This current slide is a bit different than the ’09 variety. I am seeing aggressive selling, spearheaded by retarded government policy mishaps. The end result: bulls are having their faces punched in by burlap boxing gloves.
We’re all trying to decipher the market, in order to best determine where to put our worthless fiat money. I can tell you, looking over The PPT, [[SRS]] and a variety of others ETF’s (which were flagged as buys yesterday) are registering their highest scores ever recorded in PPT history (1year). What does this mean? Well, for one, it means that people are buying the inverses again and the volume is being flagged by our PPT algorithms as being very bullish. On the other hand, typically when a stock hits an all time high or low score in The PPT, it often represents oversold/overbought ranges. One of the main new features of PPT 2.0 will be to automatically identify oversold/overbought conditions. Remember, stocks always look the best at the top and worst at the bottom. For the year, Flotek Industries, Inc. [[FTK]] is up more than 60%. Most people thought they’d be at zero by now.
Anyway, it’s important to view this sell off as legitimate, in the sense that money managers are not happy with Obama’s plans to fuck the banks. I know the banksters are evil and they should all be rounded up and sent to Nike prison factories in Vietnam. However, remember this asshole, without banks doing their dirty deeds, America would be a 2nd rate nation (oh, shit, irony!).
If you are inclined to use this sell off to buy stocks, buy the very best. Don’t bother with low end names that can “ape-rape” you if you are wrong and the market continues to get “burlap-punched.” At the top of my menu are steel stocks, like United States Steel Corporation [[X]] , POSCO (ADR) [[PKX]] and Nucor Corporation [[NUE]] . Also, I like select tech names down here, like Equinix, Inc. [[EQIX]] , TEKELEC [[TKLC]] and [[RAX]] .
In closing, I sold a little bit more today, upping my cash position to about 16%. I am taking hits and not enjoying the carnage. Nevertheless, it is my belief we shall bounce soon and hard. Instead of adding to names here, then having to worry about it over the weekend, I elected to “slow my roll” and reserve my buy orders for Monday, which may coincide with The PPT‘s legendary oversold reading (below 2.30).
NOTE: Here is some melodramatic music for you fucking drama queens getting blown out into the bell. NEVER use margin, unless used for the purposes of hedging.
[youtube:http://www.youtube.com/watch?v=T20PLsUZsZA 616 500]
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