“He’s Snappin'”

[youtube:http://www.youtube.com/watch?v=mqw2pJWsNUQ 450 300]

Angelo Mozilo, CEO, CountryWide Financial 

I’ve been building up my [[SMN]] position for more than a month. As you know, if you are long too, it’s been very frustrating, as ag and basic resource related stocks catapulted higher.

However, it looks like the God Father of the SMN, [[MON]], is about to break lower. Just so you know, MON represents about 10% of SMN.

Again, going long SMN, gets you short [[DD]], [[FCX]], [[DOW]], [[AA]], [[PX]], [[NEM]] and [[APD]].

In other words, going long SMN gets you short all the over inflated crap that has been shooting higher, as of late.

I will be selling SMN above $50.

I sold short 5,000 shares of [[MON]] @ $110.

Disclaimer: If you sell short MON because of this post, the next time you take a bubble bath, a fucking plugged in toaster will fall in with you. And, you may lose money.

I’ll give you a little background on my trading success and failures.

I’ve been trading for a long, long time. Although, I’m just 31 years of age; I’ve been invested in stocks since I was 16 years old. Throughout the years, I’ve made loads of spasticly retarded trades, causing great anguish. Luckily, I’ve had far more winners.

One thing, as unbelievable as it seems, repeats itself over and over and over.

I ALWAYS kick ass in the beginning of every new year. The reasoning: I have a heightened focus on what is taking place in the markets. I’m a big believer in “starting new” and setting goals, at the beginning of every new year. I even participate in new year rituals, of the voodoo kind, which I will discuss much much later.

However, as some of you know, by reading my rants over the past two years, I get very cold during the summer months.

Unknowingly, I believe after having great early year success, I get lazy and complacent. Admittedly, after being up 47% by May of last year, I coasted and got my balls lit aflame. If it weren’t for refocusing, I would be down anywhere between 25-40% right now.

As you know, I was uber bullish and had gigantic positions in many speculative stocks, like [[MVIS]], [[ARWR]], [[NTRI]] and [[BWLD]].

However, this time it’s different. I will keep my heightened focus, all year, and try to bang out a triple digit year. I’ll have you know, already, “The Fly’s” personal account is up more than 125%, year to date.

If you want to become a better investor, you need to live in the world of finance, even if it’s not your profession. Read all the newspapers, all of the magazines and stay up to 4am, watching CNBC Asia and Europe, amongst other things.

As for sleep, you’ll get plenty of that shit when you’re dead.

I sold 15,000 [[SRS]] @ $126.5 and 10,000 [[SKF]] @ $134.

The employment numbers were bad, but we are bouncing off the lows. Thus far, I’ve sold 75% of my [[SRS]] position and 90% of my [[SKF]] position.

Quite honestly, being up more than 35% year to date, I find no need to be greedy here. I’m not interested in catching tops or bottoms, just the fat middle.

However, I will not adjust my [[SMN]], [[EFA]] and [[DUG]] positions. I do believe there is downside left in those sectors.

We all understand how awful the economy is and how stocks are for asshats. However, keep in mind, nothing goes up or down in a straight line. The downside may be stalled by selling exhaustion.

Do not misconstrue my profit taking ways for wanting to play the long side. I’d rather run around a fucking mine field, with magnets on my feet, in the middle of Afghanistan.

With the proceeds, I will stay in cash.

UPDATE: If you’re going long, hoping for a bounce, be sure to keep tight stops. I believe the market may “re-reverse” and head lower into the close. If you’re buying here, you may end up going bankrupt or wiping out your entire bullshit E-Trade account, by early next week.

Leave the trading to pro’s like me. You over there, just shut up and watch the master at work.

Class dismissed.

I made more money than all of you today.

[youtube:http://www.youtube.com/watch?v=WMiSiTcz5lo 450 300]

No more bottom calling. No more “late night negotiations” to buy out the worthless assets of [[BSC]]. No more [[ABK]] rumors. No more tech rally. No more “natural gas is the new oil” rally. No more bull market.

Do not be tricked by the hucksters on television or on the internets. There is no bull market in natural gas. It’s all hype. We have massive supplies and demand is not increasing.

Coal stocks will be halved, once a Democrat gets elected President. Write that down.

Let me re-inform you: We are in a bear market. In bear markets, stocks trade down, all the time. Do not let false hope fuck up your trading positions. Get short.

Like I said before, I perused over many financial balance sheets, last night. Many banks are desperately trying to raise capital, via offering egregiously high CD yields. Be careful of that!

Also, many banks’ interest expenses are outstripping interest income. With regards to [[FED]], [[DSL]], [[KRNY]], [[PHH]] and [[CORS]]: I believe they will go to zero, or close to it.

All of the above banks have massive exposure to bad loans and toxic paper. And, all of them are enduring a decline in deposits. In others words, it’s only a matter of time until they implode, via dilutive financing.

The fuckers from CORS, unbelievably, took half of their cash reserves and bought bank stocks with it. No, I’m not kidding you. They have over 150 million dollars, in about 10 poorly run banks, like [[BAC]], [[JPM]] and [[C]].

As for today’s trade:

I made coin. Too much coin to discuss on this stupid website, which falls victim to all sorts of dumbass bandwidth issues.

Just know this: I am only long 3 stocks. My short exposure is about 125%, including [[SRS]], [[SKF]], short [[BSC]], short [[LEH]], [[SMN]], [[EFU]], [[DUG]], [[REW]] and short [[WM]].

NOTE: “The Fly” is moving ahead to round three of the Madstocks Contest. Is it any surprise that he (“The Fly”) will be #1 seed?

Off to eat many 2 1/2 inch ribeyes.

UPDATE: I’m listening to the [[MVIS]] conference call and I am appalled. First of all, Tokman sounds out of it. Second of all, it sounds like they are pushing back product release to 2009. And, finally, but most importantly, they are fucking laughing on the call. With the stock down 50%, over the last few months, NOTHING should be funny.

Amazing and alarming.