Joined Jan 1, 1970
1,010 Blog Posts

again, you should already know what I’m about to say

First up, yes been out alittle. Drinks and such, great time.

VHC 41.93 all time high, then the push down before close. I expect big things soon. Dont tempt it with july strikes, go to Aug. Can you spell settlemintz?

KS,doing just fine up from 15. Holding.

I have one more. Not sure if anyone is really ready. Since I gave at the homeless shelter this past sunday, I dont really see the need here.

Your boys and girls should understand.


chuck bennett

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Weekly Recap – Grinding It Out

This was one of the strangest trading weeks I can remember. I heard it described as a week with two Mondays and two Fridays. Regardless of what it’s called, it was another positive week for me. The S&P 500 finished down 0.54% for the week, while I finished up 1.1%.

I opened 3 new positions: Long: $JBLU 5.39;  Short: $QID Aug 33 Calls and $VXX Aug 15 Aug calls. I rolled my short $PCX Jul 2 Calls to Aug to get some more duration. The $PCX position is quite underwater and dead to me. I’m in “clean up mode” in the position, selling what options I can to further reduce my cost basis.

I’m still very heavy cash (for me) with a 17% cash position. I’ll be  looking to deploy some of that cash early next week. I’m neither very bullish or bearish short term. Just looking for more some upside and possible places to lay out some shorts. Longer term I’m looking for a trading range until the market can figure out the US Presidential election. When that happens, I’m expecting a rallye [sic] that will continue at least through the election, and possibly into the Inauguration. To be clear, I’m expecting a rally regardless of who the market decides will win the election. Typically the reduction of uncertainty will allow prices to be marked up.

Stay cool. Be safe.

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introductions are hardly necessarily

Greetings yet again. What are all you guys doing?

VHC has worked out very well thus far, the devil and I have been banking serious coin for some time now. For you people you dont know, it is most unfortunate to be you. Sign up to The PPT and learn something about how coin is made.

Now, to the business at hand. Most of you know me from many excellent calls of the past 3 year. Some more amazing then others. Granted I dont have many, however the ones I have are 100%. short ONE, long VRTX, and other juicy news.

I consider myself a take over man. NUHC and AMAC are my two last, it took some what longer then I thought. In the end we banked coin like heros. Very similar to the previous mentioned, I have isolated yet another one. My expectations for this should come to a head fairly soon.

The company? Kapstone paper, symbol KS on the NYSE. Like the last few times, I encourage you fine peoples to research and come up with reasons why or why not it happens. I shall get back to you with what I have, however not until I feel enough effort has been directed into the matter I have generously presented.

Then I will tell you the answers.


chuck bennett

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Circle is not all that bad

I write this only because I thought of sharing with all you free loaders who do not pay for the privilege of The PPT. First of all, for some of you who don’t know me: I’m Chuck Bennett, and most likely I don’t know you at all. However if you had enough money you would know my name from my banking coin skills.

What I shared with my fellow gentleman in The PPT is this. The club circle is a fine place; hot girls, some speak english but many do not. It is true, most men who stand in line may never get in. Many reasons, however the only racist I have seen are the fellows who work the door.

When I walk up and go in the front, they get very angry and rise up. Being old south I must correct their behavior and make examples out of such. After telling them they are lower than ants and usually right before I get my lash, the owner will come. We will call him “fat joe” which is his name, Mr. Joe will come out and usher me in, much to the chagrin of his hating help.

enjoy. http://www.myfoxny.com/story/18441668/nightclub-accused-of-racism



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Europe, In Layman’s

So, France and Greece elect some new pollies and some meaningful terms are being thrown around; socialist, nazi, etc., and you’re probably wondering what it all means and how it relates to the U.S. market.. Here’s your simple and easy guide:

Before these latest elections: Europe was suffering. The trade surplus and financially well countries, mainly Germany, were forcing the bad apples to eat their own shit. Austerity, which is basically the opposite of the U.S. policy, laden with budget cuts and devoid of stimulus, was the name of the game. The theory is that by mending the financial image of a subject, confidence will return and the recovery can be substantive. But before austerity measures could even effect themselves fully, Europe’s numbers were dropping. Consumer confidence, manufacturing and GDP numbers made it rather definitive that Europe’s bad apples were entering recession; and more over, it was affecting some of the better countries too, with Germany and UK on the brink or, arguably, in recession as well. Most importantly, the people were suffering. Unemployment was sky high, and the largest demographic of unemployed were the ones most likely to revolt or show disdain: the young 20 somethings. An unaccommodative central bank was also playing the game plan, sending just about the smallest amount of money to insure the avoidance of complete disaster, which, seeing the results, would have to be defined as a revolution.

What these elections mean: The ousted leaders of France and Greece were the ones in compliance with the rules set as they were; Hollande and whatever you want to call the Greece political sphere will attempt to defy, or at least change, the prescription. They will demand and work for stimulus, an attack plan much more akin to the U.S.’s. The problem is that, different from the U.S., the central bank in Europe, or more abstractly, the financial planning of Europe, has to obey the wishes of many countries. In the U.S., if the Fed wants to install stimulus plans, they do it. In Europe, if France and Greece want to install stimulus plans, but Germany doesn’t, then they have a dilemma. Basically, even with new leaders in France and Greece that may push for stimulus, it all comes down to whether or not the ECB plays along.

After these elections: Here’s the kicker: even if the ECB plays along and decides to print, you will see the EUR/USD cross move towards parity, probably with great speed. Some may look at that and say stocks and commodities alike will decline, as a strong dollar is deflationary and against the wishes of Bernanke and co. However, conversely, the stock market if healthy should move in sync with the dollar; if both move up it’s good. Additionally, the best stimulus right now, it could be argued, is relief at the gas pump. And as the dollar strengthens, oil should definitely fall, and gas too. It’s basically the best tax cut we (Americans) could get.

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Surprise, Surprise

I’ve got myself in quite a pickle here.

To begin, I accurately felt the “changing of the tides” a few weeks back, noting that the bulls were starting to so strength. Accordingly, I profited from the rally, though not nearly as much as I should have. Forgive me for proper risk management, as I was quick to lock in an 8% aggregate book move. Since then, the bulls have been relentless and I’ve yet to find a proper time to hop back in. Moreover, I’ve got myself trapped in some inverse ETF’s, with positions bigger than 100% normal size in both TZA and SKF. Skillfully (as opposed to luckily), the book is still 55% cash, and shielded from major P/L swings. What’s better is that the recent move in the equities I own long, especially the oversized GSVC position, have offset the losses in these terrible leveraged instruments and I still remain +7% since Sep 1. Surprise, surprise.

Going into this week, I am 125% into TZA & SKF, 30% CRM, 20% MET and 20% JNS short. On the long side, I have 15% of assets in GSVC which I will need to reduce now that it has grown to be such a huge position thanks to the recent run from $12-$13 a share. Additionally, I own GLD, GDX, RGLD & AGQ, which at a cost basis of ~$72 a share, is quite close to recapturing all losses and allowing me to switch to SLV (to accompany GLD).

My feeling on the markets is such: With the Europe problem temporarily shelved in the eyes of equity guys (as opposed to bond guys), I can certainly picture a year end romp coming. Throw in some underinvested manager salt, some fantastic earnings reports pepper, with a pinch of short covering and we could be back at yearly highs in no time. Seems like it would make a great story ending for 2011, too. For that reason, my #1 priority is getting money long this market. My problem is buying into this 20% SPY run in less than a month. And, I have these shitty leveraged ETF’s on my books that need to get disposed of immediately. My plan for them is as follows: the first week of the month has been notoriously bad in 2011. I will not hold TZA or SKF past Friday. In fact, I will sell both Friday at the close, when we break above the recent high, or when we retag 1274; whichever scenario happens first. In summary, I want to sell out of TZA/SKF and make purchases, but only when the time is right. I’d like to be long this market into November & December and right now I am leaning short with a huge cash position.

However, I do not believe that negative headwinds have passed us just yet, and I am more than willing to start some short swing positions here. They will be slow & steady.

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