Learn Your Correlations

I am not going to lecture during this post. Instead, I will take a different approach and ask you to think for yourself.  The whole concept behind iBankCoin and The PPT is to give you the tools to fish. Once you know how to fish and want to step up your game, go over to 12631 and be fed.

What sectors do you feel are most correlated to the S&P and why?

What currencies weaken during melt ups and what currencies go down during panic?

Why do people invest in US treasuries?

Why is oil expensive and natural gas so cheap?

Wouldn’t cheaper oil benefit the US economy?  Would it be better if oil was cheap or would that portend to a slowing economy aka harbinger of doom?

How does gold trade versus the S&P and does silver correlate to gold?

Is gold a safe haven or a hedge against inflation or both?

What is going on with the Yen and how does that affect Japanese trade?

Is coal a highly levered way to play the energy sector? Is solar?

Do food and beverage stocks outperform the market during times of duress?

Finally, from a social standpoint, when is the best time to buy stocks, during euphoria or panic?

Everything that I do is based upon correlations, whether is be seasonality or levered plays in OVERSOLD and OVERBOUGHT cycles. The very essence of The PPT algorithm is to identify these trends and run with it.

Note: I already have the answers. Do you?

This is exactly the sort of rally I was looking for, unrelenting, nonsensical–serving as a “full decapitation” for the bears. This is the sort of squeeze that destroys men. I will have no part of the short side, not until The PPT flags another OB signal. Yesterday’s purchase of TZA was the first of three targeted buys, all to be done in a methodical fashion.

I sold out of my AKS position, upping my cash position to 25%, with no shorts. The only albatross on my books today is LULU. To make matters worse, I have an antagonist inside The PPT who is long puts. I will tear your liver out from your torso and eat it raw. Fucker. My GMXR position is sharply lower too; but it’s a very small position. I will buy that on dips.

I need CVI, GSVC and RBCN to continue higher. Into this maelstrom of European robusto, I hope to liquidate those positions and move over into a heavy cash position, wrapping up my year with honor and belligerence.

You don’t deserve to read iBankCoin. Your behavior is that of a vagrant, a small child with little to no net worth. The number one problem with you little trollops is envy. Don’t hate on Le Fly because he rides in the back of a 1980’s stretch limousine, while you sit next to homeless crack addicts on the train. Need I remind you, iBC is not just a website. When you come here, you enter my domain. Can’t you see how the decor of the site is one of decadence and grandeur?

Take off your shoes before you enter my house. You’ve been stepping on shit all day long and I’d prefer if you didn’t drag in your bacteria onto my Pershing rugs (fuck your Persian rugs. My shit is Pershing).

The internet brings out the worst in people. I can see through your soul by the way you comment on the site. As such, I’ve determined it be my responsibility to have your bullshit computers melted down to the fucking ground, via iBC’s internet laser beam cannon, should you piss me off. No one is safe and I am not playing games.

The art of investing entails a great deal of focus and seriousness. While you clowns are busy eating whipped cream from the can, “The Fly” is allocating millions into money makers. There will come a day, believe you me, when I will just leave this multi-million dollar franchise of iBankCoin, shut down The PPT, and vanish into thin air. I do not intend to slave over my computer for eternity, to be ridiculed by men with small brains dressed in ugly suits.

Until that day comes, I expect you to exhibit the proper decorum when visiting iBC. If you were raised without proper breeding and tend to talk too much at cocktail parties about your bullshit traits and so called accomplishments, you are not welcomed here. I do not like people who talk about themselves at cocktail parties.

http://www.youtube.com/watch?v=r60fcdbgecY

European leaders meet on Friday in an effort to solve the debt crisis. Logic would dictate, given the recent market volatility, that Merkel and Sarkozy will  come to an agreement and all will be well and good. The problem with that theory: LOGIC DOES NOT EXIST IN  THE EUROZONE.

I’ve decided to expedite my selling ahead of the Friday fuckfest. I’m looking at the recent run and feel grateful that my year has been salvaged. It would be, mind you, incredibly irresponsible of me to press my bets near the top end of the trading range. Each and every time we’ve tried to breach these lofty levels, investors sold in great size and ferocity. I want to be a seller at these levels, ideally into strength.

Moreover, in my personal aggressive account, I will begin buying TZA in tranches, all based upon the mathematical precision of The PPT. Just so you know, the Godly folks at iBankCoin are in the process of concluding a study on trading the Overall Hybrid scores. The results will be forthcoming and will be nothing less than staggering.

Bottom line: this market is holding up incredibly well and the economy is doing better. However, I can’t put the fate of my financial destiny in the hands of the fucking perverts who operate inside of the EUROZONE.

