Saturday Night Thoughts

Obama upped his job creating skills from 3 million to 4 mill. Hell, if i was President, I’d create like 200 million jobs. This guy is some sort of fucking loser.

Some punk Korean blogger was arrested for talking shit about Korea’s economy. Good for him. If I was the President of korea, I’d give him the electric chair.

Rumors are spreading about Citi being “forced” to sell Smith Barney. The real question is: who the fuck is going to buy them? ROFLMAOASFDRGHSRGTFGHDFGSDF!!!!

In all seriousness, I’m sure the Government will give Morgan Stanley some dough so they can eat Smith Barney.

No one has money, except internet assholes. People on the internet seem to think the economy will not affect them. I got news for you fuckface, it will, indeed.

Mr. Cramer said the market didn’t go down last week. Apparently, he was looking at his charts upside down. I love it when lame propaganda gets obvious to the dumb guy. Even some people I know, who worship Cramer (don’t ask why), think he’s full of shit. Moreover, they’d like to throw stale jelly donuts at his limousine, if given the proper introduction.

Finally, we have over 8 million part time workers in America. God only knows how many illegal Mexicans are out of work. Poor little guys, with their sombreros and chihuahua dogs.”The Fly” does not feel sorry for them; but Senor Tropicana does—let it be known.

One thing is for certain, as a matter of fact it is resolute, the new stimulus plan will be a great boom for Mexico.

Update: The Krullster

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“The Fly” has a multitude of events to partake in, prior to the markets close. Therefore, this will be my closing comments for today’s session.

There is support for crude around $40 per barrel, which, incidentally, is grossly irrelevant to the share prices of RIG and NOV. Basically, the crash of crude has already ripped the arms off of NOV and RIG. You cannot ask them to throw the ball around anymore, since they have no fucking arms.

I refuse to cover any of my short positions, namely XOM, NOV, KIM, VNO and HANS. I am fully aware of the prospects of a government sponsored rally. I guess, when it’s boiled down to a fine reduction, I just don’t have as much faith in the government as some of my bullish counterparts.

With that being said, I want to sell short everything Guy Adami recommends on Fast Money. Clearly, he is a man with a pervasive mental disorder, called bullshititis. I’d like to “rambus” my way all the way down to 700 s&P, if you know what I mean.

Basically, the volume is tepid and the underlying tone is bullish. I would not be surprised to see the market close up today, at least on the Dow, since the bears lack the internal fortitude to press their blades.

For now, the market is being led around by oil. Where XOM goes, so does the market. As far as I’m concerned, time is on my side.

UPDATE: Before I left, I bought 1,000 DVY @ $39.94, 2,000 AKAM @$15.40, 300 SRS @ $55.65 and 500 EEV @ $50.42.

I bought 2,000 EEV @ $51.10.

Disclaimer: If you buy EEV because of this post, the government will mandate that you let homeless people live in your basement. And, you may lose money.

I see mustard seeds everywhere. You got to love free market capitalism, despite it not being here folks. I predict a panic buying spree. You got to make love these mustard seeds. They’re great. Folks, you just got to do it.

-Larry Kudlow’s mafia clothes

I’m not cracking the champagne bottles, due to my shorts are working this morning. Fuck, for all I know, this market can spin like a Tasmanian Devil—upwards—into the close.

What I do know: gambling on big event economic data is a suckers play. Sure, from time to time, it’s cool to roll the dice and get on the right side of the trade. There is no better feeling than nailing a controversial pick, no?

But, I must say and insist, gambling in this market is foolish. We’re up too much too quickly to be levering up long, hoping for more.

I remember when the dot com bubble burst in 2000; I believe it was March, to be exact. I knew stocks were ridiculously expensive. As a matter of fact, I was in 100% cash, just prior to the collapse—sometime in April. However, seeing the market go up everyday, watching my colleagues bank millions on asinine dot com ideas eventually got to me and forced me back into the market—just in time for the fucking crash. I was young and overzealous.

I could have been a fucking hero. But, instead, I ended up being like all the other poor losers/saps, getting poleaxed by panic selling. I will never forget those lessons and will punch it into your fucking heads, if you choose to ignore these warnings.

In other news, PALM and DRYS are off to the races. It really is a non-event. They are not leaders. Ignore them.

Let’s talk about important shit:

Oil cracked $40. It cracked $40, despite a weak dollar, because the world economy is grinding to a halt. And, my guess, there are lots of asshole speculators out there who have been storing oil or long contracts, waiting for a higher prices. As the price action deteriorates, those fuckers panic sell crude.

