Bank Execs and Boat Drinks

Reformed Broker has a well spirited attack on the banks.

Personally, I like banks, but harbor great disdain for people who work there, specifically janitors and tellers. Generally speaking, banks are cool. I get to stash all of my money there, use their facilities to feel all important and shit. I even borrow money from them to lever up my balance sheet and buy properties. Sometimes when I get bored I open accounts at different banks, just to see how advanced their ATM machines are.

At times, banks piss me the fuck off, like when they close early on Sundays. Fuck that– bible humpers. I am busy and need your tellers to stay there 24/7, like ghetto check cashing establishments. Also, I get annoyed when their ATM’s run out of cash, like WTF? You’re a bank; you should have money forever.

Some really poor people complain to me about credit card interest rates. I have no real opinions on that, other than the obvious: duh, stop borrowing money. Other people tell me “the banks aren’t lending.” To them I say “maybe they are busy putting all of the money into their fucking ATM machines.”

Lastly, a bunch of people complain about bank executives making a “fuck load of money.” But the bank execs aren’t “the perfect meatloaf” type of guys. They have castles to maintain and harems to update. Their plummeting stock prices is punishment enough.Geez, give a player a break. Handing out large bonuses is the only way to make the bank execs feel better about themselves. A Pimp has to eat too. The world is so depressed right now. We should be happy for the bank execs, as they celebrate their unparalleled success over boat drinks served in diamond chalices.

I am checking out now, amazed by the volatility of today’s action. Just 1 hour ago we were on the verge of bleeding out. Now we are melting up into the bell.

Into further strength, I will sell TCK, some WNR and CVI. However, I will NOT add to shorts, TZA or VXX. The possibility of a run away market is still present. God forbid the Germans decide to rape their populous for the Greeks, we will move 500 points higher from here. Nevertheless, I am content with my year to date gains, especially after benefitting from a garish run– in such a short time frame.

Until proven wrong, I will remain hedged and in a heavy cash position. But, unlike previous times, I will not let any of my positions, long or short, get away from me.

Have a bad weekend.

I’ve been buying VXX this afternoon, in between sips of tea and nibbles of crumpets. I intend to drop as much as 10% of assets into VXX or VIX related vehicles. The thought process is only to hedge against my 30% longs. Also, my EXH short position rings in at 5%. In all, I will have 15% downside exposure by the end of the day, with TZA in my personal–cost basis sub $45.

I am not looking for lightening bolts to the face trading action, just something exceedingly scarier than this.

As always, I will utilize my time machine, aka The PPT, for exit points.

My exposure is 15% short, 30% long, 55% cash

I sold out of a variety of positions this morning, into strength. I was “blessed” by the Gods with an enormous IPGP scorcher. It was a top 3 position of mine. Anyway, “The Fly” has opted to adhere to the laws of nature by going to the sidelines and buying some TZA in his personal account. Over the past week, my gains were enormous, pushing my YTD returns to 13%, just 3% off annual highs. In other words, I am walking away a winner.

Now, I didn’t sell WNR or CVI because gasoline prices are dropping hard. National prices are down to $3.31, ensuring strong demand. Coupled with the fact crack and WTI-Brent spreads remain near all-time highs, I believe the refiners are a winner.

In addition to WNR and CVI, I kept 75% of my TCK position and all of my GSVC. GSVC is my high risk/high reward play, as they are invested in Facebook, Twitter, Zynga, Groupon and Chegg, just to name a few.

In case you were wondering, yes, “The Fly” will be dining like a King today, at the finest Michelin rated restaurant in NYC, guzzling down the finest ambrosia available in all of North America.

NOTE: I am still short EXH.

UPDATE: I bought a little JVA

I sold out of all of the above, except TCK. I sold 25% of my TCK position.

Fuck it. I am riding into tomorrow with all of my positions intact, with exception to TNA. I sold that shit because I have a brain in my skull.

Barring some Twilight Zone type of late day trading action, I will make about 4.5% on my money today, pushing YTD gains north of 11%. I sit here, like a greedy little boy with chocolate all over my face, wanting more chocolate. I want more chocolate and I want it now!

This is where I make my year or squander it. When I say “squander,” I do not mean disastrous lightening bolts will strike my face tomorrow. But if we get a down 300 open tomorrow, my gains will be muted and my momentum staggered. But if I am right. Oh, if I am right, it’s champagne and beluga, Bordeaux and howitzer exhibitions, totally demolishing my neighbors’ homes. Fucking cannon balls on fire, piercing their fucking lawn furniture.

