iBankCoin Enlightens You: The Beginning

Indeud.

Keep in mind, 41 states have budget shortfalls. Due to the poor economy, all have been forced to cut spending and raise taxes, some more than others. Here is the rub: more than 50% of states have already assumed that the Federal government will extend their assistance programs into 2011 and have accounted for it in their spasticly retarded 2011 budgets. ROFL. However, with Tea Party people going bananas and public opinion vehemently against bailouts, it will be a difficult, but entirely necessary, bill to extend.

The market will view this as a possible negative, as 2011 approaches, especially if the GOP picks up seats. I know that is like “1,000 years from now,” but remember the answers, for you will never know the questions.

Look, I am 100% convinced this market is set to move 10% inside of 3 short months. You need to keep your eyes on the TLT, GLD, FXY, USO, UNG and all of the basic resource stocks, daily, to get a feel.

The only reason why this market is not down 150 today is because of strength in the banks. The European “stress tests” were a great success, in that the share prices are ripping higher. Look at BCS, UBS and RBS for proof. It really is a fucking joke to report the stress tests were a success. I mean, who the fuck are they kidding? It’s not like they were going to say “OMG, holy shit steaks, our banks are Le done. Bye Bye.” Fuck those Euro losers.

Personally, I prefer the American loser, for he is fatter and much more jaded.

Get ready to lose your teeth. The market is into punching out punks (no idea where that came from. 10,000 apologies).

Sometimes people get caught up with the concept of hoarding money. They watch every single tick of the stock market, as if their pathetic lives depended on it. I can not stress this enough: GO EAT A FUCKING SANDWICH. You can’t just sit there, like some sort of pussy, waiting to hit the stock market lotto. It doesn’t work like that. Most trades are hard. Sometimes you get a gimme. But those gimme trades are the ones that lure suckers into the fold for future deballing.

Wall Street is a deballing factory, where men are split two for one.

Personally, I’ve made my bet now. It’s time for “The Fly” to go for a stroll. Or, I might take the kids to the park, for a little football toss. See folks, when investing, it’s important to remember how retarded and utterly stupid fund managers are. Don’t even get me started on retail. But, the point is: people have very, very small brains, like dogs, only worse. They lick shit from the asscrack of CNBC and call it their own. They walk around, dressed like Pat Riley, but behave like Ned. My whole existence in life is to destroy these people. Don’t you get it? I was built to hone in on and break apart these clown from within.

I shall do so before I am dead, AND MORE.

Back to sane thinking:

Bet against me and lose your fucking house.

It’s about the metals, ladies and gentlemen. Everything you know to be true or a lie is made in China. Life itself is manufactured at FOXCONN, under the strictest supervision of a Mr. Lee, who will gladly throw you off a building and make it look like an “unfortunate suicide.”

Having said that, it’s important to notice the basic resource stocks having their fucking Jimmy’s knocked off this morning. I realize the market is manipulated and the Dow has not responded yet. But PCX, X, AKS, STLD, CLF, amongst others, are suffering under fierce lightening bolts to the face. As you know, The PPT has been over 3.00 for three consecutive days now. This is an extremely rare occurrence. As mentioned inside The PPT yesterday, 2 out of the last 3 times this has occurred, the market went significantly higher. The one time it went lower; it fucking dumped out hard. Without a doubt, we are setting up for a rather large directional move and it is very hard to argue for more upside, here at 10,500.

It’s also important to note, several months ago we made some minor changes to the algorithm, effectively making it harder for the system to be tagged “OVERBOUGHT,” at least on a macro level. Moreover, despite the system closing above 3 for three consecutive days, it never went full “OVERBOUGHT,” since 75% of large cap stocks were not rated “buy” or higher. Perhaps I am being too picky.

At any rate, in an effort to position for a pullback, I sold out of GDP, CIEN, MLNX (the rest of it), EMN and added to both EDZ and VXX.

