Nationalization is a Bitch

Come on, we’re just ostrich trading here, ignoring the fact that C and BAC have slipped down the rabbit hole of nationalization. Frankly, I don’t know how the government intends to rectify the situation. Moreover, I think one has to be out of his mind getting long here, in any size, prior to this looming issue being resolved.

Once again, ag stocks look good, led by gains in MOS, POT and CF. As you know, I like LNN, mainly for two reasons. One: there is a massive short position in the stock. Two: fresh water supplies, worldwide, are still very, very weak. If governments want to preserve water, they need to invest in better irrigation systems, both LNN and VMI provide such a service.

Lots of cross currents in the market today: dollar weak, euro strong, oil strong, gold weak, natty weak. Go figure it out.

With my money, I am still in a holding pattern, mainly in cash, until the important matter of the banks is resolved.

Much to my chagrin, men in green leotards are buying up oil/gas stocks, once again, trying to pick a bottom. When will you fuckers learn, the oil/gas space, as a business, is dead. Margins have been eroded to laughable proportions.

Look, you don’t have to execute a trade every day. What the fuck is wrong with you? Do you have ADD or some shit?

Chill the fuck out and wait for the market to decide: the red pill or the blue?

UPDATE: Santelli on fire!!

Enjoy!

UPDATE: U.S. is bankrupt.

[youtube:http://www.youtube.com/watch?v=4zP1IjgSO_E 450 300]

I shorted the euro, with leverage, at the end of the day, buying DRR. I think it’s fair to say the euro is trash and worthy of a pineapple coffin.

I really need to start being nicer to people. I am sure many of you gimps are secretly hating on me, wishing for “The Fly’s” demise. Unfortunately, for you, “The Fly” is demise proof.

In short, I should have went shopping or went back to sleep this morning, instead of watching this market pussyfoot around, all day long.

Just to recap: I reduced my longs and I still think oil stocks will get cut in half, YET AGAIN!!

Just in case you missed this—

In other news, this is one boring market. Remember, try to avoid, at all costs, shorting markets that seem lifeless. The next thing you know, it rises up like a fucking zombie and eats your brains.

Personally, I will remain a stalwart oil bear. In addition, I have minor positions in EEV, REW and SDD.

If you are long refiners, I strongly suggest selling those stocks right now, since the crack spread is starting to disconnect. And, if you are long banks: godspeed.

Top picks: LNN, ERY

Let it be known, I sold out of the rest of my CHL, MT and ACM. With the proceeds, I bought stupid dollars.

Really, I want no part of some bullshit meltdown or short squeeze. The ultimate goal here is NOT to ride the market down to zero, a la DEVILDOG. Instead, I intend to preserve capital, in order to buy good companies on the cheap.

The only problem: valuations are not compelling.

In order to get me “balls to the wall” bullish, I need to see the S&P at 550, or 10x 2009 earnings. I think it’s fair to say 2010 will not be a “bounce year.” So, there is no logical reason to apply a premium to stock valuations.

Despite the Federal Reserve’s printing presses, we are in a deflationary vortex. Stocks like XOM, CVX, COP and RIG can be shorted with impunity.

There is no reason at all to be long commercial Re. Once the retail shit storm hits, the commercial Re space will be obliterated, which in turn will lead to another meltdown in the banks. It’s a vicious cycle that will annihilate those who get sentimental when buying or selling stocks.

All of the big banks will have to be nationalized or magically “go away.” When that happens, the Federal Government will have to either wipe out bond holders or eat 7 trill in bank debt.

Barring a surprise development, I will not execute another trade today, currently 20% long, 25% short, 55% in cash.

I’m not adding to any shorts, not am I buying anything. I am sick of this parade of the palsy’s. I am going to sell off more of my longs into any strength and leave the proceeds in cash.

I am not ruling out any participation in a snap back rally. However, for now, I believe the market is getting ready one of its patented “fuck you, you’re dead” patterns, that can drive a man to the soup line.

As of now, I am pretty sure both DUG/ERY will be left intact. It’s a fantasy to believe oil/gas stocks will offer market leadership, while oil is pinned in the 30’s and the world is in one big depression.

On a rally, I will sell out of BUCY, MT, ACM, JRJC and whatever residual Chinese stuff lying around (there is always residual Chinese stuff lying around). The only stock worth holding is LNN.

Watch GE very closely and quietly. If that son of cock breaks $10, the market will start to discuss a possible GE failure. All of the negativity is really getting to me. Life must be grand for some of you ostrich heads in the sand type, just painting every pig gold because you’re an asshole.

Just to recap: I will use any strength to sell longs. I will not add to or reduce short positions. And, hopefully, I can build up my cash position to 65-70%, without taking too many losses.

I can’t stand fuckers who don’t stand for anything. You know the type, middle of the road, cock suckers, who’d slit your throat for a turban donning master, providing the pay was right.

Unfortunately, I’m in the wrong business to have such an attitude. Nearly everyone on Wall Street is all about making a buck to fuck the guy with bad luck, if you know what I mean.

Then you have the financiers. Oh these guys are a piece of work, always peddling their bullshit wares to “accredited investors.” In other words, sell shit to people that can afford to lose money. It’s a wonderful business plan, providing you need capital losses.

I should write a book about all of the fuckery I’ve witnessed, from coked out managers, to an egregious new hire stock broker found unconscious in the men’s room with a fucking heroin needle stuck in his arm; I’ve seen it all.

“The Fly” comes correct, and fresh, everyday because he stands for something that is more than stocks or asshattery. As you know, “The Fly” stands for truth and honour and will defend such ideals until it gets boring or “old hat.”

We all know, first hand, how difficult it is to make money in the market, day in and day out. For starters, most of you ass lickers need to stop thinking that you know anything about investing. Really, dude, it’s fucking embarrassing to read 2/3rds of the shit that you write on the internets. I feel uncomfortable, to say the least.

There are many websites out there, hosted by complete assholes, who claim to be top dog investors, with charts and all sorts of fancy shit to back up their assertions. Unfortunately, 95% of them are regular hucksters, who are just out to make a buck.

Always remember, what I do here, on an daily basis, as obsessive as it is, is for a reason. I don’t do it to make a gagillion dollars. I do not write to “vent,” like some of you loser bloggers claim.

I started iBankCoin, frankly, because I wanted to create a brain trust of unfettered truth, unlike my competition. Without question, inside of 5 years, mark my words, iBankCoin will be one of the biggest, if not biggest, financial websites in the country.

In other news, oil sucks dick.

UPDATE: Go watch the Frontline special on the credit crisis, at Gio’s.

I wanted to take a “time out” from end of the world proceedings to let you bastards know, in case you live under a heavy rock, President Obama just escalated the war in Afghanistan, by 50%, prior to reducing our forces in Iraq.

I would link to another bloggers take on this quiet event. However, everyone seems to have their fucking heads up their asses, when it comes to the “War on Terror.”

Back to your regularly scheduled end of the world coverage.

[youtube:http://www.youtube.com/watch?v=WV9WItPthkU 450 300]

Lady G special request.