I should be selling today; but I want more. No one gives a fuck about your opinions, son. Take notes and get out of my way.

“The Fly” wins all the time, even when it appears he is being obliterated. Never forget those words. Ever.

I’m carefully looking over my books, dotting the i’s and crossing the t’s. Thanks to perfect, and I mean perfect, timing going long this market, I am now up 10% for the year, or 3%+ today. Just last week I was down 3%. While this may sound normal to some of you, trading junior accounts at E-trade, this is as dumb as a gay giraffe driving an ice cream truck to me.

I am looking at my positions in real time, as this market melts up, and it amazes me. I am not in awe of myself for making back what is rightfully mine. After all, it is my right to have these monies. Instead, I am frozen, unable to do anything.

On one hand, it makes a world of sense to take profits and go to the sidelines. But that seems so simple, doesn’t it? Almost a cliche. IF the jobs numbers are better than expected tomorrow, we may go on a face ripping run for the next month, forget about tomorrow. All of the stocks I bought earlier this week are up 15-30% now. If we rally hard into Thanksgiving, they will be 50-100% winners. That’s how depressed these stocks were. Names like TEX, WNR, CVI, IPGP and CLF have ample upside potential, especially considering all of the amateur short sellers stuck in these stocks. I warned you earlier, the market is taking the path of maximum pain. For short sellers, it doesn’t get much worse than this.

I am telling you these things, not to denigrate your plight or make you feel small. Instead of getting all defensive and shit, like a small bitch, learn from my experiences and take notes. Just last week, I was forced to ban and kill countless readers here on iBC due to substandard behavior exhibited while in my parlour. As you can see now, you were immeasurably wrong, while I was right–yet again. This lesson has been taught on iBC for almost 4 years now and will continue to be taught, as long as I am schooling you dog-fuckers how the world really works.

Word of advice: taking profits is not a bad idea, but shorting ahead of tomorrow’s numbers is madness. Additionally, you should make it a point to demonstrate proper decorum when visiting “The Fly’s” blog, for he is a gentleman amongst gentlemen. Plus, he’ll punch your fucking eyebrows off if you don’t.

UPDATE: I sold out of TNA.

I added to my TCK position based on copper strength. The market is selling off and the bears are dying to burn this fucking house down. My book is flipping between gains and losses in a jarring fashion. I don’t like seeing my intra-day gains and losses so unstable. A lot of the weakness can be directly attributed to the inane comments of Trichet. This man has been wrong his whole life. I am glad to see him go.

If the market starts giving up yesterday’s gains quick, look out below. I am about 30% cash and should be raising cash here. However, I’m a risk taker. That’s how I roll, much to my benefit or detriment. This is high level money management at play here. This year has been dreadful for me. My timing seems to be off by 1 or two days on a consistent basis, yet I am up 7% YTD. For the fourth quarter, it’s important that I stick to a thesis, with conviction, in order to power up my gains. I am sitting on fastballs, ignoring the curves. It’s the bottom of the 7th inning and I need a homerun. Nevertheless, I will not risk too much to accomplish my goals. It’s important that I live to fight another day, especially in arduous times like these.

For now, I am sticking to my long bias and ignoring the cat calls from all of the people I despise, who are looking for carnage immediately. Things have a way of working out for me, as I am blessed by the Gods. A little adversity is good for the mind, as it allows one to put things into perspective. My point of view is straight forward: the people who are clamoring for depression will be off with their timing because they are impatient. When it does finally happen, their accounts will be $00.00 and their dignity stripped.

There is a time and place for everything. Today is not the downside reversal day you’ve been looking for, so move on.

I added to my TCK position.

European markets are running on the same day the ECB kisses Trichet goodbye. With him stepping down, perhaps the new ECB will be led by a more dovish Chairman. At a minimum, him leaving is a huge plus for Europe, based upon his history being a stark raving idiot.

US futures are higher, despite softness in Apple. I like the commodity sector for further upside. And, the silver sector is likely due for a bounce, with the announcement of QE2 in England and a ridiculously oversold condition in silver stocks, namely AG and EXK.

With my money, into extreme strength, I will likely take profits. If we trade soft, I will leave my positions in place. The big risk is having exposure into tomorrow’s unemployment numbers. But, at the same time, the market is already pricing in despair. To be safe, you probably want to reduce exposure, get small, and prepare to enjoy the weekend.