Freezing Myself Here

I don’t want to give back recent gains. Normally, I Iet the market run its course. However, this time, I am making a stand and will protect my gains.

There is no denying the mental illness that has infected the minds of dip buyers.

Nonetheless, I have decided to cover all of my shorts, with exception to Legg Mason, Inc. [[LM]] , First Horizon National Corporation [[FHN]] , Vulcan Materials Company [[VMC]] and Pzena Investment Management, Inc. [[PZN]] .

I will cover all my of my brokerage shorts, including Goldman Sachs Group, Inc. [[GS]] , Lehman Brothers Holdings Inc. [[LEH]] , Morgan Stanley [[MS]] and even Merrill Lynch & Co., Inc. [[MER]] .

The little ones, like Cathay General Bancorp [[CATY]] , Pacific Capital Bancorp [[PCBC]] and East West Bancorp, Inc. [[EWBC]] : gone.

And, I will cover Bank of America Corporation [[BAC]] .

Lastly, I sold out part of my [[SKF]] , [[SRS]] and [[FXP]] positions, perfectly willing to miss out on “large penis gains” (pardon the lack of curse words), in return for safety of principle.

In an effort to hedge my existing shorts, I will go long [[UYG]] , [[RKH]] , Southern Copper Corporation (USA) [[PCU]] and Yamana Gold Inc. (USA) [[AUY]] —in size.

Don’t ask why or if I got banged over the head with a large “homo hammer.”

For me, at this moment, it is the right thing to do.

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I sold 10,000 shares of each of the above inverse etf’s.

NOTE: Trading move.

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I bought 10,000 [[DIG]] @ $89.10.

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I covered my Marshall & Ilsley Corporation [[MI]] and Comerica Incorporated [[CMA]] shorts, buying 5,000 @ $13.62 and 1,000 @ $25.68.

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I have a lot of respect for the work Mr. Miller put into the industry, over the years. However, like old baseball players or one legged track stars, it’s time for him to retire.

He has done an abysmal job with his assets under management, as of late. But, at the same time, he has done a splendid job driving Legg Mason, Inc. [[LM]] into the dirt, without a pine box.

We all know the headlines:

Bill Miller fired by Mass Pension

Bill ups his stake in Freddie Mac, despite looming disaster.

And, my favorite, Bill says “it’s a tough market.”

So where am I going with this, you query?

Bill’s funds are all down nearly 30% or more in some cases, year to date. In this business, your track record means nothing. You are only as good as your last trade.

I can almost promise, Legg Mason will see its assets under management shrink drastically, as pension funds reevaluate their options, with regards to egregious money management.

In short, the entire Legg Mason Family of funds is down more than 24%, year to date. This is a disaster.

Here are some of their top holdings:

Amazon.com, Inc. [[AMZN]] – 6.6%

The AES Corporation [[AES]] – 4.8%

Aetna Inc. [[AET]] – 2.6%

Yahoo! Inc. [[YHOO]] – 2.6%

eBay Inc. [[EBAY]] – 2.5%

Google Inc. [[GOOG]] – 2%

JPMorgan Chase & Co. [[JPM]] – 2%

UnitedHealth Group Inc. [[UNH]] – 2%

Eastman Kodak Company [[EK]] – 2%

Citigroup Inc. [[C]] – 1.9%

Other holdings include:

[[FRE]], Sears Holdings Corporation [[SHLD]] , Hewlett-Packard Company [[HPQ]] , International Business Machines Corp. [[IBM]] , Time Warner Inc. [[TWX]] , Electronic Arts Inc. [[ERTS]] , Qwest Communications International Inc. [[Q]] , General Electric Company [[GE]] , Nokia Corporation (ADR) [[NOK]] , Level 3 Communications, Inc. [[LVLT]] , NII Holdings, Inc. [[NIHD]], American International Group, Inc. [[AIG]] , Merrill Lynch & Co., Inc. [[MER]] , Capital One Financial Corp. [[COF]] , J.C. Penney Company, Inc. [[JCP]] , Cisco Systems, Inc. [[CSCO]] , Texas Industries, Inc. [[TXI]] , Bank of America Corporation [[BAC]] and Amgen, Inc. [[AMGN]] .

It’s worth noting, Bill has HUGE bets on both AMZN and AES. Coincidentally, I regularly spit on AMZN. Should AMZN drop, it’s lights out for Legg Mason, Inc. [[LM]] .

Conclusion: My top short idea is LM.

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Boy did I miss it.

During the two weeks that inflation was dead or “morte,” I didn’t know what to do with myself. All of these years, I have convinced myself into believing stark craven criminals were controlling the price of crude and other commodities. With this in mind, I knew oil would manage to gap higher and deball century old industries with great vigor, on a regular basis.

Seeing crude up $4 this morning comforts me.

See, I can deal with the evil that I know is there. It’s the people who go out and buy Bank of America Corporation [[BAC]] or Lehman Brothers Holdings Inc. [[LEH]] on the pending liquidation of Fannie Mae [[FNM]] that scares me.

salesforce.com, inc. [[CRM]] is getting its head split in half. I never understood why those losers got to enjoy such a high multiple.

With regards to oil: just buy one, you retarded ape licker.

I like National-Oilwell Varco, Inc. [[NOV]] , Transocean Inc. [[RIG]] and Arena Resources, Inc. [[ARD]] .

Also, with the dollar breaking lower, go get some Yamana Gold Inc. (USA) [[AUY]] , Potash Corp./Saskatchewan (USA) [[POT]] and [[DGP]] .

All of my bank shorts are working. If I had to bank on one bank short, I’d say go with Pzena Investment Management, Inc. [[PZN]] . But, if you can’t do that, without a doubt, bet against Bill Miller via selling short Legg Mason, Inc. [[LM]] .

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Yen at two week highs versus “King Dollar.”

Watch [[FXY]] for proof. And, apparently, [[DGP]] isn’t dead. What do you know?

Developing…

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They just cut the share price estimate and now predict a loss of more than $3.00 per share, as opposed to their estimate of a loss of .41.

So much for that 3rd quarter bank rally that Guy Adami was counting on, talking about “mark ups” and egregious stuff like that.

Someone get me a guillotine.

Developing…

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[youtube:http://ru.youtube.com/watch?v=v5uDY3ItoLs 450 300]

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Coked out money managers and piker retail investors dove head first into banks today, on the thesis that the Government always makes things better. There was no fundamental reason to get long, with oil higher and Fannie Mae [[FNM]] /Freddie Mac [[FRE]] on the cusp of disaster.

In my opinion, this is the worst type of moral hazard:

Through innovative and historic measures, taken by the Fed and Treasury, they (Gov’t cheese makers) have morphed Wall Streeters into upright walking pigs, always willing to take a stab at socialism.

This, as you can understand, is not how free markets work.

With the credit crisis in full blown mode here, I wouldn’t touch the banks, unless of course I was managing money for the Iranian Sovereign Wealth Fund.

Eventually, as predicted by many, the cheese makers will run out of dairy, unable to make new cheese. Then, and only then, will the market be able to correct itself and eliminate the weak/corrupted players.

For the day, my losses were minimal, as long positions in National-Oilwell Varco, Inc. [[NOV]] , Barnes & Noble, Inc. [[BKS]] , Clean Energy Fuels Corp. [[CLNE]] and Wachovia Corporation [[WB]] , amongst 90% of my financial shorts, buoyed me.

In addition, I have built a small cash position of 5%, which will be used to buy [[FXP]] under $85 or [[SKF]] under $125.

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