Fly Sell: RBCN

I sold out of RBCN for a small gain.

Can you feel the tension in the air?  There is a heightened consciousness with regards to this tape, a classic battle between the bulls and the stubborn bears. Today’s economic non-event (weekly jobless claims) has emboldened the bearshitter, dressed in green velcro pants, to sell short this market, even though it may go up by another 25% based upon 2012 EPS estimates.

It seems the slightest declines flushes out retail investors. Gone are the days of the 15% stop loss. I am seeing people stop out of good stocks, with strong trends, after just -2-3%. Frankly, that’s fucking ridiculous. Naturally, we all have our own style and some of you even day trade for a living, something that I find to be distinctly reprehensible. Nonetheless, I implore  you to take a greater interest in learning about the stocks/sectors you are buying. This way, when a 4 letter stock drops by 3%, you will know why you should buy more, or dump it.

Aside from that, it’s important for you to know, and acknowledge, my #2 position (TEX) going apeshit to the upside. As a matter of fact, 6 of my top 7 positions are green today. I do not alert you of this winship for your accolades or some sort of weak kneed compliment. I tell you this because I intend to demonstrate, through even greater transparency, that “The Fly” is the absolute best manager of other people’s money, in the world.

In a word: MYFISHINGPOLEISLONGERTHANYOURS.

NOTE: I sold out of CRIC and added to MOTR

Top picks:  OXY, TEX, PH, MOTR, SFLY, FMC, PWER, IMAX

ASSHAT!

On earnings call, LEDS mgmt says the see a sustainable gross margin range of 44-46%… Mgmt noted that they are experiencing pricing pressure that they did not see a month ago. They said this is primarily due to a customer moving to a competitor, due solely to better pricing. This quarter, the company will remain focused on new high performance products, and improving pricing power. They expect to produce an additional 10 mln chips per month from the Taiwan facility, doubling capacity… During Q&A, when asked about which competitor the customer went to, mgmt says there is only one competitor producing high performance LEDS like they do. Says the loss of the customer was in Taiwan… LEDS is -34% in the pre-mkt, currently trading -33% at 19.18.

Early in the day, for my personal account, I sold out of SOHU and UTA, due to strange trading behavior. I didn’t like the way they were trading. As a matter of fact, I do not like how any of the chicoms are trading. With the proceeds, I bought boat loads of RBCN and IMAX, at $22.80 ish and $27.70ish respectively. Let me tell you right now, I will not relent on these two until my blade is stuck firmly into your jugular, twisting away at your arteries.
If you are short these names, your head will soon be mounted inside of my fucking garage (’cause it’s not good enough for my office).

For managed accounts, I sold out of PWRD (chinese fuckery) and loaded up on TEX. Milk the farmer. Destroy the peasant!

The dollar got crushed today, alongside treasuries and munis. Risk is back on, in a big way. The European debt crisis will be neutralized and stocks will trade up, in my humble opinion of course.

Most of my positions charged higher today, allowing me to gain about 0.5%. Year to date, I’m up about 2%, while my personal psychopath account is down about 5%. There are two sides to the 240% leveraged blade, trust in that.  Nonetheless, I will make all of it back, very quickly, and much, much more. Watch me do it.

I bought 50,000 TEX

I bought 10,000 IMAX and 10,000 RBCN, both for my personal.

Disclaimer: out of my way.

I sold out of both.

Moving on.

Assume the market is correct. Cast aside your visions of imminent disaster and imagine the U.S. economy growing at a 4% clip, with a sharp decrease in unemployment. Let your mind wander free to believe the European “debt crisis” is nothing more than a dog and pony show, which will be dealt with and satisfied. Let’s assume Asia and Latin America stay on its current course, without any hiccups. If all of these conditions are met, where do you think stocks are going?

Answer: much, much higher.

I know, it’s annoying to suggest stocks can trade much higher, especially following such a big two year run. But then again, look at the shares of CRM or NFLX. I thought those stocks made big runs 50% ago. If I am to base my investment decisions on the numbers in front of my face, 2012 S&P EPS of $110, then I need to get prepared.

