Cash Raised To 25%

I am now only 75% long, scaling out of most everything in rough proportion.

Sorry, I told you I could change my mind abruptly.

What sealed me on raising cash, oddly enough, was this bounce into the close (best viewed from the NASDAQ). Pardon me but I am quite sick of getting axed 2% every other week, with these little polite “hope bounces” in between. If we sell off like this, it had better have the decency to stick for an evening.

I am not going to just sit by and watch such a great start to a year get diced up from a slow-boil like this.

Positions are AEC, MAA, CCJ, BAS, HCLP, NRP, UEC, silver and cash. Year to date gains stand around 5%, right where I swore I would do something.

Well, I guess I may have my absent news story. I’m not going to track it down, but it appears that non-national entities holding Greek debt are about to receive a 33% retroactive haircut on any profits. And if you cross check the timeline involved here, Greek debt having traded down from yields well above 20% to below 6% today well…that’s quite a dick move on their part. Particularly when you consider how desperate Greece was for an extension of any lending around that point in time.

The Greek 10 is taking this news “casually”; Greek yields being up about 50% at the time of this writing. And oh look! Italy and Spain appear to be in play too.

This follows another “casual” conversation earlier about maybe Greece fucking off and getting kicked out of the EU.

I do so love this recurring nightmare…

UPDATE: For the record, the Greek Finance Minister is vehemently denying the report. Also for the record, the bond market doesn’t believe him.

Yes, today has me in a foul temper, and I almost – almost – started hitting the sell tickets.

It may be that tomorrow will be the day I cave in and raise cash. It may be the day after. My mood could swing wildly in the future. But today, it is steady and this much seems clear to me.

This is a stupid point to start selling.

There is just nothing out there, besides the obscene losses tossed upon the backs of hedge funds via NASDAQ death spiral action, that suggests systemic trouble.

Check out the USD. It’s falling, even as the market tanks here. How often do you imagine we get selloffs that leave our currency less valuable?

I’m inclined to think Europe may have something to do with this – perhaps someone knows the ECB won’t be easing? That could at least explain a strong euro; but it doesn’t explain US equities taking a beating, necessarily.

Twitter is amiss with talk of a mighty “surge” in treasuries. Yields are dropping to zero so so fast. So tell me, friend, does this look like a big deal to you?

(Image casually borrowed from Yahoo)

Aside from pervasive losses rocking professional money managers, or else possibly some looming announcement that Congress is set to sign us up for World War 3, there is just nothing. If we keep dropping, I might raise cash just to hedge “the unknown”.

But selling for no reason at all is always just a horrible reason to sell.

The indices are lower and I don’t care, because for me the bull market is back.

HCLP is up 3.5%. BAS is up 2.3%. UEC is up about 8% after being up 21% yesterday. NRP is up 1%. CCJ is up 1%. Silver is up 1%. Nothing I own is even down today.

The rotation is at hand, into my hand as luck would have it.

So far I’m seeing gains of just under 1% today, clearly led by HCLP. UEC is staging a recovery (I hope), but CCJ has turned lower.

The multifamily REITs AEC and MAA are digesting some of the latest move higher.

But I’m happy enough with this – we had a good day yesterday and every minute we aren’t collapsing is another minute the bears can tremor, thinking about the last five years and what their short selling addiction has gotten them thus far.

I’m not ruling out more volatility just yet – the NASDAQ has dispensed some horrendous fortunes – but I am constructively optimistic about my own.

Now is not the time for fear. Now is the time for holding fast, with big brass balls, goading the fearful to try and move you from your stance.

Dispense with your crash calling, immediately. All that you need know is as simple as this; the market has never been higher, and the future points up.

I confess, I bordered on fearful just last week. I almost did something about it too.

But almost doing something matters not. My positions are bouncing off their respective moving averages, and I don’t own anything worth fretting over.

Now comes the part where, unflinchingly, we round on those fleeing towards us, causing them to derail, in terror.

Get ready for quite the spectacle.