Not Done Going Higher

The metals are getting blown out today, especially my largest position CLF. The knee-jerk reaction would be to panic, shit your pants, then sell, while exlaiming “TIMBERRRRRR, we’re going lower.” However, I don’t think we’re done going higher yet.

The sell off in the metals is commonplace, following a ferocious run up. So, with my money, I will add to my CLF position and do so with the utmost honor, displaying both tenacity and gentlemanly behavior while doing so.

If you are looking for strength, go check tech. Names like SNDK, CIEN and QCOM are showing some decent resiliency.

At any rater, I have a long day ahead of me. Before I go, I will take about 5% of assets and deploy them into this sell off, putting my total cash percentage at 35%.

UPDATE: I added to my CLF position down here and started one in NVDA.

UPDATE II: I added to my CIEN position.

UPDATE III: I sold out of DE.

As I conclude my rapid fire journey through the vagrancy of New England, I am left with one thought: Thai food eating jackasses.

No matter where I traveled, from Mystic to Hyannis to Gayville USA (Provincetown) to Plymouth to Portland to Bar Harbor to Boston, those motherfuckers (citizens) love Thai Food. It’s kind of odd and somewhat disturbing that despite the wide abundance of top shelf seafood available to the shingle sucking citizens of New England, they curry the grotesqueries of Thai food. Fucking asshats.

As for my trip, I am due to return, back to the civilized world of NYC, on Tuesday. I will be trading from the luxury of my five star rated hotel room tomorrow morning, just prior to heading out into the bullshit city of Boston for a little low grade tourism.

As for the markets:

I sense we have one final push higher before we sell off a bit. If you notice, The PPT has been whipping between OVERBOUGHT and OVERSOLD quite frequently these days. That’s because of the inane nature of this market, whereby it tests the internal fortitude of both bears and bulls on a monthly basis.

This market is not for the amateur, just like hiking asshole mountains is NOT for city folk like me.

I posted a pic from Cadillac Summit on my twitter page. Follow my retarded Tweets, via The_Real_Fly.

Anyway, I was in Acadia today, venturing up “Cadillac Summit”, and I felt like I was about to plummet 1,500 feet to a very salty death. The fucking winding road up the side of the mountain was cool as ice, until about 1,300 feet, when it started to get all “hey fuckbag from Brooklyn, you’re about to fall off this fucking mountain right here, retard style” on me. Trying to remain composed, doing a cool 3mph up the “hill from hell,” Mrs. Fly thought it made sense to mock Le Fly with “just make believe you’re in the forest” suggestions, as I made my way up the three mile road to “heaven,” as Mrs. Fly likes to say (damn her). Yeah, that would make sense if my fucking car was not in the clouds. Let me tell you, it certainly did not help when my 7 year old daughter began to repeat “oh my God, we’re all gonna die,” over and over.

Truth be told, it was nothing. I’d ride up that fucking mountain on a unicycle, drunk, while juggling oranges. Once up there, it looked like Mars and shit. After about 10 minutes, I took a leak on one of the big boulders up there, then proceeded to head down yonder for a stupid popper and lobster stew.

I’ve eaten so much lobster on this trip I am started to act like one, snapping at people and shit.

I have a few more stops left on my mini-adventure and will be back at the trading turret, sometime next week.

Despite the recent run up, I still maintain a 40% cash position. As cool as this market feels right now, remember how awful it looked just two weeks ago. This is a meat grinder of a market. It is a destroyer of assets, mocker of all things equity. Do yourselves a favor and avoid getting iMax’d by your emotions.

If I have just 60% of my assets invested and manage to return an average of 10% during this current cycle, equating to +6% of total assets, I will take it, AND MORE. Instead of keeping downside hedges in place at all times, I am letting my huge cash position serve as a cushion.

If you are a good market timer and fast on your toes, you do not need hedges all the times, just cash.

At the present, my largest position is CLF, then EWZ. At the open of trading, I stepped in and bought a little X and more CIEN.

Off to enjoy my day.

Enjoy the rally while it lasts, for it is getting long in the tooth and small in the cock.

