Brace Yourself for a 4% Down Day

Breadth is horrific across the board. Many of the little things that I look at, when analyzing intra-day trends, point to a 4%+ down day. Of course things can change and unicorns can grow cocks; but I’d be VERY, VERY careful about picking stocks here. See folks, the deflationary vortex is upon you. Both Spain and Greece need to roll over debt next month and all of our leaders are discussing ways to trim debt. That’s EXACTLY the wrong response to this crisis. We need more unbridled spending, not austerity.

So, as your local policy makers assure the next Great Depression, bank a little coin in the market by betting against them.

This is not a fucking game anymore people, where you can simply take this shit in stride and hope to “play the next bounce.” This drop is the real McCoy.

Trade accordingly.

NOTE: Who the fuck is McCoy?

I blew out of both GWW and HEAT, preparing for vapor lock mode here.

Current allocation is 24% VXX, 45% cash and 31% equities. TZA was done exclusively in my personal.

Long 15,000 @ $7.50.

That’s the Earth being sucked into the DEFLATIONARY VORTEX.

More on this later.

The internet is a funny place, especially finance bloggers. Despite iBankCoin shitting on the competition daily, we rarely receive incoming links and are regularly excluded from all “top finance blogs” by traffic lists. Assholes.

All of you top finance blog posters can go fuck yourselves. We got our own list now.

Note: if any of you third tier finance bloggers feel that you have been wronged by not being added to this list, please leave comment on Chess’s post. To be added, you need to provide proof of traffic.

Nothing says “look at me I’m rich” like a fucking water fountain in your front lawn. Go buy some gargoyle statues, along with some lions, and put them in your yard. Who gives a shit what your neighbors think? Fuck them too. There is no upside to being friendly to neighbors, for they are all out to get you. Remember that, especially during Christmas time, when they work feverishly to “out decorate” you.

“The Fly” is not interested in the market right now. He is thinking about vacation (New England) and what he may or may not partake in, during such an event. One thing is for sure, I will not stop trading or blogging. Every time I step away, iBC traffic drops by 25%, effectively cutting off the cocks of my other bloggers. I really like the staff here at iBC; but they can’t hold readers for shit. God willing, they will find it in their souls to kick ass, on a much higher level. If not, I’m afraid the deck will need to be shuffled, YET AGAIN.

Aside from being an asshole, I am in a very relaxed state. While you faggots sip bitch drinks from coconuts, “The Fly” is in a near catatonic state, totally in sync with the stock exchange, as if it was a level 1 game of Pac-Man.

The cross currents in this market are VERY disturbing. How can you sit there and talk an inflation book, when TLT is printing $100?  Really!? Stop humiliating yourself and go fuck a lemon tree.

I bought 5,000 [[CIEN]] @ $13.46.

Disclaimer: If you buy CIEN because of this post, a religious zealot will move in next door to you and convert your family into fucking maniacs. And, you may lose money.

Don’t misconstrue my hurried exit out of ERY. I do not like to hold 3x ETF’s for a long period of time, due to decay. Seeing the market rally, while ERY was up, prompted me to quickly exit. However, I still remain steadfast with my VXX position, now more than 21% of assets.

I bought GWW based upon a new accuracy tool in The PPT. It’s not available for public use yet, as it is still in BETA. However, I can tell you now, without equivocation, it is mathematical harmony at its finest. It takes the Godly, and often referred to, OVERSOLD/OVERBOUGHT indicators and tests the readings for accuracy. In other words, I am able to search our data base of 4,400 stocks+, plus ETF’s, for the most accurate OVERSOLD/OVERBOUGHT readings, using space alien magician coding, all provided by the good folks over at CAPSLOCK aka “Jeremy.”

Let me give an example:

No.	Ticker	Hybrid Oversold	Technical Oversold	Hybrid OS 3 Day – Avg Return	Hybrid OS 3 Day – % Times Up	Hybrid OS 3 Day – # Signals	Hybrid OS 5 Day – Avg Return	Hybrid OS 5 Day – % Times Up	Hybrid OS 5 Day – # Signals	Tech OS 3 Day – Avg Return	Tech OS 3 Day – % Times Up	Tech OS 3 Day – # Signals	Tech OS 5 Day – Avg Return	Tech OS 5 Day – % Times Up	Tech OS 5 Day – # Signals	Price
1	HRS	Yes	No	1.82	100.00	2.00	3.35	100.00	2.00							44.85
2	NFG	Yes	No	1.29	66.67	3.00	4.93	100.00	3.00							47.57
3	GWW	Yes	No	3.07	100.00	3.00	5.34	100.00	3.00							104.11
4	UN	Yes	No	-0.68	33.33	3.00	3.90	100.00	1.00							28.26
5	EMR	Yes	No	0.43	50.00	2.00	3.20	100.00	2.00							44.85
6	SLT	Yes	No	-0.11	50.00	4.00	1.89	75.00	4.00							14.62
7	DHR	Yes	No	0.80	33.33	3.00	1.90	66.67	3.00							39.11
8	ACH	Yes	No	1.13	66.67	6.00	1.28	66.67	6.00	0.73	100.00	1.00	4.44	100.00	1.00	20.13
9	SQM	Yes	No	-1.21	0.00	3.00	0.59	66.67	3.00							33.78
10	DAC	Yes	No	-3.39	0.00	2.00	-0.14	50.00	2.00							3.82
11	X	Yes	No	-1.82	33.33	6.00	-0.51	50.00	6.00							42.19
12	BHI	Yes	No	-1.58	40.00	5.00	-1.77	50.00	4.00							42.21
13	PCP	Yes	No	-2.49	50.00	6.00	-0.59	50.00	6.00							108.33
14	QLGC	Yes	No	-1.92	50.00	6.00	-0.58	50.00	6.00							17.71
15	SORL	Yes	No	-1.81	50.00	2.00	0.49	50.00	2.00	-7.00	0.00	2.00	-2.89	0.00	2.00	9.05
16	PTNR	Yes	No	0.80	62.50	8.00	0.02	37.50	8.00							16.42
17	WLT	Yes	No	-2.34	25.00	8.00	-1.53	37.50	8.00

In summary, I am still waiting for a pullback and have a plethora of names on my “to-buy-list,” when the time is right. However, with regards to 3x ETF’s, do not hold them, as if they were ordinary short sales. They are far more sinister and more conducive to chapter 11 bankruptcy filings, than a portfolio filled with a fuckload of  toxic CDO’s, literally.

I sold out of ERY @ $11.75ish and stepped into GWW @ $104.55

Both Spain and Greece will be going to market, in a laughable attempt to rollover short term debt. This is either going to end very badly, or HORRENDOUSLY. By late July, we will have a good read on the BP relief well. And, the market will get to analyze another round of U.S. unemployment data—always good fun.

In a not-so-surprising press release, it is being reported that the U.S. savings rate rose to 4%, the highest level in 8 months. And, as we speak, the TLT is about to enter the vortex aka $100+.

On the inflation side, umm, I think there are some imaginary printing presses working somewhere. And, central bankers are committed to imposing “austerity measures” in order to reduce debt. Oh shit, that’s deflationary. So sorry.

My advice to you pal, quit thinking so much and go eat a meatball hero.

Top picks: VXX, ERY