WAITING FOR YOUR BLOOD

I don’t mean to brag, but I’m gonna do so anyway.

Who’s the guy with a 33% cash position with his largest positions up for the day?

BALT and YELP don’t care. They urinate in your face from atop a skyscraper. I told you to move sideways and out of that ANGI, done with the female escort after taking her for 12%. Did you listen to me? Of course not.

Instead, you pepper me with questions on twitter and here. Look here pal, buzz off. “The Fly” doesn’t have time for the likes of you. He’s building empires, plotting to buy his competitors in bankruptcy.

I’m gonna buy the blood, your blood. I sit here waiting, patiently, like a vampire in a blood bank.

Disclosure: I made 0.3% today.
http://www.youtube.com/watch?v=XBupdeRZx48

Give this man a third term.

This is a total train wreck. I am tempted to buy a million dollars worth of VXX. Someone out there who cares about the mental health of Le Fly, please talk me out of it. But, seriously, doesn’t it look good?

This is the perfect scenario for volatility. No one believes congress will willingly crush the spirits and souls of investors, via a self inflicted/catastrophic default. HOWEVER, that’s exactly what they’re going to do, AND MORE.

When it happens, everyone is going to freak out, running around like chickens without heads. At that juncture in time, “The Fly” will be snacking on protein, drinking creatine shakes and generally chuckling at the drama.

So far, during my lifespan, I’ve learned to trust no one, not even Santa Claus. If you’re buying stocks here, you are trusting congress to act rationally. Now tell me, is that a rational bet on your behalf?

All that aside, BALT looks good, as well as NTE and CLSN (no position in the last two).

Oh, by the way, MODN announced they will begin firing people. That is exactly what they need to do, in order to preserve value for shareholders. With a smaller headcount, their burn will be less; hence, their net cash position, which is now $4.50 per share, is even more attractive.

VXX tits for Halloween fools. You know the routine.

The BDI index is sharply higher this morning.

The rising day rates literally go straight to the bottom line. This is very bullish for a number of companies.

Here’s a look at the fleets of some of the more prominent dry bulk names.

Top picks: BALT, EGLE

Let it be noted, the only reason why I sold EGLE is due to fear of a secondary being announced. Unlike BALT, many of the dry bulk names NEED to raise capital to improve their balance sheets. In the long run, this is incredibly bullish for the industry. They need this respite to fix their financials. However, in the short run, companies with maturing debt and stretched debt/equity levels are dilution risks to shareholders.

It’s fascinating to watch this lunatic explain his stubbornness.

In my career, I have not seen a less attractive risk-reward ratio than a long investment in Herbalife common stock at current levels.

S&P futs are 9 points below fair value. Somewhere in a dark cellar, your local congressman is beating off to the carnage.

Enjoy.

Make no mistake about it, we’re going over the cliff and the United Steaks is going to be humiliated on the world stage, all the while our congressmen smirk–looking at polling data.

Markets will crash because our word is no longer gold. Gold is gold, so that might do okay. I am at a cross-roads, unsure what to do. On one hand, the markets should continue higher based upon QE. On the other, we have a temporary phenomenon–crushing the soul and spirit of the plebian investor.

Part of me wants to sell short to hedge, another part leverage up and wait for a resolution. But I cannot and will not rely upon the caprices and the whims of the sick perverts who work in Washington DC. Therefore, I will do without joyous grandeur in exchange for conservative austerity.

That being said, I will not sell BALT under $7, nor NSTG under $15. I will hold onto MODN because half of its market cap is in cash and YELP is a permanent fixture in the house of Fly.

It doesn’t matter what I think is going to happen. All that matters is what’s in front of my face. What I see is red ink, stocks bleeding out because of the specter of a debt ceiling breach. I’d like to hold the stocks in my portfolio because I believe they’re cheap. But they’re just stocks, frankly, and can easily be replaced.

I sold my entire MHO and FLTX positions, locking in 5 and 11% losses, respectively. I didn’t sell them because I felt they were going to trade lower. I sold them because they are lower. When “non-core” stocks breach 5 and 10% levels for me, I either double down or sell them. Due to the onerous tone of the market, I decided to sell them and raise 30% cash. I trimmed a few other things too, little stakes, here and there–bringing my current cash position to about 33%.

Naturally, I am on the prowl for fresh ideas, looking to make back the losses that I just locked in. But I am going to take my time, behave like a Congressman, without all of the traditional degeneracy that affixes itself to that position.

I couldn’t help but reflect on the flash crash of 2010 last night (here are my blogs for May, 2010). On the day of the flash crash, I had an endoscopy done, to make sure I wasn’t dying of stomach cancer (I was going through a period of hypochondria). It just so happened that 15% of my book was long VXX into the melee. After seeing what happened that day, I bought more VXX, eventually upping my position to more than 30% of my book. My bet was we’d retest the flash crash lows, and we did. I ended up making 50% on that position, setting the stage for terrific 2010 asset performance.

Unfortunately, VXX served as an albatross for me, during the dark days of 2011-2012. But we won’t delve into the negatives this morning.

I can’t help but to admire the craziness of our beloved elected officials. We are assuming they won’t force us to default on our debt, mainly because it’s crazy to do so.

And?

These guys are lunatics, completely detached from reality and business. The more I hear these trolls talk, the more I worry about them pushing us over the cliff. They just don’t care about the consequences, plain and simple.

I can see this market getting very ugly, the closer we get to 10/17. The democrats refuse to negotiate, because they don’t care. The republicans, especially the tea party folks, aren’t afraid of defaulting on our debt. Do you know why?

THEY DON’T CARE about the real consequences, because they’re ideologues.

Do not try to understand why irrational people behave the way they do. I am starting to think riding this out may prove to be a very costly wait and may opt for the sidelines instead.

I know everyone loves to hate Jim Cramer, including me. We all sit atop our high perches and besmirch, over and over again–because we’re better, sans his $500 million net worth. We poke fun at “how stupid he is” and “how bad his picks are,” even go as far as to suggest he’s a contrarian indicator–part of a short selling cabal alongside his ageless friend, Herbert Greenberg.

All that aside, who puts in the effort that Jimmy does, day in and day out? Each and every morning, the man must drink a large mug, brimming with Columbian cocaine–just to get started. He’s on in the morning, the afternoon, and again during Mad Money. In case the “markets are in turmoil,” Jimmy stays up with us for as long as the CNBC will let him, discussing the market, trying to offer sage advice.

I shouldn’t be so hard on Cramer, since I could never do what he does. Tonight was his 2,000th show and I’d like to congratulate him for doing the public a service. He might not get every call right and he might even muck up a few (who doesn’t?); but, he soldiers on and aims to win on a daily basis, while you perverts and drug addicts make fun of him from your Lazy Boy recliners.