Bonds Went Up and a Cocaine Party Broke Out

Back to back cocaine parties. Dare I say “the bull is back?”

I don’t want to jump to conclusions. But I think the worst has passed.

As such, I bought UNXL and OWW into strength.

My largest position, IMMR, was dead money today, similar to many, many tech names. Maybe it had to do with AAPL’s weakness. But I don’t see why, since IMMR is the anti-AAPL play, leveraged to the Samsung Galaxy and Sony PS4. I think big things are in store for the company, over the next 6 months.

It looks like end of quarter window dressing. I will try to be methodical with my purchases. However, I promise you nothing, as I have a tendency to become frantic when it comes to cocaine rallies.

I am done buying for the day.  I started a new position in OWW. I like this name longer term.

I started a position in UNXL, intent on squeezing the brains out of people who sold it short.

Commodities are being liquidated. This will have a profound effect on commodity related managers, fools like Jim “the bowed tie” Rogers.

But put that aside for the moment and fix your eyes on the 10yr bond, getting hit again, barely up now.

Click on chart for live quote

I was very close to buying SOL and WETF, but have put off new buys until I feel comfortable with the bond market.

Aside from the fact my algos nailed the bottom to the exact minute with a timely OS signal, my Risk Appetite Index is bouncing–led by Cali munis (PCK).

Caveat: there are many bottoms and this run is likely to putter out and fizzle out. There are ranges to trade and comfort levels to consider when allocating resources. If you feel uneasy, as I do, make it a spectator sport.

TLT is lifting off and precious metals are getting the business again. This rally should stick, AND MORE.

Oddly enough, many stocks that are on my ‘to buy list’ are down today, creating room for opportunity. The question proposed is a very simple one: will the rally last? If so, there are good buys out there today. If not, I am better off eating hammed sandwiches.

As you know by now, my investments have been condensed into just a single security: IMMR. The rest of who I am, what I am, is in cash.

I haven’t stepped in with buys yet, due to ‘deer in headlight’ syndrome.

Still watching.

NIKKEI is off by 35 and S&P futs are -5.5.

Both Japanese and Australian markets are off to the races. The Koreans (extra Ashley Schaffer) are tracking a close third.

On the home improvement front, my landscaper is at war with my arborist over a tree planted close to the house. He also states: “the idiots messed up the planting of another tree in the back”, which will result in “surface roots” because “that guy doesn’t know what the hell he is doing.” Moreover, he declares “the god damned wood chips from the stumped tree should’ve been removed from the turf.” Furthermore, he declared: “no grass will grow here, ever again.”

Stay tuned for Battle Landscaping at The House of Fly tomorrow, as the arborist is scheduled to make his case around noon, in the flesh and with convincing rebuttals.

According to Trim Tabs, more than $60 billion outflows in bond funds were reported last week.

The last time consumer confidence numbers were this high was in January of 2008.

Buyer beware.

Still 65% cash.

NOTE: This is why CHINA SUCKS.

The best sector is solar, with gains in SCTY, FSLR, RSOL and DQ. ASYS has been melting up on a daily basis too.

About 75% of stocks are higher today, bucking the trend of rates. As you see, TLT is lower for the day.

Regional banks are outperforming again, as managers allocate into names that stand to benefit from higher rates. Names like HBAN, SBNY, CMA, FITB, ZION and TCBI are accelerating to the upside.

Although tempting, I’ve opted to not chase the market today. I might regret it, since we have lots of upside potential if the current panic turns out to be bogus. But before I can buy, I need to see TLT higher–plain and simple.

It’s worth noting, Dry Bulk rates shot higher again. I know some believe they’re rising due to chinese iron ore demand. But I still believe the core reason to ever own a shipping stock is based upon the premise that ships will be scrapped after bankruptcies are declared. Tighter credit could decimate the shippers. I haven’t bought back the FRO shares that I sold because of higher rates. They need to refinance by 2015. The clock is ticking.

It’s frustrating to watch TXTR melt up. I had an in on the name and never bought a share due to the low volume.

For now, I am still focused on IMMR and will be waiting for the cocaine party to break out, hosted by The Gimp, to get back into risk.

Oh, as for the losers, gold and silver, again. What else is new?