1,800 Points to Go

Save the credit crisis, global growth never stopped, umm, growing. Take the estimates at face value, since you have no choice, and there is no debating: this market is heading to 14,000. I know it makes no sense to you, especially since you have a dog’s brain. Consider this: the credit crisis never happened. It’s been erased from history and the scars are removed via plastic surgery. Companies are operating lean and banging out outrageous profits. The automobile industry is generating so much cash, F will be able to pay down all of its debt within a few years. The airlines are screaming higher, thanks to fattened margins.

I repeat: this is as good as it gets.

While there will be ups and downs, the trend is up. More importantly, the fundamentals are phenomenal. Ignore the naysayers; they are not money makers. It’s the people who risk it all that make the most. I am not advocating “risking it all,” since that is also a marvelous strategy towards insolvency. However, I am suggesting that you check the homofied fear at the door, else don’t play the game.

For the day, I enjoyed modest gains, thanks to MOS, AGU, EXK, ATPG and NGD. My year to date gains are small, about 4%. I’ve been washing out of stocks too quickly and unbalanced with my allocations. However, the year is young and I know exactly where to put my resources.

Top picks: NGD, AGU

So you’re sitting there drinking a fine glass of chardonnay, perusing the fashion section of the NY Times, and up comes some brutish jerkoff from Brooklyn. He queries: “yo, fuck face, yoos short stocks or what?” Startled by the poor grammar and gaudy gold chains, you retort: “I beg your pardon. As a matter of fact, yes, I am short of U.S equities. Now if you would excuse me…”

BAM! He then punches your glass of chardonnay (95 rated, RP) into your face, then walks away.

That’s exactly how this market is behaving, rude, belligerent and woefully ignorant. We are in a new paradigm people. Attempting to gauge the market using old methods is equal to using an abacus to figure out complex trigonometry problems.

The dollar hasn’t even begun to decline. As a matter of fact, it was up last year. Wait until the municipal crisis hits. Count on egregious bailouts, followed by another raising of the debt ceiling. This is end of days financing, folks. I strongly recommend stockpiling heavy bags of rice in your garage while you can. If the inflation thesis starts to play out you will see outrageous increases in the price of gold, silver and commodities. If you think cotton is expensive now, look it up in 3 years, then come back to this post to let us know how it played out.

In summary, I am heavily positioned to profit from inflation. I am long MOS, AGU, NGD, EXK, GTE, KEG and ATPG.

As an aside, the Seeking Alpha crowd is panning CCME again. Let me make this clear: I am not long the stock, but harbor extreme disdain for this pizza delivery boys posing as analysts on the internet, posting shit to manipulate share prices. I have NEVER seen anything like this in my career. These clowns are operating with impunity. The stock gapped up $2 this morning, so some schmuck who is likely short the stock combats the move with an unchecked allegation of fraud. The result: the stock reverses $3 to the downside. Un-fucking-believable.

You probably don’t care about it now; because it’s not happening to your stocks. But, believe you me, this sort of renegade journalism is dangerous and should be looked into immediately, starting with the trading records of the authors.

First, let me preface this article by saying Citron is extremely transparent with their picks, motives and agenda. They do not mince words and they go about their research in a very serious, albeit full of shit, manner.

The Godly folks over at iBankCoin took a looksy under the hood of the Citron Research automobile and found a lemon (pun intended!). We audited their results, going back over a two year time frame (aka the only time frame that is relevant for a professional investor) and matched suggested short sale prices with current quotes. Before I discuss the results, it’s very important that you understand the mantra of Citron. They are not looking for swing trades, at least not according to their long drawn out publications. They are alleging fraud, on a fucking grand scale. The type of shit that sends people to prison to wash underwear and catch ice picks in the neck. These guys highlight companies that are not only cooking the books (in their opinion), but fucking deep frying them in gasoline.

So, at a very minimum, being the well followed and respected source for short sale ideas that they are, I expected to see monster winners. Total wipe-outs, if I might be so bold.

Here are the results.

Bupkis.

Had you invested 10k every time Citron put out a report, over a two year time frame, your net loss would be a touch over 31%. Let me put this in layman’s terms for you: if this guy, or guys, were working for me and lost 31% for my investors, over a two year time frame, I’d slap him, or them, in the face with a hot slice of pizza, kick ’em down a flight of stairs lined with mustard, then toss down  severance packages (a bag of bricks). I am sure they did wonderful when the market was shitting the bed, in 2008-09. But who gives a shit? I’ve been banging out gains since LTCM went bust.

It gets better.

Within  the herd of short sellers, Citron has great sway over the pack. They are viewed as an organization with a voice—real go-getters, speaking on behalf of Joe Public, out to get those fucking rittle [sic] Chinese fuckers with funny accents. When Citron issues a report, the stock drops. As a matter of fact, despite the abysmal longer term track record (which is elegantly laid out for all to see), on the day they issued reports, the targeted companies stock prices dropped more than 90% of the time. Basically, trading ahead of a Citron report is equal to minting your own money, bullet proof. On the other hand, and I am not being cynical, Citron reports serve as excellent discount mechanisms for serious, longer term, longs. Essentially, betting against these fuckers is like having your very own gold mine in your backyard.

Remember kids, it’s  easy to accuse a company of being a fraud, but very hard to prove. However, I think it’s fair to say that I’ve proven, without a question, that Citron isn’t very good at what they do.

