Fly Sell: FAZ

Sold it out, booked the loss.

I’ve been especially mum about the perverted developments out of General Motors, specifically because it’s not my parade. Let me be perfectly clear: you bullshit 10th tier firms need to stop bitching and complaining about “lack of access” to the GM ipo. You are not Goldman and certainly not Morgan, so you need to fuck off sideways, retard style, down a flight of slippery steps. The ipo is for closers only.

Do not go on Fast Money and discuss how you were “left out in the cold” to rot and die a government death. Instead, you should be waving American flags and handing out large candy bars to children, for America is back, baby. The ipo of GM, priced at $33, likely to trade $36, is a boon for many institutions and large retail investors across the country. Does it matter that the government gave them $50 billion dollars to stave off collapse?

ABSOLUTELY NOT.

Those idiots give everyone money; that’s not the point. Plus anyway, it’s not “our money” anyway, but China’s or THE BEARDED CLAMS’.

The General Motors is all about fucking up Detroit, while on viagra pills. They don’t have time to worry about profit margins and “shareholders.” I am dead fucking serious about this, so listen up. The General Motors corporation is a relic of American industry. It represents all that was and could be great. Tomorrow’s ipo will be applauded and it will give a boost to the markets, if only for a day. People want to believe in something tangible and GM gives them cars that look like shit. But it’s our shit and now we really, really want to sell it to the unsuspecting Chinese folks, over in Huaxi.

The final word has been spoken; therefore, any word on GM after this post should be discarded immediately and the author in violation of my copyright should be reported to your local magistrate, IMMEDIATELY.

This will be good for you lazy palm tree fuckers out west. I can’t wait until the day when your Chinese overlords take command of the Californian “villages.”

I do not require your financial advice. After all, if I did, I’d be reading your blog, instead of your dumbass reading iBankCoin. “The Fly” is a perfect example of financial success, delivered to you via a large, large howitzer. “Shoot your face off and go about my day eating sandwiches” is my mantra.

I booked profits in SCO, but find myself deeply chagrined with my WFR position. Should that motherfucker trade down tomorrow, I am booking the loss. GMXR looks decent, as well as TEVA. But what has you little fuckers all up in a frenzy is my newly minted, and profitable, FAZ position. It constitutes less than 3% of my holdings, so shut the fuck up about it.

Essentially, I wanted a bounce; but we’re not getting it. Let me say it again: we are not getting a bounce. Having said that, I will need to eat some losses, due to the fact that I am not hedged. Howsoever, I am enriched with a 52% cash position, so I can endure more than you. The strategy going forward is to monitor OVERSOLD names in The PPT and position into them— into weakness. FLS is one of those names, but not yet. Let the market come in a little more and then we can get a nice bounce.

I bought 10,000 FAZ @ $12.18.

Disclaimer: If you buy the FAZ your car may detonate upon ignition. And, you may lose money.

Stocks looks pretty good today, even though my longs look wrong. DQ posted some fucked up results, which is hitting shares of WFR—for some oddball reason.  Most sectors are green and the market looks like it wants to make a small run. I am running some screens and will be adding to some longs shortly.

I sold out of my SCO position, not because I think oil is awesome, but because I believe it will be supported at these levels. It never hurts to book a profit.

Tech stocks is where it’s at, along with the metals (LDSH). If you are interested in a bounce, those are two sectors worth a look. As you know, “The Fly” is very busy these days, leaving little time to blog like the wind. However, do not fear, for his schedule has been “corrected” and his blog will not be abandoned again.

UPDATED: I changed my mind and will not be adding to longs.

Updated to reflect today’s disaster.

What makes this sell off unique compared to others, over the past 3 months?

Well, for one, this decline is coinciding with higher rates. Previous to this decline, all small dips were being ignored in the bond markets, as rates pressed lower. Today is especially unique, considering munis are getting hit, yet Treasuries are doing well. This is a classic flight to safety trade. California munis may be rebounding today. However, overall, the municipal bond market is lower to the tune of 1%. There is a pecking order here. First, weak countries, like PiiGS, get smashed. Then, the infection permeates the US, but on a local level first. The big warning sign of U.S. instability will be found first at the state level, then government. So, do not be surprised to see Treasuries trade up, as munis die.

What if this is simply a pit stop to higher prices?

Entirely possible.

I am not convinced, after one short trading week that the market is “on the other side of the mountain.” Nevertheless, I think you would be an ignorant jackass to ignore the quiet under currents of this tape, which may be speaking in volumes.

Over the past week, I’ve taken a lot of losses, in a number of stocks. The big picture is my main concern, not the cost basis of ABC vs. XYZ. I have no problem selling everything, in order to protect gains. That’s exactly what I am doing here. Ultimately, FTK trades higher, so I’m sticking with it. My biggest hedge is SCO, mainly because oil is fantastically overvalued.

NOTE: According to The PPT‘s real time breadth analyzer for industries, Movie Production and Home Improvement stores were the only sectors with 50% or more green.

As we approach 11,000, bulls are positioning to buy. The trade has been very easy: buy all dips, ’cause Ben and the Fed have your back. Well, that sort of thinking is dangerous and idiotic. Think about how complacent you’ve become, expecting free lunches and easy short cuts. You are America, land of the criminally insane, home of the Big Mac.

You can’t expect the market to go up all the time, simply because you believe the Fed wants prices to go up. I hear you jackasses on the radio and the teevee and you make me sick. Like that guy David Tepper, manager of $13 billion, yet so stupid he exclaimed on CNBC that “everything would go up” under QE2. Seriously, have you people forgotten free markets? Have you people lost your fucking minds, with all of this HFT/QE2/POMO bullshit?

This is the stock market, where opportunities are shattered and pikers are sent home with last night’s dinner  in a lunch box. We go down every so often, you know. The stock market is designed to crush people like you, novices who naively navigate without a clue.

What am I doing, you ask?

Well, for one, I am 55% cash. I sold out of BORN this morning too. In addition to that, I bought more SCO and that’s it.  I’m content losing less than others, instead of making a killing on the downside.

Look, my Risk Appetite Index is down another 1.6% today. This thing warned you the market was about to take a dump; but you chose to ignore the signs. The OVERALL PPT score of 3.32 two weeks warned you of an extreme OB condition, yet you ignored it. Now I am telling you, the Risk Appetite Index is wiping out months of bond market gains. Currently at 100, if it hits 97, that would represent the dissolution of 6 months of gains inside of one short week.

Yeah, but I guess NFLX is a neat buy down here, right?

You really need to pay attention to what the bond market is telling us right now. I am going to share with you a chart of my Risk Appetite Index, which is exclusive to The PPT. Essentially, it measures risk through price action of munis, sovereign and corporate debt. Basically, the fucking price action just wiped out 3 months of gains in one week. If you do not think that is cause for alarm, you have your head tightly stuck in your ass. Hence the term “asshat” applies to you.