Red Hot Chili Peppers – Soul To Squeeze

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Wow, days like this remind me why, deep down, I fucking hate the market, as if it was trying to steal my money. Oh shit! I think it is trying to steal my money.

Treasuries got murdered, sending rates through the roof. At the same time, the yen was strong, and the dollar was weak, while crude sold off—as did gold. Banks got boot stomped, but CRE was strong. I don’t know how long it will last, but the market is being directed by the action in CRE names. Look at the correlation between IYR and the Dow, lately. Uncanny.

In all fairness to the bulls, the market should have been “Dykstra’d” today, considering the banks were so weak.

Days like today remind me why it is so important to stick with a thesis and try not to overreact to the intra-day volatility. The market is incredibly volatile, yet within a very tight range. My guess, the market is due to make a decisive move, up or down, shortly.

Obviously, I have a multitude of long positions, so you know my bias. But, admittedly, holding bombs like LVLT remind me, in a very harsh way, how quick yesterday’s winner can become today’s loser. In hindsight, not selling LVLT was a grave error. But, I really did like the numbers posted this morning. Apparently, not too many people agree with me, at the moment. I ate rocks on this fucker today.

My positions in CROX, SONS, CECO and ERX fared okay, while other lost a percent or two.

In short, this market is one great idiot hamsterwheel, full of cocksure investors. In reality, we’re all guessing. The question is: who can guess better?

You chicks are getting rolled on.

Your faces shall come under assault from egregious shots of grape, derived from my antique 18th century cannon. There will be no quarter given to anyone betting against my positions, especially those who target my degenerate penny stocks. It is in your best interest, mind you, to flee from the battlefield, via cutting your losses, and going home to Mom’s house for a nice plate of lizard stew.

“The Fly” is heavily caffeinated this afternoon, by way of large cups of coffee and small tins of energy soda. Let it be known, I have made it my business to kick old/overzealous men down idle manholes (old men short stocks). For those of you who are above the age of 47 1/2, I strongly advise staying away from urban areas, where manholes are readily found. And, if you were not aware, please never visit iBankCoin again, for you are not welcome.

As for today’s trading:

The underpinnings for a short squeeze are present, with tech and CRE leading the way higher. However, it’s worth noting, those dastardly banks are knifing lower, based upon some silly notion that they need to be solvent, in order to cook their books. Frankly, the whole banking two step dance, being choreographed by the O’government, makes me sick. I want no part of the banks or any other financial related name. My time is best served picking at depressed names, readying to poleax short sellers into muddy gravel pits, like WRES (hat tip CA) or CROX. You must have a large cocks in order to buy CROX (I had to say that).

I sold out of my entire FXP position today— and remain with several low profile inverse etf’s, including, but not limited to, SRS, FAZ and a little EEV. It’s terrifying to think that I am long equities into the teeth of the economic downturn. Common sense dictates to raise cash and hedge my bets. In all fairness to my case, I have been raising cash, over the last week. My buys have been much less than my sells. At the present, my cash position is upwards of 10%.

I am not sure how long this “inventory restocking” trade will last. However, while it’s here, I intend to pick the quickest movers and flick cigar ashes at you piker brokers on Wall Street, trying to be “The Fly.”

NOTE: Scientifically, it is impossible to be “The Fly,” so quit trying.

UPDATE: I bought LVLT, between $1.05-1.07, OVTI @ $9.06, ATHR @ $17.30 and WRES @ $1.72.

UPDATE II: I bought 5,000 [[BRCD]] @ $5.55

You didn’t think all of the fat, spoiled rotten American women would stop buying $600 handbags and $500 slippers, did you? Despite the economic tailspin, Americans are accustomed to spending their savings and more. According to recent data, due to the rough economy, the U.S. savings rate has gone from negative 1-3% to positive 5%. So, in other words, people have money to spend.

The weather is nice and people are generally degenerate losers, who would rather buy a 5th plasma than save some money for their childrens college fund.

