The Market Should Be Green

The [[FXE]] is ripping. Banks, such as Goldman Sachs Group, Inc. [[GS]] , Bank of America Corporation [[BAC]] and Deutsche Bank AG (USA) [[DB]] , are higher. Oil is up and the dollar is down, yet here we are stuck in the mid-range of the trading day. The only standout negatives are the horrific price action in both CRE,metals and ever advancing yen, [[FXY]] . People are now spooked about China, effectively discarding the respite in the euro. I am not sure if today’s trading action makes sense, particularly when all of the ingredients for a rally are present. Believe you me, I am very tempted to take some [[VXX]] off my chest and buy a few dips.

However, the shadows near my favorite urinal are smoking cigars, as we speak. Whenever those fuckers smoke, the market shits itself.

I guess the most negative aspect of today’s tape is: WE SHOULD BE HIGHER, BUT WE ARE NOT.

With that being said, prepare for late day fuckery, as margin calls get liquidated and bearshitters step in late, hoping for an early morning bounce.

I am expecting a bounce in the near term, based upon the laws of “coiled spring.” My current long positions, although bountiful, are inferior to many stocks on my buy list. As the market declines, quality names get cheaper, hence offering incentives to swap out of garbagio into “palatial regalia.”

Here is my list, sorted by sector.

Basic Materials:
ATP Oil & Gas Corporation [[atpg]] , Massey Energy Company [[mee]] , Century Aluminum Company [[cenx]] , Freeport-McMoRan Copper & Gold Inc. [[fcx]] , POSCO (ADR) [[pkx]]

Consumer Goods:
Dean Foods Company [[df]] , Green Mountain Coffee Roasters Inc. [[gmcr]] , Bunge Limited [[bg]] , Central European Distribution [[cedc]] , [[dole]]

Financials:
Goldman Sachs Group, Inc. [[gs]] , Barclays PLC (ADR) [[bcs]] , Visa Inc. [[v]] , The Blackstone Group L.P. [[bx]] , MF Global Ltd. [[mf]]

Healthcare:
Baxter International Inc. [[bax]] , Gilead Sciences, Inc. [[gild]] , Sanofi-Aventis SA (ADR) [[sny]] , Teva Pharmaceutical Industries Ltd (ADR) [[teva]] , Alkermes, Inc. [[alks]]

Industrials:
Eastman Chemical Company [[emn]] , [[rino]] , Bucyrus International, Inc. [[bucy]] , Manitowoc Company, Inc. [[mtw]] , Flowserve Corporation [[fls]]

Services:
Central European Media Enterprises Ltd. [[cetv]] , Guess?, Inc. [[ges]] , Abercrombie & Fitch Co. [[anf]] , Corinthian Colleges, Inc. [[coco]] , The Gymboree Corporation [[gymb]]

Technology:
Canadian Solar Inc. [[csiq]] , MEMC Electronic Materials, Inc. [[wfr]] , NVIDIA Corporation [[nvda]] , [[rax]] , Amkor Technology, Inc. [[amkr]]

I am not sure when I will buy the above names. However, it is my buy list and I am sticking to it. One thing is for certain, I am in no rush, especially ahead of June, which happens to be the second worst trading month of the year, based upon the scientific laws of seasonality.

“The Fly” is in his office, decked out in formal evening wear (top hat, tuxedo, white pocket square), awaiting the great crash of 2010. Although the great crash is widely expected, very few are prepared like Senor Tropicana aka “The Fly”, with office decor and delectable HORS D’OEUVRES to match. The office, as you would imagine, is filled with black smoke, which is completely non-toxic and 100% organic (I bought it from whole foods). The music is playing and everyone is busy doing “The Hugh Hendry“, not so much different than a Peanuts party, where Snoopy and the gang get down and boogie, zombie style.

What you need to know, every so quickly: I am preparing to supplant you as a shareholder in numerous stocks. Once you’ve been dispatched, by way of margin liquidation, “The Fly” will step in, with the veracity of a mountain lion inside the headquarters of Stocktwits, and buy said shares at horrendous discounts.

You may be wondering: if the Euro is up, why is the market down?

Answer: it is the destiny of the markets to go lower. There is nothing that you or your stupid friends can do about it.

In closing, I am not thrilled to make money, while most of you waste away into oblivion. It’s just my job, gentlemen— so sorry you aren’t me.

One of the simple, yet cool, functions of The PPT is the ability to monitor stock price performance over numerous time frames. Here is some raw data on the type of damage that has been done to certain stocks, over the past month.

