And the Worm Turns

Enough of the disillusioned haranguing.  This market is a piece of offal, wrapped in bacon, fried up real nice, served on a garbage pail cover.

Foreign related names are getting lit up, most down more than 15% over the past 2 weeks. Commodity related stocks are down more than 10%. Tech stocks are down more than 10% and retail names are sucking dick too. To sit here and tell you “everything is great” would mean that I am a psychopath, unable to feel the emotion called “frustration.” As cold and calculating as I am, this market is uncomfortable and needs to get going soon, else I will lose my patience and throw bananas at it.

Lots of names are trading at compelling valuations; but I will not bore you with my picks. If and when we turn up again, most stocks will charge higher in a convoy. The million dollar question is: when?

The last reading of the Overall PPT score was in the 2.30’s, not too far away from the historical oversold levels of sub 2.30. Once again, not to get all redundant and shit, I was crazy enough to be long stocks into the teeth of the 2009 “Great Depression.” I consider myself equally crazy to be long here, ahead of Mr. O’bama’s egregious “state of the Union” address.

At the end of the day, I have zeros in my fucking checking account. All of this shit is sport to me.

I bought 5,000 Cummins Inc. [[CMI]] @ $47.35 and 5,000 Nucor Corporation [[NUE]] @ $44.40.

Disclaimer: If you buy the above stocks because of this post, you will find out at a much later date that your prized $50,000 Rolex time piece was in fact a counterfeit, effectively meaning that you would have lived out your life as a liar and a fraud, aside from being bamboozled like a 16 year old kid at the “follow the bee” street card game. And, you may lose money.

Some people love to trade the opening tick. Personally, I hate it. At the open tick, morons flood the markets with rushed orders, causing wild swings in prices. If you must trade in the morning, try your luck at around 10am. By then, most of the overnight bullshit is digested and the market is defining its path for the day.

United States Steel Corporation [[X]] posted disappointing earnings. I am tempted to buy some down here. However, I’m already long POSCO (ADR) [[PKX]] and Nucor Corporation [[NUE]] . Plus anyway, I’m perfectly content bleeding out with a 12% cash position. I find no need to go “all in,” unless there was a real reason to do so. I’m not blind. I can fucking see the market trending lower. I will go “all in” if the market reverses to the upside with conviction or if The PPT‘s Overall Hybrid score dips below 2.30.

Everyone is bearish on China, all of a fucking sudden. On the China dip, I like Ctrip.com International, Ltd. (ADR) [[CTRP]] .

Let me make one thing abundantly clear: my patience is not infinite. Should things continue to go against me, I will get proactive and trade my way out of this tape. However, for now, I will stick to the game plan and treat this dip the way all assholes dip buyers treat declines: “buyable.”

Off of the Apple Inc. [[AAPL]] monster quarter, I like TEKELEC [[TKLC]] —major vendor for the at&t network. And, providing I get motivated, I might buy another at&t vendor: ADTRAN, Inc. [[ADTN]] .

Bottom line: This tape sucks; but I remain steadfast, not so much different than George Washington at the Battle of Trenton.

NOTE: I sold out of W.W. Grainger, Inc. [[GWW]] despite great earnings. The stock is down on great earnings and I hate that, so it’s gone.

Poor brainwashed kid. Willing  victim of slave labor

Fuck recycling. You tree hugging dipshits can separate the plastics from the wood; I throw everything in one big disgusting bag, so that the slobs, better known as “garbage men,” can pick it up for me and toss it in their filthy trucks. Trust me, I’m not being a snob about this, nor do I hate the environment. I’m just painfully indifferent to the plight of the recyclers. The way I see it, the city is making coin off of my labor: fuck them and their environmental edicts.

This is a point of contention in The Casa de Fly, as Mrs. Fly is a HUGE advocate of recycling. She figures by stacking our blue garbage bins with empty Monster Sodas, the world will be saved and the sea lions will have icebergs to lay out on.

FUCK THE SEA LIONS and FUCK ICEBERGS. As far as I’m concerned, icebergs never did shit for me; why should I care about them?  Any of you folks every hear about the Titanic?