Ignore the eps warning at CVX , if you must. But, there will be many crude warnings to come and cap ex budgets will be slashed. It is a dead sector, regardless of the price of crude. That damage has been done.

There is strength in select banks, like GS and MS. However, if you are long those names, I’d suggest taking a profit.

By the way, the main distributor for HANS, old Budweiser, has begun selling its own energy soda, called 180. This is a fucked up thing for HANS, since BUD places it right next to Monster, on store shelves. I think HANS can be shorted here. However, keep in mind, it is always a takeover play.

Finally, my shorts in XOM, NOV, KIM, VNO and HANS are working well, for now. As for my longs, they are doing poorly. However, with all of the 200 and 300% levered etf’s (SRS, FAZ, DUG, REW, SSG, EEV, ERY, SMN) on my books, I find myself in a rather enjoyable predicament, at the moment of course. Stubbornly, I will hold my shorts until I sense capitulation.

As of now, the market sentiment is still extraordinarily bullish.

UPDATE: More Madoff fun.

Poof! Your bullshit rally monkey is gone.

-Merlin

Whoo-Hoo!

Those were some kick ass employment numbers. For the month of December, only 524,000 people were fired—keeping the national unemployment rate at a lowly 7.2%. And, to make matters better, the November fired data was revised up to 584,000 people getting the ax.

Mind you, 524,000 folks is less than 600,000 and 700,000.

People, I got to tell you, this is great news for the markets. Sure, if you factor in temp workers and other losers, the unemployment rate is about 12%. But remember, Obama is going to print $1 trillion dollars, in order to make new sewer caps and underground pipe fittings.

We’re saved!

Most of my Wall Street buddies, who are recently out of work, will likely take Obama up on his construction machinations and put down their 24 karat commission pens for a nice yellow hard hat.

Hell, I expect the market to punch the life out of the bears today, as Wall Street rejoices and basks in the glory of such a prodigious number.

Think about it: it could have been worse.

With that being said, after enjoying today’s trading session, I’ll be sure to scurry on over to the local pub, with a few of my Wall Street buddies, in order to celebrate this fine number. God willing, we may be able to share our good nature with some blue collar folk. I am sure they feel just as rambunctious, as the coked out money managers at Legg Mason putting in market orders for DRYS this morning.

We’re saved and rally time!

Just so you know, “The PPT” will be available for subscription in due time (whatever that means).

Here are is how the engine is reading the market:

Market Overview
Average Technical Score: 1.67 Strong Sell
Average Fundamental Score: 3.64 Buy
Average Hybrid Score: 2.50 Sell

Overall, it is ranking the entire universe of stocks it follows, which is north of 3,200, a “sell.” The average technical score is abysmal, while the average fundamental score is a buy. Basically, should the market confirm a breakout, the “Hybrid Score” will quickly shoot north of “3,” marking it (the market) a buy.

Before Wednesday’s sell off, there were 55 out of 202 sub sectors ranked a buy. However, because of that move, only 1 sector remains a buy, which is Education and Training Services. It is worth noting, however, multiple sectors are in striking range of being ranked a buy, including Home Health Care, Steel & Iron, Water Utilities, Entertainment – Diversified, Information Technology Services, Defense/Aerospace, Discount, Variety Stores and Shipping.

Nonetheless, there are many stocks in bull mode, that are worth a look over.

Some to take note of include the top 10 stocks (no market cap filter), ranked by Hybrid Score:

1 ACET 4.34
2 ENSG 4.27
3 LPHI 4.26
4 OCN 4.24
5 CMN 4.24
6 FDO  4.19
7 APOL 4.16
8 ORH  4.10
9 NPK  4.09
10 CRH 4.0

On the other hand, a variety of key sectors/stocks are being flagged as “get the fuck out now, else lose your dough.”

The worst ranked sectors, worth noting, include:

Semiconductor- Memory Chips, Biotechnology, Regional Banks-Pacific and REIT-Office

Overall, the worst ranked stocks, north of $10, are:

1 HLS 1.41

2 NUVA 1.42

3 ISIS 1.56

4 ALXN 1.57

5 VRSN 1.58

6 CCE 1.59

7 IPI 1.62

8 DEI 1.64

9 XCO 1.64

10 SONC 1.66

Keep in mind, The PPT is not the holy grail. It is a very powerful analytic engine that is efficient at identifying value or lack thereof. It will always point you towards the right direction, with regards to technically strong sectors/stocks. However, it is up to the user to make the ultimate decision, as always.

NOTE:

4-5= Strong Buy

3-4= Buy

2-3= Sell

1-2= Strong Sell

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