Hitting the Reset Button

I am trading miserably. I took a look at my positions, asked myself if given fresh cash today would I buy these stocks, and then I made wholesale changes.

I sold ONCE (scared of the FDA), CYBR (what a dog!), partial YELP, HABT (SHAK is better) and all of EGO (what was I thinking?). With those sales, I’ve added to an already large cash position. I haven’t made any real money since June. This back and forth is tedious and I am wasting time and energy with these high beta names. Something is clearly wrong with the tape and until the tone improves, I am probably better off doing nothing.

I am sure as soon as the market starts going higher, I will be tempted to move back into stocks. Truth is, my timing has been off and my stock selection has been poor.

Trending stocks have been scarce and oversold bounces have lasted all but a few days. I will try to formulate a course of action soon. But for now, I am a man without a plan, in the wilderness, surrounded by savages.

I am 100% certain the market will be fun to trade again, one day. But this isn’t fun. As a bull, this is demoralizing and leads me to question whether or not I should bother holding onto losing positions.

A lot of people will hide these insecurities with a critical public. But I’ve been doing this shit for too long to worry about the opinions of others, having navigated some of the most fucked up tapes to have ever existed.

The bears are always talking gloom and doom, so I discount what most say as bias. But look at the price action here in many high beta names: dreadful. Perhaps the collapse in crude is a prelude of something awful to come. I recall in 2008, people thought lower crude meant good news for retailers, until the global economy collapsed and they were nearly bankrupted.

It’s very choppy and all eyes are on the Fed, once again. Will they raise rates into a chinese meltdown, at a time when deflation is clearly the problem and their own internal inflation targets aren’t being achieved?

Consensus opinion says yes.

Short term, this is all noise. The longer term will be steered by growth in China, plain and simple. Like 2008 was all about banks, 2015 is about China. If they are truly losing a handle and slowing in a significant manner, all markets will trade down, in a big way.

I feel like I’m in a version of hell, especially designed for me. Each and every day I am offered a new task in the stock market. After I figure it out, I end up exactly where I was when I started. This is a circle jerk of extreme magnitude. And I’m not talking about the past three months. No.

For the past two fucking years the stock market has been one giant mind fuck, a vast mine field of false starts and asset class implosions, designed to ruin the speculator who exhibits avarice in his trading.

Last year I was almost ruined, something I am not proud to say. This year I was offered a second chance and I seized upon it and made it interesting for a while. But for the past three months, the insidious design of hell has reemerged and kicked this market into full fucktard mode, ruining and bankrupting aggressive speculators with industrial efficiency.

It seems the best course of action is to sit tight and hope for the best. To be oversized an asset class or position now is equal to deep frying a giant turkey dressed in a suit drenched in gasoline.

There have been reports from the centre of the city square, right outside the Tontine Coffee shoppe, of an ancient wooden device being rolled into its centre. Eyewitnesses are said to have soiled themselves upon seeing it and most women fainted, straight away.

One worker at the site spoke to an iBankCoin reporter and had this to say: “this thing they have us building is the oddest thing I’ve ever seen. It has a small hole in its centre and the largest and sharpest blade you’ve ever seen. It’s like a giant fucking carrot chopper (audible laughter).”

Residents near Tontine Coffee shoppe have vacated the streets and are holed up tight inside their homes.

Outside of a few far fetched rumors, our reporters on the scene have no idea, whatsoever, whatever the fuck is going on at the square. Officers from the Federal Reserve have ordered all non-employees to vacate the premises until morning.

DEVELOPING…

Leo DiCaprio is hands down one of the best leading male actors of our time. He’s always ignored during Oscar time, most likely due to the fact that he doesn’t partake in hollywood homosexual galas and isn’t into punching 8 balls of blow into his face. Nevertheless, the people know he’s good, which is why his movies sell a fuckload of tickets.

The Departed is one of his best movies, which also stars Jack Nicholson, in one of his best performances, starring as a maniacal gangster from the streets of Boston.

This is a classic cop vs bad guys movie, done in a superb way–a timeless classic.

The good folks over at iBankCoin created a world class investment tool for you, the reader class pleb, fighting and scrounging about the housing tenements in search for a better life. Many of you have become members of our Order of the Exodus and have since greatly improved your trading acumen.