How does one get prepared?

Well, for me, it’s utilizing The PPT to isolate stocks, by industry, with high growth, high ROE, solid fundies (debt/eq., gross margins etc, and relatively low FPE’s). I call this list Growth At a Reasonable Price (GARP).  I am casting a wide net that will include 100+ names, so that I may cross reference this list with my momentum indicators. Building this reservoir of high quality stocks will keep my investments isolated to the very best names and help me avoid getting stuck in egregious murderholes. It’s like being able to choose from the best whorehouse in the world, as opposed to some disgusting rats nest in DC.

Naturally, I will set aside a certain amount of coin to buy/sell lower quality scorchers. But, my focus is now switching from trading on a whim, to something more with purpose.

Many of you new jacks on this site have no idea who “The Fly” is, with regards to his pedigree and stock market prowess. Over the past 15 minutes (I read at a 800 word per minute rate), I reviewed some of my posts on FlyonWallstreet.blogspot and here, dating back to 2007. First of all, let me say this: if possible, I’d like to travel back in time and punch the ears off of that jackass who was scribbling shit here, claiming to be “master and commander of the internets.” Happily, I declare to that wretched Fly of 2007 that “I am, indeud, the only true and living master and commander of the internets.” Moreover, I can’t read too much of my old writings without getting a headache. I must have been hopped up on some plutonium powered mustard gas or some shit.

But the facts remain: yes, I nailed the crash of 2008-early 2009. And, yes, I nailed the reversal in 2009, making over 60% in ’08 and 90% in ’09.

All of that is besides the point I am trying to make. Sometimes, due to the inadequacies of  internet communique, my message gets drowned out by the sound of hookers howling in the dark. Most of you are not very sharp and often times get distracted by silly pictures and/or the hairs on your balls. You throw your entire life savings into the market and try to hit grand slams on a daily basis, as if this shit was little league with the bases loaded all the time.

As much fun as you may think I am having here, this is not a fucking game. I spend 18 hours per day studying ways to get better and it’s not enough. There are always trades that could have/should have been made and losses that should have been taken. The stock market is an exercise in imperfection, where one asshole is pitted against the other to see who’s worst. Every so often, a real winner emerges and he is lauded as the next Jesus Christ, thorned crown and all.

Aside from the jokes and the adolescent banter, I am trying to cultivate a culture here that cannot be duplicated elsewhere. A corporate work ethic with an independent/entrepreneurial spirit aimed at dominating the stock market, rendering all other financial sites/services obsolete. I’d like to think I have a solid staff of writers, who are able to navigate any market. But the truth of the matter is, some are better than others and some do not belong here at all. Remember: it’s work ethic and market prowess that is required, not once a week posts of how awesome you may or may not be. I will dip you in fire and spit out your liver (yes, I am chewing on it).

Having said that, I am interested in bringing on another blogger, or two, into the fold. I would like nothing more than to offer a tab to a responsible and professional trader, one who isn’t looking for fucking hand outs. Once again, if you’re interested, post your thoughts and trades in the Peanut Gallery. If you stand out, you might be selected. Most of iBC’s bloggers were chosen from that forum.

Finally, the markets are in the process of digesting recent gains. I do not expect much volatility in the near term and will stay long until proven wrong.

Have you ever eaten a teevee dinner? Let’s take a turkey teevee dinner for example. You have the turkey, the dumbass potatoes, the chocolate cake and the cold, halfway frozen, peas and carrots. That’s what you are to me: peas and carrots. Don’t act like you are the chocolate cake; cause you’re not. My whole day is ruined, thanks to late day reversals in SOHU, MOTR, and PWER. It doesn’t matter that I was up on the day and these stocks made me money. The fact of the matter is, I hated the way they closed.

Therefore, as a result, my whole fucking day has been ruined and I will not begin to lament over how stupid those stocks are for selling off.

My largest position, OXY, did great, closing near the highs. However, I really had my heart in SOHU, MOTR and PWER.

Fuck the three of you, backwards, sideways, and every which way but loose.