SHORT SQUEEZE

I am going to keep this brief.

There is a major short squeeze taking place in ‘bubble mania names.’ What you need to know is the bears are capitulating in names like RUBI, YELP, FEYE and SPLK. All of the stocks that sucked are now as sweet as golden cantaloupes. I intend to buy more RUBI and another name or two, in order to entertain myself on this fine northern day. Do not bother betting against me for the forces of nature are with me.

There can no longer be any mystery as to who is reading the site. Thanks to the previous post, a blogging strike of genius on my part, we’ve learned that we have professional liars and cads, marijuana salesmen and slavic hog-butchers, amongst us. The vast majority of you stake claim to the fact that you visit this site to be entertained. Apparently, you enjoy sitting back in that lackadaisical manner of yours and have me write funny things, all so that your big hump can move up and down from the laughter. It would seem, if I am not mistaken, the lot of you disenfranchised men of base ingratitude view “The Fly” aka Plutonium Petey as some sort of clown, a person more suited to be shot out from carnivale cannons than feared due to his psychopathic tendencies.

I can see it now. You, sitting there, alongside your brutish girlfriend, sharing vulgarities with one another whilst scoffing down low grade sushi. The two of you are drinking tall glasses of chardonnay when a man runs over to your table and punches your jaw loose–nearly knocking the nose and ears clean off your face. Then we’ll see how funny you find this blog!

As for the market, I am too tired to figure it out. I slept 2 hours last night and need a nap. I am sure everything will be fine without me. My positions shouldn’t blow me up while I nap for 2 hours. As a matter of fact, I’m pretty sure the rally will continue until late August, with nothing more than a minor pit-stop in July.

See you suckers later.

I’ve been coming here everyday since 2007, yet most of you are still obscure, seemingly ill-tempered, wastrels, boozing around town–coming here to extoll the virtues of cannabalism. From what I’ve gathered, we have a ‘confirmed lunatic’ pharmacist, a slum-lord of trailer homes, and some retired attorney who now spends his time, idly, determining ways to kill off the wildlife on his Floridian property, walking about these halls–gawking at the paintings.

I’ve met only one reader of the site, since the beginning, a gentleman aussie, fellow manager of other people’s money. He was quite nice and I did enjoy his company.

But who the hell are the rest of you? I imagine some of you have worthy careers, perhaps a malpractice prone physician or blue-collared attorney, running about town–chasing down ambulances. From a foggy memory, I recall a few brokers, one or two hedge fund managers, and a slew of third rate programmers, failed entrepreneurs, mixed in with a little 19th century-esque abled bodied engineers, who spend their days researching inane patent troll companies.

So the question remains, and demands to be answered: WHO THE HELL ARE YOU PEOPLE AND WHY ARE YOU HERE?

I cannot recall a more jubilant month of trading. More often than not, epic gains follow horrid losses. Hence the lesson to remember from all this is to remain optimistic, even in the face of harrowing losses.

Everything worked this week, even gold. The bond boars are back into their pens, being prepped for slaughter. Rickard Santelli is less vocal about his dire predictions and the market has its swag back, that sense of invincibility that cannot be quantified with a passing glance at the indices.

Believe you me, I needed this respite and have received it, much faster than I had ever expected. I am now in a position to apply risk back in the way that I am accustomed to. I am not concerned with repeating the Four Horsemen of financial instability because that was a one-off event, an outlier amongst outliers in a sea of confusion. I have my bearings about me again and intend to push the envelope next week, adding back leverage to the mix, in order to expedite my return to grace.

Have a great weekend.

Reminder: Acknowledge our Facebook page or cease to exist.

About a year ago I lost a heinous amount of coin in the stupid shares of ALJ. Whatever could go wrong went wrong (extra Murphy) and I lost my shirt in the stock. It was a fine sunny day, not so different from today, when I capitulated at the bottom and sold to lock in the loss. The pain, it was too much to bear. Fast forward one year to the exact day and I am buying the very same stock, yet again.

I started a small position in ALJ today and will buy more on dips. This is called ‘revenge trading’ and I shall get my satisfaction, in this lifetime or the next (extra Maximus).

Aside from the emotional aspect of the trade, it is a play off the Brent-WTI spread and the seemingly endless lack of pipeline infrastructure growth in this grape nation, keeping domestic oil prices at unnaturally depressed levels, again benefiting those with refineries directly.