Market Cap (100m-250m)

No.	Ticker	Market Cap	Sector	1-month Return
1	DRL	185,029,268	FINANCIAL	-56.78
2	RNN	121,028,243	HEALTHCARE	-50.00
3	FBP	161,949,764	FINANCIAL	-39.86
4	DRWI	220,870,804	TECHNOLOGY	-39.33
5	ALVR	151,019,577	TECHNOLOGY	-39.18
6	AGYS	163,751,484	TECHNOLOGY	-38.43
7	LNG	192,402,853	BASIC MATERIALS	-36.42
8	ACUR	154,799,336	HEALTHCARE	-36.35
9	CPIX	160,682,738	HEALTHCARE	-34.68
10	XIN	197,194,741	INDUSTRIAL GOODS	-34.10
11	GRO	101,898,000	CONSUMER GOODS	-33.64
12	TUES	246,897,163	SERVICES	-32.65
13	ERII	223,819,604	INDUSTRIAL GOODS	-32.33
14	IPSU	140,966,377	CONSUMER GOODS	-32.00
15	GBE	102,611,181	FINANCIAL	-31.88
16	NCTY	123,481,686	SERVICES	-31.22
17	NEP	160,025,000	BASIC MATERIALS	-29.39
18	AZC	201,793,062	BASIC MATERIALS	-29.34
19	UCO	234,493,000	FINANCIAL	-29.24
20	PNSN	196,690,301	FINANCIAL	-29.18
21	CKEC	173,503,183	SERVICES	-29.09

Market Cap (250m-500m)

No.	Ticker	Market Cap	Sector	1-month Return
1	CSIQ	474,817,758	TECHNOLOGY	-42.10
2	PMI	371,887,506	FINANCIAL	-38.84
3	ABK	421,035,060	FINANCIAL	-36.93
4	AVNW	267,363,730	TECHNOLOGY	-36.49
5	AEA	278,625,084	FINANCIAL	-33.83
6	EXXI	447,439,605	BASIC MATERIALS	-33.07
7	YRCW	456,835,714	SERVICES	-32.14
8	UTSI	280,121,585	TECHNOLOGY	-32.00
9	CSR	352,222,611	SERVICES	-31.06
10	WATG	286,116,949	CONSUMER GOODS	-30.70
11	JST	251,216,330	TECHNOLOGY	-30.63
12	GAP	347,517,788	SERVICES	-30.34
13	EDC	317,250,000	FINANCIAL	-29.13
14	FRPT	313,422,664	CONSUMER GOODS	-29.08
15	BWEN	344,834,357	INDUSTRIAL GOODS	-28.77
16	RINO	390,149,298	INDUSTRIAL GOODS	-28.15
17	VITC	272,889,827	SERVICES	-27.82
18	CTIC	302,093,662	HEALTHCARE	-27.81
19	PAL	496,793,899	BASIC MATERIALS	-27.72
20	FSS	346,793,991	CONSUMER GOODS	-27.60
21	MNI	295,805,733	SERVICES	-27.09

Market Cap (500m-1b)

No.	Ticker	Market Cap	Sector	1-month Return
1	ITMN	569,681,422	HEALTHCARE	-76.74
2	RDN	819,070,132	FINANCIAL	-47.46
3	SPWRA	668,930,939	TECHNOLOGY	-35.76
4	ATPG	774,406,476	BASIC MATERIALS	-35.28
5	NPD	596,039,740	SERVICES	-34.26
6	FORM	698,536,587	TECHNOLOGY	-33.71
7	MMR	989,838,402	BASIC MATERIALS	-31.32
8	FIRE	509,914,340	TECHNOLOGY	-28.17
9	POWI	937,020,362	TECHNOLOGY	-27.28
10	BPZ	601,468,894	BASIC MATERIALS	-26.98
11	USU	509,743,075	BASIC MATERIALS	-26.57
12	LIZ	612,360,194	CONSUMER GOODS	-25.73
13	SGY	718,690,481	BASIC MATERIALS	-25.58
14	SMCI	504,643,112	TECHNOLOGY	-25.54
15	BWLD	693,703,200	SERVICES	-24.82
16	AXL	610,086,396	CONSUMER GOODS	-24.32
17	ATHN	943,928,550	FINANCIAL	-24.23
18	GMK	932,841,922	CONSUMER GOODS	-24.05
19	FBC	858,418,495	FINANCIAL	-24.01
20	GXDX	508,527,103	HEALTHCARE	-23.91
21	BEBE	636,199,018	SERVICES	-23.32

Market Cap (1b-5b)

