A Bullish Close

I want to buy ROSE, EXK and AG. My algorithms are pointing to bottoming out action in silver and oil. However, I find it exceedingly difficult to allocate funds on a Friday afternoon. Although my bias is to the upside, I am somewhat somber about the prospects for stocks in the near term, due to the lack of catalyst. Nonetheless, we can trend higher based on Italian/Spanish yields easing and money coming out of “safe haven” bonds, which can cause a cataclysmic short squeeze for the ages.

Because of this, I am unwilling to short in size. My HDGE position is managed, small and without leverage. As you can see, it is not getting hammered today, like TZA.

My year to date gains stand at 15.5%, putting me in striking distance (4.5%) of my all-time highs. Just when you fuckers thought I lost, I fucking won.

In summary, I have lots of money to allocate and will consider doing it next week. The mood can change, rather dramatically, should we get a red session in Europe Monday morning.

Top holdings: YELP, NUAN, AVGO, ALK, CPST, NXPI and AAPL (all positions are noted, timestamped and maintained real time inside The PPT, as well as watchlists)

My position has improved a great deal from yesterday, led by gains in YELP, NXPI, NUAN etc. But I am sorry to say, this respite you are enjoying here, in the middle of the desert, is all but a mirage. You are drinking flutes of sand, not champagne.

The good news is TLT is getting crushed. The bad news is industrial related names are still down.

Now if you believe this market will head higher based upon the caprices of SODA short sellers, be my guest and buy more. After consulting with my favorite urinal shadows, I’ve concluded there will be better entry points than now.

Enjoy it while you can, for the Gods of wind, thunder and lightening will strike you down to ashes next week.

We are sort of in no mans land with regards to the market. The Fed meeting is behind us and the fundamentals stink. Couple that with the fact that school is almost over and people in my industry prefer to be drunk on a tropical island, instead of at their “trading turrets”; and you have conditions for a lifeless market. This market fucking sucks.

I’m not going to be hoodwinked into this tomfoolery on the Friday afternoon. There are certain conditions that need to be met before I step in again. First and foremost, I need to see TLT trade down hard. There’s a fucking bond bubble because the market fucking sucks and the Germans are conducting financial warfare against its neighbors.

People like Rick Santelli, and his tea party ilk, are the most dangerous people in the world right now. They are like financial terrorists, wanting to impose harebrained austerity on crippled economies. I tell you, it’s insidious, ignorant, and will never work. Borrowing costs in Europe have gone up since Germany thrust austerity upon its neighbors– because growth matters and balance sheets eat ten dicks.

I have about 32% cash, 5% HDGE and the rest long equities, about half of which is tied up in YELP. There’s really no point in telling you what I like, since I do not like anything enough to make me buy. If anything, I am warming to precious metals, particularly AG and EXK again.

Before I talk about stocks, I need to address the ongoing vagrancy that is polluting the great house of iBankCoin.

Make believe you are a man of importance. You are dressed in your finest tuxedo, top hat, white gloves, with cane in hand. You are inside of a great house, invited for a midnight dinner and ball, where you and your wife graciously accept the provisions set in front of you by a magnanimous host. That host is “The Fly” and you are the impostor in the top hat, making believe to be appreciative of the caviar and champagne snacks, so generously provided for you and your stupid wife. Not too deep under the surface, bitter jealousy can be found, as it is found in most men, because we are combative and impulsive savages. But your mother raised you well enough to abstain from acting out of place and to comport yourself with the minimum decorum– when in the company of well groomed gentlemen.

Having said that, if any of you disrespect me in my house again, I am going to track your ip, find out where you live, then murder you.

With regards to the market: this set up is very simple. We will wait for two more flushes, then take it all. The sublime harmony of mathematical precision aka my time machine aka The PPT is operating at full plutonium levels, guiding members in and out with the utmost elegance and panache. There are set ups on the long side developing. However, before we buy in, we need to head down a bit lower. For those of you on the outside looking in, I strongly suggest making arrangements to hedge oneself, else find oneself on the receiving end of the claw-hammer of certain death and destruction.

There is a storm brewing. Head for shelter, for your umbrellas are grossly inadequate.

It was by design!

When I sold 40% of my holdings, ahead of the Fed meeting, many of you thought I was mad. This morning I pointed towards TLT as a “tell” with space alien magician precision. Shortly thereafter, I purchased a large amount of HDGE and some ALK. Although I still hold a great deal of YELP, as you can see, the price is thoroughly controlled and is not in the least bit aggravated by today’s plunge lower.

I do not expect anyone to follow me blindly into battle. Howsoever, I will tell you, as a combatant in this market since the age of 10, I rarely lose. As a matter of fact, I do not believe I have ever lost a war. There has been battles gone awry and VXXings along the way; but rest assured, Plutonium Petey will triumph victoriously at the end of the campaign.

