Beware of Faux Fuckery

I sold out of some profitable longs, but reserve the right to buy them back on dips. Much to Dennis Kneale’s chagrin, intra-day, market participants are scrambling out of the funnel, into large vats of acid.

Truth be told, aside from the financials, today’s action is not all that bad. As a matter of fact, technology names are doing quite well, specifically [[RIMM]], [[CSCO]] and [[INTC]]—just to name a few.

I look forward to reviewing, as many of you do too, the such said earnings report from INTC. It is my belief, they will report good numbers, based upon a surge of new orders in March. Moreover, I believe, INTC will guide higher for the rest of 2009. Let it be known, as it will be said, the semiconductors can be bought, providing inventories remain low. I will have you know, inventories are, indeed, very low, indeed.

For the remainder of the day, I will throw street lamps at my trader/servant, while sipping on a fine cup of Colombian coffee.

Also, if you insist on knowing, I am pleased with the rabid attack on the shares of [[ACC]]. The stock, without a doubt, deserves a dishonorable death.

Currently, I have one short position (ACC) and inverse etf exposure in [[FXP]] and [[SCO]]. Believe you me, I am tempted to go short here, reminiscing of the days when the country was on the brink of uncivil way. However, things have changed. People have changed. Obama has defeated all pirates known the Indian Sea. I shall and will endeavor to buy stock on this dip, instead of shorting into it.

I sold out of my [[PKD]] position, north of $2.50. And, I sold half of my [[GNK]] position, north of $16.20.

UPDATE: I sold out of my [[LDK]] at $8.40

Banks are doing fine, compared to the Armageddon action of a few months ago. Everyone is so enamored with all of the little stupid banks, when the only signs of hope, in this pathetic economy, derive from tech.

The tech heavy nasdaq is the only index up (4%) year to date. Without technology, the banks would be sucking moose balls. Trust me when I say: this market dies without a tech rally.

It’s real easy to have growth, when business was at a standstill in Jan-Feb. In most semiconductor fabs, back in Jan-Feb., capacity utilization rates were running in the 35-40% range, until the March resurgence, pushing it up to 70%. As a result, some companies will enjoy fantastic growth; but keep in mind, it’s coming off of ridiculously depressed levels.

While production normalizes to recessionary levels, there will be buying interest in stocks that service fabs, like tool companies or testing and packaging companies.

Here is my buy list: [[AMAT]], [[ASML]], [[LRCX]], [[TER]], [[AMKR]], [[SPIL]], [[TQNT]] and [[ASX]].

Also, there are encouraging signs of life in the PC area, with motherboard makers ECS and ASrock reporting good numbers. That may bode well for [[DELL]] and [[HPQ]].

And, let’s not forget the 4G network being built out by [[VZ]], dubbed LTE (Long Term Evolution). Verizon is working feverishly, building out a state of the art 4G network, that will enable smartphones to cook you dinner and massage your back. Out of all of the companies selected by Verizon, [[STAR]], [[ALU]] and [[ERIC]] seem to be big beneficiaries.

As for today’s trading:

The shippers are kicking ass. Naturally, I am a big fan of [[GNK]], especially since it is my largest position. And, I like what I am seeing in [[ODP]], [[AMKR]] and [[LDK]]. Other than that, it appears the fucking pirates are disturbing our little rally, with their stupid/adolescent hijackings.

On the short side, I like [[ACC]] and crude, via [[SCO]]. However, I am long oil stocks, via ERX, mainly because equity investors are raging idiots.

In closing, the market has been good; but remember to take profits. The best buying opportunities will present themselves through weakness.

The stupid men called “Sideshar” and “Joshingu” have been drawn, quartered then hanged by the iBC mob, who say “no more to low grade blogging and hideously wrong stock advice.”

Congratulations on the 12 remaining candidates. I intend to execute three more unlucky losers, after the close of trading—tomorrow. Or, who knows, I might just spring a surprise execution on you fuckers tonight.

Vote for the TWO candidates who are least deserving of an iBC blog. [296 votes total]
cuervoslaugh (7)	2%
AI (10)	3%
sidshar (43)	15%
discoordinated (16)	5%
Green Writer (10)	3%
pikertrader (15)	5%
DPeezy (26)	9%
Breakfast Meat (21)	7%
boca (18)	6%
ZMoose12 (9)	3%
Veritas5 (7)	2%
ripetrade (5)	2%
crgmdy (12)	4%
j0sh1ngU (74)	25%
JakeGint (23)	8%

UPDATE: GW killed himself. 11 candidates remaining.

[youtube:http://www.youtube.com/watch?v=h8T-aA86Jz4 450 300]

The bitch (Mother Market) tried to knock me out on Thursday. However, yet again, “The Fly” rose up with a full head of anger and dispatched her into an idle sewer pipe.

