I Didn’t Know There Would Be Drama

Oh, I forgot about “the idiot tape,” where people sashay in and out of stocks, as if they were trying on dinner costumes at their local Bergdorf Goodman.

You know what: I’m just going to walk out of this fucking office and go for a walk in the rain. Nothing says “fuck you” like a good stroll in the rain, sans the luxury of an umbrella. The market is up up up, then down down down. It’s too much already. We’ve dropped 500+ points in a few short days and some of you morons want another 5,000. Fuck off and go throw yourself into a lit fireplace.

I’m not backing away from my bullish proclamations, despite this knee-jerk tape. Although, there are a variety of things that can convince me to sell short—which I will discuss at a later date. Nevertheless, I insist: this is a LONG ONLY market, unless of course you’re into swimming with chum on your face in the middle of shark infested waters.

Off for my long walk.

All of you doom and gloomers are tasting the steel of the Federal Reserve this morning, served molten hot by the Chief, Benjamin Bernanke. Over the weekend, the bears were running around in their burlap dresses, snatching portable video game devices from young children, while peddling furiously on their stupid bicycles. Once again, it doesn’t matter what you think, since the world is hell bent on higher prices. When I say “hell bent,” I do not mean garden variety “meh, let’s send stocks higher” conviction. I am talking about “let’s bet the world on this shit going higher (spoken in extraordinarily deep baritone voices),” certitude.

So, before you go out and bet against men with big beards and loaded pistols, think about how insignificant you are and trade accordingly.

As predicted, steel stocks are surging ahead, on the back of good earnings from AK Steel Holding Corporation [[AKS]] . Additionally, euro-fag banks are gapping, including [[RBS]] , Barclays PLC (ADR) [[BCS]] , Credit Suisse Group AG (ADR) [[CS]] and Deutsche Bank AG (USA) [[DB]] .

With my money, I am taking the advice of The PPT‘s oversold signals in steel and initiating a position in Nucor Corporation [[NUE]] , just north of $45.10. And, because I can, I’m buying more Cummins Inc. [[CMI]] and Ctrip.com International, Ltd. (ADR) [[CTRP]] .

I’m thinking the sell off is over and we’re going straight the fuck up; but I could be wrong. What do I know? I’m just a space alien magician with an IQ just north of 155. I’m also thinking I need to add to my Green Mountain Coffee Roasters Inc. [[GMCR]] position ahead of earnings. Those motherfuckers are stealing money from people, by way of selling K-Cups with absurd profit margins. Then again, life is all about increasing profit margins, much to the chagrin of the low-enders who jerk-off at shopping malls.

“The Fly” is into the idea that slapping people with hot hamburgers has a future in motivating others to stop acting so damn childish. I do not mean to be harsh or speak out of line; but most of you deserve several big macs to the nose, AND MORE.

In summary: I’m buying stocks down here because behaving in such a manner has made me rich-er over the past year. My picks are Nucor Corporation [[NUE]] , Ctrip.com International, Ltd. (ADR) [[CTRP]] , Cummins Inc. [[CMI]] , POSCO (ADR) [[PKX]] , Equinix, Inc. [[EQIX]] , TEKELEC [[TKLC]] and Flotek Industries, Inc. [[FTK]] .

NOTE: For those of you who are late comers aka lazy yam eaters, iBC welcomed Scott Bleier to the team today. Be sure to tune into his daily morning radio show, which is simulcasted live here from 9am to 10.

The CreateCoin blog, hosted by Scott Bleier. It’s sort of a clever mash up between our sites, Createcapital and iBC. Scott will not only blog here on iBC, providing the legions of iBC readers with in your face, yet accurate, stock calls; in addition, he will simulcast (live) his daily morning radio show (9am-10) and contribute market commentary videos. He will do all of this, AND MORE!, just because he is a nice guy and wants to help out the downtrodden internet investor; plus there is a minor monetary incentive for Scott to perform such charitable acts, indeud.

For some of you market veterans, you might remember Scott from his frequent guest appearances on CNBC, back in the 90’s. More recently, he co-hosted Bulls and Bears on Fox News. With Scott, you will not get putty mouth bullshit, milquetoast market calls. Scott, like myself, makes bold market calls and is my personal favorite teevee market commentary personality. Needless to say, I am quite pleased bringing Scott on board. Without a doubt, the addition of Mr. Bleier, to the iBC team, will help Senor Tropicana in his quest to puncture oblique-slip faults in the teutonic plates, directly underneath the headquarters of his enemies.

As an aside, Denninger is out with a warming Sunday night piece, calling for the markets to go to zero. There is nothing better than a Karl rant, immediately following a couple of great football games. All jokes aside, I’d love to hang with Karl and get him drunk; then talk him into some long term positions in American International Group, Inc. [[AIG]] , Citigroup Inc. [[C]] and Fannie Mae [[FNM]]—maybe of the call option variety. Unlike other market bears, Karl doesn’t seem to have an agenda, which is why I think he’s great. He is deeply fucking offended by the government and their banksterism. I wish I had it in me to get all crazy, calling for ZERO on the markets and shit. For now, I’ll settle for 11,000.

[youtube:http://www.youtube.com/watch?v=WwlNPhn64TA&feature=related 616 500]

TSAR BOMBA in your face!! Coming soon to iBC, a new tabbed blogger. This time we’re going interactive, and shit. I will unveil this gift from “The Fly” to you very soon AKA “tomorrow.” In the meantime, enjoy looking at the TSAR BOMBA.

