Here We Go Again

My plan was to do nothing today, thinking the market would be a snoozer. I was going to buy tomorrows dip, then sell on Friday. However, with the market swan diving here, unable to string together 2 consecutive green S&P days since late September, I may begin to nibble.

The problem with buying here is the volatility. The market can very easily dive another 300 points, before rallying. So, with stocks like National-Oilwell Varco, Inc. [[NOV]] , The Mosaic Company [[MOS]] and Arch Coal, Inc. [[ACI]] , patience is key.

Ideally, I would love to nail the higher low on these stocks with a new flurry of Godly buys. However, that is not likely. Instead, I will leg into these stocks, buying 500 shares at a clip, until I am fat and content.

For some reason, people are flocking into treasuries again, sending yields lower. It’s the flight to quality trade taking its grip on Wall Streets neck. LIBOR has come down, which is terrific. But, there is still a lot of scared money out there, evidenced by the ridiculous yields in treasuries.

In closing, I have not done anything today. Should things continue to deteriorate, I may place some buy orders, towards the end of the session. In my opinion, this market should be bought on dips, not sold.

Wow, that old fucker Kirk Kerkorian got wiped the fuck out this year, losing more than 12 billion dollars in the stock market casino via Ford Motor Company [[F]] and MGM MIRAGE [[MGM]] . How egregious is that? The man is 91 years old and he is still playing the market—totally nonsensical.

The numbers out of Freeport-McMoRan Copper & Gold Inc. [[FCX]] sucked. Therefore, all of the copper players are trading off. The reality of lower copper prices is finally starting to hit home.

Post yesterday’s melt up, today is just one big let down. The air is slowly coming out of the market, as jerk offs with series 7 licenses take profits and/or begin to place short positions. On the other hand, at least the volatility has subsided, which is great for my fucking heart and brain.

Earnings season is upon us and it will not be pretty. However, with my money, I am pretty sure there is some milk left in this cow to drain. So, on dips, I will add to my National-Oilwell Varco, Inc. [[NOV]] , The Mosaic Company [[MOS]] , Arch Coal, Inc. [[ACI]] and [[UYG]] positions.

But, just know, I can turn on a fucking dime. Do not be surprised to see me buying [[FXP]] or [[SRS]] , for outrageous laughs and somber cries.

In short, go eat a sandwich.

1. Cash

2. National-Oilwell Varco, Inc. [[NOV]] (PPT Hybrid Score: 3.64: Buy)

3. [[UYG]] (PPT Technical Score: 1.65: Strong Sell)

4. The Mosaic Company [[MOS]] (PPT Hybrid Score: 3.69: Buy)

5. [[TBT]] (PPT Technical Score: 1.70: Strong Sell)

6. Citigroup Inc. [[C]] (PPT Hybrid Score: 1.70: Strong Sell)

7. General Electric Company [[GE]] (PPT Hybrid Score: 2.24: Sell)

8. [[M]] (PPT Hybrid Score: 3.19: Buy)

9. Arch Coal, Inc. [[ACI]] (PPT Hybrid Score: 3.36: Buy)

10. The Procter & Gamble Company [[PG]] (PPT Hybrid Score: 3.51: Buy)

NOTE: PPT Hybrid Score is the combination of PPT Technical and Fundamental ranks. A score of 1-2 equals Strong Sell, 2-3 equals Sell, 3-4 equals Buy and 4-5 equals Strong Buy.

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

As I sit here, gloriously triumphant, in my white robe and leather sandals, one thing comes to mind: what shall I order Mrs. Fly to prepare for this evenings “dinner banquet”? Mind you, the “banquet” will only be attended by Mr. and Mrs. Fly and our three kids; nonetheless, it is a meeting of great minds with some minor egregious behavioral miscues (for some reason the little ones do not like the burning incense near the dinner table).

I’ll have you know, right now as a matter of fact, I sold nothing today. “The Fly” is into pushing the envelope, when things go his way. All of the bottom fishing done last week is paying immense dividends today. Today’s rally is entirely commodity based. For the most part, the banks and tech names took the day off, leaving names like The Mosaic Company [[MOS]] and National-Oilwell Varco, Inc. [[NOV]] to go open field running.

Unlike Friday, today’s rally stuck, as TED spreads and LIBOR rates shit the shower.

In short, I must admit, it is entirely fulfilling being me, as my brain is nearly 100x as powerful than the average money manager. “The Fly” is almost a mythical figure now, as you readily know. I realize the responsibility that has been entrusted in me by the stock Gods. And, if I may be so bold,  I do intend to offer multiple, and also various, coin banking methods, just as long as you (the reader) shut the fuck up and quit debunking my “Tim Knight is a retard” theory.

