A Few Important Matters for the Readers

First I’d like to tell you that The Option Addict, ChessnWine, Ragin Cajun and “The Fly” will be doing weekly QnA sessions on Twitter. If you live under a rock and do not know our Twitter handles, here they are.

@TradingAddicts
@ChessnWine
@RaginCajun
@The_Real_Fly

I’ll try to work Raul and Bluestar into the mix too. Their handles are @TwoSmuth and @EdwardDowd.

Let’s talk about something important. Both ChessnWine and The Option Addict are seriously considering hosting iBankCoin’s first ever seminar, to be performed somewhere in Las Vegas (extra rat pack). Yours truly will be in attendance too, but completely anonymous, amongst the other plebs, heavily armed and extremely dangerous. So do not try seeking me out.  Naturally, price is an important factor for many of you and I can not tell you an exact price yet, as we’ve yet to iron out the details. But you could expect it to be in a range of $700-$1,500 (it will be a two day affair).

We are thinking about doing it this fall or early winter.

Now take the survey.

Great close for a stupid day. Lots of stocks lagged, however, so don’t start killing people in celebration just yet. I have to believe there’s more to this rally, than just this. Frankly, it was a little milquetoast for my liking. I was barely up 0.8%.

Nevertheless, I’ve taken the liberties to position myself for extraordinary winship–the likes none of you have ever seen before. We will get there, eventually, as I am destined to be ordained ‘Supreme Winner, God Amongst Men’ for all eternity.

I hope you and your morbidly obese wives enjoy the weekend. Try hitting up the gym; it’s good for your ticker.

https://www.youtube.com/watch?v=ziYLeF5f8nk

I bought QIHU. Cash has dwindled down to 5%.

Even I started to doubt the very essence of life this morning, the symmetry that gives us planetary significance. It was a lot to take in, the specter of a PPT signal being ignored by the masses, discarded like some sort of deformed baby during Spartan times. Alas, all is well and I am back to kicking older men down and into idle sewer pipes again.

Markets are soaring on news that General Putin and his rag tag bunch of vodka whores surrendered to The Ukraine and have decided to NOT place laser images of President Obama eating a banana on their capitol buildings.

JAZZ is most impressive to me, following a two day rout. I like the shares up to $200.

I find most of my trading dollars long China, for a variety of reasons. Right now my chinese holdings are XNET, ZPIN, VNET and DSKY.

Celebrate and rejoice by popping corks of champagne into each other’s faces and throwing fistfuls of cocaine at the kids playing outside (just kidding on the last part).

I just read my previous post and then punched myself in the face, drank a shot of whiskey, and then bought some shares of newly minted chinese burrito DSKY–for the win of course.

As you were.

I was expecting moar. Why bother buying more stocks on a lazy Friday, ahead of a scary weekend?

The only thing that’s working for me is TLT. Aside from that, it’s pure garbagio out there. It’s a sea of red for me and I am tempted to buy some utilities. Please talk me out of it. The day I buy the utes is the day I deserve to die in a fire.

With the US bombing Iraq, oil can be a good play here. With Putin talking to Merkel, the whole market is at stake. The German and Japanese markets have been dreadful. On the other hand, both Hong Kong and China have been great. Which ones are important? Should we just chalk it up to “summer time nonsense”? Or, is this a prelude of things to come?

The real question that I have for myself, which touches upon my over-arching opinion is this:

If we are traveling the path of 2000, which I’ve said for months now, is it possible that the August blow off top will be absent this time around? Will we just break down, 2000 style, without that last final push?

I am a slave for symmetry and would hate to concede bad timing. But if I am to listen to my own advice, it would be to tread very carefully here. The decline of 100-200 tech and biotech stocks back in March and April was a warning. The true decline might still happen. I am talking about Armageddon for names like FEYE and SPLK–the sort of loss you don’t walk away from. So many of these stocks are trading 20-25x sales, into an economic slowdown. If we are to have a sense of normalcy, those stocks should trade down to 5-8x.

You do the math.

All of you who were mocking The PPT‘s oversold signal and decrying this market to be dead are going to be forced to dine at Mcdonald’s restaurants for the rest of your lives. Futures have gone from -13 to +5 and the world is rallying. After hearing the cries of the canaille to “get short” the exact opposite has occurred.

I know what you’re thinking. You’re thinking this doesn’t matter because the market is just gonna sell off anyway. But you’d be wrong and will proven to be wrong by next week. Do you know how I know?

DON’T WORRY ABOUT HOW I KNOW AND JUST SHUT THE HELL UP, you upright walking pigs.

I like chinese stocks, and lots of them.

The last time The PPT missed an oversold signal was November of 2011. It did and it didn’t. Within a day or two of the signal the market dropped off the table, down into the sewers, then quickly spiked like a banshee from hell–hitting overbought within days. Tomorrow will be the 7th day since it flagged OS. We judge the signal on a 10 day hold and looking at the NIKKEI getting samurai’d to the face and our futures tanking lower by 1%, odds are this signal will miss. Granted, if we rally hard next week, PPT can be redeemed. However, the point I am trying to make is this dip is sort of an outlier. The market is exhibiting unusual characteristics, likely fueled by geo-political events.

After today’s sales, I am about 15% cash for trading accounts, 7% cash for personal and 25% weighted in TLT. I will not short anything into the hole. Instead, I will cut losses as I deem fit, raise cash along the way, and attempt to catch the next inflection point to make up losses.

For me, 2014 has been one giant whirlwind of fuckery. One jack in the box surprise after the other. We remain trend-less, violently meandering between ranges, grinding momo traders into dust.

Best case scenario: we gap lower and rally off the lows. A few things are certain: Congress is on vacay. The President is an idiot. And Janet Yellen is in way over her head.

You’re better off swiggin from a bottle of corona than playing this tape, unless of course you’re buying The Option Addict’s earnings plays. There’s no denying the obtuse nature of this tape, one that is scared of its own shadow (extra Saul Rosenberg).

I started a new position in XNET today, based upon the fact that Chinese stocks seem to be immune to the debauchery that is afflicting everything else. I am also tempted to sell one or two names for losses, as my patience is wearing thin.

TLT is breaking out; stocks are breaking down. The appetite for risk is absent. No one cares. Apathy.

I started a position in newly minted burrito stock, XNET–for the win.