THE OIL TRADE IS NOW IN PANIC MODE

Ok, oil has been dropping, and as a result, the sector has been lit aflame and tossed by the side of the road. But it’s more than that. This rout is causing panic in a wide array of areas.

Look at fracking sand companies: SLCA, EMES and HCLP.

Look at the rails, god damn it: ARII, GBX and TRN.

Look at shipping: DRYS, BALT, GLNG, CPLP and SALT.

Even airlines are getting clobbered. Perhaps their hedges are now hurting them? SAVE, RJET and ALGT.

The only sectors that are behaving are wine/alcohol, REITs and utilities.

Over the past month, over 1,300 stocks are down more than 10%, while just 220 are up 10%.

This market is dreadful. It is following the path of 2000. Damn it, I was right and now we’re all gonna die.

NOTE: I think the market is a buy…on Friday.

Still 30% cash. Largest holding is ETR.

The futures aren’t up enough. We are going to swan dive into a pool filled with bricks. Aside from that, I placed my iPhone in water, for the second time in as many months. My big loss isn’t the phone itself. I couldn’t care less about the phone. But I keep copious notes of things, words that I am fond of, which will be lost with the new phone. All of this happened because I refuse to buy a case. Actually, I have a case; but I refuse to use it.

Now I am using my wife’s old, stupid, iPhone and I want to throw this thing into the toilet and flush it. But if I did that, guess who would have to unclog the fucking toilet? You guessed it.

You know, there is a certain tediousness to the life that I lead. Why should a loss of a phone be this upsetting? I will tell you why. It’s because there is a giant fucking black hole void in my life that causes me to go nuts when order is disrupted. Everything is in ruins, a smoldering heap of skeletons atop of environmentally friendly medical waste atop of mangled metal.

And then there’s the stock market. Jesus Christ this is the life of a certified lunatic. Not only do I have to manage money for a living and get paid 7 figures for it, I also have to come here and tell a bunch of strangers about it, leaving me open to wanton criticism and debate from the biggest assholes walking the planet.

How did my life come to this?

I remember when I made a commitment to never curse on the site again. Frankly, I don’t know why I made such a commitment, since a word is just a word. There isn’t anything inherently evil about the word “fuck” or “shit.” They might be a bit vulgar and out of place inside the home, in front of the kids. But I have to tell you, very sincerely, I don’t trust any man or woman who never curses. Anyone who believes they are pious and places themselves above a certain subset of words is deranged and most likely hiding human organs in their refrigerator.

They’re just like priests: nice on the outside, demonic guttersnipes on the inside.

I haven’t done a 5 day free trial, for The PPT, in years. We’ll figure this market out, one way or another, so come into the hallowed halls of gentlemen and enjoy the comforts of unparalleled harmonious winship.

Let me clarify my position, speaking to you plainly in peasant tongue.

The market isn’t going to collapse.

I was bearish yesterday, very much so. But you know what happened today? The market fell almost 300 points. I am less bearish today.

On Friday, inside of The PPT, I acknowledged that The PPT was wrong on its OVERSOLD signal. I went back in time to give another instance of it being wrong, amidst numerous OS signals. The result was a 14 day malaise, before a sharp rally. If we copied that trading action, the market will begin to rally on Friday.

Even if you’re the biggest blood sucking vampire in the world, you should acknowledge that life has a certain vainglorious ebb and flow to it and that nothing is absolute. We will bounce and then we will go lower and then we will bounce again, in perpetuity, for the remainder of time.

The key to this market is oil.

Get your watch lists ready and be prepared to buy.

My ETR purchase took cash levels down to 30%. I got cremated in many of my longs today. But, had I not sold yesterday, I would be attending my own funeral today.

Don’t be a zebra or a caitiff. Sell stocks and live to fight another day.

UPDATE: In light of poor market conditions, the generous folks at iBankCoin offer you a 5 day FREE TRIAL for The PPT. Enjoy.

I bought back the ETR that I sold last week, pretty much at my sale price. I did this because the market is falling apart.

I did this, mind you, because the market is falling apart.

We’re not done going lower. The energy complex is being torn to shreds, with exception to some larger cap names. Post sales, my largest trading positions are CLR and CYBR. There is too much distribution taking place and I have a mind that transcends the space-time continuum. It’s important that you come here daily, for your dose of reality, and sage investment advice.

Over the course of your miserable and apathetic careers, you’ve bounced around from one investment blunder to the next. Let me remind you that in order to avoid falling into murderholes, one must not walk in the mine fields.