NOTE: Tonight, I will post my top 10 holdings.

In video, of course.

See, don’t you feel stupid on the sidelines, watching “Senor Tropicana” bank egregious amounts of coin? It’s not rocket scientry people; you should have bought when everyone was selling.

The good news: it’s not too late.

With TED spreads collapsing and record amounts of bullshit dollars on the sidelines, we are setting up for an epic run. Banks and commodities can be bought, with impunity, as if your brain was being controlled by Hank Paulson himself.

The obvious names are Citigroup Inc. [[C]] , JPMorgan Chase & Co. [[JPM]] and [[UYG]] .

Within commodities, I am into black lung action, via Arch Coal, Inc. [[ACI]] . And, of course, I am staying the course in National-Oilwell Varco, Inc. [[NOV]] and The Mosaic Company [[MOS]] . Some new additions include: Southern Copper Corporation (USA) [[PCU]] , CF Industries Holdings, Inc. [[CF]] and United States Steel Corporation [[X]] .

The lesson for you fucking rubes is very simple: never question “The Fly,” regarding his space alien magician, time traveling efforts.

Off to go roam my office.

NOTE: I am holding Apple Inc. [[AAPL]] through earnings. However, it’s worth noting, my position is very small.

I bought 10,000 shares of Arch Coal, Inc. [[ACI]] @ $25.65.

Disclaimer: If you buy ACI because of this post, your only son will take a job mining coal. And, you may lose money.

This is what 9% Chinese GDP growth means:

Dry Bulk shipping rates are way too cheap.

Commodity stocks need to reflate by another 25%, minimum.

The world as we know it is not ending.

See, if you were just looking at the stock market, over the last 3 weeks, you’d think China were “enjoying” negative GDP growth, when in fact they are still ripping higher. With inflation in check, and $2 trillion in reserves, the Chinese can offer real stimulus to their economy, via infrastructure projects, if needed.

Essentially, the rumors of impending doom are gravely overstated.

With my money, you know I like The Mosaic Company [[MOS]] and National-Oilwell Varco, Inc. [[NOV]] . However, on that Chinese GDP number, the whole sector can be bought, from Alcoa Inc. [[AA]] to Olympic Steel, Inc. [[ZEUS]] .

My favorites include:

Freeport-McMoRan Copper & Gold Inc. [[FCX]] , Southern Copper Corporation (USA) [[PCU]] , Agrium Inc. (USA) [[AGU]] , CF Industries Holdings, Inc. [[CF]] , Monsanto Company [[MON]] , Arch Coal, Inc. [[ACI]] , United States Steel Corporation [[X]] and Suncor Energy Inc. (USA) [[SU]] , just to name a few.

In addition, domestic retailers are too cheap, despite the credit crisis. Into the thaw, I want to be long [[M]] and Polo Ralph Lauren Corporation [[RL]] .

Naturally, the consumer staples will rebound for two reasons: one due to valuation, two because they are defensive. My favorite staples are The Clorox Company [[CLX]] , The Procter & Gamble Company The Procter & Gamble Company The Procter & Gamble Company The Procter & Gamble Company [[PG]] and Unilever N.V. (ADR) [[UN]].

While it’s true, this rally may not last very long; it is here now. Moreover, while it’s here, “The Fly” intends to sap every last bit of coin from it and transfer it into his checking account.

NOTE: [[SEA]] is a great way to play the rebound in the shippers.

LIBOR rates are collapsing, soon to break 4%. Stocks are set to explode to the upside, because all of you jelly donut eaters are negative. This is, if I may be so bold, the perfect environment for an epic rally. One that tosses the deformed carcasses of grotesque short sellers into idle sewers and eliminates fair play amongst traders.

Yes, the rules have been changed and in order to survive such “Costanza like” environments, one needs to adapt. Otherwise, while “The Fly” hams it up over a nice grilled sword fish, you fuckers will be eating a roasted cigarette in a red wine reduction.

As you can see, National-Oilwell Varco, Inc. [[NOV]] and The Mosaic Company [[MOS]] are “spastically” higher this morning, as people with intelligence quotients higher than 50 step in and gobble up shares, like a turkey pecking away at loose pieces of corn.

For the most part, banks are higher, but nothing too exciting.

The real coin is being banked in the commodity space today. On that news, I am stepping in, buying shares of Southern Copper Corporation (USA) [[PCU]] here, sub $12.30—as the shares are without a doubt “ghetto cheap.”

As you can see, I am banking profuse amounts of coin here. Do not dare bother me.