10,000 POINTS

Ahead of the State of the Union address tonight, I revel in the cat calls from the right–eagerly declaring Obama a ‘COMMUNIST PIG’. The latter part is a little editorial flare that I added in for your reading pleasure. Enjoy it with my compliments. Coming off what can easily be declared the worst presidential term since Millard Fillmore, George Bush is widely revered as a visionary now-a-days, by crossed eyed republicans clad in Teutonic Knight battle armor.

I have nothing but pure indifference for the office of the President. They are nothing more, or less, than two bit cowards in cheap regalia. However, can we stop with the fucking “Obama is gonna steal our guns and butter, then declare PRIMA NOCTA on our wives” already? I spit on you people, pigmies reading my grande website from rent controlled apartments.

Listen to me: the man presided over the single best economic recovery in the history of the United Steaks; and he did it while winding down war. Moreover, the Dow Jones Industrial average is up 10-fucking-thousand points. Okay? Shut the fuck up until there is eery silence.

In other news, futures are higher this morning, giving the bears another shot at torturing the bulls with another fade. God save my sheet rock if that happens today. I don’t think my temperament can handle another cruel reversal of fortune.

I’ve just escaped the confines of a bowling alley in the middle of nowhere, filled with morbidly obese people. I see Chinese GDP came in a little hotter than expected and futures have reversed higher, pointing to a relatively optimistic opening. But I want to talk about something important tonight.

Reflecting upon 2014, seeing how poorly I underperformed the S&P and my early cursed misfortunes of 2015 (giving up an early 6.5% gain), it has crossed my mind– on more than one occasion– that “The Fly” has passed his prime. His best days are seemingly behind him, and like an aging baseball player, it is time for him to step aside and permit younger, fresher, eyes a chance at unbridled internet greatness.

Clearly there is a burn out aspect to this business. Without a doubt, I was sharper, quicker, and bolder a few years ago. Another reason could be the QE-induced nature of this market, which permits one to simply sit back and eat yams all day, while the Fed does the heavy lifting. All declines were met with barbaric buying responses and short sellers, seemingly, tossed into open tar pits filled with fire and BBQ’d.

Maybe hubris played a role, coming off my best year in over a decade (+80%)?

But then I got to thinking and remembered that people in my field are filled with elderly booze hounds, still making moves well into their 80’s. In general, the younger you are the more ignorant, and reckless, an advantage to no one but banana peeling apes. And QE hasn’t ended; but has simply begun a new era on the homosexual continent of Europe.

So what of the losses?

In an age of revolution, one must adapt to change, else find oneself at the bottom of a flaming tar pit being prepared for supper.

HERETO: “The Fly” is timeless, like a 17th century bottle of Bordeaux. If classified as dignified, he’d defecate on all of you and kick your heads off your shoulders. Luckily for you, I am a creature of custom and honor, which saves you from such a fate. I can never fade, nor be faded. There will be periods of drought, times of duress, and glimpses of panic. But, in the end, if you’ve learned anything at all from the years visiting and reading the literature posted on iBankCoin, it is this:

“The Fly” wins all the time, you fucking faggots. Bet against me and lose your castles, moats and calashes. Two thousand and fifteen will be one of redemption, one where extreme pain and agony is thrusted upon my enemies, leaving their legacies and bullshit checking accounts in tatters–for generations to come.

The median return for gold stocks in 2015 is +16.8%. Many are up more than 30%, very few are down. Silver stocks, as you would imagine, are up similarly. After that, marijuana stocks are higher by 11% and then, finally, REITs are up around 8%. Nothing else is up 5%, as a sector, not even biotechs.

These are degenerate, homeless man, winners.

In short, if you’ve managed to make coin this year, you’re either a bear shitting gold bug or chaser for yield, also a whore of another varietal. None of the risk sectors are working; and if you’re into making money off momo stocks, you’re gonna have to be quick. Bounces are being sold within a day or two and bonds are relentlessly trading higher.

Much of this is due to currencies. I’d like to chalk up the melt up in TLT to dollar strength, but that doesn’t explain it all. If that was the case, european bonds would’ve been trading down with their currency. That simply isn’t the case. Can it be oil producing nations finding safety in western bonds? Perhaps. I can’t imagine many Russian oligarchs wanting to keep their money in rubles these days.

Whatever the reason is, the perception is that something is wrong and that is hurting sentiment.

Either TLT drops $15 from current prices or the Dow falls 1,500 points. This deflationary scare cannot continue for too much longer, without it finally grabbing hold of equities, which is the proverbial ‘last man standing.’

Also, heading into the big ECB meeting this week, I am on edge due to expectations versus potential outcome. The europeans have a way to fuck things up and right now everyone is relying upon them to do something bold.

