Today’s a Big Day

January sets the tone and Facebook is the new Apple. Zuckerberg has placed himself at the front of the class, out of a very large group of nerds, leading the market higher. His numbers were sublime and his business kicks Yahoo’s in the face, repeatedly, forcing Marissa Meyer to love Alibaba even more.

These gains must stick, and they will.

Social media shall lead the way and you will rue the day you decided to sell short ANGI.

Good day.

NOTE: I am long FB from $32.

What if that stock that I bought today gets bought out tomorrow, or over the weekend? What if Warren Buffett takes a stake, or better yet Carl Icahn?

What if I leverage my assets and nail the next move? What if I get that big client and what if I decide to sell my business and travel like Dubz for the next 10 years?

What if I pick the next NFLX, AMZN or GOOG and actually hold it instead of taking a quick profit? What if Seeking Alpha decides to write an article about one of my big positions? What if I get the right stock, but at the wrong time? When should I average down, or should I just sell it and move on?

What if I sell at the exact bottom?

What if I could time it right and sell at the exact top? Will I buy it back cheaper or move on?

What if I could double my gains and double my income? What would I do with the extra money?

What if the market tops? What if 2008 happens again? What should I short?

When is a good time to buy a winner? Why do I let valuation get in the way of buying a winner? Since when did it ever matter?

What if my winner misses earnings and I give back all of my gains? What if the FDA says no?

What if I buy calls on that stock I’ve been eyeing and they smash earnings? What will I buy after I take profits?

Should I spend more money on the house, another car, or use it for travel?

Why don’t I just reinvest it and make more?

Why am I so greedy?

These are just some of the questions I ask myself, every single day, when trading.

I think investors are finally pricing in the end of the Bernanke era. We don’t know what to expect with Yellen, frankly. Often times these new Fed heads like to make a stand early on and sometimes that stand is negative for markets. Remember, the market hated Ben early on. Just recall Jim Cramer plastering his mug on a box of Uncle’s Ben’s rice and chastising him for “knowing nothing.”

So we are undergoing a correction and it’s unsettling. We have to worry about Asian borrowing costs and their stupid currencies, plagued with run away inflation. And, we need to be mindful of the deep freeze this country is in, due to inclement weather, and how it might affect GDP.

Expect to lose money during down periods, unless you’re hedged or net short. It doesn’t do you any good to lament over paper losses, if you are prepared to make money on the next leg up.

I intend to use the 25% cash that I have now and leverage it to 50% of my assets and get long, BIG, during a high probability inflection point, at which point I will sell into the rally and live happily ever after. The amount of money that I will make during the upswing will far outweigh these petty, petulant, almost pest like, losses. I shall drink from diamond chalices, eating the brains of extinct animals, walking about town wearing long capes, made from dead animals, throwing money at the little children who look like they may or may not need the charity.

“Excuse me Miss, I’d like to make a charitable donation to your offspring. He looks a bit tattered.”

Down we go.

I just want to say that I am not surprised by the Fed or the subsequent market action. However, I am a bit pertubed over my status with the gods, with regard to my largest equity holding: AREX.

This company was mangled because they had “too much” natural gas exposure, comprising 40% of revenues. So, I got to thinking “Fly, natty is going higher, since the whole country is inside of an iced cube. Go long the company that was punished the most for producing natty.”

Makes sense, no?

Apparently not, as the shares of AREX are now being treated as an oil producer. Sometimes, every so often, the machinations of the market, the inconsistencies, get me so angry I could throw a homeless man down a idle sewer hole.

I’m not buying the dip and will likely hold everything until I am motivated to get back into the markets.

No one knows why the futures are lower. Don’t be silly. It’s quite ridiculous to go from +10 to -10, without a morsel of news. But then again, the very dumbest people on the face of the planet trade S&P futures. I’d be surprised to learn that any of these people understand the faintest thing about markets and know how to eat with utensils–savage animals devouring hero sandwiches for lunch.

My cable is down today, for reasons that defy logic. But do not fear, Le Fly (as he is popularly known in France) shall watch the carnage, courtesy of back up hot spot device. Always have a back up, contingency plan, in the event things do no go “swimmingly.”

As for me, I don’t expect my largest position, AREX, to move much today. Most of Americans are buried under the snow, desperate to get a little warmth near their radiators. I have a few others things, irons in the fire so to say, but mainly positioned for this pullback–25% cash.

Let the carnage begin and, as always, I look forward to buying your margin liquidations.

Observation: It seems the market topped when Maria Bartiroma (sp?) left CNBC. Odd no?

How many times do I need to show this to you?

On the back of that monumental Obama state of the union address, where he motivated every single american to become a factory worker in Detroit, I expect the market to rip tits to the upside tomorrow. However, it’s a Fed day, so anything can happen.

Here is what I said on Sunday night, inside of The PPT blog (just the conclusion)

In short, the Oversold signal is most effective after 3 days from the original signal. Judging on past results, one could begin buying on Monday and continue to add to position until Wednesday, in order to properly play the signal. I’d set some stops underneath newly acquired shares of about -10% below basis, just in case “this time is different.” In order to buy into a bad market, faith and patience is required. It’s always scary to buy into what feels like doom. However, the market hasn’t disappointed us in years and we’d be remiss to not give it the benefit of the doubt now.

My strategy played out a little different, for a reason. For one, I was fully invested in a lot of semi-liquid biotech. Into strength, I’ve been able to sell PRAN, RPTP and BALT, while cutting losses in ATOS and BMRN. I am left with high beta tech and natural gas that could very easily offer me high beta returns; so I didn’t lose much by selling, with respect to the rally to come.

I intend to sell into this strength and position myself to buy the blood. It’s very possible that we go straight up from here. But with Asian sovereign debt yields on the move higher, I like my chances of being a skeptic here.

It’s gonna be a long year, so bide your time and don’t force trades.

The market went up and I sold into it, yadda, yadda, yadda. You know I held long because of The PPT oversold signal and the market responded in kind today, preserving its flawless record over the past 6 months. But I have more important things to discuss, like the commodity of time and how invaluable it truly is.

My time, given my annual income, is worth many thousands of dollars per hour. I tend to choose to spend my time wisely, not in a slavish manner by any means. I indulge myself whenever I get the urge. Hell, why else am I here on this God foresaken planet? It certainly isn’t just to help you bozos figure out the market.

Anyway, I just wanted to say that I saw the mini-series KLONDIKE, starring the guy from Game of Thrones, the one killed like a stupid idiot at “The Red Wedding”, Rob Stark aka “King of the North.” JESUS CHRIST was that a bad and frustrating movie. It was the most ridiculous thing I’ve seen in years, if not decades.

The part when the guy, somehow or another, managed to hide all of his gold in the toilet, filled to the brim with shit, clinched it for me. I nearly lost it at the end when “The King of the North” was fondling a fucking orange.

If time is something that you deem to be valuable, DO NOT WATCH KLONDIKE, for you will regret the decision for the rest of your natural lives.

I sold out of RPTP, BALT and ATOS. I am keeping GOGO, AFOP, ANGI, AREX and a few others.

My largest position is cash, now up to about 25%.

A very stupid broker I once knew used to say “I am making lateral moves” to the boardroom, whenever he did a bunch of trades. Keeping with that comedic tone, I swapped out of some of my RPTP and tripled my position in AREX.

With the polar vortex freezing the noses and feet of America, I am bullish on natty here and less bullish on biotech hand grenades, in light of the risk off environment. In other words, take the bounces to reduce risk.

UPDATE: I sold out of the remainder of my BALT.