Ladies, gentlemen, please…allow me a moment to address the market.

You may not make it down to the Raul blog often, but I reside rather gingerly on the front page of iBankCoin.  I know that my continued existence in these hallowed halls amongst the finest strangers the internet has to offer depends on one very important matter: banking coin at criminal rates.

After exhibiting complacency two weeks ago Friday I have been on the receiving end of a severe bludgeoning via shares of PPC due to a salmonella scare.  I regret to inform you I was forced out of this position today and took a large loss.  Let’s talk about large losses.

This was a ten percent position and I stopped out at twelve and a half percent.  Math:

0.1*0.12=0.012

I lost 1.2% of my account value.  Part of me wanted to ride the stock into earnings for the glory.  I envisioned myself riding into town on a chicken-drawn chariot with plebs laying olive branches on the street.  Upon reaching to town square I would be handed the ceremonial staff to perform a blessing of the populares, restoring balance to the social classes.

But in a rather stoic manner I cut the shares loose.  Because the truth is public perception is fickle.  Many of you are simple, as am I, and lack the resources or time to give a company a full fundamental shake.  I know inputs to making chicken meat are down across the board, but so does anyone else who analysis this company.  Elon Musk set a new standard with his quick assessment and public response to the Model S fire and now I expect the same from all companies.  I get Old Wall Street silence instead.  So PPC and its shareholders can go fly a kite for all I care and I’m back in the sewers, hungry as ever.

I cut LEDS too.  Perhaps the critics were fiddling with their catalytic converters when I scaled 10% profits one day into my campaign.  That would justify tossing tomatoes in my direction when I cut my net position for a scratch.

Finally, I cut SCTY.  Let’s say you love bath salts but all you can find on sale is old fashioned Mexican speedball.  You decide something is better than nothing and in your constant urge for instant gratification you gobble like ten Mexican speedballs.  But since you want that bath-salt-bug-eyed rage fueling your body while you chew arms off hobos, you find the speed only providing an uneasy feeling in the pit of your stomach.  That’s why I cut SCTY for a 3.4% loss.

My final move was buying a modest allotment of AMBA shares.  Morgan Stanly flip flops and the investment community dumps Ambarella?  GMAFB.  Well actually, you did give me a break because this was an opportunity to get back on board stock in a great company.  I liked it at 22, why wouldn’t I love it at 20?  I am a buyer of further weakness.

Now I have 22% cash power to buy some blood and a stable of stocks fit for an entrepreneur.  Largest-to-smallest friends, largest-to-smallest like always:

GOGO (huge), LO (+15% what?), ONVO, WLT (Walter), RVLT (a love/hate), AMBA (SAIL!), SFM, CREE, SLW, F, FXY, IMMR, MJNA, and the big O

That is a hot look.  I like this basket of stocks.  I have a few names I want to add to the pot to get back to full long exposure but I am content to ride into tomorrow’s spooky trade with some cashish. The Fly’s ALJ has the look, FB is making ATH after hours, and YELP is at a slight discount.

FINALLY: YOU SHOULD COME INSIDE 12631.  There is a free trial tomorrow and Friday ONLY.  I do my best work in there with little-to-no shenanigans.  I would love to see some of my twitter buddies in there.  The password for the free trial will be released at midnight, so you vampires can come inside tonight and kick some ideas around and us normal folk will see you bright and early.

http://youtu.be/c-P5GpkPrk4

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There are crazy moves, both ways, going down in this market of stocks.

Early on we had a pretty solid read on the Nasdaq and S&P and we were talking through the psychology inside the 12631 pay wall.  I trade little blips in the gyrations of the NASDAQ and my current goal is not to earn money but instead to consistently identify, trigger, and manage one trading picture.  I have set the lofty goal of being right 75% of the time.  This is for me to prove TO ME that I have the fortitude to trade futures before committing adult money to the venture.

But I was watching my move play out and I started noticing excessive aggression from the sellers.  Have you ever walked up to a girl and started talking game only to quickly find out her husband or boyfriend is close in tote?  Said boyfriend often puffs out his chest and behaves like a primate because he feels threatened.  This is overreacting and once it happens you can almost rest assured you have won…something, life, the momentary affection of the women, whatever.  Market participants do the same thing all the time just before they lose.  The more you watch the tape, the clearer it becomes.

Anyhow, sellers started acting like scared bitches just before eleven and the S&P was trading up into the key battle line highlighted this morning.  This is what had me buying WDAY and WLT.  I got in before the pop and used most of my money doing it.  I am now 95% long and uncomfortably so.

So I went into my portfolio and tried really hard to find something to sell before the market makes me sell and I came out empty handed.  I know, it is completely negligent to be 95% long way up here but I cannot justify selling any of my positions where they stand.

I honestly feel as pickled into a catch 22 as I have ever felt in my trading career.

Off topic: I have sustained myself on water and candy ONLY today.  My eyes feel like they want to explode and gush sugar all over my keyboard.

Not chocolate nutty candy either…just the crack: taffies, lemon heads, now and later cubes, dubble bubbles (apropos), and jujyfruits.

Gallons of water.

Somebody convince me to sell one of these holdings, largest-to-smallest:

ONVO, PPC, RVLT, USO, LO, WLT, GOGO, ADHD, CREE, WDAY, SLW, F, LEDS, FXY, IMMR, MJNA, and O

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My book is down over two and a half percent today and as you may imagine I am a bit salty today.  There was a broad market selloff last quarter when CREE disappointed.  It tends to exacerbate this brutality.  Thus my best line of defense right now is to sit on my hands and brood.  The broad sell off inflicting pain upon all LED stocks is completely without merit and reflects the irritating nature of humans to overreact.

Have you ever gone around a left-hand curve on a freeway during rush hour?  If one person overreacts in the fast lane (and they always do) then the entire fast lane comes to a halt.  Then the contagion spreads to the next lane over.  Now you have the two ‘fast’ lanes parked on the freeway while Raul zips by in the slow lane at posted highway speeds.  This is humans overreacting.  Bad humans, smack yourselves on the nose with a newspaper.

Sometimes even with clever tricks you get swept up in mess overreacting humans create.  Such is the case today with LEDS.  It is best to breath, stay calm, do not get angry, and simply waiting things out like a gentleman.  Perhaps call an old friend and catch up.  Eat some good food.  Do whatever it takes to stay calm.

I want more CREE shares because they are a fantastic company and their positioning in the marketplace is divine as leaders.  But I am waiting.

The pain I am experiencing in the LED trade isn’t bothering me.  It is more like being sore after a heavy workout.  It’s good pain that will make me stronger.

On the other hand I have let two trades get away from me: PPC and ADHD.  I am down nearly 20% on ADHD.  What was once a ¾ position has become a half position and I have no intention of buying more.  This Israeli pharmaceutical company trades like complete crap intraday and it’s putting any and all chasers in the ringer for the sake of punishing their gluttony.  I have been punished my whole live for being hyperactive so this feels natural to me.  I will keep taking pain and eventually scratch this dumper for break even.  It is too bad they aren’t cooking stimulants in their lab because that would make everyone more bullish.

PPC is being beaten so other bigger players can back the truck up at lower prices.  This is the overplay for the underlay.  I have never been more certain in my life.  Holding.

LO put out solid earnings and I like where this company is focused.  They acquired a British e-cigarrette business this month and blue Cigs have established a 49% share of the market place.  First-to-market edge FTW.

I can’t trade futures in this salty mood and the only adjustment I have made is buying SLW.  I have a half position and will trade this slowly.

Now I am off to read Department of Energy documents to affirm the LED edge further.  Good day

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