As a result of my anti-recycling behaviour [sic], the garbage nazis have targeted me and leave tickets on my door, just about once per week. They must think $50 fines will deter “The Fly” from pursuing his egregious course of action, which is to not give a fuck about recycling. I throw banana peels inside of my milk cartons, then throw them inside empty LCD tv boxes and place it on the curb. Who said I wasn’t a gangster?

Fuck the Department of Sanitation aka “Recycling Nazis,” and their $50 fines. They must not know how much money I have in my fucking checking account.

You should see those fat bastards rummaging  through my fucking trash—like upright walking pigs— just to catch me with a  few plastic bottles mixed in with my chicken bones. At the end of the day, I refuse to be a victim of SLAVE LABOR, sorting shit out for assholes with an agenda. I don’t play that game. As a matter of fact, I don’t play any games: I make them. Remember that shit, always!

More on that topic at a later date.

Be well.

NOTE: Let’s hope Mrs. Fly doesn’t catch wind of this subversive blog.

Instead of trying to time [[FAZ]] and [[SRS]] trades, why don’t you build a list of longs worth buying at a discount? If you assume we are on the other side of the mountain and there is nothing but downside left, you are sorely mistaken.

People of the internets: Benjamin Bernanke will toss pinless hand grenades into your surprise birthday party celebrations, just before stealing your cake. It is not wise to bet against men with printing presses. It is not wise to bet against men who own space rockets (Le Fly).

For the day, I nibbled, every so gingerly; but I nibbled nonetheless.

Should we push the envelope here, buoyed by solid quarterly earnings, the short sellers will regret the day their parents made them. Into a melt up, I insist: look towards steel names, like Nucor Corporation [[NUE]] , Mechel OAO (ADR) [[MTL]] , POSCO (ADR) [[PKX]] and United States Steel Corporation [[X]] .

Within tech, I like Ctrip.com International, Ltd. (ADR) [[CTRP]] , TEKELEC [[TKLC]] and Equinix, Inc. [[EQIX]] .

Other names worth purchase include W.W. Grainger, Inc. [[GWW]] , Cummins Inc. [[CMI]] , Masco Corporation [[MAS]] , SandRidge Energy Inc. [[SD]] and yes Flotek Industries, Inc. [[FTK]] .

In order to get me bearish, I need to see book to bill ratios collapse. I need to see the unemployment rate continue its path higher. And, most importantly, I need to see earnings warnings from our big corporations. It is not enough to see weak banks, mainly because the banks are impaired to begin with. They are in a period of adjustment and are not good long term investments. Should bellwether tech and industrial names warn, THAT and only THAT will convince me to lower the boom and throw on some hedges.

Until that happens, I will view all sell offs as buying opportunities.

Oh, I forgot about “the idiot tape,” where people sashay in and out of stocks, as if they were trying on dinner costumes at their local Bergdorf Goodman.

You know what: I’m just going to walk out of this fucking office and go for a walk in the rain. Nothing says “fuck you” like a good stroll in the rain, sans the luxury of an umbrella. The market is up up up, then down down down. It’s too much already. We’ve dropped 500+ points in a few short days and some of you morons want another 5,000. Fuck off and go throw yourself into a lit fireplace.

I’m not backing away from my bullish proclamations, despite this knee-jerk tape. Although, there are a variety of things that can convince me to sell short—which I will discuss at a later date. Nevertheless, I insist: this is a LONG ONLY market, unless of course you’re into swimming with chum on your face in the middle of shark infested waters.

Off for my long walk.

All of you doom and gloomers are tasting the steel of the Federal Reserve this morning, served molten hot by the Chief, Benjamin Bernanke. Over the weekend, the bears were running around in their burlap dresses, snatching portable video game devices from young children, while peddling furiously on their stupid bicycles. Once again, it doesn’t matter what you think, since the world is hell bent on higher prices. When I say “hell bent,” I do not mean garden variety “meh, let’s send stocks higher” conviction. I am talking about “let’s bet the world on this shit going higher (spoken in extraordinarily deep baritone voices),” certitude.