Goldman came out with a bearish call on the SPY, thanks to the fucked up Philly Fed. I happen to agree with them.

See, it’s not enough that the Fed be on standby, readying to liquify the system with fresh notes. What we need is bold action, a hiking of the inflation target, massive intervention in all asset classes. What we need is nirvana; but we didn’t get that. Because we didn’t get that, I am afraid this market is going, irrevocably, lower.

Remember my bovine friends: my core thesis behind getting long was the specter of QE3 and policy response by the ECB. Until I see that, unfortunately, I must remain sidelined.

I bought HDGE as a downside hedge and ALK.

I like the airlines here, as a defacto hedge against my longs. I know that sounds absurd, since I have zero oil stocks. But the airlines are going up as oil drops. When oil drops, for the most part, stocks follow suit. I am interested in two names, one of which will be revealed soon.

I want to buy ARMH and add to my positions in NXPI, NUAN and AVGO, but cannot do so unless people come out of their TLT caves (more on that in a minute). Also, I am keenly interested (pardon the split infinitive) in BIDU, with the stock down huge due to mobile ad model concerns. Apparently, the same thing that is plaguing FB is plaguing BIDU, and a number of internet names. How can they monetize via the smartphone? The more people buy smartphones, the less they use computers; hence, they do not click on ads. Ad revenue is much less via mobile. As a result, everyone is selling BIDU.

You know what company is quite good at mobile?

YELP.

Moving on, here is the correlation between TLT and SPY, over the past 5 days. It’s almost a 1.00 correlation. In short, before I add to my longs, I need to see money coming out of bonds. I’ve been given a second chance, a reset of sorts, something not granted often on Wall Street. However, I seem to do it all the time. I ebb from rolling disasters and flow towards unparalleled winship, seamlessly, as if it were common place.

Gold and silver are being dismantled today, due to the crowded nature of the trade. Many investors went long oil, gold and silver, ahead of the Fed meeting, in an attempt to be smart. I told you the proper time to buy gold and silver was at the very apex of crisis into the first leg up of reflation. What you are seeing now is a mass exit from a trade gone stupid. It feels like a rout, but it isn’t. Investors are finding better venues to gamble in, than ancient currencies or something controlled by criminal cartels.

In my opinion, tech is the place to be. As a matter of fact, it is the only sector worth investing in. It is rife with mergers and acquisitions and devoid of the unsavory type who tend to overpopulate the commodity sector. I think if you would fix your eyes on tech, you might find your pathetic lives to be somewhat more meaningful and less rakish.

On a brighter note, today is “Make Music” day in NYC. Do not be alarmed if you see people playing with toy pianos near your favorite fire hydrant this morning, as it is perfectly acceptable to do so–today. There will be hundreds of performances done by independent musicians, as well as incognito professionals, throughout the streets of NYC, in the midst of 100 degree temperatures. It is just one of the many things that separates this great city from the shit heaps you calls cities in the midwest, or down south.

In short, I like the action, despite the rout in commodities, and will be adding to tech today.

You do realize nothing has been done at the Fed or ECB, right? Up until now, the markets have been running on anticipation of easing and/or bailout money for Italy and Spain. The problem with going all in long here is the absence of a real physical presence of these central banks in the system. Mind you, QE is not just an acronym. When the Fed does quantitative easing , they literally expand the money supply, thereby boosting asset prices.

Today’s milquetoast response to Federal Reserve inaction can be attributed to momentum traders and short sellers capitulating. Fed days are always ranked with peasants. I suspect the real flavor of the market will be tasted over the next week.

Until I am certain we are going much higher, I will keep my cash levels at around 40%.

Some names of interest are SODA, KRO, MEA, MTL and TCK. I will be expanding upon my watchlist tonight and will post it inside of The PPT.

I know many of you are overzealous, anxious to get a piece of this runaway train. But you need to relax and shut the fuck up. The real move will present itself after 3:00. What is important to note is the strength in commodity related names, while commodities are lower.  People are chasing stocks and not looking at the information. It reminds me of two weeks ago when most of you bastards were strapped tight in the FAZmobile heading for concrete walls.

Look, it’s very tempting to buy up some cheap basic material stocks, in the hopes of hitting one out of the park. But it’s important to remember the reason why those stocks suck balls. Coal is being displaced by natural gas, which is plentiful because Aubrey at CHK is a fucking lunatic. And, demand for steel is pretty much non-existent, ever since China stopped building “ghost metropolises.”

When I start buying again, I am getting long tech, in size. They have the best balance sheets and aren’t one debt refinancing away from total oblivion.