Now, I am fully aware of the risks associated with 3x ETF’s. If you are unfamiliar, please look at a long term chart of FAZ and understand these are NOT long term investment vehicles. I suspect there will be a tug of war, between the bulls and the bears, before the direction is set in stone. Either way, rest assured, Le Fly will come out victorious.

Be afraid. Be very afraid.

Let it be said and let it be known, it is not becoming of you, or I for that matter, to rush art. While we zestfully navigate the upper boundaries of the trading range, particularly in The PPT, it’s important to understand how unreasonable people are. Just because we are OVERBOUGHT, does not mean we will trade lower immediately. As a point in fact, much to my surprise, The PPT is NOT flagging OVERBOUGHT signals for any of the upside ETF’s or the market as a whole. Stubbornly, the percentage of large cap stocks rated “buy” or higher remains under 75%, which effectively leaves room for more upside expansion.

Nevertheless, I have taken it upon myself to do a little pruning up here, in order to raise cash so that I may average down on my VXX position, whenever I deem suitable. On a personal level, I bought a little GDP, in order to participate in the natural gas “squeeze game.” Trust me, it’s coming.

Bottom line: Claim victory via booking gains. If you are interested in playing the reversal to the downside, do so in small increments. Heroes get shot first.

UPDATE: I started an EDZ position into the bell.

Started a position here. In for the squeeze.

Disclaimer: Follow me on this trade and your brain will fall out of your head. And, you may lose money.

The art of proper money management is not hard to understand, but woefully difficult to practice. Let me school some of you what I am doing now, AND MORE.

I booked a dastardly loss on MLNX, selling 90% of my position. I said I was going to sell on a bounce. Well, here we are 10% off the lows: I sold. Additionally, I sold out of my largest long position: EWZ. And, I sold out 90% of my TSO position. I am not quite done selling; but you get the gist. As you know, I already have a large VXX position. So, it is not required of my person to add to shorts, as the elimination of my longs coincide with the increased exposure to my VXX.

A great man once said “When in doubt, rub some VXX on your chest.”

At any rate, now you know why I was frantically buying stocks, late last week, despite The PPT nearing OVERBOUGHT. I needed to offset the fucking VXX in my portfolios. I suspected we’d get another push higher. I wanted to participate on the long side, good Sirs.

In closing, I am back in control of my spaceship and circling the areas for nice spots of make crop circles.

Developing…

When I fall asleep, I dream of stocks and shit. Last night I had a dream about FTK. It’s all very vague to me now. But if I remember correctly, I Molotov cocktail’d their fucking HQ. Here we are, another day passing by, with the market doing all sorts of wondrous things. If I was a seal, I’d clap. But, since I am not a seal, I only plan to take profits.

I am down quite handsomely on my initial purchase of VXX. However, as always, intend to buy more around these prices, so that I might profit from the correction that is scheduled to commence.

When will it commence, you ask?

Answer: Soon.

With my money, I intend to bulk up on cash. And in my personal accounts, I will avoid riding stocks through earnings, like homeless people entering my subway car.

All in all, I’m doing well, with long positions in EMN, EWZ, CIEN, SHLD, GLW, TSO, BAC, IBN, just to name a few. As the market approaches 10,500, I will exercise caution.

I invite you to appreciate your insignificance to me, as you type words onto your computer screen. While it may seem to be important to you (your words), the universal reality is you are nothing more than a series of digits archived at your local census bureau.

Most people in my profession scoff at the idea of enlightening the proletariat about things to do with proper money management. The closest most of you get to cogent ideas are via Fast Money reruns or old clips of Paul Tudor Jones, circa 1980’s. Viz.

The blogosphere is populated with oversized babies who lash out for attention, while attempting to minimize the efforts of others. “The Fly” does not care to rip the spines out of his fellow bloggers, for they are not competition. Their prolific blogging efforts only enhance the traffic statistics of ibankcoin. Quite frankly, once people read them, compared to me, my website’s value doubles every 6 months.

In closing, next week will mark a massive movement in the Dow Jones Industrial average. I hope many of you are prepared for the action and reserve your little comments to yourselves, as I am unwilling to play “good host” any longer.