Endless Upside

Pardon my lack of giving a fuck today, with regards to the art of blogging. As you now know, “The Fly” was busy conducting business, in a most industrious way. After all, I am not just some loser, who earns his wages off the internets.

Looking at the market, one can make the argument that it will never go down.

On a very personal level, I am quite pleased with the price action in several of my holdings, namely JRJC, BUCY, MT and even FXI. On the short end of the stick, oil stocks are going up again, which unto itself is very, very funny.

In short, you may find “The Fly’s” market exploits unbelievable, mainly because you’re a fucking loser.

Into this rally, I want to take profits on some of my longs, in order to build my cash position. I do not want to initiate or add to my shorts here, due to the “endless upside” feel to this tape. However, sometime soon both SRS and FAZ will be Godly buys—just not yet.

I just wanted to be “fair and balanced,” like that crazy man on cable.

Developing…

All of the GOP cock suckers will come out of the woodworks to decry my title, as being “blasphemous,” since demoncrats are to blame for all of the world’s problems. I know. However, regardless of what they say, I think it’s fair to put forth the notion, through evidence of various insolvencies and the country’s balance sheet in the shitter, supply side economics was designed by idiots for imbeciles.

Essentially, the country was on the verge of collapse in the early 80’s. Reagan came in, all crazy eyed and shit, and ran up the deficit, like a crack whore in a crack house. As a result, the collapse was averted, or at least delayed.

However, many years later, with more than $50 trillion in the hole, the U.S. is on the verge of financial and social collapse.

I do not claim to have the answers to solve this crisis. But, speaking on a very personal level, when I was broke and living in a basement apartment in Brooklyn, my problems were not solved by jacking up my debit balances. Instead, I got all industrious and shit, hopped in my time machine, and made a gazillion dollars, the old fashioned way.

Deep in crisis, our government is trying to get “all Reagan” and shit again, via egregious spending programs. The only problem: this time around we are starting from a fucked up point, already in a lot of debt— with an annual deficit nearing $5 trillion (the highest since World War II). Last I checked, we were not at war with fucking Germany and Japan anymore.

This is some fucked up shit.

Go ahead, defend Reagan’s policies all you want. Back then, his policies yielded great results. However, it laid the groundwork, via building up government debt, that will eventually destroy the country.

Worth another look:

Via PPT, here are the stocks that have outperformed, thus far, in 2009.
(min market cap of 500 mill applied to screen)

Basic Materials

1 NGD 507,707,451 BASIC MATERIALS 71.33
2 CQP 778,457,028 BASIC MATERIALS 69.54
3 WNR 853,324,156 BASIC MATERIALS 59.82
4 MWE 692,706,613 BASIC MATERIALS 53.95
5 RGNC 853,373,670 BASIC MATERIALS 46.07
6 RIO 81,920,473,120 BASIC MATERIALS 44.39
7 CPNO 758,918,523 BASIC MATERIALS 44.32
8 NRP 1,485,358,103 BASIC MATERIALS 42.05
9 SID 13,100,480,521 BASIC MATERIALS 41.85
10 TRA 2,264,249,037 BASIC MATERIALS 41.27

Consumer Goods

1 NAV 2,217,354,287 CONSUMER GOODS 51.31
2 FDML 601,397,225 CONSUMER GOODS 45.15
3 CSTR 655,080,697 CONSUMER GOODS 27.68
4 WRC 1,053,744,007 CONSUMER GOODS 22.42
5 SPW 2,452,363,689 CONSUMER GOODS 21.22
6 GT 1,544,251,706 CONSUMER GOODS 18.34
7 HMC 43,966,213,507 CONSUMER GOODS 18.23
8 TIN 648,644,134 CONSUMER GOODS 17.71
9 UVV 779,346,245 CONSUMER GOODS 17.66
10 FDP 1,581,341,622 CONSUMER GOODS 16.41

Financials

1 PHK 959,393,406 FINANCIAL 57.27
2 SWIM 530,003,286 FINANCIAL 50.71
3 MS 23,649,691,406 FINANCIAL 44.44
4 FII 2,107,316,822 FINANCIAL 34.43
5 PML 506,233,560 FINANCIAL 31.73
6 DNP 1,830,041,957 FINANCIAL 31.15
7 HIX 502,945,200 FINANCIAL 30.58
8 EIM 698,352,570 FINANCIAL 27.36
9 RJF 2,377,066,803 FINANCIAL 26.27
10 HRP 821,982,336 FINANCIAL 24.31

Healthcare

1 CVTX 953,015,955 HEALTHCARE 73.07
2 GERN 601,624,763 HEALTHCARE 72.48
3 ITMN 633,220,293 HEALTHCARE 61.51
4 HNT 1,665,254,687 HEALTHCARE 57.25
5 SEPR 1,762,643,201 HEALTHCARE 52.32
6 CYH 1,789,797,453 HEALTHCARE 47.05
7 MDVN 578,727,464 HEALTHCARE 44.82
8 SUNH 508,309,267 HEALTHCARE 41.58
9 KCI 1,862,212,269 HEALTHCARE 38.06
10 EURX 517,500,360 HEALTHCARE 37.99

Industrial Goods

1 SGR 2,340,628,200 INDUSTRIAL GOODS 47.04
2 BEAV 1,024,519,998 INDUSTRIAL GOODS 43.04
3 RS 1,811,186,513 INDUSTRIAL GOODS 33.33
4 DHI 2,408,772,620 INDUSTRIAL GOODS 29.28
5 MDR 2,391,142,211 INDUSTRIAL GOODS 27.53
6 NJ 7,438,320,646 INDUSTRIAL GOODS 27.22
7 GFA 712,194,752 INDUSTRIAL GOODS 24.73
8 DRC 1,631,615,043 INDUSTRIAL GOODS 24.17
9 CBI 1,059,415,744 INDUSTRIAL GOODS 20.40
10 HXL 818,114,017 INDUSTRIAL GOODS 20.30

