About to Implement the Costanza Trde

I am sure some stocks will trade higher tomorrow. I’m just having a difficult time bargaining with myself about buying one. I don’t know about you, but each and every time I’ve found it hard to buy stocks, the market fucked me and I was crying in the corner a few short weeks later.

That’s why I am going to implement the Costanza trade on this one.

What is the Costanza trade?

First watch this video.

My inclination is to go for growth, maybe even biotech, which is why I am going to do the complete opposite.

My Costanza trade ideas will be forthcoming before the end of the day. I’ll be eating some potato salad with some fucking tea while I’m doing it.

Don’t worry, it’s not cocaine, but cold hard cash.

I sold out from my largest holding BIDU, thanks to today’s gorilla raping romp higher. The reason why I sold the stock was because it was up alot from my basis and this market is a fucking asshole.

This sale pushes my cash position upwards of 15%, something that makes me happy, since this market looks like it wants lower.

My largest equity holding is now GILD, followed by TWTR.

I have a few ideas for long positions to replace some of the BIDU proceeds, which was a no brainer. The only issue I am having now is the totally lack of “no brainer” material in these so called “new ideas.”

DEVLOPING…

Deutsche Bank is out with a super bullish note on America’s spending proclivities during the holiday season and surmises that everyone should just shut the fuck up about how awful everything is.

Combined with consumer confidence for lower income groups near the highest levels ever, the message for investors is clear: U.S. consumers don’t worry about the things we worry about in financial markets. Put differently, U.S. consumers don’t seem to worry about the risk of a hard landing in China, the widening of high yield credit spreads, a potential government shutdown, Brazilian corporate debt levels or low bond market liquidity. In other words, next time someone tells you “X is really worrying” you should ask yourself if this is worrying for investors holding assets impacted by X or if X is truly worrying for U.S. consumers, who make up 70 percent of US GDP.

 

It’s also worth noting that, according to recent surveys, we, as a people, are 2007 boolish on holiday spending. How joyous.

During the iBankCoin Annual Investors conference, Jeff Macke suggested that outlet shopping was where the smart money should be and that JWN was “killing it” with Nordstrom Rack. He was also bullish on TGT and LULU, constructive on WMT down here, and positive on COST.

The stock has recovered much of this monring’s lost ground, now off by 4%.

During this morning’s conference call, the fuckers from VRX had a few points worth touching on.

Strategy working with specialty pharmacies is sound
There have been no issues with regards to the accounting or revenue recognition of the business
To date, we have found no evidence of illegal activity at Philidor
We have created an ad-hoc committee of independent directors to review allegations related to the company’s business relationship with Philidor and related matters
The company has been working with outside counsel on these issues
Future options to be considered include: — Exercise our option and acquire Philidor — Sever ties and move to 1 or more new 3rd party specialty pharmacies.
We will continue to pursue tuck-in acquisitions; opportunistic share repurchases and/or debt paydown; large deals are opportunistic.
Reaffirm Q4 guidance and 2016 EBITDA of $7.5B except for one time expenses associated with recent events — Q4 off to a strong start; not anticipating any impact, but it is hard to predict how recent events will impact the business in the short term

(via Briefing.com)

In other words, everything is chill. Relax and quit reading bearshitter sites. Let’s see how public opinion ends up ruling today.

UPDATE: Evercore’s notes

We are eagerly awaiting VRX’s 8am explanatation. In the meantime, SIRF came out with a piece last night to hammer the nail into the coffin.

This pain isn’t being borne for no reason, however. Our reporting indicates that Philidor is almost certainly one of the most important parts of Valeant’s business.

Oh boy. Read the piece.

DEVELOPING…

Asian stocks are rallying this evening, in a delayed reaction to China’s rate cuts. Listening to Bloomberg Asia tonight you’d think China cut rates again. It’s just that Bloomberg Asia are living in the past. They’re replaying the events of Friday–because their stupid markets were closed when China decided to man up and join the civilization of easy men.

My prediction for a 10% move in October has all but been fulfilled. Now that its happened, people are shimmying their way to the casino table, hoping for moar gains, like fucking morons. The big gains have been had. Prepare to grind out the rest of the year, boring yourselves into stupidity.

Am I bearish?

No

Am I bullish?

Always

But do I think the market is setting up to run hard now, following an epic run?

Who the fuck do you think I am?

Asian stocks are off to a solid start this morning after the PBOC (People’s Bank of China) cut interest rates and reserve requirements, much to the chagrin of Zerohedge.

I know you’re all in the streets broke from biotech trades gone awry. I just wanted to thank you, from the bottom of my black heart, for taking food out from your children’s mouths, to join us at the Yale Club this year. It was a great time filled with some truly memorable moments.

For those of you who couldn’t make it out, for whatever reason: burn in hell. I have no pity for you.

And, finally, I’d like to offer a tip of the top hat to the distinguished gents who had the means to join us in celebration in the library room, for food, entertainment and cocktails. I hope you found the venue to be suitable to your savage standards.

In case you’re wondering why Josh Brown couldn’t make it out this evening: he had a prior engagement to partake in biblical-styled gluttony, involving a friend of his roasting an entire pig. Josh told me he couldn’t miss this meal, for he intended to eat the swine’s entrails, something that has been on his bucket list for sometime now.

Thanks again.

Fly

I just got home, after a night of fuckery on a maganaminous scale. There isn’t any parking this time of night, anywhere, in Brooklyn. I hate crowded neighborhoods more than anything else, which is why I moved the hell out of here many years ago.

That being said,  I look forward to getting a solid 3 hours of rest and seeing the 2nd annual iBankCoin conference tomorrow.

For those in attendance, I hope you have a good time and enjoy the accomodations.

-Management

Come on, son. Who else can call a 10% monthly rally to the day? Truth be told, the Exodus oversold signals guided members, almost without flaw, these last 4 months.

The prophecy is nearly complete. I hoped you all enjoyed this respite, granted to us by the Order of the Cinncinatus. Very soon, the debt ceiling will become a topic of discussion and then all will be lost: we are doomed.

For the day, I finished up 1.1%, a bit hamstrung by SLCA and PANW. It has been a hard market, prison shank to the gut hard. But we’ve made it this far, amidst all of the turmoil and angst–fighting off caitiffs at every step of the way.

The iBankCoin Conference is here. I will be heading out to Brooklyn this evening, to show the gang streets where people used to get knifed in the eye-sockets, now denizens for hipsters and Shake-Shacks alike. The conference is sold out. I might be able to kick staff out to fit late minute stragglers. But don’t count on it. If you purchase a ticket, we will review the seating arrangements and if we cannot fit you in, you’re monies will be returned.

We do, however, have room for the After Hours reception, from 7pm-10. I look forward to seeing all of you, while none of you see me, tomorrow.

Ciao.