Late Day Thought

Tech companies will not withstand a general economic slowdown.

What kind of crack pipes are the fuckers on CNBC smoking?

I mean, really.

I ask myself, what kind of horse shit is this?

Then, I realize, it’s stock market horse shit. The kind of shit that falls on your face, while you’re on a hot date—in a high end restaurant.

Do the above sentences make any sense? No, of course not.

Is it important to be coherent at all times?

No, only when your Mother is around.

Looking at today’s tape, I genuinely feel bad for people who are long stock. I know the pain they are feeling in their gut right now— and it hurts and it sucks.

The stock God’s are fucked up like that. Do you know how many goats and Romanian lions I had to sacrifice, in order to get in their favour (sic)?

Quite a few, might I add.

Just when you think the market is going to break the fuck out, it punches your balls in, with the strength of 10 Marvin Hagler’s.

Sadly enough, many of you were probably celebrating, drinking champagne, eating low-end shrimp. Declaring final victory over the bears; because today was the bottom.

Then, all of a sudden, some jerkoff, with gold chains, broke into your office, punched your eyebrows off, drank your champagne—then stole your wallet.

That’s the market. Enjoy.

The problem with the market is simple:

Our mortgage insurers are on the brink of disaster. Keep an eye on [[MBI]], [[ABK]], [[RDN]] and [[MTG]]. Oh, and now people are speculating that the CFC-BAC deal will not get done. Frankly, I think it’s absurd; but the share price doesn’t lie.

If this market confuses you, just ask yourself one question:

With everything that has transpired in our economy, namely our banks, do you believe, in 11 months from now, the Dow Jones will be down a mere 7% or where it is now?

If so, fear nothing but empty manholes and go long.

In my opinion, we still have another 7-10% of downside left.

Viz.

NOTE: The banks are just getting annihilated here. Hence, I’m banking a profuse amount of coin in my [[LEH]] short and [[SKF]].

NOTE II: When stocks like [[S]] start tanking like this, you know the market is fucked.

Remember [[CMO]]. They own a portfolio that consists of 99% gov’t agency bonds.

As rates drop, spreads will widen, enabling them to bank coin, which in turn will be passed along to shareholders via dividend hikes.

Look for the dividend and share price to appreciate on every rate cut.

[youtube:http://www.youtube.com/watch?v=_y8MZd-GtN0 450 300]

Hell, don’t ever doubt “The Fly” and his fucking “calculator brain.”

With today’s carnage, I banked coin, up more than 6%—for the motherfucking day.

I spit on those of you who said my time machine was broken.

As a result, with the help from the Godly webmaster at IBC, I’ve taken the liberty to track all of you down, mainly home and business addresses, in order to mail out invoices.

Fuck, not only did “The Fly” save your nest egg; he helped you de-bank your neighbors 401k plan—via shorting his stocks.

All in all, the Fed must act. Fade the rallies. Take some profits. Drink some expensive liquor.

NOTE: Oh, by the way, sell short oil.

I sold short 1,000 [[DECK]] @ $121.

Disclaimer: If you sell short DECK because of this post, Shorticus will buy every house on your block, bulldoze them, then build a temple in his honor. And, you may lose money.

I sold out of my [[FXI]] and [[CN]] positions.

Take a look at [[UA]] today. How about [[ZUMZ]] or [[CROX]] or [[HAR]] or [[VLCM]] or [[RL]] or [[TBL]]?

You get it, you fucking faggots?

Specialty retailers are dead, buried and being visited by their family members, once per month.

In my eyes, [[DECK]] is a screaming sell, waiting to give Wall St. fucked up news of a weak consumer, aka chicks with credit cards.

My guess, this stock breaks below $100, within a week.

With our biggest mortgage insurers, [[ABK]], [[MBI]], [[MTG]], [[RDN]], on the brink of insolvency, don’t be a hero—trying to catch a bottom.

Unfortunately, the doomsday scenario of financial crisis may come to fruition, if indeed the credit agencies start doing their fucking job—by downgrading.

If you think the Fed will save you, think again. Traditionally, the market goes down, while the Fed is easing. Anyone who says differently has no fucking idea what he is talking about.

As the market hits the lows of the day, down 1.2%, we are still overvalued, compared to past declines at the onset of recession.

Remember, in 2000 the market fell by 20%, during the months of Jan-March. Thus far, we are down about 7.2%. I would not even think about buying until we are down to the tune of 13%.

NOTE: The breakdown in ag stocks is very disconcerting. However, if you are in the mood to actually make money, consider going long [[SMN]], which is heavily overweight short [[MON]].

[youtube:http://www.youtube.com/watch?v=i-m5fwjjob4 450 300]