Services

1 SNX 557,565,958 SERVICES 56.31
2 NRGY 1,201,212,806 SERVICES 47.25
3 ARO 1,411,847,140 SERVICES 46.52
4 GNK 590,010,932 SERVICES 37.43
5 ESI 4,896,882,934 SERVICES 35.68
6 SVU 3,980,879,000 SERVICES 33.62
7 VPRT 1,004,984,908 SERVICES 32.39
8 DSX 1,126,500,000 SERVICES 30.33
9 SSW 705,603,951 SERVICES 29.96
10 AMZN 26,169,286,223 SERVICES 29.68

Technology

1 PALM 882,923,774 TECHNOLOGY 171.34
2 SOLR 628,598,463 TECHNOLOGY 88.03
3 NTCT 542,496,959 TECHNOLOGY 67.52
4 SYNA 852,886,875 TECHNOLOGY 60.93
5 WDC 3,750,956,713 TECHNOLOGY 55.76
6 MU 2,978,796,136 TECHNOLOGY 53.79
7 ADVS 724,602,368 TECHNOLOGY 47.87
8 JAVA 3,670,769,423 TECHNOLOGY 47.83
9 ONNN 1,754,204,961 TECHNOLOGY 45.89
10 RIMM 31,673,248,528 TECHNOLOGY 45.86

Utilities

1 ENI 9,671,275,369 UTILITIES 22.14
2 CMS 2,619,483,823 UTILITIES 20.90
3 EOC 10,252,193,213 UTILITIES 15.77
4 EPB 1,935,932,303 UTILITIES 15.40
5 EQT 4,777,120,521 UTILITIES 15.14
6 CNP 4,811,366,502 UTILITIES 14.03
7 AWR 626,204,610 UTILITIES 13.40
8 APU 1,841,550,617 UTILITIES 13.15
9 PEG 15,764,862,458 UTILITIES 12.28
10 PSD 3,831,999,350 UTILITIES 11.11

Comedy time.

[youtube:http://www.youtube.com/watch?v=kuZ_MosOTrs&feature=channel_page 450 300]

Today’s closing comments are brought to by, none other, The Great Greg Solomon.

As soon as I announce the purchase of SKS, all of the assholes come out of the wood works to suggest otherwise.

Please. Don’t you fuckers know, “The Fly” is a space alien magician, who is simply bowling on fuckers. I guess the key tell with BAC was when General Tommy “conquer your country” Franks stepped in and bought yesterday, at the lows.

With today’s gains, I am at a new year to date high, up nearly 14%. Although 14% is nothing spectacular, I consider it to be a “good start.”

If you are keeping your eye on JRJC, you might notice that it is “breaking the fuck out,” indeud.

In addition, “The Fly” has all sorts of wins taking place, with exception to his annoying oil shorts.

One stock worth a looksy is LNN. I know farm equipment is no longer in vogue and water supplies are no longer needed. However, in the event that farmers should need a few pivots for their farms, LNN or VMI may be worthy of a small investment.

By no means do I believe we are off to the races. But, for the day, I’m feeling jubilant, guzzling down a can of Monster Energy soda, from a diamond encrusted chalice, while kicking, mind, old men in wheeled chairs down idle elevator shafts.

I bought 25,000 SKS @ $2.74.

Disclaimer: If you buy SKS because of this post, your only son will take a job working in the perfume section at Macy’s. And, you may lose money.

Watching this interview of Ken Lewis, CEO of BAC, almost makes me feel sorry for the guy—almost. Basically, he’s a good ol’ southern boy, naive of the insidious NY/Merill Lynch ways. After he found out that Thain donkey punched him into buying MER, he went to the government to inform them he wanted out of the BAC/MER deal, since there was “material and adverse changes” to the fundamentals at Merrill.

The government responded with a “fuck you, you’re doing the deal for the country” rap, essentially strong arming Ken into a deal spearheaded by modern day “Northern Aggression.”

Egregious!

I like the way the market is trading and would not short anything, with exception to oil, at these levels. Geithner is speaking on Monday, regarding TARP II. And, the stimulus bill is likely to be passed within days, if not tonight.

As you know, “The Fly” is all about playing the orient, via CHL, YZC, FXI and JRJC, with a little side order of WX.

Some other “Chinese Burrito” plays worth considering are:

ACH, SNDA, EJ, CMED, MR, GU and HNP.

Within Steel and Iron, I like MT, RIO, TS, SCHN, NUE and for a dice roll CMC.

I like equipment firms JOYG, BUCY and dice roll play MTW here. And, if you are really adventurous, SKS is pricing in outright bankruptcy. Actually, it is likely that SKS will go belly up. However, into unchecked optimism, there may be a trade in SKS worth taking.

Finally, I smell mustard seeds and I do not like them. I will keep all of my DUG/ERY, due to my core belief that the oil/gas industry will suffer grave consequences for levering up their balance sheets into weak oil/gas markets. I will restrict my longs to non-financials, focusing in on the traditional “global growth” aka “Chinese growth” plays. And, I will look to buy back SRS/FAZ lower, over the next week or two.

In short, this is a relief rally. It can last a few weeks, so be ginger with your short positions.