Weakness Begets Weakness

I got lucky on my USG sale. I think the analyst who said wallboard pricing is biased to the downside is very short sighted. Longer term, USG will do fine. I only sold to protect my gains and raise cash.

Through today’s sales, I am now in a very neutral position, 50% cash, 10% short and 40% long.

VHC cratered because it could and the market is heading lower because it can. It makes no sense to investigate the rationale for the decline, whether it be rumors of an Italian debt downgrade or defunct bank in Spain. The simple fact of the matter is, news is only a temporary condition. What’s important to remember is the institutionalization of too big to fail and supporting the stock markets, worldwide, by any means necessary.

That is the mantra and the official policy of every central bank in the world. Having said that, the markets are permitted to decline 5-15% every so often, to feed the tree of misery with the blood of the less fortunate. I’d be a fool not to lock in my 23% gains and coast until Fall. There’s no reason for me to trade like a wild jack-rabbit.

For money?

I don’t care about money. Trust me, I would care a great deal if I didn’t have any. But my principal motivation is being right–always has been and will be.

Look at today’s biggest losers by industry.

What’s wrong with the picture?

Silver shouldn’t be on that list in a weak tape. The dollar is up, bonds are up and risk is off. This tells me silver and gold are no longer being used as hedges against risk. There isn’t to be any respite given to the longs of silver miners.

Pay attention, as the market is spiraling higher now on another temporary phenomenon, silver stocks are decidedly lower.

I just doubled my short position in AG.

I have no position in VHC, having sold it all above $35. But this just pisses me off.

VirnetX (VHC -10.1%) is tumbling to fresh 52-week lows on strong volume, as the Street continues weighing the fallout of an adverse jury ruling in its patent suit against Cisco. Last week, the judge presiding over the suit issued a final judgment declaring 12 VirnetX patent claims invalid, and denying all pending motions.

I am not sure if the stock is getting poleaxed due to this “news” release or the specter of a likely AAPL appeal or a major fund sold out of its position. Nonetheless, the contents of this news release are patently false, viz.

VHC lost the CSCO trial, but the patents weren’t declared invalid. As a matter of fact, the opposite is true, as their patents were confirmed by the jury, just not applicable against CSCO.

AAPL still has to pay the piper.

I sold out of CTRP, USG, ANR, raising my cash position to 50%.

I’m not bearish, per se, just not into stocks at the moment. Some of my funds are going to be earmarked for fixed income.

I sold out of my largest position, in order to raise some cash.

I am in the process of evaluating my options.

BEHOLD, gentlemen, the National Bank of Greece.

Pair trade idea, or “pairs trade” idea, as some of you illiterate like to say.

How about short Bill Ackman’s retarded JCP, long NBG? I am sure there is a 100% spread in there somewhere, as the resilient people of Greece rebound and the misfits over at JCP, led by Ron “businessman” Johnson, file for bankruptcy protection.

I added to my boat stock, FRO.

The Cyprus deal has proven nothing but the obvious: there will not be any institutional failures, by any means. If anything, the people will pay for the sins of the few. Therefore, nothing has changed but the day on the calendar. If the market is going to run higher, it will need a different catalyst, other than “hey look, the ass of Greece isn’t defaulting.”

I’m still waiting for my prize, the grande finale, which is coming before tax day.

Let’s see how the market opens, before making observations. Right now, futs are higher, but well off the highs. Nothing special.

Wall Street is going to be overflowing with cocaine tomorrow.

Get ready for the traditional sunday night bailout, sending futures to the freakin’ moon.

Futs up.

Silver, gold down.

Euro up.

Bears’ morale down.

Get up to minute updates via Twitter #Cyprus wire.

Gyeah!

This is too classic for me to cheapen by copy and pasting a large swath of the article. Here is a preview. Click on the NY Post link for full grandeur.

His attitude toward non-whites was no better. Behind their backs, baseball legend Willie Mays, a Player’s Club partner, was referred to as Dykstra’s “field n – – – er”; Derek Jeter and Tiger Woods were “darkies”; and when he instructed Frankie to write an article about the “baboons,” he meant tennis superstars Venus and Serena Williams.

When Dykstra’s company was evicted from its offices due to non-payment of rent, and Dykstra tried pressuring Frankie and another employee to “use their personal credit ratings to secure loans and credit cards for the Players Club and [his company] Nails Investments,” which they wisely refused.

Source

This just in from the ass of Greece: officials have agreed to a deal, in kind, that will “levy” a one time “tax” of 20%, specifically from customers from The Bank of Cyprus–custom tailored to those are fortunate enough to have 100,000 euros in their checking accounts. For citizenry of the ass of Greece, otherwise known as Cyprus, who have accounts across the street from The Great Bank of Cyprus, you will only be levied by 4%. For those of you who are well placed and fortunate to have 99,999 euros in any bank, your money shall not be disturbed from its slumber and shall continue to earn the lavish 12.5% interest rates you have grown to respect and enjoy.

Please, feel free to eat a gyro and speak fondly about the Turkish military, as you “digest” this news. Be sure to mention this news to some of your eldest citizenry, as they are always fond of helping government officials and CEOs of banks save face and continue the status quo.

We should all rejoice in this litmus test for the new world order, a preview of things to come.

The United Steaks has so much debt and we’re all very scared of it. For the love of old books and broken grandfather clocks, the sages at the S&P have DOWNGRADED US debt–fearing we will continue a path of acute dysfunction, which could one day put the debt service in jeopardy.

Fear not, small sagely plebs from Fitch, the Cyprus model has shed light into the dark abyss. When you look into the abyss, you can see endless roads of gold, rubies and diamonds–all earmarked for the federal government at a later date. Eliminate inheritance or tax it boldly and the debt shall be $00.00.

This is a work of art in motion. The majority of you are not able to see the sleight of hand, just the mannerisms of the clever conductor.

All is good, with exception for those with accounts located at 1398 Nicosia.