OIL IS COLLAPSING

This is beyond my scope of expertise. All I can tell you is “this too shall pass.” There is probably some high stakes geo-political event taking place between the west and Russia, ahead of winter. Russia has europe over a barrel because they need natural gas. But, by the looks of crude, Russia isn’t fairing too well either.

The biggest loser is the Bakken shale, where drillers are required to extract oil at the ridiculous cost of $70-80 per barrel. With oil approaching $80, people are getting panicky.

Into this morass, I like rate sensitive plays, like TLT, ETR, HE, WRE and a myriad of other utilities and REITs.

I hope we’re done going lower and the market can reverse. But even if it does, the damned price of oil needs to catch a bid.

The good news, naturally, is your monthly gasoline bill. My monthly gasoline expense ranges anywhere from $300-400. How about yours?

My only consolation, after watching the market vomit on itself this morning, is that I bought HE and WRE, alongside that bastard rail stock TRN, yesterday.

Is this what the world has come to, a giant ball of shit being killed off by African diseases? How ironic, the ‘cradle of civilization’ is also its deathbed.

Do you want to know what it’s like to trade this grind house? I am not gonna say anything else, just watch this video.

By the way, we are the chicks and Stuntman Mike is the market.

I talk a lot of shit about a lot of people. But let me give a few praise. This morning the CNBC audience was treated to a true master, legendary hedge fund manager Leon Cooperman. This is a man who knows his stuff, inside and out, makes a ton of sense and is a pleasure to listen to. Another person that I admire and respect is Bob Parker from Credit Suisse, who usually frequents CNBC europe. I’ve been watching Bob for many years and he always seems to get the market right.

Futures are off a bit and the spoiled rotten brats on Twitter are already getting out the defibrillators, complaining over the specter of loss. Hey moron, the SPY was up 33 handles yesterday. If we pulled back a cool 5 to 10, would that be the end of the world?

What we want to see is stability, for equities, commodities and currencies. After we base out, we can launch higher and pop champagne corks into each other’s faces.

Oh, by the way, before you make fun of the portly coupled featured on the front page, just know they won $259 million in the UK lottery.

Make no mistake, we are in the beginning stages of a reflex rally. In order for this rally to have legs, the current boogeyman must be shot dead. The problem with that, of course, is the boogeyman cannot be killed (extra Michael Meyers). That’s alright. All we need and require is a little obedience and we too can gallivant around town, clad in $20,000 suits and top hats made from the skulls of enemies.

Instead of going hog-wild retard into today’s circle jerk, I took a measured approach and opted to play a low rate environment, which should benefit REITs and Utes. To play this fucking oil spill catastrophe, I bought TRN–because once a rail man, always a rail man.

Keep in mind here lads, I already own 35 stocks, all of which have been ravaged by the market elements. Those positions are spread out and correlate the NASDAQ 100 fairy well, so I have my bases covered there.

In addition to that, I have open trading positions in TNA, CYBR, CLR, ETR, WRE, HE and YELP. Thank the stock Gods and the celestial beings who watch over me at night while I sleep for guiding me out of ARWR, EMES and BITA before they detonated and ripped shareholders to pieces.

My caprices allow me to change with the winds. I am not beholden to any mantra or bias, other than making money. This has been a hard year for me (extra penis) and I am trying to navigate these waters well enough to leave me in a pole position to make a late year run. Avoiding disasters is my #1 priority, even if it means playing the reflex rally to come like some sort of office clerk coward, monitoring the front lines from his jackass perch.

You’re wrong about rates. You keep saying that ‘everyone knows’ rates aren’t going higher; but that’s a bald faced lie!

Every single person that I know, sans Hugh Hendry, thinks rates are going higher. You can hear it for yourself on the television, where experts predict 200 basis point moves over the next two years. It seems that no one, mind you, is able to look at a balance sheet and acknowledge the fact that America will NEVER undergo austerity, in order to make the cuts necessary to service higher interest rate debt.

Argue all you want. But ZIRP is here forever.

Market roared higher, dragging bears from the back of speeding pick up trucks. But I saw something different in this run, different from past bull markets. Rate sensitive names, like REITs and Utes, pressed their rights higher too. So the stocks that I bought today, weren’t actually for today–but for tomorrow.

