Before You Defecate on the Boat, KNOW THIS

Some of you are beguiled by the seemingly downward spiral in the shipping sector, following my brazen FRO and GNK purchases. As if my declaration of “wanting a quick and expeditious bankruptcy in the name, so that the shares can move higher” wasn’t warning enough for the small amount of grey matter floating around in your skull.

I’ve always said, from the second I bought FRO, it was a hardcore, almost pornographic, degenerate gambler play. Since then, the stock is down 10%, amidst a general market correction. As a result, you’ve bankrupted yourself again.

Geez.

Don’t look now, but the market is trying to make me look bad, after penning such dire predictions in a previous post. As such, the lowest of the low sector on earth, the boats, are attempting to lift out from the morass of sucking.

OSGIQ is leading the charge! (LOL)

Other notable movers are FREE, VLCCF, TK, DCIX, DSX and SB.

One week returns are dreadful, most in the double digits. However, if you look at the space over 1-6 months, you will find outperformance.

In short, stop being a pansy ass and accept responsibility for your own decisions. When playing the lottery, do you get mad and throw a hissy fit, like a small girl, when your numbers aren’t chosen?

Today’s top industries are ridiculous ones: electronics retailers and silver. People are plowing money into BBY and nefarious silver miners as if the year was 2006 and the flat screen had just broken through the middle class ranks.

Let’s see the market for what it is and what it’s going to be.

Barely 50% of stocks are up today and we’ve given back the rally–as all indices are now lower.

The dollar is up, TLT is up and commodities are decidedly lower. This is no longer a “long only” market, but one that you should fear.

For the love of God, people are buying Bitcoins to make money, not to preserve wealth. We’ve hit the apex of speculation and can go no more.

I am officially bearish on the markets, with a net bearish position, no longer interested in hedging–but making money on the downside. There is a distinction between the two. The majority of my cash (60%) will remain idle, as the market corrects. There will be moments of weakness, where I jump in prematurely, so know that in advance.

If I am right, the market meanders in a tight range until late April, then drops off the table in May for a 5%+ decline, exacerbated by further losses in June.

But remember, there is nothing wrong with a little correction. We need to nourish the tree of the markets with the blood of the moronic trader.

I can’t remember ever seeing a currency down 3.5% in a day and that being good news for the host country.

Last night the Bank of Japan announced they were going to buy bonds, up to 40 year maturities, forever, open ended. In other words, they are following the golden path of Benjamin Bernanke and have begun to QE themselves to prosperity.

Tell me, do I lie?

The auto makers, HMC and TM, are the obvious winners in a weak yen environment. I’ve been highlighting Japan for 6 months now and it is my favorite market.

The big winners will be companies with NIKKEI exposure, NMR, MTU and MFG come to mind. But HIG (I sold yesterday) also has some interesting upside exposure there too.

The easiest way to play it, ironically, is through an American asset manager, WETF. Wisdom Tree owns the only hedged ETF, DXJ, which has been enjoying 90%+ organic growth in assets raised, because it is the only way to enjoy the upside of the NIKKEI, while hedging out the currency risk.

WETF makes for a great acquisition target for BLK, who owns the iShares family of funds.

Lastly, there is a double inverse, triple lindy, way to play the denigration of the Yen, via YCS.

Nice bounce today. It’s hard to bet against the guy with the printing press.

JCP is hitting fresh 52 week lows. Perhaps investors took another look at Ron Johnson’s proposed savior– Joe Fresh– and had a change of heart.

No word on how “Montauk” Bill Ackman feels about this, or George Soros removing hundreds of millions from Pershing Square.

Don Harrold sums it up perfectly. Buyer beware.

Last time I checked, Bitcoins were trading at $133.

With gains in my AG short eclipsing 13% and the stock recovering half of today’s losses, I am adding to my position through the short sale of an additional 10,000 shares.

God willing, all of the silver bulls will perish and a new age of fiat currency can run amok, side by side, with the internet nerds safely housed in Bitcoins.

The market is bouncing here and both gold and silver are coming off the lows, which is allowing for some breathing room to exist in the miners. However, I believe this to be a temporary phenomenon.

I have one more tranche of dollars set aside to short AG higher, if need be.

“The Fly” doesn’t offer safe haven or respite to his enemies, in this case silver longs. He sweeps the leg, Johnny, every single time.

Can you smell the blood?

Here is a trail for you to survey. It’s a fairly straight forward, almost ignorant, strategy, which works 7 out of 10 times in down tapes (audited by my Chinese accounting firm). Pick the very worst sector and short the stocks still floating above their 52 week highs until they break.

My favorites are AG, SLW, NGD and CDE

I wanted to short a wide array of stocks, so I bought HDGE.

Here is their top 10 shorts. It’s an actively managed short ETF.

CTL, DB, TCK, FOSL, FFIV, GT, CMG, CBT, WIN, GMCR, JOSB, BHI

I kicked out HIG for a 3% loss, despite liking the stock for its exposure to Japanese equities.

This is it, the beginning of the crescendo in selling that will lead to the eventual and complete destruction of equities.

Just kidding. But I am looking for a 5-10% dip, possibly more. With the time that I have now, I am blogging, building a buy list (which I will reveal later) and making sacrifices to the Gods (the old and the new), asking them to grant me the honor of buying your margin calls.

I am now sitting with a 73% cash position. However, I am looking to increase my short exposure, so stay tuned for that.

This tape has all of the earmarks of a market about to swan dive lower. Housing related stocks are getting crushed, as evidenced by USG, BZH, NSM, LPX etc. Take my word for it, the underpinnings of this market are coming apart.

My biggest short, AG, is bouncing after yesterday’s debacle. But it won’t last long. The stock, in my opinion, is heading for a 12 handle.

Nonetheless, I don’t want to confound anyone with my current positions, whether it be soon-to-be-bankrupt banks stocks or short positions in ridiculously hideous retailers. My true position is patience, waiting in stead with a 60% cash horde, prepared and ready to buy margin liquidations at a blink of an eye.

I am overjoyed (no orgasm) with pleasure to see housing stocks get crushed, since I want in on the big house rush of 2013.

Let there be blood. “The Fly” is a vampire who feeds off the plasma of others, immortal and immune to all things–with exception to apathy.

http://www.youtube.com/watch?v=Bkd6Vv5dWy8