UPDATE: I sold out of AKS

In case you were unaware, living underneath a dirty garbage dumpster or something, starting 1/1/12 membership prices for 12631 are going up. See details here. Only PPT members are permitted to join the storied halls of 12631. So, in case you were on the fence for giving both services a shot, anytime between right now and year end is the last chance you will have to lock in lower prices.

All current members will be “Grandfathered” in ( I always wanted to say that)  at the absurdly low prices of today. Once 2012 comes, POOF, the price for membership rises from $29.99 to $49.99. Might I note, $49.99 is still 50% less than most subscription services out there, peddled by degenerates. If you take a calculator to the price structure, you will find the annual subscription rate of $25 per month to be embarrassingly inexpensive. If I were you (thank God I am not), I’d convey a message  of great urgency to my wife to “lock in these fucking prices” and fast.

Bar-none, 12631 is the best intra-day, swing trading service on the internet today, run and operated by real pros. This is not the sort of shit you read about on low tiered sites by people claiming grandeur through penny stock bullshit. We are talking real talent here.

Starting 2012, the focus of iBankCoin will be to upgrade The PPT to reflect all of the ideas swirling around in my head. All of the upgrades will be added on to the service, free of charge. You will be amazed by the next iteration of PPT. It will transform the way you look at stocks.

So take the advice from this guy and quit being a piker.

NOTE: Remember, the annual March Madness contest, where I give away a $1,000 cash prize to the winner, is open to members only.

I am going to be a bit more methodical, as 2011 winds down. There is no fucking way I am going to cede these gains in the last three weeks of trade. Therefore, I am officially in sell mode, unwilling to play the euro-game.

I sold out of AG and a little AKS, upping my cash position to 20%. Earlier today, I doubled down in RBCN–reducing my cost basis to $10.5. Rarely do I double down in a dog. However, RBCN has all of the markers of a short squeeze waiting to happen and indeud it did.

So the dicksuckers at S&P are going to put Europe on credit watch negative. Well, color me surprised because last I checked the entirety of the EU was on the precipice of total and absolute collapse two weeks ago. In other words, welcome to two weeks ago, fuckfaces from S&P.

Bottom line: I am big into GSVC, LULU, RBCN, AKS and CVI. I intend to close out the year with gains ranging from 17-20%. Please do not misconstrue my TZA purchase as being bearish. It is nothing more than a small trade, in light of the S&P news. I will likely blow it out tomorrow, providing the downside horror show doesn’t materialize.

I bought a small position in TZA- personal account.

I sold out of AG and 20% of AKS.

I cannot believe Italian yields are below 6%. Spanish yields are at 5.14% and the crisis that was running red hot two weeks ago has vanished, literally. There is now panic buying taking place in distressed European debt and global equities and sell offs in German and American paper.

It’s all very nice that we get to enjoy this respite. However, don’t forget about declining global growth, which will pose as a significant headwind in 2012. I am all for this GORILLA RUN now. However, in 2012, my outlook is very somber and I believe profits should be taken, especially if you can’t take the heat.

When enjoying melt ups like this, remember the pain you felt just two weeks ago. This rally, as “awesome an amazing” as it is, will end. There is a specific algorithm to this market. I have proved this by inventing The PPT. If my edge is greater than 50%, I am ahead of the game. We are running analysis on the lifetime of PPT scores and the data is absolutely astounding.

Peaks and valleys. The market is a like a terrain filled with low and high points. It is your job to lighten up near the top and reload near the bottom. If you can do this without blowing yourself up, you will have a great investment program. Having said that, profits should be taken up here in increments. That doesn’t mean you sell everything and go short. You will not hurt yourself by putting 20-30% of your assets to cash. The greed you people demonstrate is grotesque and almost unbelievable.

Also, stop overweighting in 1-3 stocks. If you cannot afford to invest in at least 5 stocks, you are gambling. If you can live with that, so can I. However, some of you Uncle Fuckers have millions in the market and buy 1-3 stocks, hoping to hit pay dirt. Are you fucking insane? Your lack of respect for money is borderline criminal.

I sense weakness in this tape. Buyers are exhausted and sellers are creeping in. Several of my positions are red today and I’ve shed 1/3rd of my intra-day gains. I am not worried about the bottom falling out because European yields are cratering. But that doesn’t mean we can’t have an ordinary, olde fashioned sell off.

Following my double down in RBCN, I ceased all buy orders. I am a seller into further strength and will reserve my cash for dips.

I doubled down on my RBCN position.

Disclaimer: If you buy RBCN because of this post, your young children will find out the truth about Santa Claus. And, you may lose money.