Deflation and Cocks

Thirty year mortgage rates are at a new 52 week low, 4.93%, and home builder stocks are being poleaxed due to a record amount of fucked up loans. I understand what the ECB and Fed are trying to accomplish, via inflation, but to me the main threat is still deflation. It’s hard to argue for deflation, amidst record gold and high oil prices; but I’m gonna do so anyway.

All of the fucked up toxic loans on the banks balance sheets are being masked with insidious accounting standards. On top of the mortgage debt, banks are now crippled with massive sovereign debt threats, which will undoubtedly make them tighten the screws on lending. While it’s true, it’s rather easy to modify your loan if you are a dead beat. It’s rather difficult to get a new mortgage, if you are an honest tax paying citizen. So, my question to you is this: aside from stock market reflation, how is the liquidity getting into the system? Tell me. From my vantage point, the liquidity is being used to plug holes at the banks, enabling them to enjoy record spreads, while sacrificing the baby boomer at the altar of artificially low interest rates.

They are trying to do something that is unprecedented and I am not sure it will work, due to the mounting risks.

If inflation was truly a risk, wouldn’t [[TLT]] be a lot lower by now?

I will be the first one to tell you, I am confused. If anyone tells you otherwise, they are either too naive to see things in 3-d or are lying to you.

Back during the dot com era, when I was pissing on the old guys in the boardroom for warning me of imminent collapse, I thought the run up would last forever. When the shit hit the fan, my assets under management were at all time highs and I was booking my biggest commission month of my career. The moral of this short story: shit always looks the best when it is about to die sans organic creatures and shit.

Don’t wait for doom to smack  you in the face with a bag of cocks; use some protection against said cocks.

By the way, my boy Scott Bleier is on fucking fire, with his show and newsletter. If you need a little hand holding, do yourself a favour [sic], sign up for his newsletter. He’s dead on with the “flash crash” with regards to stop losses. What happened last week is no different than an armed robbery of a bank. Just in this case, the bank was you. They pretty much flushed out all of the below market stops and likely flipped them for handsome profits, all part and parcel of re-liquifying the banks. How is it possible for the banks to book PERFECT trading quarters?

Answer: collusion.

In other news, the euro, [[FXE]] , is getting APED RAPED as we speak. As we speak, men in fancy pants are selling euros and buying art. To be honest, I don’t blame them. After all, a Picasso will always retain value, no matter what. If the euro collapses and a new currency is born, Mr. Fancy Pants can sell his collection of Picasso painting for lots of new/baby currency.

Anyway, my algorithms tell me we are due for a pullback. Even still, barring a big upside move, I will probably keep my allocation as is, in order to keep a low beta profile. For the love of dirty cellphones and tainted sugar, this market is too fucked up to trust.

In short, keep your eyeballs glued to the screen, for your life may depend on it, indeud.

We’ve been launching new features on The PPT every other week. As you know, we launched a sick search function, whereby you can cross reference any company description keyword with our analytic engine. For example: users can cross reference “blowout preventers” with % of shares sold short and come up with this:

The use of this search tool is powerful and dips into user created notes as well, offering a large array of keyword Godliness.

Starting today, we launched an automated OVERBOUGHT/OVERSOLD indicator, that will alert users of possible tops and bottoms. The PPT‘s job is to try to identify stocks that are breaking out. However, as you well know, some stocks are prime sales/buys at their highest/lowest points. For example, look at the overall hybrid PPT chart, which highlights OVERBOUGHT/OVERSOLD conditions.

That chart represents the highest and lowest overall hybrid scores in PPT recorded history. We did not concoct this chart to fit our needs. It’s as real as wooden nukes in Russia, AND MORE. Pretty impressive, eh? Granted, it’s not perfect, but pretty fucking good. Well, we are now providing this service, free of charge for all subscribers, on an individual stock/ETF basis. How accurate is it?

Answer: pretty fucking accurate, to the point that I am flabbergasted. To this day, truth be told, I still have reservations about trusting the readings of The PPT. I use it all the time and have made millions of dollars using the tools. But, I am a very opinionated person, with a big dick and even larger balls. Nevertheless, slowly but surely, I am adhering to the laws of mathematical precision, due to its undeniable sublime nature.

Here is sneak peak at tonight’s OVERBOUGHT/OVERSOLD list (note: there are 196 overbought readings, technically)

The only oversold reading is  [[IDN]] . Coming soon: seasonality engine: automated.

Terrific market action today, with just about everything going gangbusters, even Goldman Sachs Group, Inc. [[GS]] . With Cisco Systems, Inc. [[CSCO]] reporting close to 40 billion in cash, look for the company to make some acquisitions. I have some ideas and will share them, whenever the fuck I get around to it.

The way I am positioned now, I am “safe,” meaning the beta of my accounts are very low—due to the long equities/volatility structure of my portfolios. My near term strategy entails bulking up on longs, then liquidating them into strength. It doesn’t matter what I think: the market is too busy sucking its own cock to look up at the guy ready to strike it with a clawhammer to the brain.

NOTE: For the day, I was down 0.3%

I bought 2,000 SINA Corporation (USA) [[SINA]] @ $34.37.

Disclaimer: Robster.

UPDATE: PPT ranges, since inception.

