T.I. – Whatever You Like

[youtube:http://www.youtube.com/watch?v=nQJACVmankY&feature=rec-fresh 450 300]

instead of offering meaningless rants, I will end the day with a blueprint for this market. I have numerous trades in place, some are working, some are inverse ETF’s. In order to survive this tape, I think it’s important to have a strategy.

Here are a few of my current positions:

Long bias:

Health care: Auxilium Pharmaceuticals, Inc. [[AUXL]] , Valeant Pharmaceuticals International [[VRX]]

Financials: Assurant, Inc. [[AIZ]] , Credicorp Ltd. (USA) [[BAP]] , Wachovia Corporation [[WB]]

Energy: National-Oilwell Varco, Inc. [[NOV]] , Clean Energy Fuels Corp. [[CLNE]] , VeraSun Energy Corporation [[VSE]] , Aventine Renewable Energy Holdings, Inc. [[AVR]]

Industrials: Lockheed Martin Corporation [[LMT]] , General Dynamics Corporation [[GD]] , KB Home [[KBH]] , The St. Joe Company [[JOE]]

Consumer Discretionary: Barnes & Noble, Inc. Barnes & Noble, Inc. [[BKS]] , Chipotle Mexican Grill, Inc. [[CMG]] , J. Crew Group, Inc. [[JCG]] , Starbucks Corporation [[SBUX]] , Hansen Natural Corporation [[HANS]] , NutriSystem Inc. [[NTRI]]

Consumer Staples: The Clorox Company [[CLX]]

Materials: [[DGP]]

Telecom: nothing

Utilities: nothing

Watch list: Ultra Petroleum Corp. [[UPL]] , The Mosaic Company [[MOS]] , Focus Media Holding Limited (ADR) [[FMCN]] , Arena Resources, Inc. [[ARD]] , ConocoPhillips [[COP]] , DryShips Inc. [[DRYS]] and Zumiez Inc. [[ZUMZ]]

Short Bias:

Inverse ETF’s: [[SKF]] , [[SRS]] , [[FXP]] and [[DUG]]

Equities: Lehman Brothers Holdings Inc. [[LEH]] , Vulcan Materials Company [[VMC]] , TCF Financial Corporation [[TCB]]

Watch list: Marshall & Ilsley Corporation Marshall & Ilsley Corporation [[MI]] , [[FED]] , Cathay General Bancorp [[CATY]] , East West Bancorp, Inc. [[EWBC]] , First Horizon National Corporation [[FHN]] , Potash Corp./Saskatchewan (USA) [[POT]] , Martin Marietta Materials, Inc. [[MLM]] and Terex Corporation [[TEX]]

I do not trust this market. It has been disobeying my wishes for several weeks now. While this circumstance may prompt you to believe “The Fly doesn’t have it anymore. He is like an old sea hag at the end of the bar.” I will remind you: I never lose.

My losses are always temporary, dating back to my birth.

As an aside, I reduced some of my short positions today, only because I need a better balance. Much to my chagrin, I was caught heavily leaning on shorts. As a result, while walking through the forest of market wisdom, I tripped over a Vietnam era trip wire, effectively blowing my legs and arms off.

However, my torso is being refit with robot limbs, which can punch chest hairs off at a rate of 200 per second.

With that being said, with the addition of my new longs: Barnes & Noble, Inc. Barnes & Noble, Inc. Barnes & Noble, Inc. [[BKS]] , Chipotle Mexican Grill, Inc. [[CMG]] , Hansen Natural Corporation [[HANS]] , NutriSystem Inc. [[NTRI]] and KB Home [[KBH]] , I am content with my current mix. And, I am averaging down in [[SKF]] and [[SRS]] here, in very small increments.

Finally, try not to ignore the bad news for too long. This “death to oil” rally will only take us so far.

Top picks: SKF, CMG, BKS

On low volume, things are moving fast. For the moment, I will ignore the volume and take the market at its word.

We have a significant breakdown in gold, which is giving the bulls open field to run. Rehashing the news is irrelevant, since it has no bearing on price action, at the present.

I went long a variety of names, mainly to hedge my depreciating short positions. I reduced some of my exposure in [[FXP]] , only because it’s up. Basically, I needed the cash to do other things.

Following the current theme: kill the shorts. I like: Barnes & Noble, Inc. Barnes & Noble, Inc. [[BKS]] , NutriSystem Inc. [[NTRI]] , Chipotle Mexican Grill, Inc. [[CMG]] , Hansen Natural Corporation [[HANS]] and KB Home [[KBH]] .