I banked some coin today, which, incidentally, feels a lot better than losing coin.

I have a meeting to attend, so this is my final post for the trading day. I leave you under favorable conditions, long [[GNK]], [[RFMD]], [[TER]], [[AMKR]], [[OVTI]], [[CIEN[], [[STAR]], [[LDK]], [[PKD]], [[ODP]], [[FEED]] even [[CROX]]!

For the love of pencil sharpeners and skinny fingers, I am long the biggest pieces of offal and loving it.

My only hedges include: [[FXP]], [[SCO]] and short [[ACC]].

In short, “The Fly” wins again, even though it appeared he was about to get kicked into a garbage truck.

As an aside, in order to celebrate my great victories, I am going to execute two prospective bloggers, via democratic proxy. Thank you and be well.

WHO WILL DIE NEXT!?

Vote for the TWO candidates who are least deserving of an iBC blog. cuervoslaugh AI sidshar discoordinated Green Writer pikertrader DPeezy Breakfast Meat boca ZMoose12 Veritas5 ripetrade crgmdy j0sh1ngU JakeGint Current Results

I bought 10,000 [[OVTI]] @ $8.95.

Disclaimer: If you buy OVTI because of this post, your dog will relieve himself on your pillow. And, you may lose money.

If Obama buddies up with Castro, I guess [[CUBA]] will run higher. Other than that, I would bet certain airlines will benefit from direct travel to Cuba.

The market will not be denied. Seriosuly, asshole, quit fighting the trend. Believe me, it took staggerring losses on my end to help me see the light, which is: the world isn’t ending any longer. Somehow, someway, we are going to survive. As a result, stocks can be bought, with a certain amount of discipline of course.

As you know, I’ve been diving into pools of [[GNK]] (largest position) and [[RFMD]]. I like the shippers, because they are late stage plays. Meaning: if the economies of the world rebound, the shippers will benefit over a long period of time, not just today. With a substantial increase in the Dry Bulk Shipping Index, a stock like [[GNK]] or [[TBSI]] can appreciate, significantly, over a long period of time.

In addition, I am long 10,000 [[FEED]], from $2.35. This play was a pure PPT play. A lot of people got onboard and banked some coin. For the record, I am holding out for higher prices.

Finally, into this rally, I like [[LDK]], [[PKD]], [[AMKR]], [[STAR]], [[OVTI]] and [[CIEN]]. At the present, my only hedges are long [[FXP]], [[SCO]], [[SSG]] and short [[ACC]]. I sold out of all of my [[SRS]] and [[FAZ]], allowing a very dark chapter in the life of Senor Tropicana to be closed.

Casino update Buy: Long 10,000 [[ODP]] @ $1.87.

I bought 25,000 [[GNK]], between $14.05-14.55 and 10,000 [[RFMD]] @ $1.84.

UPDATE: I bought another 20,000 RFMD @ $1.86

Disclaimer: If you buy the above stock because of this post, your favorite baseball team will finish dead last this year. And, you may lose money.

I was down a little more than 10% on Thursday, an unacceptable/amazing feat, all thanks to my deer in headlights trading in SRS/FAZ. Currently, my year to date gains stand at about 12%, down from 25%.

My position is an awkward one, almost fully exposed to the long side, after a monster run up. Either, this market is as fake as silicon tits or we are in the beginning stages of a Godly bull market. I just can’t get myself to believe the latter, mainly due to the fact that silicon tits are everywhere.

However, I will admit, there have been significant fundamental improvements in the semiconductor space. Every report I read speaks of “inventory restocking.” Apparently, the economy is no longer falling off a cliff. Back in January and February, amidst the new great depression, business grinded to a halt. However, things are normalizing; and as a result, inventories need to be restocked.

Things are better now. Put a smiley face sticker on your car.

Who benefits?

Once again, I like the OSAT (outsource assembly and test subcontractors) space, mainly [[TQNT]], [[AMKR]], [[SPIL]] and [[TER]]. For the most part, I believe the share prices of [[TSM]] and [[UMC]] reflect an inventory rebuild. Therefore, I do not like them. Plus anyway, historically, they underperform the rest of the semis, when business is good.

Another names benefiting from a resurgence is [[RFMD]]. In short, their projected earnings have gone way up, thanks to the increase in cap utilization rates. Should the cap util rate get up to 85-90% (currently at 70%), I believe RFMD will double. The company is working on restructuring its debt and launching new products for the handset market. It’s definitely a name to keep an eye on.

Finally, I am waiting for an entry point into [[OVTI]]. Historically, the stock is cheap, trading less than 1x book. Also, their new iphone contract may ramp earnings, over the next few quarters.