Zero Traction

My positions shed a little more today, due to my over exposure to small caps and commodity related names. In recent weeks, the general market has corrected very little, but the internals are far worse.

All commodity related names have been God smacked, over the past 10 days, ranging from -10 to -30%. Yet, at the same time, tech stocks have held up well.

Part of my recent frustrations stems from the fact that I’ve been exactly right, regarding the tech run, but no longer own the names worth owning, if you know what I mean. I took profits in Dell Inc. [[DELL]] , Atheros Communications, Inc. [[ATHR]] , Cavium Networks, Inc. [[CAVM]] , Starent Networks Corp. [[STAR]] , RF Micro Devices, Inc. [[RFMD]] , [[SPIL]] , Teradyne, Inc. [[TER]] , Amkor Technology, Inc. [[AMKR]] , Advanced Semiconductor Engineering (ADR) [[ASX]] , Ciena Corporation [[CIEN]] , Brocade Communications Systems, Inc. [[BRCD]] and Aruba Networks, Inc. [[ARUN]] , and now find myself saddled with shit.

Well, shit is a relative term. However, it’s worth noting, I’d prefer owning the stocks mentioned above, my sales, than the ones I have now: Flotek Industries, Inc. [[FTK]] , Trident Microsystems, Inc. [[TRID]] , [[ENTR]] , Sify Technologies Limited [[SIFY]] etc.

I knew something like this (get stuck with shit) could happen; it always does towards the tail end of a monster rally. However, I am not stupid and consider all of the crappy positions to be of little consequence, with exception to FTK. Most of my small cappers are less than 5% of my holdings. In recent weeks, I’ve been bulking up on [[UNG]] , Corning Incorporated [[GLW]] , OmniVision Technologies, Inc. [[OVTI]] and GameStop Corp. [[GME]] . Additionally, at the close of trading today, I was in possession of a 13% cash position.

In short, I am doing just fine, but need to get my mojo going again.

For those of you who address “The Fly” in a derogatory manner, calling me “cow” or other childish names; quit doing so immediately. I am your superior being, with a genetic makeup much finer than yours. Don’t get haughty with me, fucker. Most of the time you think like a fucking monkey, always FAZZING yourself into egregious cocksucking situations.

I have one foot out the door, due to a scheduled meeting, so this will be brief.

The market does not want to go down. There are 100’s of reasons to sell off, but none of them seem to be able to shake the unwavering optimism, displayed by investors on a daily basis—who are bidding the market up. There is an old saying, which I try to live by: “cancer is contagious; cut that shit out.” Truth be told, I am not the shining beacon of happy joy go lucky (irrelevant, my grammar, that is) at any cocktail party. However, I try to disassociate myself from lowly types and most definitely “cancer.”

The problem with many bears stems from the fact that: A. they are lowly and B. they are cancer. Folks, I must tell you, that is a very bad combination to possess. If you happen to fit that description DO NOT buy a house, for you will, most assuredly, fall victim to the ever-so-popular foreclosure proceedings.

Just about all of my stocks are up today, sans the corn on the cocks: Flotek Industries, Inc. [[FTK]] . Right now, for the day, I am down about 0.1% aka “sitting on a camel doing nothing.” Now if I was not delusional, I’d admit to myself that my current positions are not working and the market is as stubborn as an Ox. Over the past week or so, I have retraced to the tune of 6.5%, yet here I am acting like this is the dot com rally of 1999.

I cannot explain why I am so optimistic about stocks; and I know it vexes many of you. If I was examined by a psychiatrist, I am sure she would say “that fucker likes to bet against the popular trend,” which is true. I see many of my friends and colleagues setting up short sales, preparing for a resumption of “fuck you, you’re dead” trading; and I just sort of spit at them, like a camel, via big block long tickets.

My top picks are not potential 200% movers. I like Corning Incorporated [[GLW]] and OmniVision Technologies, Inc. [[OVTI]] , for specific reasons. I am buying GLW based upon shortages of glass substrates at the major foundries, due to frenzied demand for 32 inch LCD’s. And, I am buying OVTI, for their exposure to the iPhone 3gs, which they are the supplier of the camera technology. In addition, OVTI has close to $5 in cash.

As for FTK: it needs a push in the right direction. Without a doubt, I believe the stock will be significantly higher in 3 months. Just know and understand, stocks that have heavy short positions tend to get bogged down when buying interest is low. Right now, people are busy fucking around elsewhere. Once they get their financing ducks in order, the stock will rip higher, in my opinion, of course.

Notice how my charting skills are so good, so precise, it (my fucking chart) does not require “rookie lines” or commentary. The chart itself is alive, breathing; it is art.

To hold or not to hold is the question. As you shall understand and learn quickly, the fate of the markets, your fledgling business and most certainly your life is intertwined with the daily on doings of the chart, most prominently featured above. Indeud.

