What a Catastrophe!

Wow, AAPL is down a whole 2%, following disaster-filled quarterly results. The real news is the dollar, which is ripping tits, lending to the outright devastation of the pseudo gold standard. Needless to say, I believe there is money to be made short gold stocks. My favorite is AEM, due to its size and stupid nature.

The reflex rally in the dollar can last a long time, regardless of the fundamentals. There is so much hot money out there short the dollar, should they get squeezed, it can get very, very ugly. That’s the problem with free money: everything is distorted. It’s the reason why NFLX is above $150, Hong Kong real estate is in a bubble and why oil/copper are in the stratosphere. When the music stops, everyone runs for the small, narrow exit aka “the funnel”, effectively trampling over one another—crushing skulls along the way. That’s what can happen to the dollar, with a little push of course.

As for stocks: we are barely down 1%, so I am not excited. Yes, I believe we should trade lower. However, this market is all about defying the basic principals of fundamentals, so who knows where it’s going next?

Breadth is terrible. The mood is somber. Stocks are richly valued. QE2.

Your call.

(photo: Jakegint celebrating a lotto win, alongside Woodshedder and Jeremy “The IT Guy”)

Today’s Chinese lotto winners were:

SPU, JST, LIWA, TSTC, CHGS and XIN.

Please be sure to play more Chinese lottery tomorrow.

NOTE: this blog was paid for by your Chinese overlords.

What can I say? I hope you all bought more lotto tickets for tomorrow’s drawing. I won today, via  JST. Even my two shorts went down, MELI and AEM. Foreclosuregate is over, so yesterday’s news. Cocaine + 0.75% borrowing rates= cheap at any price.

The following is based upon a true story, during a different time. But the sentiment is exactly the same, as are the words.

“Look, look, look: take the stock market, okay? Take the stock market and put it into your checking accounts. I have a client from Oman and he buys 50,000 shares of AAPL at $150, then sells it at $320. It’s very nice and very clean money. Right now I buy BIDU at $105, very easy. Then, in two or three days, I will sell it at $190. I take the stocks and sell them and deposit the money into my checking. It’s very easy. Bernanke, that bitch, is going to put the cocaine in the market. All you have to do is sniff it up. Good, or no?

I have a stock, it is a very bad. It goes down everyday. Then, I realize, the CHARTS ARE LYING TO ME. It does not speak the truth. I take 10 million dollars and I buy Chinese stocks, all very nice and clean. They all going higher. This morning I bought JST very cheap. I sell it tomorrow and do 40 thousand gross. Look, look, look, America is like a whore for the money. All I do it stick my dick in and play a little, no?

I got to go. I have a date with a beautiful blond. She is a whore. I pay $250. Do you want to come?”

For a while, I had it this market all wrong, trying to reason with it. This is a market built, from the ground up, for the most ignorant people on Earth. No one cares about ANYTHING. Coincidentally, aside from my family, neither do I. “The Fly” can get as ignorant as any of you, probably more so than a factor of 5, as evidenced by my taste in “music.”

I’m not even investing any more, just straight up gambling from a lotto perspective, with millions on the line. Live fast, die hard, that’s the way I like to play.

Into the stratosphere, I am buying stocks that have earnings “issues,” like JST and BRCD. Also, I am long large quantities of FTK, MERU, CSIQ, without a care in the world. Bring the market down; I dare you.

Do you want to talk about the economy or riots in France or the fact that the GM ipo will watermark the top in this market for the next 10 years? I gather the answer is no, due to your reluctance to pay homage to the basic laws of fundamentals, all being ignored by the “BIDU crowd.” A new breed of investors are being baptized by long only robots at Goldman. Frankly, why get in the way of a good party, when the coke is free and the booze is fluid?

Bottom line: My bias is long until we stop going up.

I bought 10,000 JST @ $11.65.

Disclaimer: Nothing to see here. just playing lotto.

Considering the fact that banks are caught in the middle of a new crisis (foreclosuregate), the market is doing just fine. I do not want to reduce my long exposure just yet, especially with banks rallying here.

This market is all about “winning” money (just like scratch off lottery tickets), either through mergers, short squeezes or old fashioned rampant speculation. It’s a mixed bag of balls this morning; but do not underestimate the internal fortitude of buy only robots.

Valuations are stretched to the max. But, if you look at the market from a mergers and acquisition point of view, in comparison to corporate borrowing rates, we are absurdly cheap. It’s very hard for people to come to grips with this market, specifically due to being just two years removed from the Great Recession. Even though it feels like the market is up 50%, year to date, the gains for 2010 are fairly muted. Granted, there are some stupendous winners, specifically in tech. However, that is being buoyed by robust balance sheets, coupled with low borrowing rates. I’ll put it to you this way, any tech company with decent fundies and a clean balance sheet is a takeover candidate, either by peer or LBO firm.