Think about that.

It appears we are following the path of 2000, after all. But the correction is being masked by the mega caps in the NASDAQ and Dow, which are holding up well because they all pay dividends now. My thesis was very simple: the correction that began in March-April, then halted from May-August, would resume and tear down the share prices that rose during the summer months.

There are roughly about 4,000 relevant stocks that trade in the US markets. I am looking at a screen that states 364 stocks are down 20% over the past month. That’s nearly 10% of all stocks, publicly traded. I call that a correction.

Ground zero for the correction is energy. But there are derivatives of the energy trade who are suffering, such as solar and a slew of alternative energy names.

Here are some notable one month decliners.

PBR -31%

BBD -23%

CLR -21%

MBT -22%

SDRL -32%

QIHU -21%

AEM -22%

CREE -24%

BTU -26%

SLCA -24%

CMCM -32%

NADL -42%

CLF -43%

PDLI -22%

AKS -23%

DRYS -31%

HOS -26%

VHC -64%

TCK -21%

TC -25%

ANR -45%

AU -32%

CMLS -20%

THRX -22%

NPSP -21%

MTOR -20%

The ongoing correction is pervasive, broad based, and is picking up steam. This market is toast and you are a slice of melting butter.

I tried to run away from the clouds–but they caught up with me. Today marked a pivotal day for me, as I resigned almost half of my trading positions to the graveyard of failures. I could’ve worked with them and built them up, in order to exit cleanly. But, very simply, I was scared out of today’s market.

The problem that I had was concentration. I was too focused on energy and had several positions approaching -10%. At -10%, I either cut losses or double down. Looking at SOL, EMES, BITA and ARWR, I found nothing in those names that said they were going to trade higher tomorrow, so I cut them loose. I tried to hold them, Ringo, I really tried. But the dark clouds have followed me to this place and engulfed me in its bearish cloak of antiquity.

I cannot be more bearish than what I am now. Figuratively, I want the world to end now. Actually, I expect it will end, in a giant heap of smoldering ruins, skeletons atop of recycled bottles of water atop of barrels of oil.

I am still long TNA, CLR, CYBR and about 34 other stocks, all of which I expect will lose me a dramatically gay amount of money. However, friends and foes alike, I am afraid of my very own shadow. There are people chasing me in the halls and they’re after my purse (tinky winky). Every time I stab them in the neck, or about the face, they fall and die. But then 5 minutes later, like some sort of Miami Zombie, they’re chasing me again in the halls–grabbing at my wallet.

This all sounds pretty nuts to you, I know. Join me in Vegas this November 8th and see if you will make it out alive, or perhaps my shadows will chase you too.

I’m a gentleman and do not have time to bother with this sort of drab. This market has been fooling people since its been invented. But now, it has taken its trickery to new heights. I’d rather remain, stoically, in a cash prison, safe from the elements outside, than trouble myself trying to figure out when The House of Saud will stop turning the screws on the Bakken.

Life wasn’t meant to be this tedious and I’ve decided to wait for a better tape.

Yes, of course, like a true psychotic, I am reversing an opinion that I ever so eloquently, and rather forcibly, stated on Sunday, alluding to ‘panorama of perversion’ set to be released on an unsuspecting audience in short order. I intended to eat caviar and drink magnums of champagne for breakfast– and feast on extinct animals by night. But now, now, I am just a ne’erdowell–afraid of my own shadow (Saul Rosenberg), only interested in safe harbor.

I am very glad to learn that many stocked brokers were heavily margined out on GTAT and are now negative equity. Those people will be liquidated and re-submitted back into the matrix, to replenish the tree of life so that others might suckle from it.

In closing, the market isn’t your friend, but your enemy. It only tells you “I can be a friend to you” because it wants to rape you.

Don’t drop the soap.

I can’t say that I am happy about this outcome. I am glad to have sold PANW on Friday. But, on a whole, my departure from TLT, EXC, ETR, into spec names has been a let down. First, my sale of IFON was divine. I took half of the proceeds and bought SOL. I just sold SOL for a 20% loss. Considering where IFON is trading now, I still made out ahead, sort of.

With the TLT-EXC-ETR funds, I had purchased PANW, EMES, ARWR and BITA. I sold all of those stocks earlier today and have moved my trading holdings to a 40% cash position.

With the proceeds of PANW, on Friday, I purchased CYBR and am still holding it.