NOTE: The name of the stock or ETF is entirely irrelevant, which is the reason why it is ommitted, as it is none of your concern. It’s just another reason to trust your #1 source for “Chart Chompery,” from your host, Gracious Fly.

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I know a lot of you bastards thought we’d melt down into the bell. For a minute, I was thinking it could happen, but then I punched myself in the face—to snap out of my stupor. Shortly after busting my nose, I bought more Corning Incorporated [[GLW]] and took a bank onto my books, via a light Umpqua Holdings Corporation [[UMPQ]] purchase.

With rates climbing again and the dollar firming up, the bears thought they had the initiative. Instead, the bears were tossed into “murderholes,” because bull runs do not die easily. Moreover, if you choose to get in front of one, with your bullshit sell tickets, you will get owned, drenched with gasoline, then lit.

The street is waiting for RIMM‘s numbers. Providing their numbers do not conjure up fresh thoughts of Armageddon, the market can move out of the idiot box, on its way to 1,000 S&P.

I bought 2,000 Corning Incorporated [[GLW]] @ $15.40 and 5,000 Umpqua Holdings Corporation [[UMPQ]] @ $8.32.

Disclaimer: If you buy the above stocks because of this post, the Italian mafia will make you an offer you cannot refuse. And, you may lose money.

The new iPhone is going to be fucking huge. Back in the old days, “The Fly” only saw value in rotary phones and “drug dealer style” beepers. However, he has seen the light, with regards to gadgets and how they infect the minds of the weak. People will buy the new iPhone, even if it meant starving their newborns or killing their dogs.

The obvious winner is Apple Inc. [[AAPL]] . But, I’ve been playing the launch, indirectly, via OmniVision Technologies, Inc. [[OVTI]] . For the first time ever, a video camera will be in the iPhone and OVTI is the supplier. Can you say “better than expected earnings”?

Other beneficiaries of the new phone are Cypress Semiconductor Corporation [[CY]] , Synaptics, Incorporated [[SYNA]] and Starent Networks Corp. [[STAR]] . Both CY and SYNA enable touch screen functions, while STAR is the dominant leader in core routers. In other words, you would not have internet access, for your iPhone, Blackberry or any other smart phone, without STAR.

Additionally, Alcatel-Lucent (ADR) [[ALU]] and [[ERIC]] are key players in building out the new 4g network. If those euro-trash types could get their acts together, both stocks could run much, much higher.

As for today’s trading:

Oil and gas stocks are weak, while banks spiral higher. Unfortunately, tech is sitting this rally out, which means the market can sell off into the bell. Without a doubt, this market is becoming quite cumbersome to gauge and trade.

Good news for you leveraged ETF home gamers: The bastards from Pro-shares have decided to launch a new set of leveraged ETF’s, based upon the success of wiping out the majority of investors in their previous products.

Here are the new 200% long/short ETF’s:

Long
EET: Pac rim, ex-Japan
XPP: China
EZJ: Japan
EFO: Europe

Short
EPV: Europe
JPX: Pac rim, ex-Japan
BZQ: Brazil
SMK: Mexico

Enjoy!

If I was a fucking plant, I’d love this NYC weather. Unfortunately, I am not water proof and do not appreciate “God urine” blessing me on a daily basis. What happened to global warming, Mr. Tree Fucker? My carbon footprint is so big, so egregious, one would think that “The Fly” just doesn’t give a fuck.

Hmmm.

You heard it here first, folks, the market correction is over, prepare for new highs. Today’s “market math” is as follows: oil up+dollar down+(banks up+tech up)= Fuck you shorts, you’re dead.

It’s that simple.

Despite my bullish leanings, I will not deploy the 10% cash on my sidelines, mainly because I am perfectly content NOT being a bullish lunatic. The way I figure, I need 20% cash in order to effectively hedge my positions, if need be. So, with that in mind, I will be a net seller, into any rallies.

There is one sour flavour [sic] to this market: potential capacity utilization slowdown at TSM. Without getting too detailed, just know, if the semiconductor foundries start to cut back production, I will be out of this market faster than chocolate cake on a fat mans desert tray.

Top picks: OVTI, GLW

Okay folks, this is really important/ high grade shit. I am allowing you to be privy to the “magic of circles and triangles” and how they portend certain doom and disaster within equities.

Notice how the circles and “dorito-like” triangle are fucking with each other. It’s almost as if the triangle is laughing at the pathetic circles for being a pair of pussies. On the other hand, the circles have the triangle in a “super-fucked hemlock” which can result in a disastrous market calamity, even nuclear war.

In my work, as a licensed “chart-chomper,” I have never seen the circles attempt this move. This move is equal to or worse than applying the figure four leg lock onto a person with two broken legs; yeah, it’s that fucking bad.

The only way this market can survive such a predicament is via the formation of a “super-triangle fuck you style pizza hamburger” formation. Let me tell you, if such a thing were to occur, the short sellers would be better off traveling back in time to abort their own births, than endure such a torturous move to the upside.

It’s that serious, people.

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