Pissing in the Wind

After we came out with guns ablaze this morning, the ballet broke out and the bulls started dancing with the bears like faggots— no offense to gay guys of course. We were supposed to have this great big rout, filled with blood, red meat and gun powder. Instead, we have milquetoast.

Let me go on the record to say: nothing vexes me more than milquetoast.

Despite the grande showing of the Dow, I find myself down 0.2%, thanks to the motherfuckers at MOTR, BORN and SFLY.

Can’t a fly catch a percent?

Developing…

I bought 5,000 OPEN in the low $77’s.

Disclaimer: If you buy OPEN because of this post, you will find a roach in your Chinese food. And, you may lose money.

I fucking warned you about shorting this market. Now you’re gonna pay the price for your sins. Today we bounce and do so with great energy and purpose. You market timers need to shut the fuck up and quit giving advice. Look, I’ve been wrong before, mostly done on purpose in order to let you fucktards catch up. You need to know when you are barking up the wrong tree. When it comes to betting against The Bearded Clam, there is no struggle. There will be no back and forth volley between good and evil—just rout. You fuckers are no match for his printing presses.

Add on to that, the economy is getting better. The s&p 500 will earn $110 in 2012, putting the FPE under 12. That’s fucking ridiculous.

Barring some sort of Chinese real estate collapse, we’re going to 1,650 on the 500.

“The Ultimate Short Squeeze” is setting upon you. Homeless guys sitting on lawn chairs, trading on margin from blackberries, will force you out of your stupid 3x inverse ETFs, rendering your privileged education worthless—yet again. Men in green leotards and velcro hats will die, amidst a flurry of egregious buy orders, all courtesy of The Bearded Clam, aka Benjamin Bernanke.

You may take today’s 2 point loss in the Dow Industrial Averages to the bank. You may cash in all of your apocalyptic bets, even though you have the faintest idea what you are doing. You can talk shit on twitter all day long, predicting the return of the Four Horsemen, starvation and pestilence. People will think you have a great brain. They will clamor your predictions and sign up for your asshole services. HOWARD LINDZON will proclaim your greatness and offer you a blog. In general, you will be regarded as “a great man.”

You will enjoy newsletter success and go on lavish vacations, to beautiful islands, drinking pina coladas and eating shrimps. lobster, and foie gras. You will rest near the ocean, without a care in the world, just sort of taking in the sun, the breeze and the views. Then suddenly, out of nowhere, a giant clam will swallow you whole, before slinking back into the ocean.

No one will ever talk about you again.

Top picks: TEX, BORN, PH

Adding to BORN in a significant way.

Disclaimer: How about a late day rally?

Sans France, Europe is down sharply. Oil, gold, silver and bonds are all getting hit, while the dollar rallies. Everything is where you’d expect them to be in an equity sell off, with notable exception to the banks and retail.

RTH, which is the retail holder, is up more than 1% today on broad based strength. The PPT breadth is at 29.8%, almost double yesterday’s reading. Despite the sharp dips in numerous names, some of which belong to me, today’s tape is not all that bad. Moreover, there is a shot for a late day rally.

For the year, so far, I am down about 1%, giving back all recent gains thanks to angry robots and happy go lucky short sellers. Perhaps I am being a little hard-headed, with regards to my long only position. Or, maybe I am just exhibiting patience. It’s possible that we can decline 10-15% from here. Why not? At the same token, I don’t think many would be surprised if we rallied 10%. That’s what makes a market. It’s the struggle between ideologies, coupled with the noise people make through swing and day trading. Add computer based algorithms into the mix and you have pure chaos, organized and controlled by a select few.

Aside from buying TEX, I trimmed back on my FORM and SFLY positions, mainly for cash. Believe you me, I am enjoying my fair share of losses today, led by PH.

Understand that a lot of weak hands are long stocks now. It makes for a messy tape and the cleansing process is never seamless. However, the foundation for future market gains are present, providing the municipal bond crisis doesn’t go “full retard” in Q2. For now, this is your standard, run of the mill, sell off.

UPDATE: I sold all of my NILE, CENX and PWER. Cash position is now 40%.