Based upon the laws dictated by the mathematical formulas that created the best investment tool ever offered to the unwashed “retail,” The PPT, we my be nearing the top end of the recent trading range. Just to be clear, we are NOT OVERBOUGHT at the moment. However, I suspect if we have another 100+ up day tomorrow, we will soon enjoy the wrath of God hating on stocks, not too much different than when he spit on dot com stocks, circa 2000.

Into strength, I will take profits and move to the sideline with more cash. The market has done nothing in months. It’s acting like a giant fucking pendulum, chopping heads off in the process. If you can make it out of this market, by the time Wall Street 2 launches in September, at break even or with gains, I will salute you with a respectful middle finger for a job well done.

NOTE: Scotty Bleier hosted Yahoo’s tech ticker today and did a fantastic job. I would like to know from some of the incompetent producers at CNBC or Fox why Scott does not have his own show or segment? Seriously, the guy is built for this shit and would get great ratings if given the opportunity.

Vincenzo “The IT Guy” dropped two barrels of his finest vino, while eating meatballs and gravy, all over The PPT servers. Bear with us, as we clean up the mess. We will be back up and running shortly.

On the opening ticks, I sold out of my largest personal position, TNA, and client position, FLS. I did so, in order to book hard fought gains and redirect funds into lesser volatile names.

As the market dips here, I am adding to my DE and CLF positions. I do so with murder in my eyes, and feverish jubilance in my soul.

I don’t care what the market does today. All I know, with absolute conviction, we will trade higher from current levels.

NOTE: If you are curious about my DE thesis, see TSCO.

I sold out of TNA and FLS, at the open.

Europe is up more than 2% and U.S. futures are storming higher, based upon “good jobless claims.”

Trying to explain this shit takes the patience of an impotent grandfather. Let’s just make one thing abundantly clear: we will trade higher until we don’t. I will milk the upside as long as I can, then throw the hedges back on and live happily ever after.

Even though I am gaming this market, like a fucking space alien magician, I still hold a 40%+ cash position. Therefore, my recent gains are somewhat muted, aside from the sheer riverboat gambling going on in my personal accounts. Nevertheless, as of yesterday’s close, I broke the +40% YTD barrier.

What the fuck did you do?

Exactly.

So, as I make my way up this stupid coast, I am pleased to report that New York City mugs all of these little bullshit cities and towns, repeatedly, without remorse or reconciliation. It doesn’t matter if my sentences make no sense, for I am “The Fly” and you are a jackass.

Thus far, I’ve noted a deep recession in most parts of New England and flamboyantly gay parts of Cape Cod. Moreover, the lobster place I “dined” at tonight, in Portland, was a fucking steaming pile of shit. Basically, dinner consisted of a 2lb lobster, 2 lobster rolls, grub for the kids and drinks, all for $100. It wouldn’t be a bad deal if the lobster didn’t suck cock, lined with black shit inside of it. Upon bringing this to the attention of the local yocal, her reply was “that’s the liver; it’s a delicacy.”

No thank you, female fuck face, for I am well versed in the consumption of lobster, reigning from the food capital of the United Steaks of America: NYC.

First thing tomorrow, I am the fuck out of Portland (a decent, but entirely gay city), en route further up north, where bugs eat people alive and shit.

As an aside, did anyone notice my insane winship today? I enjoyed tremendous gains in EWZ, FLS, TNA, SHLD, CLF etc. Literally, the list goes on and on. How did I do it?

The PPT

How does The PPT work?

Well, that’s a very complex question to ask myself in the middle of the night. In short, it rates over 4,000 stocks on technicals (accumulation/distribution, relative strength, price performance, volatility and volume) and fundamentals (debt/equity, PEG ratio, p/b, p/s and profit margin). Both scores are combined, weighted slightly towards technicals, with a variety of correlating factors mixed in, using price action in oil, natty, gold, treasuries, steel, grains, yen, dollars, euros etc. Oh, we also throw in a “6th column” of ROE/gross margins ratio with a little “sub rosa” resetting daily, using all the shit I mentioned above.

Basically, it’s complicated and way above your pay grade or bullshit backtesting abilities.

At any rate, top pick for tonight it DE.

The PPT is what happens when an unstoppable force meets an immovable object.

Listen to this chart, ever so very quietly: