Year To Date Gains Stand At 20%

In what will unquestionably become the “Hubris Top Tick” post, I will go on the record and admit that yesterday, my account crossed 20% gains this year for the first time.

CCJ sealed the deal for me. After taking a nasty selloff, it exploded over the last week and a half, up 14%, which accounted for half the push from my prior 15%. The other half got picked up here and there.

I’m unsure how long I’ll be hanging out here. HCLP, which is without a doubt the hero of 2014, is reporting earnings first thing in August. The partnership has come a hell of a long way. Will this lead to a pullback? It wouldn’t surprise me, although I’ve decided to hold fast and keep the faith.

The coal trade isn’t working yet; but then again I did decide to forgo a quick entry, opting for steady accumulation. So a slow start is actually better for me.

Today Doesn’t Matter Because I’m Up Another 1.5%

The typical Monday open has led way to the equally typical Monday reversal back to even. Short sellers look stupid, and behind their jaunting comments, are terrified.

Meanwhile, I’m up another 1.5% today, led by HCLP pressing towards $70 a share, and CCJ making a comeback.

My biggest loser today is BTU, which is almost down to $15. I’ll consider adding near $14, if it gets there.

Global events and political developments tend to be the dumbest reasons on Earth to trade around. It’s fun to speculate what idiot decided to ice a jetliner without any due diligence. Or how long before Gaza taps out. Or what would happen if political winds changed in this country and banned all forms of energy or interstate travel.

It’s fun, but it isn’t profitable.

So don’t waste your time on this nonsense, unless you’re bored at work, looking for an excuse to neglect your clients.

Checking In – Year To Date +16%

I haven’t checked in much recently, and for good reason. You, dear reader, probably check out of life enough without having an excuse to. There’s a big bright world outside, and you are missing it, neglecting your children in favor of reading a blog on the internet, run by a man you have never met.

Today, the weather is crappy (in my neck of the woods, anyway), so I will take a minute to scrawl out some thoughts. But really, go outside already.

When you are lying on your death bed, you are not going to regret never getting to read another stock picking article. If you are a normal man, you will probably regret not staring at clouds more often. Or gazing at the stars. Or feeling the warm breeze on your skin, standing by the water.

You may check in once per day to read my work. You have my permission. But other than that, get your ass outside. You’re not getting any younger, buddy.

Writing has been scant here because I have been following my own advise. Despite this neglect, my person is doing just fine. Year to date, my gains are just now over 16%. CCJ has pushed back above $20, and if it can recover to $23, I’ll be sitting inside 20% shortly.

Almost all my positions are higher. HCLP and BAS seem to be breathing, but that’s alright. Everything is holding up well.

A Global Power Shift Is Emerging

Short term cautions not withstanding, we are on the precipice of something great.

The entire structure of the global economy is shifting, slightly and slowly. But like all great change, the most striking of the movement comes all at once, at the end.

The United States is driving this assault of the balances of power, globally, as the energy revolution progresses on our shores. This country is set to become the biggest oil producer in the world – and we are now slowly removing the export restrictions that are the last remaining barrier to this mighty end.

This isn’t just about US trade balances and deficits. Those numbers games matter, but they always matter less than you think.

This game is about power. Oil has been the source of power to our enemies for too long. Russia and the Middle East have fed well on global consumption of this product, erecting their cartels around the flow oil to global industry. It has made them powerful and a threat.

The move by the US to become the world’s largest producer of oil and gas can be viewed through a different lens than financial gain alone: this is also going to completely upend our adversaries. What wars and weapons and diplomacy and cooperation could not possibly have accomplished, given the entrenched interests we faced, this one might push on our part will quickly bring about.

This is a once in a lifetime opportunity. You must get invested in it, and stay invested in it. All US leadership sees the goal, and no one objects to it. The days of getting beat about by monarchies in Saudi Arabia, needing to cut backroom deals that undermine our own morals with foreign militant groups, having to sit through endless meetings while Russian oligarchs threaten our allies with gas supply shortages…these days are coming to an end.

As the US increasingly becomes energy independent, the argument to even have relations with half these villains becomes non sequitur. We can marginalize them while circling around our true allies and real friends.

I can’t see everything that is going to come from this. Naturally US power will follow. And the North and South American continents should improve, swinging towards democracy and capitalism. Outside of that, while I think US energy independence is a good thing, I wouldn’t be surprised if war also follows. Revolutions surely, but also open war between foreign, former energy exporters who find themselves being boxed into a corner. The Saudi’s days are surely numbered, in particular.

My bet is that Russia will not change much, but they will also have to cut less lucrative deals with China to make it. So at least they will be a less powerful, less interfering Russia. Good riddance there.

Suffice to say, this is unpredictability at its best. While I think I see the theme, I do not yet hear the notes. But I’ll take my chances with it anyway. The old order of things was repulsive. I won’t be crying any tears for OPEC, or for Russia.

Happy Return From Independence Day

It is with fondest thoughts I welcome you back, tenderly, to the 9th Floor. I have been particularly withdrawn from these halls, choosing to spend my precious remaining time on this Earth outside during the benevolent months of summer.

Michigan summer exceeds anything you have known, rivaling in my esteem that of the West Coast. The lakes call to you and the woods are cool and soothing.

If you missed it, in the middle of last week I drew down to 75% long, and am preparing to let off the lever.

There are dark murmurs, my friends, coming out of Asia. And a steady stream of data revisions and downgrades has begun which shall plague us yet.

Being optimistic, the US continues to heal. But we are not immune. The odds are not in our favor of continuing this most excellent run much longer. Seven years marks the expectancy of another downturn, and we draw close to that number.

Up Another 1% Again Today

HCLP just blew through $60, as analysts raise targets in response to the HAL announcement.

BAS is back above $27. I guess I could have held onto all of those shares, but I have no regrets. Retaining a 15% position in BAS is more than reasonable.

SLW is pushing its way to $26.

My only position that is down noticeably today is UEC. And that remains my smallest position at 5% of assets.

Fracking investments remain the place to be. Oil names are doing well by extension (and a high price per barrel). I’m telling you, coal will be the next thing to run.

Have a wonderful afternoon.

Year To Date Gains Stand At 20%

In what will unquestionably become the “Hubris Top Tick” post, I will go on the record and admit that yesterday, my account crossed 20% gains this year for the first time.

CCJ sealed the deal for me. After taking a nasty selloff, it exploded over the last week and a half, up 14%, which accounted for half the push from my prior 15%. The other half got picked up here and there.

I’m unsure how long I’ll be hanging out here. HCLP, which is without a doubt the hero of 2014, is reporting earnings first thing in August. The partnership has come a hell of a long way. Will this lead to a pullback? It wouldn’t surprise me, although I’ve decided to hold fast and keep the faith.

The coal trade isn’t working yet; but then again I did decide to forgo a quick entry, opting for steady accumulation. So a slow start is actually better for me.

Today Doesn’t Matter Because I’m Up Another 1.5%

The typical Monday open has led way to the equally typical Monday reversal back to even. Short sellers look stupid, and behind their jaunting comments, are terrified.

Meanwhile, I’m up another 1.5% today, led by HCLP pressing towards $70 a share, and CCJ making a comeback.

My biggest loser today is BTU, which is almost down to $15. I’ll consider adding near $14, if it gets there.

Global events and political developments tend to be the dumbest reasons on Earth to trade around. It’s fun to speculate what idiot decided to ice a jetliner without any due diligence. Or how long before Gaza taps out. Or what would happen if political winds changed in this country and banned all forms of energy or interstate travel.

It’s fun, but it isn’t profitable.

So don’t waste your time on this nonsense, unless you’re bored at work, looking for an excuse to neglect your clients.

Checking In – Year To Date +16%

I haven’t checked in much recently, and for good reason. You, dear reader, probably check out of life enough without having an excuse to. There’s a big bright world outside, and you are missing it, neglecting your children in favor of reading a blog on the internet, run by a man you have never met.

Today, the weather is crappy (in my neck of the woods, anyway), so I will take a minute to scrawl out some thoughts. But really, go outside already.

When you are lying on your death bed, you are not going to regret never getting to read another stock picking article. If you are a normal man, you will probably regret not staring at clouds more often. Or gazing at the stars. Or feeling the warm breeze on your skin, standing by the water.

You may check in once per day to read my work. You have my permission. But other than that, get your ass outside. You’re not getting any younger, buddy.

Writing has been scant here because I have been following my own advise. Despite this neglect, my person is doing just fine. Year to date, my gains are just now over 16%. CCJ has pushed back above $20, and if it can recover to $23, I’ll be sitting inside 20% shortly.

Almost all my positions are higher. HCLP and BAS seem to be breathing, but that’s alright. Everything is holding up well.

A Global Power Shift Is Emerging

Short term cautions not withstanding, we are on the precipice of something great.

The entire structure of the global economy is shifting, slightly and slowly. But like all great change, the most striking of the movement comes all at once, at the end.

The United States is driving this assault of the balances of power, globally, as the energy revolution progresses on our shores. This country is set to become the biggest oil producer in the world – and we are now slowly removing the export restrictions that are the last remaining barrier to this mighty end.

This isn’t just about US trade balances and deficits. Those numbers games matter, but they always matter less than you think.

This game is about power. Oil has been the source of power to our enemies for too long. Russia and the Middle East have fed well on global consumption of this product, erecting their cartels around the flow oil to global industry. It has made them powerful and a threat.

The move by the US to become the world’s largest producer of oil and gas can be viewed through a different lens than financial gain alone: this is also going to completely upend our adversaries. What wars and weapons and diplomacy and cooperation could not possibly have accomplished, given the entrenched interests we faced, this one might push on our part will quickly bring about.

This is a once in a lifetime opportunity. You must get invested in it, and stay invested in it. All US leadership sees the goal, and no one objects to it. The days of getting beat about by monarchies in Saudi Arabia, needing to cut backroom deals that undermine our own morals with foreign militant groups, having to sit through endless meetings while Russian oligarchs threaten our allies with gas supply shortages…these days are coming to an end.

As the US increasingly becomes energy independent, the argument to even have relations with half these villains becomes non sequitur. We can marginalize them while circling around our true allies and real friends.

I can’t see everything that is going to come from this. Naturally US power will follow. And the North and South American continents should improve, swinging towards democracy and capitalism. Outside of that, while I think US energy independence is a good thing, I wouldn’t be surprised if war also follows. Revolutions surely, but also open war between foreign, former energy exporters who find themselves being boxed into a corner. The Saudi’s days are surely numbered, in particular.

My bet is that Russia will not change much, but they will also have to cut less lucrative deals with China to make it. So at least they will be a less powerful, less interfering Russia. Good riddance there.

Suffice to say, this is unpredictability at its best. While I think I see the theme, I do not yet hear the notes. But I’ll take my chances with it anyway. The old order of things was repulsive. I won’t be crying any tears for OPEC, or for Russia.

Happy Return From Independence Day

It is with fondest thoughts I welcome you back, tenderly, to the 9th Floor. I have been particularly withdrawn from these halls, choosing to spend my precious remaining time on this Earth outside during the benevolent months of summer.

Michigan summer exceeds anything you have known, rivaling in my esteem that of the West Coast. The lakes call to you and the woods are cool and soothing.

If you missed it, in the middle of last week I drew down to 75% long, and am preparing to let off the lever.

There are dark murmurs, my friends, coming out of Asia. And a steady stream of data revisions and downgrades has begun which shall plague us yet.

Being optimistic, the US continues to heal. But we are not immune. The odds are not in our favor of continuing this most excellent run much longer. Seven years marks the expectancy of another downturn, and we draw close to that number.

Up Another 1% Again Today

HCLP just blew through $60, as analysts raise targets in response to the HAL announcement.

BAS is back above $27. I guess I could have held onto all of those shares, but I have no regrets. Retaining a 15% position in BAS is more than reasonable.

SLW is pushing its way to $26.

My only position that is down noticeably today is UEC. And that remains my smallest position at 5% of assets.

Fracking investments remain the place to be. Oil names are doing well by extension (and a high price per barrel). I’m telling you, coal will be the next thing to run.

Have a wonderful afternoon.

Previous Posts by Mr. Cain Thaler