Step into the Mind of a Space Alien Magician (SAM)

This week there is a trial regarding MLM’s acquisition of VMC, with reference to a non-disclosure agreement between both companies that can strip VMC from MLM forever and ever.
Should MLM lose, shares of VMC will get graped.

As the illusion of sharp recovery spreads, expect auto sales, released on 3/1, to come in robust, due to an easing credit environment, Japanese resurgence and mild winter in the US. On better than expected sales numbers, shares of ORLY, AAP, MGA, BWA, AXL, LEA and DLPH may trade up.

As for me, I am keenly focused on the high end. I started a position in TIF and have my eyes fixed on BID. It is my belief that art and collectibles for the wealthy will continue to rise in value. BID’s position is supreme, sharing an exclusive duopoly with Christies. As prices for fine art and collectibles rise, due to the superfluities of the insanely rich and uncertainty of paper currencies, BID makes a commission off every single sale. They are the Goldman Sachs of the collectibles world.

After BID, I will look to acquire the shares of SKS and LUX, also based upon the arcane spending habits of bored and rich housewives.

Before I get to that, I need to address my burgeoning VXX position. As you know, I’ve been rubbing that shit all over my chest, boasting about its medicinal values whilst punching people in the face with handfuls of seaweed. And, as an aside, I still have an open TZA position.

What I need to happen is this, listen or read this poem very carefully, small pleb:

The markets get fucking crushed, like an accordion being operated by a deranged, sex-mad, cocaine addled Italian.
Things just fall apart quickly, allowing “The Fly” to laugh mightily in bold tones, as you weep in cold, dark showers.
Surprise!, as your positions get blown out by an aggressive margin clerk with expediency, leaving your account in shambles and your personality in rocks and dust.
I step in, with sharp strokes, buying up shit that no one wants, because it is my birth-right to do so.
Surprise! yet again, as I mud-stomp your grave, dancing on it because it’s fun. The world is my sandbox and I have spikes under my shoes.

My double down in VXX was sublime, if I might be so bold as to say so. Volatility bottomed and ripped higher, taking me with it. I ride the volatility, like Reagan stomped on the dreams of incredibly ridiculous liberals. As I write this missive, I am down just 1.2% on my VXX, going “tits up” into the bell.

Secondly, I averaged down on my sinking CPST position. I’ve been waiting for the right time to buy in. There have been large bidders in the name all day. I took advantage of that support and positioned in around $1.14-1.15, reducing my cost to $1.28.

I made one long directional trade today, buying up TIF. Thus far, I am underwater by 0.8% since my purchase.

Bottom line: I am 75% cash, with play positions out there, waddling around the schoolyard. I haven’t invested my money in earnest yet because I feel, as evident by my repetitiveness on the matter, that we are heading lower. As a point in fact, I believe it with every fabric of my DNA, down to my dysbindin-1 gene.

I added to my CPST position.

I will not tell you what you already know: people with money tend to spend it, regardless of economic trends. I am putting together an index to track high end retail or anything exclusive to those with a lot of money.

Here is what I have, so far:

BID, RL, COH, BC, AAPL, COH, KORS, WFM, LULU, PII, LUX, JWN, TRLG, SKS, ETH, TIF, HWD, MOV, WSM, STNR, MTN

I realize some of those names aren’t necessarily exclusive to the super rich. However, all of them are considered to be “premium.”

Feel free to add names in the comments section.

I started a position in TIF this morning, while drinking tea and eating crumpets.

Earnings from coal producers have been abysmal. The culprit is two fold: one coming from stricter regulations at 0bama’s EPA and the other is natural gas. Before you step into these coal stocks, understand the risk. From ACI to ANR to WLT, they are idling plants in response to weak demand for low quality met coal from domestic utilities. Their canned prayer is for miraculous Asian demand to come back online. For some odd reason, even the Chinese are saying “no” to low quality black shit.

I am tempted to get long ANR here off an early morning reversal, post earnings. KOL is trending higher and these stocks, on paper, are value. The problem with value is the obvious: it is a trap. All of the coal producers are taking supply offline, similar to what natty producers have been doing over the past two years. Did cut backs in supply help the price of natty?

Exactly.

People don’t cut supply when shit is going good. So, you have to understand, coal companies are heavily burdened with debt and their underlying business is getting raped by T Boone Pickens (natty).

Of course a trade is a trade. And maybe China will start importing dumbass coal, in order to help out a few losers in West Virginia. But the more likely scenario is coal stocks will remain cheap until natural gas spikes and spikes hard.

http://www.youtube.com/watch?v=-6ebutx-Fww

This morning I hit the crossroads on my VXX position, down 10%. One of my rules when evaluating positions is to determine at -10% if the stock is worth doubling down on or cutting the loss. At this level, the loss is still small. If I double down and it reverses higher, I’ll be driving up winship lane in no time at all.

