In Desperate Need of a Little More QE

With the Dow nearing 13,000, the United Steaks of America clamors for more quantitative easing from the Fed. It’s been frightful out there, frankly, as the market tends to go down every so often. Generally speaking, people don’t like it when stocks go down. Having said that, I’m loaded up with this VXX and it’s giving me the fucking business. It is a 100% certainty that when I buy VXX the market is soon to explode to the upside. I am not mad at myself for it. Instead, it is something to behold, a marvel that cannot be explained through rational means.

Effectively, I stymied my chances at powering forward, hedging myself against success because I was “worried” about Spain and Italy crashing through the floor boards. Plainly, I permitted the “news” to get in the way of the media making up their own facts. As such, I now find myself 13% in the hole on this bitch of a whore, VXX, taxing me for all of my bread and wine.

Aside from that, I am progressively milking the farmer through LNN and enjoy the great leisure EL and EXK affords me.

I am 32% cash and 9% stupid, the rest is long stocks. I need EXK to melt higher; but the Gods deny me of my innate right to hedonism. They make it hard on me, teaching me the lessons of humility by running over my positions with Chevy Impalas (no Stocksage), every so often. As the once great Dog-Gods built pyramids in the desert, I too will erect (no WNR) great victories through purchase.

Give me a day or two to remove the webs of cob from my skull and you shall see some of the greatest trading of your pathetic lives!

By the way, we made it easier for you to toggle through the scrolling data above. Go to the front page and put your mouse on the data and it will expand to show you everything, AND MORE.

Futures are somewhat higher. However, I have my reservations about getting back in with any size. Nevertheless, I am going to show you some interesting things, using The PPT (why the hell not? We’re all charitable here).

First, here are the top rated stocks by hybrid score (a combination of both fundamental and technical ratings, proprietary to the system). For added convenience, I narrowed that list down to companies that have 20%+ quarterly revenue growth with ROE’s greater than 10 and minimum market cap of $500 million.

Next, here are the top rated Industries by the system, again sorted by hybrid score.

Out of that list, my favorite industry happens to be silver. I am afraid of werewolves and have stockpiled shares of a certain silver company.

Here are the current member rankings of the silver industry.

As you can see, EXK is wedged in there at no. 6, with a score of 3.71 (anything rated above 3 is a “buy”). However, the score wasn’t always this high. As a matter of fact, just a few days ago, when I added to my position by 33%, the score was considerably lower and was flagged as being OVERSOLD by the system (the OVERBOUGHT/OVERSOLD flags act like rubber bands, helping users discern buy and sell points for stocks, based upon historical precedence).

If you look below at the technical score of 1.00 on 7/20, that represented the lowest tech score over the past 12 months, qualifying it to be flagged as OVERSOLD by the system, prompting a system buy as a result.

What is the track record for buying EXK into OVERSOLD levels, based upon similar flags over the past 12 months?

After 3 days: flawless.

None of you fuckers are doing it like me. Don’t even pretend to be on the same level playing field.

Off to beat a few illegal mexicans senseless for getting paint on my floors.

Today was a great day for longs, with exception to those who own CLF. It’s river-boat gambling night in the day time, here on Wall. Well, technically, I am not in New York anymore; but you catch my drift.

As of 3:45 pm, I am up slightly on the day, held back by my VXXing and cash positions. Nevertheless, stocks like EXK, LNN, KMB, RS and CPST are helping to alleviate any anxiety that I might have felt this morning. In addition, I started a new position in EL, a somewhat defensive play with a predictable clientele.

The discipline that you should never abandon, in light of the VHC blow-up, as well as the others that will come in the future, is position sizing. I’m afraid many of you are 100-200% long a single name, trying to hit grandslams with no one on base. I fear that when you lose your shirt, as the case with VHC today, you get desperate, like a degenerate OTB guy, and gamble more–hoping to “make it all back.”

