it is your job to ignore misinformation and punish those who send it to you. Today’s biggest culprit of misinformation, by far, is CNBC. You should punish those fuckers, by way of throwing a chair through your television. Granted, I will still be watching CNBC, for the entertainment it gives me— watching them do silly shit on the teevee. Frankly, it’s like watching monkeys groom each other on the animal channel, only better. But you guys do not need entertainment. You need coin; so get fetch a chair.

Like the ruins of Puma Punku, you are not supposed to understand what the fuck is going on. When things get real sporty or stupid, I clam up, sans the beard, and make it a point to “do no harm.” As you are busy fucking goats and picking lillys from your fields of horse manure, “The Fly” is working real hard at not working at all. Do you understand me boy?

I have things to partake in, all to do with the arts of masterful money management. You all would like to see me hit grand slams every day and I appreciate your sentiments; I truly do. However, you must understand, there is no one on base right now, so fuck off and go eat an egg sandwich.

Good night.

Full disclosure: the longer it takes for the prophecies of “The Fly” to come to fruition, the more painful the event will be. I warn you of this, as if it meant the separation of your head from torso, as it might very well happen (with time).

Off to punch grandfather clocks in the face.

Hey folks, it’s that time of week again: Mutual Fund Mondays. Bask in the warmth of your local mutual fund manager, as he pisses down your neck, allocating new money into equities.  Using this logic, the market shall never go lower again, since there is some sort of fucked up, insidious, never ending flow of bullshit dollars pairing up with stocks.

Back to the argument of jobs: we don’t need them. End of discussion.

Back to the debate over to QE or not to QE:

It appears Bernanke is prepared to partake in a little “zero hedging” by way of  “not really giving a fuck” about the downside risks associated with monetizing debt. If you step back and really look at the Fed, you have no choice but to say “how the fuck are they allowed to get away with that?” But it doesn’t matter. Just be sure to pay your taxes and never mouth off to anyone in power, else find yourself checked into a mental institution, against your will.

Stocks will large short positions are sprinting forward, like SHLD, FSYS and SPWRA. Once again, you cannot help but to laugh at everything, for its simplistic poetic parallels are all too confounding to rationalize. Nevertheless, I remain obtuse in my bullish positioning, opting for the “do nothing” over “do something and regret it later” mantra. Granted, had I cast my doubts aside and levered up on some TNA to the tits, I’d be praising my superior IQ and dick size over yours, right about now.  But, it was not meant to be, just like Matt Simmons was not permitted to live, after betting against the New World Order, via BP.

I am being FORCED, mind you, to look at long positions. I do not want them at all. As a matter of fact, I want to be 1,000% Direxion stupid, head tilted far to the left, retard short, going into the Fall. I will say, in my estimation of course, there is 100% chance of a sharp decline this Fall. The only issue is: will it dive from 10,600 or 11,200? That is the question that must be begged and answered!

All of the “stuff” that people point to as reasons to own stocks, I spit on them with grave disdain. There is nothing in this market that pleases me, from asshole low rates to the stupid new nature of the yen. Yes, I understand quantitative easing and I am keen to the fact that the market may go up on more free money news. But, it’s all bullshit. We are simply spinning our wheels in the mud, all the while digging ourselves a deeper hole.

Nevertheless, it is my job to protect accounts and adhere to the laws of market forces, instead of bowing to ideology. I’ve pulled back by about 10% in recent weeks, due to a flurry of anomalies, all to do with “The Fly” being wrong. I am not surprised or “taken aback” by my recent set-backs. Betting against me is like pushing up against a 6 foot coiled spring. Eventually you are going to get tired and I will push your weak ass into outer-space. As time goes on, the odds of Le Fly being exactly right rise, exponentially.

When I do claim victory and subsequently piss on your heads, you will remember to never bet against me. Most of you are waiting for my downfall. You figure all good things must come to an end, Senor Tropicana included. See, that’s where you’re fucking wrong pal. “The Fly” is like an energy force that cannot be quantified or contained. He is wild, out in the open, “mushroom clouding” friends and foes alike. Admittedly, I am behaving like a spoiled brat, who is throwing a fit because someone just shit on his favorite GI Joe toy. However, rest assured, I will have my revenge.

In closing, I am biding my time; but I need to add one position to the mix.

More on this later.

It looks like we’re back to small daily melt-ups, a world where good is great and bad is good. Complacency is back in force, as evidenced by the low readings of the Vix. And, commodity prices are through the roof. It’s an odd mix, really. We have record low yields and soaring commodity prices. Am I missing something here or does that make sense?

Today’s big standouts are the retailers. Stocks like JWN, BKE and CONN are punching mustaches off. I find myself in a difficult position, on one hand waiting for a pullback. However, on the more obvious hand, trying to participate in this summer rally. I will likely add one more name to the mix today, in order to further enhance my long exposure.

NOTE: Mark Hurd is still a fucking pervert.