The last time europe did something bold is when Germany invaded Poland.

EXODUS

The corrective forces of the market have been defeated. Rejoice as we enter an era of unparalleled hedonism, through industrious productivity and innovation. All of the problems of yesterday are seemingly in the past (duh). As you can see by today’s tape, our fears, our human emotions, tricked us again.

At this very moment in time, Bluestar is receiving penance and forgiveness for his great many atrocities. His unbridled savagery will be washed away, with the oils of our savior and the blood of christ.

Amen.

Have a good weekend and try to avoid telling lies, stealing and definitely murdering your neighbors.

I’ve had ETR for a while and felt like booking the trade. With AMGN almost 10% down from highs, yielding 2%, I bought a small position.

Am I supposed to get excited that our execution has been stayed? The gallows are still there, freshly built, awaiting our necks. European markets have soared over the past two days. Ours? Ours are for the dogs.

More than 340 stocks traded down more than 10% this week, an ordinary correction in a land of milk and honey. After all, we have the best banks, Fed, tech and medicine man companies. We also have a benevolent oligarchy who bestow mercy upon us in the form of short prison sentences for IRS violations.

I see oil is trading up again, luring managers of money back into its fuck up web. Having positions in a variety of oil stocks, I am not complaining–per se.

It’s past 2 o’clock in the afternoon and I haven’t bothered to blog yet. I’ve been awake since 6am, sort of in a trance like catatonic state. I’ve been reading a book, about the life and times of Jay Gould, robber baron extraordinaire.

How did olde Jay amass his $86 million back in the 19th century? Very simple. He merely would sell short the company he was in charge of, purposely fuck up their contracts, cover his short, and then get long after fixing the contracts. He also once forced UNP, the company he was CEO of, to buy the Kansas City railroad, in which he owned the majority of the shares, at an extreme premium. He netted $40 million from that deal.

He also treated the Erie railroad as his personal piggy bank, legally.

Ah, the good old days.

Needless to say, I am not impressed by today’s rally and will not be buying anything. There is too much muck, implicit corruption, and a strangely docile investment public to believe anything seen on my screen.

#1: The PPT is now oversold on all metrics, including TNA and TQQQ. The recent stats point to an immediate bounce (tomorrow) and then possible resumption of the downtrend. This is how the signs has been met over the past 11 occasions.

#2: Remember when I warned you the other day about biotech stocks being filled with asshole momo traders? Well, by the looks of NDRM, JUNO, KITE and many others, they were fucking wiped off the map today. When I posted about biotechs we were at the upper end of the Hybrid score model. Now we are at the bottom part of the range, suggestive of a bounce coming soon.

If we are to accept these signals as valid, and they have served us well in the past, the trade will be to buy biotech tomorrow and then sell it on Tuesday or Wednesday of next week.

Bear in mind, we can still make money trading for the upside in a brutal bear market. Some of my best upside trades happened in 2008 and 2009.

Breathe in everything and digest what you’ve just experienced. This is sheer, gypsy, fuckery at its finest. The small moving parts are no longer important. There are big things happening, accompanied by giant moves that affect everything.

The expectations have never been higher for the ECB. We are in the grips of harsh and severe deflation, even BBY mentioned it in their conference call. I’ve been saying this for almost a year, while the clam fuckers on CNBC were jaw-boning about rate hikes. There will never be rate hikes and QE IV is assured. The only thing we need to do before getting QE is go lower. Very simply, the political clout isn’t there within a buckshot of new highs. We need to dive lower, mind you, to the tune of 15%.

After the Dow drops 2,000 points from current levels, we will get more QE.

In the meantime, we’re gonna bounce soon, as is always the case with runaway markets. In this instance we are running away to the downside: unsustainable. But do you have confidence that Draghi and his european comrades will succeed in saving equity markets? Because if he disappoints, the market is going to swan dive lower.

With banks getting crushed and oil already in the shit-box, there’s too much pain out there. A liquidation is in order and everything will compress because of it.

All of my gains for the year have been wiped out and I hate life again. The cycle continues.

European markets traded up 2.2% and our NASDAQ is off more than 40. All of the leaders are getting killed and quite frankly anything that I write now is utterly meaningless. Sure, trade the edges and be sure to limit losses. However, these moves are entirely unpredictable. Just this morning it appeared oil was reversing to the upside, until it wasn’t.

All of this pain and the NASDAQ is barely down for the month.

Just like 2014, gold stocks are paving the way to prosperity, early going. As you know, later on in the year gold stocks reversed and died.

Hey cheer up, the Dow is down 10 of 12 days and the SPY is still above 2,000. We’re off to a dashing start to 2015!