If you limit a position to no more than 20% of your book, you will never feel like jumping off a window sill, onto oncoming traffic below. More importantly, when you find yourself in a rut, cold as ice, take a break or trade small. The singles and doubles will get your back into the swing of things, faster than any homerun. Let’s face it, most homeruns are the result of being lucky, at the right place and the right time.

I do not like to see my members get fleeced in stocks. Regrettably, I dragged many of you through the mud with my YELP; but that ended up a successful trade in the end–having sold the entirety of my position north of $25. Perhaps VHC will rise from the ashes and accomplish what many of you are hoping it will. But it’s just a stock, not a business, and there are no guarantees with regards to court rulings, and so forth.

In summary, if you are going to gamble, do so with the houses money.

I started a position in EL to hedge myself against Mrs. Fly’s unchecked spending sprees.

Before I get into the market, I want to recommend that you see a documentary called “Jiro Dreams of Sushi.” It’s not often that I watch documentaries or bother suggesting to my readers to watch one. But the message from this documentary is one worth remembering, which is: immerse yourself in your profession and become great at it. After years of practice, you will be respected in your profession, but only after you’ve paid your dues.

This is an incredibly important piece of wisdom for you punk kids out there, twenty-somethings who come here thinking you know the first thing about investing. You don’t know jack-shit because you are shit. Got that, pal?

I’ve been playing the market since the early 90’s and I still haven’t perfected my trait. I am constantly learning new tricks and my experiences teach me, often through the fire of losing, what to do under difference scenarios. You cannot learn that in a book or by some jackass at a prop trading desk. You have to earn your stripes through fire (losses). Dedicating yourself to this profession means living it day and night. It means you stay up real late to watch Asia trade and wake up real early to listen to Bloomberg radio for news and commentary.

You don’t take breaks and you never fall behind the curve.

The market is trading funny today, feigning weakness after an early morning spike. I do not think we will give back today’s gains. However, I do not think it’s safe to buy stocks here.  If you were lucky enough to catch this wave, book the gain and move to cash. I am sensing this rally could extend into the bell. However, the problems plaguing the markets haven’t been resolved yet. The good news is Jackson Hole.

Should the Fed implement QE3, I am all in long. This market will run for 6 months straight, so don’t worry about catching the wave late. On the other hand, if the Fed opts to do nothing, again, prepare for lower prices.

My #1 tell for this market is the price action in TLT.

Okay, I will admit this bear trap was superbly laid down, even I lost hope and took on a VXX position. I should have known that whenever VXX looks attractive to me, the hammer of certain death and pain/suffering was about to be laid down on the shorts.

This morning there are hardly any news updates on Twitter, regarding Spanish and Italian yields because they are sharply lower. For the most part, people crowd the twittersphere to disseminate bad news only. Well here is the good news, Spanish yields are at 6.97% and Italian at 6.06%. At the same time, TLT is moving lower, but not enough.  As a matter of fact, if TLT doesn’t drop soon, this rally will weaken.

Bottom line: I am not participating in this rally because I got scared. I got scared because I was more interested in protecting my gains, than making more. If I would have followed my old gameplan of buying every dip because the central banks will not let us fail, I would be long TEX and MTW in size today. Instead, I am juggling my testicles now, watching all of the ugly people drink my champagne and eat my caviar. The great part about the market, which is why I love it, is it gives participants ample opportunity to get on the right side of the trade.

I’ll be doing some scouting this morning and decide soon whether I want to get back into stocks, like a fucking man.

Movie Rec: Jiro Dreams of Sushi.

http://www.youtube.com/watch?v=hbV6knbeUFE

His passion for sushi can be translated into any career path, especially stocks.

Over a 6 month time frame, the best performing social media stock is…

AOL (this is not a joke)

Here are the best performing social media stocks over the past 6 months.