No.	Ticker	Market Cap	Sector	1-month Return
1	GMCR	1,030,973,105	CONSUMER GOODS	(not accounting for 3:1)
2	TIVO	1,170,961,975	SERVICES	-44.16
3	DF	1,780,667,477	CONSUMER GOODS	-38.47
4	TSL	1,276,236,383	TECHNOLOGY	-36.84
5	CIE	3,220,048,732	BASIC MATERIALS	-35.58
6	UIS	1,051,168,602	TECHNOLOGY	-33.74
7	AGO	3,005,085,115	FINANCIAL	-33.39
8	MTG	1,806,013,198	FINANCIAL	-32.70
9	SMI	1,851,915,817	TECHNOLOGY	-32.06
10	STP	1,568,158,152	TECHNOLOGY	-31.46
11	WFR	2,663,039,440	TECHNOLOGY	-31.38
12	CEDC	1,895,134,478	CONSUMER GOODS	-30.84
13	HAR	2,453,657,907	CONSUMER GOODS	-30.04
14	CETV	1,439,826,261	SERVICES	-29.81
15	AKS	1,627,734,414	BASIC MATERIALS	-29.72
16	AIB	1,414,390,778	FINANCIAL	-29.05
17	NTY	2,193,961,365	HEALTHCARE	-28.74
18	OTE	4,342,732,447	TECHNOLOGY	-28.72
19	YGE	1,182,715,779	TECHNOLOGY	-28.15
20	PXP	3,349,791,000	BASIC MATERIALS	-27.85
21	AONE	1,109,147,785	INDUSTRIAL GOODS	-27.63

Market Cap (5b-10b)

No.	Ticker	Market Cap	Sector	1-month Return
1	NBG	8,365,096,164	FINANCIAL	-30.75
2	FBR	7,884,698,785	CONSUMER GOODS	-27.68
3	CLF	7,167,060,064	BASIC MATERIALS	-27.16
4	MTL	9,220,397,002	BASIC MATERIALS	-26.83
5	NVDA	7,391,532,194	TECHNOLOGY	-26.38
6	ALU	5,980,596,910	TECHNOLOGY	-25.15
7	PCLN	9,495,796,510	SERVICES	-24.33
8	MCO	5,109,720,000	FINANCIAL	-23.28
9	STM	7,237,468,584	TECHNOLOGY	-21.85
10	RYAAY	6,895,306,805	SERVICES	-20.49
11	TNE	5,778,910,160	TECHNOLOGY	-19.34
12	CF	5,054,621,495	BASIC MATERIALS	-19.05
13	X	7,334,086,127	INDUSTRIAL GOODS	-18.98
14	IVN	6,237,061,112	BASIC MATERIALS	-18.67
15	DO	9,940,371,727	BASIC MATERIALS	-18.19
16	MFE	5,196,965,109	TECHNOLOGY	-17.92
17	JOYG	5,128,336,884	INDUSTRIAL GOODS	-17.89
18	CAM	9,096,478,347	BASIC MATERIALS	-17.88
19	ESV	5,689,170,500	BASIC MATERIALS	-17.49
20	FSLR	9,652,404,538	TECHNOLOGY	-17.08
21	CCH	8,191,734,410	CONSUMER GOODS	-16.84

Market Cap (Over 10b)

No.	Ticker	Market Cap	Sector	1-month Return
1	MT	48,577,046,049	BASIC MATERIALS	-28.73
2	RIG	20,792,448,660	BASIC MATERIALS	-28.30
3	NOK	38,984,992,501	TECHNOLOGY	-27.10
4	BAX	25,319,423,780	HEALTHCARE	-26.60
5	V	38,408,148,307	FINANCIAL	-25.14
6	VE	13,012,096,659	UTILITIES	-24.91
7	BCS	50,581,816,063	FINANCIAL	-24.74
8	STD	85,252,440,000	FINANCIAL	-24.58
9	RTP	17,383,889,250	BASIC MATERIALS	-23.73
10	SID	22,775,257,009	BASIC MATERIALS	-23.55
11	TCK	18,619,405,242	BASIC MATERIALS	-23.40
12	BP	145,797,948,613	BASIC MATERIALS	-22.89
13	ABB	40,260,860,258	INDUSTRIAL GOODS	-22.85
14	WBK	62,736,263,165	FINANCIAL	-22.78
15	VALE	140,691,428,776	BASIC MATERIALS	-22.00
16	MA	23,364,083,051	FINANCIAL	-22.00
17	SLT	12,925,358,490	BASIC MATERIALS	-21.63
18	ACH	11,328,112,824	BASIC MATERIALS	-21.29
19	APC	28,289,479,360	BASIC MATERIALS	-21.03
20	DB	37,901,436,000	FINANCIAL	-20.26
21	LINTA	23,388,671,683	SERVICES	-20.26

Look at how inflation, as represented by the CRB index, is gripping America. OMG.

In other news, the euro got “tivo’d” today, as angry gorillas sold short into the bell. Separately, the [[VXX]] is trading near “flash crash” highs, despite being 600 points away from the bottom. For the day, as of 3:52pm, I am up 0.6%, led by gains in [[VXX]] . With my cash, as always, I am waiting for an opportunity to buy your margin liquidations.