I believe the utes and REITs will hit new highs. I also believe the way the rails have been treated is disrespectful and discourteous to true ‘Rail Men’ like myself. I took a large stake in TRN, not because I felt bad for legacy shareholders, because it’s going higher.

FYI: Early Bird pricing for the FIRST EVER AND LAST EVER iBANKCOIN INVESTORS CONFERENCE ends Sunday. If you’ve been on the fence about coming, make up your mind son and take the dive already.

REMINDER: We are day 2 of a 5 day FREE TRIAL for The PPT.

I bought TRN, WRE and HE.

Cash is down to 10%.

BECAUSE THE UNITED STEAKS OF AMERICA HAS NEARLY $20 TRILLION IN DEBT.

Rates are NEVER going up.

Oh, and I am very happy to see the market up and you’re not being executed any longer. But this market is built upon the blood, sweat, and tears of oil. If oil doesn’t move higher, neither will the market.

Rails look the best for a trade.

Ok, oil has been dropping, and as a result, the sector has been lit aflame and tossed by the side of the road. But it’s more than that. This rout is causing panic in a wide array of areas.

Look at fracking sand companies: SLCA, EMES and HCLP.

Look at the rails, god damn it: ARII, GBX and TRN.

Look at shipping: DRYS, BALT, GLNG, CPLP and SALT.

Even airlines are getting clobbered. Perhaps their hedges are now hurting them? SAVE, RJET and ALGT.

The only sectors that are behaving are wine/alcohol, REITs and utilities.

Over the past month, over 1,300 stocks are down more than 10%, while just 220 are up 10%.

This market is dreadful. It is following the path of 2000. Damn it, I was right and now we’re all gonna die.

NOTE: I think the market is a buy…on Friday.

Still 30% cash. Largest holding is ETR.

The futures aren’t up enough. We are going to swan dive into a pool filled with bricks. Aside from that, I placed my iPhone in water, for the second time in as many months. My big loss isn’t the phone itself. I couldn’t care less about the phone. But I keep copious notes of things, words that I am fond of, which will be lost with the new phone. All of this happened because I refuse to buy a case. Actually, I have a case; but I refuse to use it.

Now I am using my wife’s old, stupid, iPhone and I want to throw this thing into the toilet and flush it. But if I did that, guess who would have to unclog the fucking toilet? You guessed it.

You know, there is a certain tediousness to the life that I lead. Why should a loss of a phone be this upsetting? I will tell you why. It’s because there is a giant fucking black hole void in my life that causes me to go nuts when order is disrupted. Everything is in ruins, a smoldering heap of skeletons atop of environmentally friendly medical waste atop of mangled metal.

And then there’s the stock market. Jesus Christ this is the life of a certified lunatic. Not only do I have to manage money for a living and get paid 7 figures for it, I also have to come here and tell a bunch of strangers about it, leaving me open to wanton criticism and debate from the biggest assholes walking the planet.

How did my life come to this?

I remember when I made a commitment to never curse on the site again. Frankly, I don’t know why I made such a commitment, since a word is just a word. There isn’t anything inherently evil about the word “fuck” or “shit.” They might be a bit vulgar and out of place inside the home, in front of the kids. But I have to tell you, very sincerely, I don’t trust any man or woman who never curses. Anyone who believes they are pious and places themselves above a certain subset of words is deranged and most likely hiding human organs in their refrigerator.

They’re just like priests: nice on the outside, demonic guttersnipes on the inside.

I haven’t done a 5 day free trial, for The PPT, in years. We’ll figure this market out, one way or another, so come into the hallowed halls of gentlemen and enjoy the comforts of unparalleled harmonious winship.

Let me clarify my position, speaking to you plainly in peasant tongue.

The market isn’t going to collapse.

I was bearish yesterday, very much so. But you know what happened today? The market fell almost 300 points. I am less bearish today.

On Friday, inside of The PPT, I acknowledged that The PPT was wrong on its OVERSOLD signal. I went back in time to give another instance of it being wrong, amidst numerous OS signals. The result was a 14 day malaise, before a sharp rally. If we copied that trading action, the market will begin to rally on Friday.

Even if you’re the biggest blood sucking vampire in the world, you should acknowledge that life has a certain vainglorious ebb and flow to it and that nothing is absolute. We will bounce and then we will go lower and then we will bounce again, in perpetuity, for the remainder of time.

The key to this market is oil.

Get your watch lists ready and be prepared to buy.