NOTE: At the time this chart was made yesterday, PPT was 3.00, but later settled at 2.89. However, intra-day, it is now printing 3.11

I’ve reduced my cash position down to about 15%. Just today, I bought size in ON Semiconductor Corp. [[ONNN]] and Eastman Chemical Company [[EMN]] , while initiating a position in Ctrip.com International, Ltd. (ADR) [[CTRP]] . My intention is to play the delicate game of balance, between my longs and [[VXX]] positions. Due to some underperforming longs, for the day I am down a staggering 0.52%. Considering I was up more than 1.6% yesterday, I am in good standing, fuckface.

I don’t know how much longer this market can defy gravity. Just know, The PPT is printing 3.08 like a motherfucker right now (no idea what that term means) and the euro is pissing its fancy pants again. Like I said a million times, it’s best to have a blend of long/short trades, especially when the news is fucked up and dark sinister forces execute buy orders from the grassy knoll.

Pardon my capricious demeanor, with regards to this market; but it’s the only thing that keeps me winning, ironically.

As for gold: ask Uncle Fucker, for he is iBC’s resident “Maharajah of the Metals.”

Top picks: ON Semiconductor Corp. [[ONNN]] , Eastman Chemical Company [[EMN]] with a [[VXX]] hedge.

From the same people who invented the twist and the running man, I give you “the robot.”

To do this dance, you must first open up your bullshit online brokerage account. Then, once logged in, you will sit back on your “piker-esque” swivel chair and just click buy orders. That’s it. Everyone can do it, even Grandma.

In summary: lean back on your bullshit swivel chair, then click the buy button.

You will find, much to your delight, that by doing “the robot,” you will become rich as fuck. You can steal your neighbors wives and even buy their sloppy homes in foreclosure. Everyone is doing it and it works. Look at our biggest and finest banks: Citigroup Inc. [[c]] , JPMorgan Chase & Co. JPMorgan Chase & Co. [[jpm]] , Bank of America Corporation [[bac]] and Goldman Sachs Group, Inc. [[gs]] . They do “the robot” every fucking day, and as a result, and have made money every single day this year.

As for me: I’m feeling my GMX Resources Inc. [[GMXR]] , [[CBD]] and Eastman Chemical Company [[EMN]] positions, right about now.

NOTE: I bought 2,000 Ctrip.com International, Ltd. (ADR) [[CTRP]] at the open.

It’s official: the fetus soup lovers from the Orient are in a bear market, now down more than 20% for the year.

In other apocalyptic related news, the price of sugar is now in a fucking depression, as the entire world, in unison, kindly declines that second lump of sweet cancer at their local coffee shoppe.

Finally, just in case you missed it, Samsonite Hamburgalar’s take on the EU bail out.

Still feeling lucking, punk-bitch?

UPDATE: Get one. Indeud!

Resident gold bug/ United Parcel Service, Inc. [[UPS]] water carrier, Jakegint, deserves some accolades for his accurate commentary on gold. Since I am not interested in paying homage, I thought you might like to lick his heels and pay tribute for his “sageness.” You know it’s very rare for me to acknowledge another persons winship, since I am too busy focusing on my own.

As for me:

I am enjoying the “suckers rally” with great vigor, as my [[VXX]] , Flotek Industries, Inc. [[FTK]] , SandRidge Energy Inc. [[SD]] and [[CBD]] positions melt up. Howsoever, Goldman Sachs Group, Inc. [[GS]] is becoming a bit of an albatross and needs to “buck up,” or get the fuck out. You know what I’m saying? Additionally, today’s intra-day buys of Eastman Chemical Company [[EMN]] , ON Semiconductor Corp. [[ONNN]] and SINA Corporation (USA) [[SINA]] have not afflicted grave harm to my person, just yet. However, let it be known, I expect grand moves out of the trio.

The issue at hand is: to believe or not to believe? With all of the western world partaking in quantitative easing, ask yourselves: where is the coin coming from?

Answer: from us.

My “Hugh Hendry Theory” is still very much alive, despite not having a [[TLT]] position. I do believe we will be “funneled” into treasuries, via adverse market conditions. Gold is trading on its own now, irrespective of the dollar. So, we have ourselves some end game situations coming upon us. What I mean by that is: confidence in all currencies are waning. Do not be surprised to see an orchestrated “fuck you, you’re dead” push lower, sending equity lovers into bonds.

In short: I’m as bearish as a motherfucker in a male only world. But, I am smart enough to avoid murderholes aka “short positions,” unlike many of you macabre blogging dick suckers.

NOTE: The PPT Overall Hybrid hit 3.00  today, with a record 70% of large cap stocks ranked buy. In my opinion, close enough to be considered OVERBOUGHT.

Everything I know to be true and just is irrelevant. As such, I delved into my cash horde and purchased more Eastman Chemical Company [[EMN]] , GMX Resources Inc. [[GMXR]] and Flotek Industries, Inc. [[FTK]] . For the record, my basis in FTK is low 2.20’s.

At any rate,  today’s reversal is super impressive, especially since the breadth was so bad early on.

Enjoy the run while it lasts.

UPDATE: I bought 30,000 ON Semiconductor Corp. [[ONNN]] under $8 and 5,000  SINA Corporation (USA) [[SINA]] @ $34.04.