The Gods Grant Another Squeeze

This is “balls on the guillotine” trading, where the bears are having their eyebrows punched off in perpetuity. Aside from my early morning sales of [[CDNS]] and [[CAVM]], I am still all in, aside from a 25% cash position.

You stupid bastards need to understand: the market doesn’t care about your homofied press clippings or rumors of insolvency. The market, as always, takes the path of maximum pain. Unfortunately, for the bears, max pain means we trade higher, until they are reduced to picking sandwiches out of NYC trash cans or begging for apples in Los Angeles.

For a down day, this is as benign as it can get, with loser banks dropping and heavily shorted stocks sticking green shoots in the ears of unlucky bears. Mind you, the government sponsored stress test is the most idiotic thing ever concocted by the U.S. Treasury, and they know it. Because of this simple fact, I refuse to believe the news will rock the markets.

People, it’s just one big circle jerk to nowhere, while the SEC creates new/interesting ways to stick short sellers into dog cages.

“The Fly” made even more coin today, spearheaded by the frenetic buying action in [[FTK]] and [[CAVM]] (sold). In short, try to resist selling short stocks. If you are uncomfortable being long, go to cash and eat a sandwich.

Putting shorts into large murderholes.

Carry on.

Today’s tells are DIG/ERX. The market cannot rally, without the support of oil/gas stocks. The bull argument is based upon a weak dollar, strong commodities and benign banks. So far today, we have none of that working for us. Therefore, I am on a buyers strike and will look to lighten up further, whenever the garbage collectors come knocking at my door.

Don’t get me wrong: a 25 point decline in the Dow is ridiculously bullish, following yesterday’s melt up. I mean, if this is the best the bears can do, they will have their teeth knocked out for them tomorrow, when the dip buyers step in. My cash position is around 25%, give or take a percent. My goal is to build it up to 65%, then just chill the fuck out and watch you midgets reach for the light switches.

I’ve decided to refrain from shorting anything, barring a black swan event. Basically, I am content with being up 50%. There is no reason to get aggressive, betting against an 8 week trend. So, going forward, my strategy will be to scalp quick trades and/or accumulate some of my favorite names on dips.

Right now, I like [[BRCD]], [[FTK]], [[SONS]], [[LVLT]], [[OVTI]] and [[SD]]. Providing the market declines, over the next few days, I will add to the above names, with style and in a very dignified manner.

Rarely do I buy or sell anything before 10am. While it’s true, there are plenty of opportunities in the morning trade; there are just as many misdirections. Thus far, the market is behaving exactly the way it’s supposed to, following a monster run.

Many of the high fliers are taking a breather and CRE names are getting boxed around.

Going with my “scaling out” plan, I sold out of my CDNS and CAVM positions this morning and will sell more, whenever the shadows next to my favorite urinal dance.

It seems everyone is apprehensive about getting kicked down a sewer drain by Mother Market. Despite the recent run, most people think it’s built on bullshit and lies, which is simply not the case. The financials are built on a temple of lies and fabrications. However, for the most part, technology companies are genuine and may indicate a real economic turn for the better, with regards to some of their earnings reports.

The fervor in the small crap names has to stop sometime, frankly. If you were too slow or stupid to get involved, over the last month, you’re better off milking cows for a living than fucking around with the stock market. Go buy a mutual fund and call it a day.

With my money, methodically, I will be lightening up on my longs into strength. The market isn’t ugly enough, yet, to warrant a full fledged panic, which would encourage me to expedite my cash raising process.

Recently,the stock market has been like an orgy of intelligent people, raping one another for the scraps of the American Empire. People with higher IQ’s than NASA engineers have been buying the lowest quality, just to play “casino time,” sponsored by the fucktards at CNBC.

As the market frenzy keeps people chasing the next squeeze, I will be unloading my manure on unsuspecting garbage collectors soon. Remember, shit rises to the top, just before the bottom falls out.

I have visions of a Cinco De Mayo massacre.

At the present, I am 20%+ cash, loaded to the gills with small cap offal, that can either drop by half or double, within the next week. Neither scenario would surprise me.