Lots of red across my screen, yet I find myself flat for the day. My largest position, TSL, is higher and several of my trading positions are also in the green. I’ve set a goal for myself, one weekly and another monthly, by which I intend to adhere to. To accomplish my goals, I will have to trade aggressively and move into large cash positions at a moments notice, so don’t think that I am marrying any of my holdings.

I had meetings this morning, which kept me away from the whimsical world of blogging. Someone that I know wanted to send me three million dollars, so I had to give him a little face time.  In between the gym and my lack of a proper night’s sleep, I am ready to crash, which usually happens on Friday night. The weather is just about perfect here and my allergies have eased up. Aside from the fact that I was stupid enough to bury myself in a massive hole filled with losses, everything is pretty good.

Nevertheless, I do not intend to take vacation this year, for the second year in a row. Last year I went on a few mini-vacations, busy with renovating the new house. This year I have too much work to do and can’t see myself away for more than a day or two.

Right now, I am waiting for TSL, SGEN and RUBI to pop. I like TSL to $14, SGEN to $55 and RUBI to $15.

If gold/silver have truly bottomed here, the pawn shops bank coin. Why? Because they have a shitload of gold in inventory, being held as collateral against egregiously high interest rate loans. Companies like EZPW and CSH make absurd amounts of cash when gold is on the rise. Believe it or not, gold is the #1 household asset in America. Everything else falls victim to deflationary pressures. But people have lots of rings and necklaces lying around the house and the pawn shops are glad to accept them at rip-off prices.

Being a novice investor in the miners, I have a disadvantage of not knowing the businesses intimately. However, I do know how cycles work and understand that the most leveraged companies perform the best during periods of reflation. Using the tools available to me inside of The PPT, here are most leveraged gold/silver stocks out there, primed to rip higher should the metals continue to run.

GOLD

BAA

ANV

GFI

AU

ABX

NEM

IAG

AUQ

KGC

SILVER

CDE

HL

SSRI

SLW

The vast majority of these companies have clean balance sheets, which makes me suspicious. If any of you metal experts can shed some light as to how these miners are financing themselves, I’d greatly appreciate some feedback. From what I understand, mining for gold and silver is a very cost exhaustive process, requiring vast amount of capital. You see it in the coal miners, laden with debt, blowing up and going out of business. However, for some reason, the gold miners stay afloat.

Nevertheless, the vast majority of the miners are down 80-95% from their highs. Out of 47 gold stocks listed, 40 are down more than 50% from their all-time highs. So whatever run these little bastards have enjoyed, year to date, are childish parlour games compared to the potential here.

Again, I am comparing this to solar circa 2012.

A great opportunity might be presenting itself here. Let’s be vigilant not to miss it.

I believe a seminal shift in investor sentiment is upon us, regarding the prodigious precious metals. You all know how I feel about gold, categorizing its owners as miscreant tenants of barbarism. Right now, however, I am long the barbarian. As a matter of fact, I am the barbarian. Would you care to see my hordes?

I cobbled together funds from three underperforming positions and crafted a decent sized one with CDE. It was a rather bold move, considering how overbought gold and silver both are. However, over a longer term time frame, these stocks are inexpensive. Imagine buying solar stocks at the beginning of its mammoth turn in 2011, like I did. Now imagine if you actually held those stocks and dream of the money you could’ve made.

Remember the SALT conference? Do you recall how bearish our fellow industry professionals were? These clowns are dying to get pessimistic. For them, positioning long gold is a proxy for hating on the market, without having to take on shorts. We all know who buys gold stocks: Tea Party people, anarchists, old men and sophisticated money managers who live in a world of phantasm.

This move in the miners seems legit. Volume is robust and there are numerous excuses to be long, even at extended levels.

I like CDE to $10.

My ytd losses have been reduced to 18%.

I started a sizable position in CDE.

My RUBI purchase is working wonders; but I’m bleeding out a little in some of my other positions. At the moment, my three largest holdings are TSL, SGEN and RUBI. I am tempted to cut a quick loss on one of my other positions to make room for something that is trending, which is obviously gold. Say what you want about the metal, it is working.

Actually, now that I am looking at it, there are two stocks that I might sell.

It is a delicate balancing act that I am partaking in and sometimes I get it wrong, like when I sold FANG at $70. The point is to keep going and never look back. Some deals are wins and others are miscommunications. There aren’t any losses because we’re not done making money.

That being said, I’m unsure as to whether the weakness in momo stocks is temporary or something that might persist over the next few days. Just remember the pain you felt when these stocks were heading lower and try to keep moving, if your brilliant ideas stop working.

We don’t have time to wait. These ideas have to work quickly.