You Ain’t Seen Nothin’ Yet

UPDATE: Back in 2007, there were food shortages and gas lines, all thanks to “global growth,” embodied with all of its joys and splendor— throwing the working man (you) into idle sewer pipes and cavernous manholes. Now, we have a different scenario.

Post unwind, central banks have flooded the system with “banana money,” as in “Banana Republic” style fiscal policy, not to be confused with the egregiously overpriced retailer. If you see the highs of 2007—just north of 450— on the chart featured above (CRB Index), consider the following:

• “Global growth” can regain 2007 levels, with no problem.
• Due to the crash of commodity prices, during most of ’08, capacity is not nearly what it was in ’07. In other words, mines were shut down and rigs were stacked. In order to get capacity utilization back to the 2007 highs, it will take some time. No one thought we’d recover this fast, including the mining/oil & gas giants.
• The creation of fiat currency is habitual (think drug addict); policy will not change. “They” do not care about “your” quality of life, only preserving “the game.”

Bottom line: Barring some sort of sincere intervention to buoy the dollar (rise in rates), the CRB index is not even close to the top. We can take out 450, no problem, sending your grocery and electricity bills through the roof, yet again. At this stage, the ball is already rolling towards that direction, major props to Jakegint for seeing it early. With my money, I will hedge out my egregious monthly tomato expenses with an oversized portion of basic material stocks, over the coming weeks, months and possibly years.

I “donated” some of my money to the Homofied Bear Foundation today, in an effort to promote goodwill and improve upon my karma. I do not fear losing money, only opportunity.

There is not much to say, other than: I shall return from my slumber to take your head from your paltry shoulders.

Into the bell, I was most impressed with Equinix, Inc. [[EQIX]] , ADTRAN, Inc. [[ADTN]] and Sociedad Quimica y Minera (ADR) [[SQM]] .

I will be present on Monday— to strike fear into the hearts of the weak kneed.

Every once in awhile, it’s important to let your enemy win, in order to vanquish him later. I’ve learned, it makes for good sport and keeps the illusion of realism vibrant.

Today’s decline is legitimate. We will likely close down triple digits, sending our cavemen friends into a mental state of apocalyptic nirvana. The blockheaded bear bloggers will post articles, declaring some sort of oddball occurrence in the galaxy, that coincides with today’s sell off, promising a great deal of carnage to come. In reality, boys and girls, it’s just a sell-off: or, like we call it, “A Charitable Donation.”

My plans of $100 rolls are still scheduled for sometime early next week, with my new friend Mr. Equinix, Inc. [[EQIX]] . And, I will buy all dips in Corning Incorporated [[GLW]] , ADTRAN, Inc. [[ADTN]] , TEKELEC [[TKLC]] and [[MWW]] , as stipulated in my contractual agreement with the Gods.

My advice to you: keep about 10-15% of cash on the sidelines, in the event today’s sell off spills over into Monday. Have a suitable watchlist prepared, so you may act quickly upon your instincts. And, finally, go eat a sandwich and stop thinking about the amount of money you are losing today. Remember, this game is all about patience and “calculatory” victories. Do not move your head when pistol whipped. Instead, stand there and take it like a man. After he is finished, take his pistol from his claws and bury him with it.

NOTE: Flotek Industries, Inc. [[FTK]] is holding up well. Odd, no?

To the FAZ mobile.

Developing…

Here is a list of the top 10 winners for 2009, with market caps above 50 billion. (market cap/ytd % gain)

I know the market is up big; but I cannot/will not sell out of my stocks, at such low levels.

From Corning Incorporated [[GLW]] to TriQuint Semiconductor [[TQNT]] to ADTRAN, Inc. [[ADTN]] to DryShips Inc. [[DRYS]] to Flotek Industries, Inc. [[FTK]] , the overall constitution of my portfolio is one of the cheap nature. I insist, this market has more froth left in it. However, truth be told, about an hour ago I pared off some of my General Cable Corporation [[BGC]] position, just for the sake of selling something—to be honest (so sorry for the redundant nature of my sincerity).

With oil spiraling higher, you must look toward undervalued oil/gas names, especially beaten down parts makers, like Smith International, Inc. [[SII]] , Graham Corporation [[GHM]] and ummm Flotek Industries, Inc. [[FTK]] .

Into the bell, I am “The Fly.” I am victorious.

Flotek Industries, Inc. [[FTK]] is pushing $2.30 and the market is enjoying the splendour [sic] of weak kneed bears, who are entirely docile and thoroughly impotent. Perhaps they could use massive dosages of viagra, injected into their large brains. All I know, the stock market Gods have blessed me with the gift of touch.

In a market like this, anyone can make money. But, in order to make big money, one must have a marmoreal/catatonic nature about them—unflinching in the face of big crocked gains. I will have you know, right here and now, Plutonium Petey is not easily aroused by stock advances, unlike most of you High Schoolish toolboxes.

Into this spike, I will sit back and enjoy a fine cup of illy, while counting the zeroes in my checking account.

Top pick: Flotek Industries, Inc. [[FTK]]

I bought 1,000 Equinix, Inc. [[EQIX]] @ $97.60.

Disclaimer: If you do not possess or know someone who owns a time machine, DO NOT follow Le Fly into stocks. You can lose money, in extraordinary fashion.

The fact that we are not plummeting on “good news” means we are not done going higher. Both Goldman Sachs Group, Inc. [[GS]] and Citigroup Inc. [[C]] reported solid numbers: yet, here we are hanging around eating grapes, while our servants polish the expensive silverware. The market offeres subtle hints, very quietly, from time to time. Today is one of those “tell days.”

Nonetheless, I am not in the mood to buy stocks. I told you before, I intend to lighten up into frantic rips, while conducting myself like a gentleman, being a net buyer of stocks, on dips.

I am pleased to see [[ENTR]] above $3 again. Many of you scurried away like small rats when it tanked several weeks ago. If ENTR’s technology is adopted, broadly, by the major cable players, without a doubt, the stock will be double digits. Personally, I’ve been waiting for this technology to reach my home for years. The fact that Verizon Communications Inc. [[VZ]] is using 6 chips per every Fios install is reason enough to own ENTR. Now that Time Warner is using them in their boxes, you would have to be mentally impaired to sell the stock now. It’s sort of like throwing away a lottery ticket, before looking at the numbers.

On dips, I like Flotek Industries, Inc. [[FTK]] , Equinix, Inc. [[EQIX]] , TEKELEC [[TKLC]] and ADTRAN, Inc. [[ADTN]]

Which stock will roll past $100, straight to $105, first?

No.	Ticker	Hybrid Change (Daily)	Hybrid Score	Price
1	APA	17.46	2.96	99.62
2	EQIX	47.97	3.64	97.85
3	NEU	23.81	3.38	97.29
4	ICE	36.65	3.43	97.29
5	AMZN	51.71	3.55	97.18
6	GHL	62.94	3.21	95.63
7	MTD	21.50	3.73	94.39
8	BIO	46.69	3.77	94.31
9	ABV	18.83	3.85	94.29
10	GWW	-20.88	3.07	93.25

My money was on POSCO (ADR) [[PKX]] (success!) . Now it’s on Equinix, Inc. [[EQIX]] .