Ticking Time Bombs

There is an appropriate price for everything. Just because the economy sucks, that does not mean the Dow should trade at 8,500. Maybe the Dow belongs at 10,000 or 10,500. Who the fuck knows? One thing is for certain: many stocks are ticking time bombs, readying to go “BOOM” in your pikerfied portfolios.

I recognized my overexposure to the small cap world about a week ago— and have been steadily taking profits on such said names since then. Granted, every so often, I delve back into the dark underbelly of the market, via an egregious FNSR purchase. However, for the most part, I am trying my best to steer clear of queers running around in purple underwears (that made no sense, but it fucking rhymed, so fuck off Ringo).

My year to date gains (65%+) are somewhat ridiculous, considering the year is so young. Truth be told, ever since I’ve been blogging, my market hand has improved, year in and year out. Back in the old days, pre-blogging, I wasn’t obligated to discuss the market and/or review all of my trades, in such a micro-managed way. Despite all of the setbacks, such as dealing with degenerate losers on a daily basis, blogging has been good to me, with regards to holding my feet to the fire—making me a better trader.

Much to my chagrin, it appears the market is about to let off a few howitzer rounds to my face today, by way of a down market. Believe you me, the market needs a few down days, in order to let more people into the market. We’re in the midst of a V shape recovery amd every asshole with a ruler and brain knows it. There is no debating that fact any longer, so quit denying it.

The million dollar question: will the V shape recovery fail and/or get derailed by stupid banks or excessive commodity prices? At this stage, I am not worried about a weak dollar. Instead, I welcome such fuckery, with all of my might and fervor. The only thing that keeps me thinking “asshole, take your profits and run,” is the prospect of greater than expected write-downs at the banks. As of now, the banks have been quarantined and do not pose a significant risk to the market. But, that can change, over time, as the rally matures and investors look to profits and growth, instead of a cessation of the apocalypse.

With my money, barring a significant opportunity, I will remain idle today—eating sandwiches and such. Sometimes the best trade is no trade at all.

NOTE: My cash position is approximately 15%.

UPDATE: I sold out of FSYS, north of $22.50 and RFMD, north of $2.90.