This current slide is a bit different than the ’09 variety. I am seeing aggressive selling, spearheaded by retarded government policy mishaps. The end result: bulls are having their faces punched in by burlap boxing gloves.

We’re all trying to decipher the market, in order to best determine where to put our worthless fiat money. I can tell you, looking over The PPT, [[SRS]] and a variety of others ETF’s (which were flagged as buys yesterday) are registering their highest scores ever recorded in PPT history (1year). What does this mean? Well, for one, it means that people are buying the inverses again and the volume is being flagged by our PPT algorithms as being very bullish. On the other hand, typically when a stock hits an all time high or low score in The PPT, it often represents oversold/overbought ranges. One of the main new features of PPT 2.0 will be to automatically identify oversold/overbought conditions. Remember, stocks always look the best at the top and worst at the bottom. For the year, Flotek Industries, Inc. [[FTK]] is up more than 60%. Most people thought they’d be at zero by now.

Anyway, it’s important to view this sell off as legitimate, in the sense that money managers are not happy with Obama’s plans to fuck the banks. I know the banksters are evil and they should all be rounded up and sent to Nike prison factories in Vietnam. However, remember this asshole, without banks doing their dirty deeds, America would be a 2nd rate nation (oh, shit, irony!).

If you are inclined to use this sell off to buy stocks, buy the very best. Don’t bother with low end names that can “ape-rape” you if you are wrong and the market continues to get “burlap-punched.” At the top of my menu are steel stocks, like United States Steel Corporation [[X]] , POSCO (ADR) [[PKX]] and Nucor Corporation [[NUE]] . Also, I like select tech names down here, like Equinix, Inc. [[EQIX]] , TEKELEC [[TKLC]] and [[RAX]] .

In closing, I sold a little bit more today, upping my cash position to about 16%. I am taking hits and not enjoying the carnage. Nevertheless, it is my belief we shall bounce soon and hard. Instead of adding to names here, then having to worry about it over the weekend, I elected to “slow my roll” and reserve my buy orders for Monday, which may coincide with The PPT‘s legendary oversold reading (below 2.30).

NOTE: Here is some melodramatic music for you fucking drama queens getting blown out into the bell. NEVER use margin, unless used for the purposes of hedging.
[youtube:http://www.youtube.com/watch?v=T20PLsUZsZA 616 500]

This action is too fucking greasy. I changed my mind and have reserved all buy orders for Monday.

More later.

I will use this dip to load the fuck up on steel stocks. Inventories are slim and demand is ticking higher. As a result, the price of steel has been climbing, all thanks and praise to the clean folks domiciled in Indian and China. Some of my favorite names include: United States Steel Corporation [[X]] , POSCO (ADR) [[PKX]] and AK Steel Holding Corporation [[AKS]] .

It is my belief that steel, and other related names in the sector, will be big winners in 2010.

Other names on my buy list are: Ctrip.com International, Ltd. (ADR) [[CTRP]] , SandRidge Energy Inc. [[SD]] , TEKELEC [[TKLC]] and Cummins Inc. [[CMI]] .

As we speak, I have one name spiking: Ethan Allen Interiors Inc. [[ETH]] . I believe it is time to take my small treasure on that name and apply it elsewhere.

Wish me luck!

UPDATE: I sold [[ETH]], north of $15.70.

Paul Volker and Prezident O’bama are dipshits. That’s all. There is no need to pontificate further.

Today’s sell off was uncomfortable, but entirely expected and appreciated, from the bottom of my black heart. If I could be so kind, as to return the favor, I’d like to punch the mustaches off of the men who concocted this anti-bank legislation. As a matter of fact, I would rather emphatically enjoy doing it.

Life is good at THE HOUSE OF FLY, as new business keeps rolling in and idiots get kicked down stairs— laden with metal spikes—with great frequency and efficiency. For the day, I nibbled, ever so gingerly, on Cummins Inc. [[CMI]] and TEKELEC [[TKLC]] , with the intent of taking large lion sized bites later on, should the market trade lower from here.

As always, I will use The PPT as my main indicator, to assist the timing of my buys. It truly is a marvel and should be used by all money managers in the United States, providing they were interested in getting out of little leagues of course. Step your game up son, for Le Fly is gunning for your fucking face (so sorry for the sudden outburst of hostility).

My best guess: we have another 3% of downside, then straight up.

NOTE: While you fuckers were hiding under your desks today, “The Fly” was dancing in the blood to this shit, featured below.

I bought 5,000 TEKELEC [[TKLC]] @ $16.19 and 2,500 Cummins Inc. [[CMI]] @ $49.50.

Disclaimer: I am too busy to be clever. Don’t follow me, for this is space alien magician shit.

You do not overhaul the entire financial industry in less than one year after the greatest credit crisis since the exorbitant days of the late Roman Empire. I don’t know what else to say, other than “wow.” They are removed from reality and need to be voted out, before they do some damage we can’t walk away from.

You do not declare edicts, in the midst of a tenuous recovery. The stock market has been the primary source of hope for this country. If the government fucks that up, you can bank on a double dip.

Bottom line: I don’t want to overreact to news that can later turn out to be nothing, as is the case with most government announcements. Nonetheless, I have put all buy orders on hold and suggest that you raise cash (at least 10%), in order to lower the beta, just in case we slide another 5% from here.