Inside of the halls of gentlemen, I host a blog for private eyes only. Here was my Trade of the Month idea for August.

If that wasn’t enough, you were given ample opportunity to accumulate the shares of SHAK, which were flagged as oversold for the better part of the past two weeks, by our predictive algorithms.

Failure is a choice made deep inside the minds of submental morons. Avoid the fate of your brethren and be a man, an Exodus man.

Good day to you.

Ask yourselves this one question:

Who benefits from a lower stock market?

If answered correctly, you’d come to the quick conclusion that no one benefits from it and the country is better with a good stock market, as opposed to a weak one.

But is it that simple?

Since 2008, the government has made it their business to intervene, for the explicit purposes of higher equity valuations. We all know the Fed and their parlor tricks. We also know what the ECB did to quell their market scare. So what the fuck is going on now?

Could it be as simple as: not much going on here, merely a correction, a way station, on our way to a felicific mode of living?

How do I make such deductions (Exodus is the truth)?

$19 trillion in debt and growing, our national disgrace being fueled by and funded by capital gains. Pray tell me, without those lofty gains, hedge fund managers tossing blow in the air, chased by champagne corks, where is the money gonna come from?

My confidence in our markets runs parallel to the direct manipulation of it, courtesy of our central bank.

SHAK is the future. Fuck your burritos.

As the market spins itself into a deadly orbit by which most of you will not escape from, I actually have a stock going higher. It’s an amazing thing, to have an actual, real life, equity trade up.

I’ve been so accustomed to downward trending stocks, seeing SHAK forge ahead is like seeing Santa Claus on Xmas eve, as an 8 year old boy.

“The Fly” could get used to this sort of grandeur, investing into corporations and then seeing that investment increase in value. What a wonderful scheme!

Why, maybe I could parlay these money making ideas into a business where I invest on behalf of others, charging them a fee for the pleasure, and then leverage those relationships to build new ones.

Splendid ideas without boundaries are being shared today.

Maybe after I’ve enjoyed a pittance of success, I could then talk about my winnings on the internet, yelling and cursing at people to my heart’s delight. I might even make a business out of that too.

In light of GILD raising $10 billion in a convertible bond offering, I did a little digging into who might be an attractive acquisition target, not only for them, but any major pharma. This is all speculation on my part. It’s almost impossible to guess which R&D mill will be acquired next, which is why I added in a small caveat of $250 million minimum in annual revenues into my screen.

This way, I am only producing real companies with real businesses. In the event my merger pipe dreams fail, at least I’ll still own a company that could survive on its own, without the help of capital markets to keep it afloat.

Surprisingly, the list of “real” companies with growth, in the biotech space, is rather exclusive.

Here is what I came up with. For Exodus members, the screens are here and here.

HZNP

DEPO

INSY

TECH

LCI

ACOR

ACET

EBS

SGEN

ISIS

INCY

BMRN

ENDP

GRFS

ILMN

MDVN

JAZZ

UTHR

I limited the scope of the screen to companies with market caps below $30 billion, for obvious reasons.

If you’re trying to catch day trades or market time high beta stocks, you landed on green today and the house stole all of your money. In my experience, market’s like this are dangerous. A few mega-cap names mask the hurt underneath, leading to a false sense of optimism. Shares of AAPL, BIIB, GILD, PANW, AMZN trend higher and everyone thinks the coast is clear again.

If you looked under the hood, you’d learn that just 53% of stocks were higher today. A wide swath of names were pummeled into the fucking rocks, bashing brains in and leaving stock brokers strewn out across the dirt to be run over by monster trucks.

This shit is far from over. We need conclusion. We need some sort of news driven event to cast away the demons and scare the shit out of the bears. We need to ruin them.

Keep your margins in line and don’t speculate with all of your money at once. Odds are your first purchase will be wrong. If you go all in on an initial purchase, you become a “weak hand”, who will be flattened the fuck out on the first sign of weakness. But if you’re buying in small increments, you can somehow average your way out into a profitable position, barring some sort of catastrophe.

Offering specific stock ideas is somewhat meaningless today. I think you should focus on structure and how to deal with this whipsaw action first.

Have a look at our Exodus video and sign up now, else face death.

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