FACE PUNCHING INTO THE CLOSE

Do you want to know how I feel about selling winners, like GOGO, then seeing them proceed higher?

Well, imagine that you had a really hot girlfriend, but grew bored of making sex to her. Imagine yourself asking her to “move out and don’t look back” because you were moving on with your life, and that’s that. Now imagine said girlfriend went out, after being dissed and abandoned, and curried the favour of another gent. They’d go to dinner and have adult relations with one another, all the while you were at home, minding your p’s and q’s, partaking in an orgy.

It doesn’t matter to me. They’re just letters in the alphabet affixed to numbers. GOGO did me well, provided me with funds to progress my Orbital Space Cannon (OSC) project through October.

If you would be so bold as to “follow the money,” you will see that I moved that GOGO money into EGLE.

How’s she doing today? One might look at EGLE and surmise “gosh darn it, that Fly precipitated one hell of a short squeeze.”

EGLE will trade to $10 because it’s destined to do so. Understand that the sun and the moon move against you. You are without water in the middle of a desert and you’re riding on a gay camel.

I’m +23% from my purchase price on EGLE today, making it my second largest position next to MHO.

 UPDATE: Fly vs EGLE shorts

This isn’t a debate. Just like I told you WNR was heading higher, when it was at $15,  due to rising 321 crack spreads, I am telling you now: the dry bulkers are in the beginning stages of a huge melt up.

My pick is EGLE.

Based upon apples to apples p/s comparisons, EGLE, even after today’s move, is 50% cheaper than its peers. The reason has to do with debt and funding gaps. But that gets fixed, awfully quick, with rates soaring the way they are now. This is reminiscent of FTK, when the stock was saddled with loads of debt in the midst of a broad sector turn around. If you recall, I owned a few million shares at $1.

So here we are now, apparently with a resurgence in China, and the BDI is soaring again. If day rates continue to trend higher, expect the share prices of EGLE, DRYS, SBLK, DSX, SB, and others, to go through the roof.

My near term target for EGLE is $10.

Aside from EGLE, I added to my MHO position and started a new one in FSLR. At the present, I am 80% long.

With the BDI soaring on a daily basis, coupled with my reflation thesis, I went long EGLE and will continue to buy, especially on dips.

I am expecting a most absurd rally. Unfortunately, I am not focused on stocks this morning, due to the ongoing operations at Casa del Fly, this time of the flooring variety. Mrs. Fly has decided to ditch the remainder of the rugs in favor for wood, which is fine with me. The only problem that I have now is the 5 Mexicans upstairs banging on my floors with their little rubber hammers.

Regardless of whether we shoot higher today, tomorrow or next week, rest assured, we will shoot higher, led by housing related stocks.

Do your homework and buy the dips.

NOTE: Yes I see GOGO this morning.

The market is going to continue hit new highs and I will be buying them.

I realize the debt ceiling topic will be something to “worry” about. But the truth is, congress literally as to rectify this situation, one way or another. It’s not like they can just shut down the government and go home. At the end of the day, something will be hashed out and any dips produced from CNBC fear mongering will be bought.

Think about what suffered, over the past 2 months, thanks to CNBC fear mongering over “tapering.”

All things related to rates, precious metals, bonds and construction plays. I am going to buy them all. As a matter of fact, I believe many housing stocks are 30% undervalued, based upon inane assumptions of rates skyrocketing to the moon.

This is the new normal.

POMO (permanent open market operations) all day, every day, suppressing rates–inflating asset prices. The ultimate result is a semblance, or perceived notion, of inflation. Taking a granular look at the market, you will want to be long names like MHO, HOV, USG, FBHS, MAS, RLGY, O, MTG, PGEM and even the god damned precious metals. They should be back in play, as “reflation” of bonds buttresses the idea that inflation is a distinct possibility, since the Federal Reserve proved, yet again, it’s damn serious about the idea.

What do buy?

I am going to switch my focus away from tech, for the time being, and into this thesis. MHO will be my largest position and I will buy this thesis, continuously, as long as TLT trades higher.

10th symphony! friendo

I am very constructive about today’s move. I feel, barring some government foul up with the budget talks, this market is destined for higher prices. I know you’re scoffing at my bandwagon jargon. But that’s just the way it is, pal, not the way you want it to be.

I’ll be allocating money, up at these levels, over the next few days.

If you haven’t checked him out by now, today’s the perfect day to give The Option Addict a shot, with his After Hours webinars–starting at 4:30 NYC time (the only times that counts).  That’s not to take anything away from the boys inside of 12631, also on fire.

The train is gone. Only congress can stop it now, by throwing citizens in front of it.

Here was today’s biggest movers, by sectors:

I bought a gargantuan position in MHO. The homies are all going to new highs, within weeks.

They just don’t care about the consequences.

An old phrase comes to mind: if it isn’t broken, don’t fix it.

My problem is the lack of long exposure into this surprise. With just 60% of my assets invested, I have work to do. Right away, I am looking at what got hit the hardest due to CNBC fueled “taper talk.”

Homies, Reits and other rate sensitive plays come to mind.

Large hedge funds look for certain criteria when picking stocks to buy. First, they need to be liquid stocks, trading at least 250k per day. Secondly, they need to have enough shares outstanding to absorb 9 figure position, putting the market cap minimum above $1 billion.

If you’re thinking about putting your money with a manager, ditch that idea and just select 10 stocks from the list I am about to post and go eat a sandwich.

YELP

OIS

DVN

WFT

EOG

BX

GE

OSK

NOW

FDX

URS

CRM

CTSH

MMC

BA

GM

BIIB

CE

The list goes on and on and on. Funds are buying the same names, which opens up opportunities in small caps who are being left out of the buying frenzy. The problem with small caps is boredom. Before you get a move in small caps, you may need to endure months of rank nonsense, watching those stocks trade stupidly, as everything else melts up.

If Bernanke doesn’t taper, TLT will rip higher, along with stocks, by at least 1.5%.

The most likely scenario is a $10-15 billion taper, which might be market neutral to moderate weakness. If, however, the great bearded one decides to “correct” the market with a taper greater than $15 billion, you are going to regret the day you were conceived. Because of this, I have a 40% cash position, listening to Chopin, throwing the bone around the house for the dog.

As an aside, it looks like the new iPhone is getting great reviews, which bodes well for GTAT and RBCN, if in fact sapphire is being used for the home button. People who know how to do channel checks are suggesting pricing is firming, so you might want to keep your eyes on those two for explosive moves, especially RBCN.

FLTX is doing a secondary today. That’s another name that I like for the long term, along with WDAY.

Lastly, I want to own MHO and OWW–but at slightly lower prices. It’s worth noting, the BDI index has been shooting higher daily. My favorite dry bulk shippers are EGLE, SBLK, GNK and DSX.