However, keep in mind, the market has limited upside here. This is the part when it seems easy to make some coin going long. Next thing you know, it’s elevator down and you’re crying in your garage again.

There’s no ignoring the carnage in [[SKF]] and [[SRS]] . Lots of shorts have been flame broiled. I suspect many of those burgers are being flipped out of their positions today, either by their own volition or the margin clerk. Either way, all of these things combined are causing stocks to spike, like GameStop Corp. [[GME]] and Best Buy Co., Inc. [[BBY]] .

In short, take advantage of the short squeezes, but keep all open positions on a short leash. I can’t help but think, the banks will pullback soon.

I sold 10,000 [[FXP]] @ $82.

I bought 3,000 Barnes & Noble, Inc. Barnes & Noble, Inc. Barnes & Noble, Inc. Barnes & Noble, Inc. [[BKS]] @ $26.80, 2,000 Chipotle Mexican Grill, Inc. [[CMG]] @$75.65 and 5,000 KB Home [[KBH]] @ $19.90. And, I bought 5,000 NutriSystem Inc. [[NTRI]] @ $19.68.

UPDATE: I bought 500 [[SKF]] @ $108.77 and 500 [[SRS]] @ $80.77.

Disclaimer: If you buy the above stocks because of this post, you will slip on a banana peel and into live subway tracks. And, you may lose money,

These are happy times for bulls. Nothing seems to stop the march higher, not war, egregious bank losses or unchecked gains. Naturally, when bad news is ignored the markets are in good shape. For the time being, I will accentuate my bullish picks, as my shorts get juggled around by drunken clowns. However, keep in mind, I still loathe the market and wish it lower, on a second by second basis.

Okay, putting on my bull hat (it has two knives and a gun on it), I can tell you retail will benefit from the bullish sentiment. And, any company that has been hurt by higher oil should go higher too, now that commodities are “old hat.”

One obvious beneficiary is FedEx Corporation [[FDX]] . Coupled with that is Amazon.com, Inc. [[AMZN]] .

The thought process is to be long “early cycle recovery names.” If the U.S. picks up growth, both of the above names will benefit, almost immediately. Plus, I believe AMZN offers free shipping to its customers. So, any reduction in crude will definitely help their margins. Needless to say, it’s an erroneous argument, specious at best; but it is working.

On the retail end, stocks like Coach, Inc. [[COH]] , [[M]] and J. Crew Group, Inc. [[JCG]] have been blown up. They can run. And, for a dice roll, take a look at Zumiez Inc. [[ZUMZ]] .

In the food and beverage space, I like Hansen Natural Corporation [[HANS]] , under $25. I am somewhat gravitated to the name; don’t ask me why. This morning I bought a small piece. Basically, the stock is trading at a ridiculously low valuation. Plus, they’ve been hampered by raw material/transport costs too. With the recent commodity swoon, perhaps some of their input pressures will abate.

Once again, the banks are running higher. I cannot and will not buy them up here. No fargin way.

Buying the banks here is just asking for a beat down. No thank you, Mother Market, I’ve had enough.

Speaking of lunacy, take a look at the casinos: Wynn Resorts, Limited [[WYNN]] , MGM MIRAGE [[MGM]] and Las Vegas Sands Corp. [[LVS]] .

That’s another sector way ahead of itself.

Let me guess the rational: jet fuel costs will lead to cheaper airline tickets. As a result, degenerates will flock to Vegas like bad clothes to old dudes.

I don’t think so. It’s just a short squeeze.

Speaking of short squeezes, fat folks are bidding up NutriSystem Inc. [[NTRI]] . There is such a large short position there. I am sure the breakdown of commodities helps them too.

Finally, it’s worth noting, gold and oil are at critical junctures right here. If the uptrend is really to be broken, it will happen soon—especially in gold. If not, well then, stocks like Yamana Gold Inc. (USA) [[AUY]] , Goldcorp Inc. (USA) [[GG]] and FCX are incredible buys. With my money, I rather wait for confirmation, prior to taking that bet.

More on this later.

It only represents 1% of the worlds daily supply of crude (1 million barrels per day).

On this news, oil should go down by at least $15 and the Dow should rise by 500—considering we are in a ‘Costanza Market.’

Technical analysis is equal to writing on walls with feces. And, it’s for lazy/ignorant people too.

UPDATE: Howard finally made it big. By far, this is his best video ever.