I bought 10,000 TEX, personal.

Disclaimer: Let the drums of war sound. I’ll be busy throwing eggs at the people down below.

Believe it or not, I was socializing at a nearby Dunkin’ Donuts last night, talking to a man, who I assume was homeless. He was decked out in a NY Jets jersey, blue jeans and some sort of furry hat. As I waited for my coffee, I noticed he was checking out stocks on his fucked up, old, blackberry device. He was rifling through names with great vigor, so I asked him: “hey, how’s the market treating you?” Much to my surprise, he was in all of the hot names. He even knew about the accounting irregularities of select Chinese stocks.

As I walked out of that disgusting store, I felt a sense of pride. After all, if homeless men are making money in the market, well then, even an idiot can do it. If an idiot can do it, which is synonymous with being homeless, then this economy is about to rip to the upside. Do you like how I just take giant illogical leaps, based upon specious anecdotal evidence? That’s what I do, pal. Live with it.

Lo and behold, today’s jobless claims were MUCH BETTER THAN EXPECTED this morning. Looky here, I could have predicted “suchness,” using my homeless man with common stock portfolio thesis.

Looking over my portfolio, I see PH and MOTR are trading down in pre-market trading. For some oddball reason, asshats are selling MOTR, based upon the FFIV news. Idiots, you are selling apples because the donuts are stale. MOTR is a buy. And PH reported MUCH BETTER THAN EXPECTED earnings this morning. And, they guided up for 2011. Look for the company to earn close to $6.00 per share in 2011. Motherfucker, PH is cheap. It’s a buy too.

The bottom line: prepare to be squeezed out of your shorts by homeless guys on margin, who view the market from lawn chairs.

As for me, I will be taking it easy today, just sort of waiting around for something cool to happen.

Fuck you pussies. I am not shorting anything, nor hedging. After having extensive discussions today, regarding “to hedge or not to hedge,” I’ve opted to continue riding in my car made from dynamite sticks, heading for the fucking Sun. Today was a down day, live with it you spoiled brats. I contend, we are still in a “long only” market, as TVIX is today’s biggest winner. If you thought VXX was bad, wait until you get a hold of TVIX.

Look, I sold out of JST, HRBN and 20% of NILE, in order to raise cash to 15%. However, I am not worried about this sell off continuing, not in the least. Like it or not, we are in a bull market. What do people do in bull markets?

Answer: buy stocks.

Will the bull market end today?

Answer: positively no.

You should expect wild gyrations to occur when bull markets correct. Back in 1999-2000, I remember seeing people get wiped the fuck out during corrections. They are swift and deadly. However, they present opportunities for people who have liquidity. You can buy the margin calls of your fellow idiot day trader, if you are solvent. So the key here is to build your position to endure a “worst case scenario.” You do this by having a plan. Right now my plan is to raise cash. Should the market continue lower, I will take some of my cash and hedge. But I will not hedge now, after just 1 bad day, all the while the dollar is down, oil is unscathed and large cap names are unchanged to up.

Where are you going to put money? Bonds?

I don’t think so.

Although I recognize the need to cleanse the market of excess. You know, the sort of fuckery that led to extreme valuations on a plethora of tech stocks. I still think this market should be given the benefit of the doubt. Each and every time it looked like the world was about to end, BAM, out comes “The Clam” with his magic wand to make things right.

Into the bell, I added to my BORN position.

It looks like my hopes and aspirations of a 5% correction will come true, as stocks take a beating this afternoon. Ironically, I find myself in a small funnel, alongside a plethora of novice investors, clamoring to get out. I am holding steady here, as my top positions hang in tough, none down more than 2.5%.

All of yesterday’s gains are gone, for me at least. And, given the current trend of panic selling, coupled with analyst downgrades, there is a good chance I will lose more money tomorrow. But, to be honest, you never can tell when you have crazy clams out there buying s&p futures.

My top pick is still PH. But on this dip, other names are worth looking at first. I like SFLY, FORM and CENX into weakness.

My current cash position is about 10% and I will look to bolster it by selling out of “non-priority” names, so that I can buy higher quality names if they dip some more.