Grains of salt.

Today’s market, as well as this video, was paid for and sponsored by the Federal Reserve.

I added to my BORN position.

Disclaimer: I have a problem. I know.

I am going to level with you, without the curses and the jokes and the sarcasm.

I am a Space Alien Magician from the planet Boomshacklacka. I’ve come to your planet to bank coin and help small losers, such as yourself, prod along with me. I do not care about economic statistics because they have nothing to do with how the numbers and letters relate to one another. Some of you get very emotional when it comes to buying and selling letters and numbers. That’s why you are poor and I drive in space rockets heading for the Sun. I’ve noticed, in my travels, that people want things to end badly. They harbor disdain for the ruling elite and their jealousy makes them say and do stupid things.

For example: many of you dislike Goldman Sachs because they win all the time. I happen to like Goldman Sachs and feel all American investment banks should operate exactly like them. I have a keen fondness for bankers, because they tend to see things for what they truly are: numbers and letters.

I buy and sell stocks based upon my proprietary algorithms, advice from the shadows near my favorite urinal, nightmares and revenge trades. I do enjoy a good short squeeze, from time to time, because I find people who lie about the letters and numbers, in order to increase numbers, to be reprehensible. On my planet, lying short sellers are vaporized on the spot. On your planet they walk around with fancy bow ties and harangue others from well trafficked websites, an abomination in my opinion.

For the month of February, I am long inflationary plays, namely gold, silver and agricultural names. I believe they will “springboard” higher and torture those who bet against them. Stocks like EXK, NGD, AGU and MOS are crowd favorites for the month of February.

Other stocks worth mentioning are ATPG, BORN, KEG and FORM, all selected by my own hand in an effort to increase my digits.

I bought 10,000 NGD, low $9.20’s.

Disclaimer: If you buy NGD because of this post, an evil leprechaun will kill you for your certificates. And, you may lose money.

Indeud.

The jobs report just came out and boy is it exciting. The official unemployment rate plunged 0.4%, down to 9.0%, thanks to the disappearance of 700,000 people. Following last month’s disappearance of 500,000, it’s fair to say the government is doing a fine job at killing people, in order to reduce joblessness. After all, the lower the pool of available workers, the better that fucking rate looks, no?

In other news, Mrs. Fly walked in on me watching Fast Money last night (re-run) and queried: “who are those nerds?” The clever geeks over at Fast Money have a new segment where two people sit on a stool facing one another, having at it on a particular subject. Yesterday, that Brian Kelly (BEAKS!) guy was battling some fucking dork over the sustainability of the solar industry. It was ridiculous, really, especially the part when Brian Kelly stood up to make his case about how solar is so fucking cool, while some idiot music chimes out in the background.

Mrs. Fly is exactly right when calling them “nerds.”

In closing, the market should trade up today, thanks to such a kickass jobs report, regardless of whether 700,000 people were viciously murdered by our government.

POMO

You internet fuckers, with no professional experience in the securities industry, better be careful who you accuse of being fraudulent.  The SEC loves to go after the “little guy” aka you. All of the recent carnage being applied to the Chinese stock sector will have ramifications. Outfits like Muddy Waters and Citron Research will be sued for defamation and their trading accounts will be frozen, if it is revealed that they were working in concert to manipulate share prices. I’ve seen this happen so many times throughout my career and the ending is always the same: bad guys lose.

While it’s true, CCME may be a fraud. How the fuck should I know? They have an auditor and I read somewhere that Hank Greenberg’s firm is involved with them. I don’t know. But, there is something distinctly wrong with people selling short a shares of a thinly traded stock, in advance of a research report that will kill the share price by 30%. Trust me when I say this: if iBankCoin affected the share prices of stocks we talk about, I’d NEVER mention a stock again. I’d be scared to mention anything, if it resulted in 30% moves.

Message to Citron, Muddy Waters and people of that ilk: retain legal counsel.

Let me start by saying I was down 1% today, all due to the cocksucking action in BORN. Some of my loss was offset by gains in EXK; but I still finished down a bit.  So you know, BORN is a rather large position of mine, as I have been buying shares for a month now. My rationale, in my opinion, to buy the shares is sound and the value proposition is solid. However, there are a group of insidious cocksuckers out there, namely Muddy Waters and Citron Research, that make it a point to incessantly target chicoms with their “investigative journalism.” Because Muddy Waters nailed RINO (shot in the dark), people believe they are operating with crystal balls on their fucking desks and magic umbrellas up their asses. Today’s hit piece on CCME is disgusting, for a very specific reason.

They are coordinating their assaults on these companies and using their megaphones to manipulate stock prices. Are they trading ahead of their research? Ask the SEC, see if they care.

Having said that, frustration and anger does not generate gains. I added to my BORN position at the end of the day, but nothing too big. It’s important to understand why the stock is dropping and how low can it go. People are scared. When people get scared, share prices disconnect from reality, allowing those with liquidity to take advantage. However, before that chip can be cashed in, you have to get the timing right. In this case, my bet is for a better than expected earnings report, scheduled to be released 2/15. If you are short this stock and feel they are “cooking the books,” the last thing you want to do is ride this fucker short into earnings. After all, the “books are cooked” no?

Aside from that, I like the market here and will look to add to some precious metal names, which will be researched tonight, while you are asleep.