A Special Message From Merlin, Regarding the Market

Poof. Your bullshit rally is gone.

–Merlin

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I bought 1,000 [[SRS]] @ $80.

Disclaimer: If you buy SRS because of this post, carpenter ants will eat your bullshit patio. And, you may lose money.

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All sorts of alarms, flashing lights and warning signals are going off in “The Fly’s” office.

Just know, when the shit hits the fan (pardon my excessive use of the word “shit”), “The Fly” will not be able to help you. You must have a game plan ready for the pending reversal.

Oh, it’s going to be awful. It will look like the end of days, part II—with all of its trimmings.

This rally is being fueled by speculative fervor. All of the low-end stocks are melting up, but the big ones are down. This tells me, we are close to a correction.

Make sure to be hedged.

Currently, I am short [[POT]], [[MER]], [[LEH]], [[FED]], [[DSL]], [[FHN]], [[CORS]], with downside exposure via [[SKF]], [[SRS]] and [[FXP]].

My bias is slightly to the upside, but will switch rapidly—as needed.

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I sold 2,000 [[NOV]] @ $79.50.

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[youtube:http://www.youtube.com/watch?v=G_LIQB2NPtM 450 300]

Insightful

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Most likely, we are in the extreme latter stages of the rally. To borrow a phrase from someone in the comments section: this is the seeds and stems rally.

Stocks like [[MXC]], [[GEOI]], [[FPP]], [[ROYL]], [[SYNM]], [[MPET]] and [[PDO]] are just rolling on bears, while some of the bigger names sit the rally out. Cajun and I nailed MXC at $8, but failed to act.

Anyway, during the “seeds and stems rally,” you want to be long the most hated/reviled names, with tight stops.

For example: ethanol, networkers and refiners.

Is there a sector more despised than ethanol?

They’re fucking burning corn, while the world starves. Sweet.

Within ethanol, I own [[VSE]], [[AVR]] and [[BIOF]].

My watch list includes:

[[PEIX]], [[MGPI]], [[RTK]], [[CZZ]], [[GPRE]] and [[XNL]].

Within the refiners, I am long [[VLO]].

My watch list includes:

[[CLMT]], [[TSO]], [[HOC]], [[ALJ]], [[DK]] and [[SUN]].

Within the networkers, I am long [[FNSR]] and [[EQIX]].

My watch list includes:

[[MRVC]], [[CNXT]], [[SVVS]], [[AVNX]], [[RVBD]], [[INAP]], [[TLAB]], [[JDSU]], [[LVLT]], [[SDXC]] and [[LLNW]].

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I bought 5,000 [[AVR]] @ $5.50, 10,000 [[VSE]] @ $7.25, 2,000 [[AUY]] @ $15.30, 2,000 [[PCZ]] @ $59 and 5,000 [[FTK]] @ $18.50.

DISCLAIMER: If you buy any of the above stocks because of this post, your neighbors will spread false rumors about your liquidity. And, you may lose money.

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I sold 5,000 [[NOEC]] @ $6.

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Keep in mind, at the time this post was written, “The Fly” was under the hallucinatory affects of massive doses of allergy medicine.

No one can stop me. I’m like Batman (the new “cool” one, not that homo from the television show) beating down Jokers (bears), while pulling boats and RPG’s from my “utility belt” and shit.

As you know, “The Fly” has multiple wins taking place today, specifically in [[FNSR]], [[VSE]] and [[FTK]].

I just buy what makes the least sense; then lo and behold, I end up rich-er.

Shocker.

I sold off some more [[SKF]], in order to make room for more longs, such as [[PCZ]] and [[AUY]]. I’ll have you know, gold is going higher, again.

Look you, there are 1 billion/trillion reasons why the market should “shit the shower” then die like a filthy pig. However, since our Government is no longer intrigued by viscous market declines, we no longer have to endure them.

It’s that simple, in a “unfree” market.

Just know, I’m always trading on eggshells, sensitive to every tick. For now, I am happy to go long and milk this “Government rally,” much to the bears’ chagrin. However, I will switch and leave you bull fuckers at a drop of a hat, without notice.

For now, enjoy.

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Oil to $150.

Natty to $15

Dow to 15,000

Euro/Dollar to $1.50

S&P to 1,500

Boo-fucking-yah!

UPDATE: Gold to $1,500

UPDATE II: O’reilly is a God

[youtube:http://www.youtube.com/watch?v=2tJjNVVwRCY 450 300]

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