To help me make this decision, I fell back on a little “t and a” to assist me with my “dilemma.”

As you can clearly see, that automobile is looking like an alligator and it’s emitting black smoke from its tailpipe, always an ominous sign. At sub 20 on the VIX, typically, it’s a good idea to build a position and just wait for the shit to hit the fan. Don’t worry about the rest, for the fan will spread the shit without pause. Finally, please take note of the “cock and balls” pattern forming. This is HIGH PROBABILITY occurrence and should be respected by market participants.

Needless to say, I doubled down on my VXX tits this morning.

Aside from that, I’m still eyeballing a few oil stocks for purchase. And, DECK is shitting the shower, as predicted by a certain SAM POSER. Well done, Sir. If I cared enough, I’d offer you a sincere apology for my critique.

Let’s look at the situation, shall we?

We shall.

0bama nixed the Keystone pipeline deal at the same time he sends out his nazi squad at the EPA to fuck with oil and gas drillers. Then, to make matters worse, he partakes in war against Libya and sabre rattles against one of the world’s largest producers of crude: Iran. To top it off, Germany, the godfather of the solar industry, tells the solar industry to fuck itself, cutting subsidies.

Do you get the picture?

A great social injustice is being thrust upon the middle class, globally. These energy prices will cripple those who cannot afford food. At around $4 per gallon, I am spending almost $300 per month to drive around the eccentric Mrs. Fly. She fashions me to be an adequate chauffeur and prefers that I drive in the left lane–at all times–while traveling on the freeway. My point is, if not for my 7 figure income, $300 per month might actually mean something to me: I think?

I am humbled by the rise in oil, as I did not expect it. But, the great part about $120 brent crude is $120 brent crude. These prices are here to stay and will likely go higher. I know it seems almost surreal; but we’ve been here before. The end game is the same: high crude prices fucks America’s poor, leading to a decline in consumerism. In the meantime, I believe these overzealous prices is reason enough to take my lazy ass off the bench and start swinging again.

Anything to do with crude can be bought because they will trounce earnings expectations. As crude trends higher, so does earnings per share. It really is that simple.

There is a ripple effect to acknowledge too, such as companies who service the oil/gas industry, like JEC and FLR.

In layman’s terms, there is money to be made off the backs of the underprivileged and I intend to profit from it.

It is, without mincing words, the greatest margin liquidation in all the world!

Indeud.

I thought SHLD was going out of business. What a silly scheming short squeeze. I wish nothing but the worst for those who bet on its demise. On the other hand, HPQ is shitting the shower, yet again–alongside PPO.

Look, I have a plane to catch soon. I am making my way out of this land of alligators and fucking hillbillies in pick up trucks, back to where the trees are ugly and the concrete is dirty. As my reward, I hereby request from the stock Gods a market that spirals lower and understands no boundaries to the downside. Let’s make believe for a moment, shall we?, that Europe has too much debt and Germany isn’t interested in bailing out the sloth of the continent. Let’s imagine that share prices have overshot by a good 10% to the upside at a time when oil prices have skyrocketed higher, effectively hurting the feeble recovery.

I can tell you from first hand, the housing market is still quite weak. Prices are dropping, continuously, because everyone seems to be impoverished. Frankly, I don’t get it, considering how low rates are now. There is no traction in the domestic housing market, outside of the major cities. If you’re interested in living in NYC, Boston or even lauded suburbs like Scarsdale or Greenwich, you will pay up.

Understand me for a moment, I don’t need the market to collapse in order to justify a reentry into stocks. All I require is a little bloodletting in the names I am monitoring. Slowly but surely, that is happening. Underneath the shiny, glossy, exterior of the market is rot. I’m simply waiting for the facade to be lifted.

Discipline, a word loosely tossed around by flawed creatures addled by vices. Whether it be at the gym or in the market, discipline is something that is rare to come by because it means sacrifice.

No one wants to sacrifice because that means they’ll be missing out on some sort of hedonistic fun. Life is fun when practiced correctly; but it comes with sacrifices and consequences. When there is no discipline and there are no sacrifices and people are having nothing but fun, disappointment lurks around the corner: consequences.

When people are disappointed, they tend to lament over the poor decisions that caused such grief, often leading to a multiplier effect, resulting in numerous subsequent bad decisions. When this happens, shit gets crazy, as people try to mop up the mess whilst shitting themselves. Panic ensues and rational thinking goes out of the door.

Crisis begins and everyone wishes they’d been more careful early on in the game.