So, before you go out and bet against men with big beards and loaded pistols, think about how insignificant you are and trade accordingly.

As predicted, steel stocks are surging ahead, on the back of good earnings from AK Steel Holding Corporation [[AKS]] . Additionally, euro-fag banks are gapping, including [[RBS]] , Barclays PLC (ADR) [[BCS]] , Credit Suisse Group AG (ADR) [[CS]] and Deutsche Bank AG (USA) [[DB]] .

With my money, I am taking the advice of The PPT‘s oversold signals in steel and initiating a position in Nucor Corporation [[NUE]] , just north of $45.10. And, because I can, I’m buying more Cummins Inc. [[CMI]] and Ctrip.com International, Ltd. (ADR) [[CTRP]] .

I’m thinking the sell off is over and we’re going straight the fuck up; but I could be wrong. What do I know? I’m just a space alien magician with an IQ just north of 155. I’m also thinking I need to add to my Green Mountain Coffee Roasters Inc. [[GMCR]] position ahead of earnings. Those motherfuckers are stealing money from people, by way of selling K-Cups with absurd profit margins. Then again, life is all about increasing profit margins, much to the chagrin of the low-enders who jerk-off at shopping malls.

“The Fly” is into the idea that slapping people with hot hamburgers has a future in motivating others to stop acting so damn childish. I do not mean to be harsh or speak out of line; but most of you deserve several big macs to the nose, AND MORE.

In summary: I’m buying stocks down here because behaving in such a manner has made me rich-er over the past year. My picks are Nucor Corporation [[NUE]] , Ctrip.com International, Ltd. (ADR) [[CTRP]] , Cummins Inc. [[CMI]] , POSCO (ADR) [[PKX]] , Equinix, Inc. [[EQIX]] , TEKELEC [[TKLC]] and Flotek Industries, Inc. [[FTK]] .

NOTE: For those of you who are late comers aka lazy yam eaters, iBC welcomed Scott Bleier to the team today. Be sure to tune into his daily morning radio show, which is simulcasted live here from 9am to 10.

The CreateCoin blog, hosted by Scott Bleier. It’s sort of a clever mash up between our sites, Createcapital and iBC. Scott will not only blog here on iBC, providing the legions of iBC readers with in your face, yet accurate, stock calls; in addition, he will simulcast (live) his daily morning radio show (9am-10) and contribute market commentary videos. He will do all of this, AND MORE!, just because he is a nice guy and wants to help out the downtrodden internet investor; plus there is a minor monetary incentive for Scott to perform such charitable acts, indeud.

For some of you market veterans, you might remember Scott from his frequent guest appearances on CNBC, back in the 90’s. More recently, he co-hosted Bulls and Bears on Fox News. With Scott, you will not get putty mouth bullshit, milquetoast market calls. Scott, like myself, makes bold market calls and is my personal favorite teevee market commentary personality. Needless to say, I am quite pleased bringing Scott on board. Without a doubt, the addition of Mr. Bleier, to the iBC team, will help Senor Tropicana in his quest to puncture oblique-slip faults in the teutonic plates, directly underneath the headquarters of his enemies.

As an aside, Denninger is out with a warming Sunday night piece, calling for the markets to go to zero. There is nothing better than a Karl rant, immediately following a couple of great football games. All jokes aside, I’d love to hang with Karl and get him drunk; then talk him into some long term positions in American International Group, Inc. [[AIG]] , Citigroup Inc. [[C]] and Fannie Mae [[FNM]]—maybe of the call option variety. Unlike other market bears, Karl doesn’t seem to have an agenda, which is why I think he’s great. He is deeply fucking offended by the government and their banksterism. I wish I had it in me to get all crazy, calling for ZERO on the markets and shit. For now, I’ll settle for 11,000.

[youtube:http://www.youtube.com/watch?v=WwlNPhn64TA&feature=related 616 500]

TSAR BOMBA in your face!! Coming soon to iBC, a new tabbed blogger. This time we’re going interactive, and shit. I will unveil this gift from “The Fly” to you very soon AKA “tomorrow.” In the meantime, enjoy looking at the TSAR BOMBA.

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]