Here’s the play:

Stop shorting stocks, for now. It’s a losers bet. Until we see the recent uptick in the economy reverse lower, you have to buy the dips.

On my menu are a variety of depressed netowrking, semis and retail stocks, like CROX, ODP (gone), SONS, ALU, LVLT, ARUN, CAVM, OVTI, DELL, CDNS and ATHR.

NOTE: Today’s consumer confidence spike was the largest since 2005.

ALU landed a monster contract with CHL, after the bell. As you know, STAR ripped through earnings expectations, based upon the 4g buildout by the major telcos. Regardless of where the market trades tomorrow or next week, the 4G buildout is real.

Are you prepared?

Of course you’re not.

I’ll just leave you hangin’ like that for awhile, in order to go drink some soda.

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So let’s review today’s events:

We are all going to die from some pig fucking virus.

The military thought it made sense to buzz NYC skyscrapers with COMMERCIAL airplanes.

On top of the pig fucking flu, Mexico gets nailed with a 6.0 earthquake, yet here I am buying stocks.

While it’s true, commercial real estate names got clown raped for 11%+. It’s also true, tech sort of just yawned off the end of times rumors. Pardon me for minimizing this “Swine Flu,” but 40,000 people die from the flu annually. I think it’s kind of lame/ stupid to start wearing face masks and avoid eating at Taco Bell, based upon 150 deaths, none of which occurred in a 1st tier country.

At the end of the day, I lost some coin today, but feel confident that I am on the right side of the tape.

NOTE: I like the action in both CAVM and ATHR.

The odds of a worldwide pandemic breaking out, while the world is in recession, thanks to a banking collapse, is so far fetched, you have to fade it. Really, you fuckers are just waiting, circle jerking even, for the end of times. If you want to die so badly, go sign up for a war or some shit.

As for me, I am buying this dip with two hands and three legs, long CROX, SONS, DELL, OVTI, LVLT and ERX. However, it’s worth noting, I cut a loss in TBSI and took egregious profits in STAR (half position).

Look, I can’t short CRE, while the sector is down to the tune of 10% intra-day. I can’t short banks, because I am afraid of government fuckery. How can I short tech, while AAPL, RIMM and DELL go higher everyday? At this moment in time, the bears best hope is for a fucking pandemic to start killing people WW2 style. I can’t get behind such idiocy.

Nonetheless, people will take the path of least resistance and may continue to sell into the bell. I would not be surprised to see a lower open tomorrow too. But, at the end of the day, I am comfortable giving the rally the benefit of the doubt, mainly because “The Swine Trade” is absurd and fucking ridiculous.

The textbook says to take some money off the table, considering people might get panicky off this swine shit and we are entering May. Wall Street is very superstitious when it comes to seasonality, as evidenced by annual Oct-Nov. fuckery and “Santa Claus rallies.”

With my money, I am looking to milk this bear market rally, until the last drop. I am keeping a close eye on banks, trannies, CRE and tech. For the most part, all but tech is getting slammed today, especially CRE. I am tempted to sell short [[ACC]] or [[VNO]] here. But, I am also cognizant of murderous late date short squeezes.

Look, the bears have been dead wrong for 2 month and counting. They are in a state of shock, with regards to this rally and are reeling from large capital losses. Believe me, a lot of my “smart friends” are not answering their phones anymore and are likely seeking solace inside of their local place of worship.

As for me: I am a kite in the wind. I bought a little DELL and CROX, but nothing else. I might buy more SONS, providing the market firms up. I regret selling ODP and buying TBSI: not all trades will be winners. For now, I am sticking with my positions, but will dump them whenever I feel my position is a loser.

I have about 10% in cash reserves and will leverage that, if needed, in order to hedge my positions, prior to liquidating them. To sum up my feelings: I am still greedy, but always mindful of knife wielding clowns out to take my wallet.

UPDATE: I sold out of TBSI, just south of $8.