EXPECT FUCKERY to occur, both tonight and tomorrow. And, always remember, “The Fly” wins all the time, eventually, much to your chagrin. What can I say? I’m just one of those lucky guys, who ends up with the hot chick, fast car and “zeroes like fuck” in his checking/brokerage accounts.

Well, you tell me: Germany is banning short selling, yet again.

Remember what happened to stocks the last time short selling was banned, back in the old “credit crunch” days?

Do you remember, now?

In my estimation, this is an act of desperation, as the wolves circle the EU, taking chunks of flesh out of the PiiGS. As a result of this ban, expect market dislocation and a “no bid” market to ensue. Remember, short sellers provide the market with liquidity. Without them, well, you get “fuck you, you’re dead” market declines.

Expect some really fucked up news to hit the wires shortly. Either way, the euro is getting raped on this news.

UPDATE: I bought 10,000 [[FAZ]] @ $14.85

I sold out of my SINA Corporation (USA) [[SINA]] position, north of $37.50.

I’ve learned my lesson holding stocks past earnings induced bumps. The market is too dicey.

You people are just flat out gay. There is no other way to explain your investment methods, sashaying in and out of stocks—as if it were a fashion show. You’re over there sucking the fucking lemons off stocks, in the midst of a topping formation that will eventually lead to a stiff and burdensome decline. What am I doing, you ask?

Well, hang on a second or two and I will tell you.

My cash position is 20%, [[VXX]] 28% and long positions 52%. For the day, I am up a whopping 0.2%, led by gains in SINA Corporation (USA) [[SINA]] and GMX Resources Inc. [[GMXR]] . In other words, I’m eating carrots over here, watching you spin your wheels.

Do I find pleasure in watching others make mistakes?

As a matter of fact, yes, I do.

On the bright side, we are seeing a bounce back in many steel names, giving hope to the global growth crowd that China’s recent stock market smashing was all a mirage, a cruel joke of sorts. As you readily know, China is the Santa Claus for the world. When in doubt, just ask China to buy your shit; they have endless pools of money and are really, really stupid.

In short, “The Fly” is still preparing to buy your margin liquidations. So, get out there and go buck crazy, silly kids.

If you take anything from my blogs, heed my warnings over a cup of boiling hot tea. While drinking the tea, preferably Earl Grey (preferred beverage of all gentlemen, east of Kansas), recall my message in its entirety, not my inane tweets or rapid fire blog posts.

Here are the cliff notes:

• The market is being led around by the daily fluctuations of the Euro.
• Due to detrimental debt concerns, coupled with austerity measures in Europe, the market needs to reprice equities.
• Just because the market is supposed to go lower doesn’t mean it will.
• I have ZERO shorts on my books, but 28% of assets in [[VXX]] .
• I strongly suggest a hedged approach to this market, due to the nonsensical mannerisms of recent trading.
• Day trading is for birds. Think bigger and longer term; God will smile upon you for it.

Today’s reversal was impressive, led by gains in the euro. Nevertheless, I’m not buying into this shit, as I happen to travel through time via time machines and have knowledge of what is coming. Regardless of what you think, sentiment is different now. For a long, long time, we went up, uninterrupted, thanks to improvements in global trade. While all of that is true, ask yourself, what the fuck are the following “global growth” stocks telling us?

Top picks: Eastman Chemical Company [[EMN]] , [[VXX]]

We’re going back to test the “flash crash” lows, AND MORE. The magic term for you little ham and eggers is “austerity” and how it pertains to raping consumerism. You are watching deflation take hold in Europe, right before your stupid eyes; and you will see that same thing happen here, as states raise taxes and cut back on spending. After all, it’s their constitutional duty.

To be clear, I am not arguing against the Jakegint’s of the world, for the inflation story is most certainly still on the table. I just think, before we get to that, we’re gonna get to this.

Nevertheless, I am not interested in getting overly aggressive on the downside. I just don’t feel like shorting and putting my stomach through the meat grinder. At this moment in time, for me, a hedged approach is my best bet. If that means riding POSCO (ADR) [[PKX]] and Goldman Sachs Group, Inc. [[GS]] down every day, so be it. My discipline is much more than you can understand, mainly because of my “big game” thinking.

I treat my stocks, like a general treats a private in a war. They are all little “nothings” to me,  placed to serve my best interests. A downward spiraling stock, like POSCO (ADR) [[PKX]] , may not be for you. However, for me, I need to own that fucker when the market rebounds, for its rebound will tear the tits off short sellers.

In summary, I’m handing out mental beat downs, at Le Office de Le Fly. Come get some.

NOTE: By the way, bring your margin liquidations too. I am most interested in buying them from you.

UPDATE: I sold out of ON Semiconductor Corp. [[ONNN]] @ $7.59.