Fly Buys: HDGE, ALK

I bought HDGE as a downside hedge and ALK.

I like the airlines here, as a defacto hedge against my longs. I know that sounds absurd, since I have zero oil stocks. But the airlines are going up as oil drops. When oil drops, for the most part, stocks follow suit. I am interested in two names, one of which will be revealed soon.

I want to buy ARMH and add to my positions in NXPI, NUAN and AVGO, but cannot do so unless people come out of their TLT caves (more on that in a minute). Also, I am keenly interested (pardon the split infinitive) in BIDU, with the stock down huge due to mobile ad model concerns. Apparently, the same thing that is plaguing FB is plaguing BIDU, and a number of internet names. How can they monetize via the smartphone? The more people buy smartphones, the less they use computers; hence, they do not click on ads. Ad revenue is much less via mobile. As a result, everyone is selling BIDU.

You know what company is quite good at mobile?

YELP.

Moving on, here is the correlation between TLT and SPY, over the past 5 days. It’s almost a 1.00 correlation. In short, before I add to my longs, I need to see money coming out of bonds. I’ve been given a second chance, a reset of sorts, something not granted often on Wall Street. However, I seem to do it all the time. I ebb from rolling disasters and flow towards unparalleled winship, seamlessly, as if it were common place.

Gold and silver are being dismantled today, due to the crowded nature of the trade. Many investors went long oil, gold and silver, ahead of the Fed meeting, in an attempt to be smart. I told you the proper time to buy gold and silver was at the very apex of crisis into the first leg up of reflation. What you are seeing now is a mass exit from a trade gone stupid. It feels like a rout, but it isn’t. Investors are finding better venues to gamble in, than ancient currencies or something controlled by criminal cartels.

In my opinion, tech is the place to be. As a matter of fact, it is the only sector worth investing in. It is rife with mergers and acquisitions and devoid of the unsavory type who tend to overpopulate the commodity sector. I think if you would fix your eyes on tech, you might find your pathetic lives to be somewhat more meaningful and less rakish.

On a brighter note, today is “Make Music” day in NYC. Do not be alarmed if you see people playing with toy pianos near your favorite fire hydrant this morning, as it is perfectly acceptable to do so–today. There will be hundreds of performances done by independent musicians, as well as incognito professionals, throughout the streets of NYC, in the midst of 100 degree temperatures. It is just one of the many things that separates this great city from the shit heaps you calls cities in the midwest, or down south.

In short, I like the action, despite the rout in commodities, and will be adding to tech today.

You do realize nothing has been done at the Fed or ECB, right? Up until now, the markets have been running on anticipation of easing and/or bailout money for Italy and Spain. The problem with going all in long here is the absence of a real physical presence of these central banks in the system. Mind you, QE is not just an acronym. When the Fed does quantitative easing , they literally expand the money supply, thereby boosting asset prices.

Today’s milquetoast response to Federal Reserve inaction can be attributed to momentum traders and short sellers capitulating. Fed days are always ranked with peasants. I suspect the real flavor of the market will be tasted over the next week.

Until I am certain we are going much higher, I will keep my cash levels at around 40%.

Some names of interest are SODA, KRO, MEA, MTL and TCK. I will be expanding upon my watchlist tonight and will post it inside of The PPT.

I know many of you are overzealous, anxious to get a piece of this runaway train. But you need to relax and shut the fuck up. The real move will present itself after 3:00. What is important to note is the strength in commodity related names, while commodities are lower.  People are chasing stocks and not looking at the information. It reminds me of two weeks ago when most of you bastards were strapped tight in the FAZmobile heading for concrete walls.

Look, it’s very tempting to buy up some cheap basic material stocks, in the hopes of hitting one out of the park. But it’s important to remember the reason why those stocks suck balls. Coal is being displaced by natural gas, which is plentiful because Aubrey at CHK is a fucking lunatic. And, demand for steel is pretty much non-existent, ever since China stopped building “ghost metropolises.”

When I start buying again, I am getting long tech, in size. They have the best balance sheets and aren’t one debt refinancing away from total oblivion.

Operation Twist is not enough. We might trade lower on this news, possibly until the July Fed meeting. It’s clear the Fed is being corrupted by the hawks, by men who live on farms, totally disconnected from the real world.

Right now , the markets are being operated by rank amateurs. Expect the real move from 3:30 to 4. I see commodities trading down and that tells me reflation is not on the table. I see TLT trading up and that tells me deflation is permeating the psyche of everyone.

I am not buying anything today. I am contemplating throwing some hedges on because this is a disappointment. The only reason why I am not short now is because of the weak constitution of the shorts. See pal, they’ve been weazened in recent weeks. This “bad news” might result in another unbelievable short squeeze. Plus, we still haven’t heard back from the Europeans. Those cuckolds are likely to throw a few trilly at their problems soon.

In short, I am holding firm at 60% long, waiting for something interesting to happen.

I like the market here, only if counterfeit money is allowed to flood the system and jack up asset prices. Without QE, this market isn’t worth buying. Too much risk for too little guaranteed reward.

As you know, I’ve been calling for QE long before all of the dick-suckers on the blogosphere and twitter even knew it was an option. The grande majority of these people are my enemies. Therefore, it shouldn’t surprise you to know they are stupid and behind the 8-ball (no Rick Ross).

As everyone panicked the fuck out of stocks and into the back of a jam sandwich, “The Fly” positioned for both a Chinese rate cut and Federal Reserve QE. At the time, I looked like a madman; but now you see the methods behind my madness, don’t you? Nevertheless, I grow weary of this market, still. Despite recapturing almost all of my lost coin, now up 15% for the year, I do not like to mingle amongst the sheep, who are now long stocks in overwhelmingly gay fashion. Therefore, I am out, now sitting with a 40% cash position; but ready and willing to go “all in”, depending on the circumstances.

Remember TODAY’S FED DECISION IS AT 12:30, NOT 2:15.

There was no crisis in Europe. There was nothing wrong with your bank or your congressman. The only threat to America is Roger Clemens lying to the holy men on the hill. The constitution says “anyone who tells falsehoods to the anointed shall be punished, monetarily, and lose his freedom.” It’s a document and it’s law.

Just sit there and let the homohammers at the TSA fondle your wife’s breasts while cradling your balls. After all, there’s a war on terrorism out there. It’s fucking dangerous as hell out there, all of those mexican muslim motherfuckers crossing the borders, jacking us for our first rate health and schooling services, making us bankrupt (even though that is literally impossible, #POMO).

No matter what, you must support the troops, who are controlled by the anointed, because anything less means you’re a mexian muslim sympathizer. The IRS is watching.

Wait for Ben. #POMO

The PPT nailed TNA last week, when it was flagged OS. I warned you about holding shorts into a dunk-shot trade, one that I dubbed “the easiest, highest probability trade, of my career.” I was looking for “one more big trade” before the summer and I got it. “The Fly” won again; PFFFFFFFFFFFF, what else is new?

I sold out of MTW for a small gain, which is huge, since it was a big fucking loss. I am not greedy at these levels, but fortunate to be intact, at full strength, loooong fucking dick with balls in hand, readying to fuck this market stupid. Having said all of that shit, I’m sitting this bitch out, indefinitely.  I have no interest playing “Fed lotto” after moving higher by 18% in two weeks.

I am up more than 15% for the year and you fuckers got shot in the faces by my howitzer. That’s all that matters.

40% cash and I am– the fuck– out of here.

http://www.youtube.com/watch?v=9HjziT9Q1Bw

I sold MTW, upping cash levels to 40%.