Fly Sell: $JRCC

I booked profits on JRCC.

You homosexual wildlings to the north of the wall are in for trouble. All of you stupid tar sands and forests are depreciating in value, not to mention the ridiculousness of your gold mines.  Since you make nothing but maple syrup and axes to chop down trees, I reckon you’re in for a very rude awakening. I imagine this sort of awakening would happen while you’re asleep and look a little something like this.

It was just reported that the Canadian inflation rate slooowed, like a glass of molasses, to an annual rate of 0.4%. Very soon you will have no choice but to endure the horrors and tragedy of deflation.

Your currency shall perish and so shall industry.

On the other hand, down in King’s Landing, things are going swimmingly. The country is very powerful and our natural gas fields are the envy of the world.

In other news, it appears my JRCC trade has revived. Do you know why I am still in the name, after declaring it to be a “dead trade”?

The answer is very simple: I am able to, mind you, hold my butter–because of the fact that my gains are outsized. I have the luxury of holding losers and waiting, even averaging down, because I have conviction–beliefs.

Do you?

The Devil is in my ear all day, telling me “imminent market reversals are in order.’ As he tells me this, I eat potato chips. The crunching of the chips enables me to ignore him–because I can hardly make out what he’s saying.

Putting my positions aside, I am looking for new ideas, always. There’s a homerun out there for the picking. We must work diligently to scour every corner of the market.

Here are my top 10 short squeeze plays for tomorrow. Naturally, this changes the moment the market opens.

HCI
PKT
IRG
IDIX
FRO
BDBD
SUPN
FOLD
INFN

There are a few hundred names that still look good. But, as of right now, these look most tradable to me.

NOTE: The free trials for The PPT and 12631 have ended, officially. We gave you an extra trading session. I hope you enjoyed your stay, being part of the club has its privileges.

I was up almost 3% this morning. Now I am closing in on the flat-line. If history is of any use, we are about to reverse lower and the market is going to decapitate me.

I’ve been tempted to buy JIVE, BPI and SUPN all day. Instead, I’ve watched them outperform, as my portfolio of toppiness, well, topped out. I’ve also been tempted to buy VXX; but that’s just revenge trading on my behalf, as I am still pissed off for losing money on it for 3 years in a row.

Perhaps The Devil is right and we’re topping out. He’s short the indices and GS, paired with some of the most illiquid/annoying longs known to mankind. I just can’t get myself to buy CLIR upwards of $5.

Today’s tape really pissed me off. If I started off the day down, I could easily accept it. But to be up 3% then get swallowed whole by a shark, like a small piece of shrimp, has me punching holes through the sheetrock today.

My one silver lining is MU. I’ll sell the balance of my holdings north of $14.

Let me be clear to all the folks out there playing the FRO, looking to exit on a quick “black power” move to the upside. I couldn’t care less if the stock closed at $3 or $2 today. “The Fly” is in the name for the big turn, which will take a long time. By my accounting (unaudited of course), the company can withstand market conditions, without going back to the market for financing, until 2015. With that in mind, there is ample room for speculators to place bets on the shares turning around from now until then.

If they’re successful in purchasing new fuel efficient ships and day rates pick up, the stock is heading for $10+. Therefore, a person, such as myself, doesn’t amuse himself with the frivolities of a one day spike, burgeoned on by nameless speculators– who are only interested in quick–whore like–profits, promulgated by their proclivity for illegal substances and extra-marital affairs!

“No thank you,” said the gentleman in the top hat, as he declined the services of a great whore, closing the backseat door of his limousine, destined for the theatre.

I bought another 100,000 FRO.

Off the EGLE numbers, boat stocks are ripping. I’ve always said “Fly, this is a sector you need exposure to–because when the tonnage gets scrapped, these suckers are going to be stealing from vendors like pirates in the 16th century.”

I only like boat stocks that are not at risk of imminent bankruptcy. I’ve done my homework on the sector and for my money, weighing risk versus reward, FRO is my top pick. DSX, however, is the easy, gentleman’s pick, with a pristine balance sheet and fancy men aboard its vessels.

FRO, on the other hand, are manned by pirates who shoot grape at fellow sea travelers and storm coastal towns for food and water.

This market has a toppy feeling to it. I am leaving my cash in cash for now. However, the boats and networkers look good to me now.

FFIV, JNPR, PANW, CIEN and FNSR can run on the CSCO beat.

In a world where a graffiti “artist” can demand $49 million for a painting, at one of the world’s most prestigious auction houses, it’s hard to ignore BID.

Last night Christie’s enjoyed a record auction, selling crap from Basqiat and infamous drunk driver Pollock.

Look this is very simple. The regular economy sucks and the middle class, after inflation, are “enjoying” 1995 wages, all the while the Fed pumps $85 billion per month into the stock market. The result is a much wealthier upper class, who are then diversifying their winnings into collectibles. As long as the stock market and the elite do well, there will always be a proverbial bid under the shares of BID.

As far as the stock is concerned, it rarely goes up at the onset of the auction season, performing miserably in May. However, the stock should be bought in May and held all the way through. I will be looking to buy BID for long term accounts soon.

The indices are not tracking the true nature of this rally. Over 800 stocks, out of 3,700 tracked, are up more than 10% over the past two weeks. Yet, in a world of its own, the S&P is up merely 3.4% for the month of May. We can easily give it back and book a negative return for the month and the history books will never tell the true tale of this miraculous tape.

There are been 3 primary sectors driving the speculative fervor.

1. Solar
2. Biotech
3. Education

There are gains in other sectors too, but none more pronounced than those three. Are we to chase them up 50% over the past two weeks? While a fresh long might be able to squeeze another 5-10% out of this pistol hot sectors, the risk is decidedly to the downside.

If we are going to continue to run, look for the laggards to catch up. My commodity index is at a fresh 3 year low. Amazing, isn’t it? My social networking stocks have quadrupled, while miners got trounced for another 70%—since the Facebook ipo. I cannot support buying into a sector raining with falling knives; but nothing lasts forever, right? Even education stocks are up 35% and they’re all scams.

A stubborn and headstrong person will begin to accumulate the shares of beaten down commodity companies. I realize they are garbagio now. But today’s garbagio is tomorrow’s treasure.

We’re not done yet. I have a few million to play with and will be using my time to find new buys this evening. CBMX looks interesting, as well as SLCA. I need to find names that can support decent buying interest, as I hate moving stocks with my buys and sales.

The WFR and the rest of the solar space is in space. I like the ENPH story in solar.

Education stocks, like APOL and ESI, have roared– but I hate them because they always miss earnings.

MU is going to $14. Write it down. And Le Fly is going to get into a monster winner very soon.

All ideas are welcomed and will be investigated.