Personally, I find it to be humorous that none of the lauded and praised  ‘social media’ experiments are atop that list. It goes without saying, Wall Street values predictability more than anything else. When you have guys like Gary Vaynerchuk (I love his wine shows) doing angel investing in “the new phase of the dot com revolution’, it’s time to discard of the idea that there is any value to be extracted from the sector. I do not mean it as a slight. As a matter of fact, I could rattle off a dozen people and websites that you might know and use, who are being funded by ‘bubble money’, slowing marching towards death.

When I built iBankCoin in 2007, the primary goal was to be profitable. While many others levered up and went the VC route, I opted to distribute equity amongst ‘tabbed bloggers’ and world famous programmer: VINCENZO ILLUMINATI. At first, we were making like 100 bucks per month. Now we’re making Maybach money, while you dicksuckers are being bullied to death by homosexual ‘angel investors’ from San Fransicko.

My point is this: ZNGA, GRPN and FB were predicted by most to be large mountains of shit and it turned out to be true. It’s not often when the herd is right on a major call like that, throwing eggs in the faces of Wall Street’s investment banking VC communities in the process. The truth is, the bubble was purported on purpose, and insidiously, by vulture capitalists who sold to you. Firms like Morgan Stanley knew the valuations were high; but it wasn’t their money at risk, so they turned a blind eye. The once treasured ‘retail investor’ will never comeback because he’s already been fucked and dumped in a dumpster behind the Morgan Stanley building.

Dot bomb 2.0

TLT was up today; therefore, it goes without saying, I am not a buyer. A dark cloud looms over this market, as it has done over and over since 2001. Playing the earnings game is nothing more than a gamble. Who would have known RVBD would skyrocket on  earnings?

The biggest money is in bonds. And they aren’t salivating over seemingly cheap PE multiples, just yet. I am sure the Fed will look to do another round of QE in August. That’s all fine and  dandy. But what’s going to make stocks go up in the long haul?

We’ve become slaves to manipulation, co-signers of corruption and theft.

I kicked out of RFMD, since it wasn’t central to my thesis. It was a bad pick.Other than that, I did nothing more than spectate in a heavy cash position of 32% and another 10% in VXX. In light of the recent pullback in VHC, I am pondering about starting a new position there; depending on my mood and the market, it shall be executed over the next few trading sessions.

The tide has turned against me, as Battle Sprinkler takes a grave turn for the worse. My hands are being hospitalized, as we speak, from acute injuries around the tip of my fingers. Separately, I see the market has sprinted forward. This shouldn’t come as a surprise to you, as I have VXX amidst my holdings. Nevertheless, my shares of EXK are pressing forward because any solution to the current crisis will debase currencies, meaning nirvana for precious metal players.

Aside from EXK, I like AG and RGLD here.

I haven’t sold out of RFMD yet –because I’m not a fan of  selling into the bloodshed.  I am so fucking sick of talking about the same crap. This is starting to bore me.

In short, I am not buying anything, nor selling. I have bigger fish to fry and cannot concentrate on the market until they are cooked.

UPDATE: I sold out of RFMD

Pardon my tardiness, I’ve been partaking in “Battle Sprinkler”, laying the groundworks for war, for the better part of the past two hours. Early reports of an erroneous lawnmower eating my sprinklers has been overturned. It appears, as God is my witness, the sprinkler got lodged under the earth, came loose, then started to wreak havoc. Suffice it to say, I was out there trying to screw in the fucking thing, with the ants and the bees crawling all over me, with little progress to report. It reminds of an old Polock joke, with regards to light bulbs.

VMI reported a good number; but the stock is selling off. Hence, LNN is following suit, in the process–kicking me in the dick.

RFMD decided to commit hari-kari. At this stage, I don’t even care what the news is anymore. Earnings sucked and the stock is giving me the business. I will be a seller.

Lastly, both EXK and VXX are performing admirably, oddly enough.  If it wasn’t for LNN, I’d be having a good day. However, it is because of LNN that my day is a loser, all the while my sprinkler heads taunt me with idiocy.

Nevertheless, I am not a buyer of this market yet. Both Spanish and Italian yields dropped, which is good–but not enough.