Into this run, I like AMKR, HEAT, PWRD and BRCD, amongst others.

[youtube:http://www.youtube.com/watch?v=9WEgFKR97mE 616 500]

This is an internal document, from ChessnWine, sent over to my desk. I am revealing it to you now, so that you might behold the upside surprise, prior to the opening of trade tomorrow. You’re welcome.

Executive Order 12631— Trading Group on Financial Markets

Source: The provisions of The PPT order 12631 of November 12, 2010 (3rd year anniversary of iBC), appear at ppt.ibankcoin.com, unless otherwise noted.

By virtue of the authority vested in “The Fly” by himself as Founder, CEO, and BlogFather of iBankCoin.com and The PPT, and in order to establish a Trading Group on Financial Markets, it is hereby ordered as follows:

Section 1: Establishment. (a) There is hereby established a trading group on financial markets (trading group) The trading group shall be composed of
(1) The Bilderberg Group
(2) chessNwine
(3) RaginCajun
(b) The Illuminati, or his designee, shall be the chairman of the working group.

Sec. 2 Purpose of functions. (a) Recognizing the goals of enhancing the integrity, efficiency, orderliness, and competitiveness of The PPT, the Trading Group shall identify and consider:

(1) Timely stock market commentary on intra-day, daily, and weekly time frames.

(2) Actionable trading ideas in real time, supported by focused and cogent analysis.

(3) Extrapolating on The PPT “screens” to find the very best trading setups based on the algorithms sublime harmony of mathematical precision.
(a) The Trading Group shall consult, as appropriate, with RW Pelican, representative of “The Fly,” to determine security solutions whenever possible.
(b) The Trading Group shall report to “The Fly” initially within 60 days (and periodically thereafter) on its progress and, if appropriate, will receive slaps to the face with hot slices of pizza.

Sec. 3 Administration. (a) The heads of the Executive departments, agencies, and independent instrumentalists shall, to the extent permitted by law, provide the Trading Group such information as it may require for the purpose of carrying out this order.
(b) Members of this Trading Group shall already be subscribers to The PPT, before having access to a Trading Group membership.

Do you know what this chart represents?

If you think the decline in the dollar carries zero ramifications, think again. The weakening dollar will lead to capital fleeing this country, in favor of others. It will mark the end to American ingenuity, and the beginning of BRIC dominance. I do not mean to besmirch any of you individually, since my stated goal is to besmirch all of you at once. You trade like monkeys in a coconut tree. Idiots, you’re never going to open those damn coconuts, so you might as well go back to the banana trees.

Although I have bought many longs in recent days, my loyalty is not in the bull camp, not after such a big run. It’s true, capital is free and mergers will take place. But, it’s also true, when the lunatics are running the insane asylum, it’s time to look for a better asylum. In recent weeks and days, the readers of this site have become emboldened by my set-backs, similar to how a jackal would respond to a deer with three legs. However, if you come in a little bit closer for the kill, you will see that I am not a deer at all. As a matter of fact, I am Rambo, hiding inside of a deer carcass, with an AK-47 and several nuclear tipped hand grenades.

I offer you zero secrets to trading success, because they are all fairy tales. You have to put in the years, through trial and error, in order to find your strengths/weaknesses. My strength, ironically, is also my greatest weakness: conviction. Using my convictions, coupled with the algorithmic genius of The PPT, has helped me amass a great fortune over the years. I do not apologize for my mistakes, for they are my own. What you need to figure out, while typing dumbass words, directed at Senor Tropicana, into your computers: “will this improve the quality of my life, in any way, shape, or form?”

The answer to that mystery lies in the message delivered in this subtle, yet potent, video.

I just covered my intra-day short in COF for a $1.30 profit. It’s a funny thing seeing these banks get raped like this; at the same time, stocks are relatively unscathed. Once again, the market should be down 250 today; but here we are buying dips.

I have a very specific purpose in life, which is to crack 40 ounce bottles of malt liquor on the heads of my enemies. Believe me, I have many, many enemies, some even in my own camp. I see who you are, plebs.

With regards to this market: there is no set up or secret sauce. When we enter bull mode, stocks go up. When we enter bear mode, everything goes down. Try to figure that out, then get back to me.

When managing money on a professional level, it’s important to think big picture, right? It’s not enough to simply say “I follow trends.” If I said that to my clients, they’d fire me on spot. Sophisticated investors want to hear a story. They want to know that you have an idea and willing to execute upon that idea for profit. Dare I say: we are setting up for a most horrific decline, one that will be remembered for decades. The bubble is being inflated and packed with idiots, who claim to be making “free money.”

This sort of rampant speculation NEVER lasts.

Having said that, I’d be foolish to believe the move is imminent. However, I am looking for signs that such a move could take place. The pin-less hand grenade action in the banks today certainly lends to the Armageddon thesis.