Upon selling stock, I will leave the proceeds in cash. If there is something that MUST be bought, I will force myself to make a choice and sell something, in order to raise funds. The top of this recent run will be marked with the average runner dropping 10% or so— in a single day. Most people will hold tight, thinking the run will continue; but their disillusion will be their downfall.

The next downturn will be quick and decisive. However, instead of shorting it, I may opt to “cash up” and buy the dips. After we top, I will be looking for a 10-20% pullback, in a variety of leadership names. On that dip, I will redeploy cash, long.

So, in summary, “The Fly” will scale out of his current longs and make a sincere effort to resist any new buys. When the casino is operating at capacity, it’s always very hard to resist playing, as you see peers and enemies make millions— in seemingly simple trades.

Trade accordingly.

[youtube:http://www.youtube.com/watch?v=UGa52pQ-z4E 550 400]

Who said you cannot have fun during a Great Depression?

The last three weeks have been the most joyful/outright giddy stock market experience, for me, dating back to the olde [sic] dot com days, when I’d regularly embarrass/humiliate my peers for being behind the curve.

Some things never change, sort of like when you were a dork in High School, unable to get girls.

As for me, I sold out of 40% of my NGAS position, all of my WRES and bulked up on FTK, SD and ATHR.

My thesis: get long names with heavy short positions and push for max pain. Lean on those bearish idiots for betting against anything. For fucks sake, this market is a runaway caboose from hell; it makes no sense to be short. None. What else do you need to see? For the love of jam sandwiches, WFC was up 24% today, AFTER failing the so called “stress test.”

This is the type of market that you just lay your balls on the guillotine and say “I fucking dare you.”

As an aside, during this melt up, I have been increasing my cash position, by way of not spending my winnings. My cash position is now upwards of 20% and my hedges are virtually nothing.

Into the bell, my notable trading positions are: FTK, SONS, ERX, SD, ATHR, LVLT, OVTI, ARUN, CDNS, CAVM, NVLS, MSO, NGAS, DELL, BRCD and a smidge of FAZ and SRS.

With gains nearing 50%, year to date, I have an incentive to protect my downside. However, before I do, I intend on taking one more victory lap.

NOTE: Special thanks and praise to “iWin” on The PPT for bringing CROX to my attention. May the Gods bless iWin with the decapitated heads of his mortal enemies.

NOTE: Gio gives an update of PPT domination.

[youtube:http://www.youtube.com/watch?v=5lP06HyfHvw&feature=related 550 400]

I bought 105,000 shares of FTK between $2.44-2.55.

UPDATE: I bought 2,000 SD @ $9.50 and 2,000 ATHR @ $18.04.

Disclaimer: If you buy FTK because of this post, the stress test will prove to be a killer, effectively putting you into cardiac arrest. And, you may lose money.

I am no longer conciliatory to your stupid ways. I have taken time out of my Godly days to forewarn you of future melt ups, all thanks and praise to my time machine for that. You were permitted to see “The Fly” commit early errors, and then see how a true pro reverses his fortune.

You became lock stepped with depraved morons, who are better suited collecting bags of rice in his basement, than banking coin in the stock market.

Ladies and Gentlemen, people of the underground rice collection agency:

I am your enemy. “The Fly” embodies what you are not, specifically with regards to monstrous and appalling stock market wins. For example: CROX, WRES, NGAS amongst others.

Just a few weeks ago, most of you mocked me when I picked up large blocks of CROX. You threw meatloaf at my general direction and told me “you’re crazy, asshole.” Lo and behold, here we are 50%+ higher and I am throwing fucking lawn chairs at you.

See, that’s how natural order works. Darwin warned you of such outcomes; you chose not to read him.

In closing, it does not matter where the market goes today or tomorrow, since I have already won. I will take profits on a variety of names and it will perplex/annoy most of you. Yes, indeed, my next move will be Godly, sending my YTD gains above 50%. Until then, good luck navigating this tape, you most certainly will need it.

UPDATE: I sold out of my CROX position, north of $3.

UPDATE II: I sold out of my WRES position, north of $2.25.

UPDATE III: I sold 20% of my NGAS position, north of $2.65.