18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
21,493 Blog Posts

A Meatloaf Market

Thomas Brown, Philosopher/ Bullish Bank Pundit, nailed the bottoms in MBIA Inc. [[MBI]] and Ambac Financial Group, Inc. [[ABK]] . I am not kidding. Regardless of whether he said to buy XYZ Corp. at $200 all the way to zero, he still nailed this call.

The market threw meatloaf at participants today, longs and shorts. It sort of screwed everyone, in one big pile—similar to the Iraqi prisoner pyramid pics. How gay.

Once again, shares of Vulcan Materials Company [[VMC]] confound me with buckshots to the face. I will be forced to chase this sucker up, averaging up on my shorts along the way. Equally gay.

The banks had a splendid day, led by the spastic retards at Fannie Mae [[FNM]] and Legg Mason, Inc. [[LM]] .

Most of my longs did well, including Hansen Natural Corporation [[HANS]] , The St. Joe Company [[JOE]] , Starbucks Corporation [[SBUX]] , Chipotle Mexican Grill, Inc. [[CMG]] , KB Home [[KBH]] , Microvision, Inc. [[MVIS]] , The Home Depot, Inc. [[HD]] and Credicorp Ltd. (USA) [[BAP]] . Sell offs in VeraSun Energy Corporation [[VSE]] , Clean Energy Fuels Corp. [[CLNE]] and a variety of my oil longs do not concern me.

One thing of serious note is the strength of the dollar versus yen. The recent strength is almost identical to the move up in the broader indices.

Can you say carry trade?

Putting money to work today, for a trade, I’d suggest taking a real good look at the military-industrial complex. Names like Lockheed Martin Corporation [[LMT]] , General Dynamics Corporation [[GD]] , AeroVironment, Inc. [[AVAV]] and American Science & Engineering, Inc. American Science & Engineering, Inc. [[ASEI]] are of great interest to me.

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Fly Sell: CATY, VMC

I sold short 5,000 Cathay General Bancorp [[CATY]] @ $20.25. And, I sold short 2,000 Vulcan Materials Company [[VMC]] @ $72.55.

Disclaimer: If you sell short the above names because of this post, someone will punt you into the lodge section of your favorite football stadium. And, you may lose money.

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Homo Tape

Bitch really isn’t a curse word right? I mean, it is used in pet shops and veterinarian offices throughout the world.

For example: “Dr. Dog Lover, please give that bitch over there some food.” Or, “yo, how much is that bitch in the window”?

Answer: “Two thousand dollars.”

Reply: “What, you must be crazy. I ain’t gonna pay 2g’s for that bitch.”

In other news, Russia is now the enemy. We should have attacked them when Patton had his tanks in Germany. You know it and I know it.

Now, we have to deal with Russian hegemony sacking wonderful cities in the middle of Gods trash dump. Which leads me to my next question: why in the world is Ukraine and Georgia up for NATO inclusion? That’s absurd.

That’s like Russia recruiting Puerto Rico to join the Warsaw Pact.

Truly, our nation is run by imbeciles.

Separate from “The Fly’s” stance on war and peace, the market is “homo-hammering” short sellers to death. It is taking them by the suspenders and punting them, mind you, past the end zone into the lodge section.

VeraSun Energy Corporation [[VSE]] raised capital today, via secondary. I want to be a buyer into this dilution, as a point in fact, viz.

Finally, Vulcan Materials Company [[VMC]] is a filthy whore from the south of Bronx. I do not like her and wish she was dead. But, I do like the fat rollers from Chipotle Mexican Grill, Inc. [[CMG]] .

NOTE: I believe Hansen Natural Corporation [[HANS]] takeover rumors are running rampant. I will hold onto my shares until tomorrow.

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Here We Go Again

Choppy markets are the death knell to sloppy investors. It is almost impossible to time this market, so why bother?

Obviously, my bias is strictly to the downside. However, I do have a variety of long positions, that I have outlined, to hedge against my shorts. I cannot stress this point enough.

With my money, I might buy more Barnes & Noble, Inc. [[BKS]] and KB Home [[KBH]] here. I like BKS, based upon fundamentals. And, I like KBH because it’s nonsensical.

In addition, I will be selling out my Hansen Natural Corporation [[HANS]] position. I bagged a quick 15%+. I’m out. With the proceeds, I will buy more Chipotle Mexican Grill, Inc. [[CMG]] . It’s a bit of a risk. However, should CMG get their act together and report good numbers next quarter, the stock will rip the heads off of short sellers’ necks and sprint to $100, easy.

Once again, tech is strong, led by Research In Motion Limited (USA) [[RIMM]] and Co. Also, Ctrip.com International, Ltd. (ADR) [[CTRP]] is smoking higher on a good quarterly number. Focus Media Holding Limited (ADR) [[FMCN]] might be a trade off of it, or not.

Finally, I want you to understand something. The whole write-off business is going to crush New York’s fiscal budget, for years to come. 20% of New York’s revenue is derived from the banks. I got some news for you: because of the write offs, the banks will be able to operate tax free for years to come. Where will NY and NYC get their revenues from?

Answer: sue the banks.

Top picks: BKS , CMG , short Cathay General Bancorp [[CATY]] .

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With Regards to Blogging

“The Fly” is the Michael Phelps of this game, while the rest of you are just anonymous silver and bronze winners.

UPDATE: Pat Riley on the housing crisis.

[youtube:http://ru.youtube.com/watch?v=2f2sfXQcgpQ 450 300]

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Staind – Mudshovel

[youtube:http://ru.youtube.com/watch?v=3RRboL_U320 450 300]

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My IQ is Higher Than Yours

Don’t get all uppity with yourself. It’s not the behaviour of a gentleman to brag or boast about your wins. Respect your fellow man and help him see the light.

Aside from that, I had another grande day, with wins to the left and wins to the right. Most of my day was spent discussing current events and the state of the NY Mets baseball team.

As far as the market goes: You cannot stop Senor Tropicana; you can only hope to contain him.

Speaking of which, the ‘illegal Mexicans’ that I hire to do my landscaping broke a few garden lights. The next time I see them, I will throw garden gnomes, with pipe bombs attached, at them.

At the end of the day, I bought more [[SKF]] . Without a doubt, the market will be knifing to new lows by fall.

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Beware of False Tells

Oil coming down is not necessarily a great thing, considering it means growth is slowing. And, the decline in commodities will do little for Asian inflation. They have wage inflation issues.

Select strength in tech stocks, like salesforce.com, inc. [[CRM]] and Apple Inc. [[AAPL]] , is not a tell for general market behavior. They are isolated plays, just like Dell Inc. [[DELL]] was back in 1997-1998, during the Asian contagion/LTCM crsis.

On the other hand, just because the banks are weak today, does not mean they cannot sprint higher tomorrow. Expand your time horizon to more than 1 month and you will look at things differently.

Most energy stocks are absurdly undervalued, due to the overly pessimistic outlook for crude. Everyone should own at least one oil stock, representing anywhere between 5-12% of your portfolio. We are now at good risk/reward levels.

Personally, I like National-Oilwell Varco, Inc. [[NOV]] , Ultra Petroleum Corp. [[UPL]] , Arena Resources, Inc. [[ARD]] and ConocoPhillips [[COP]] .

Markets don’t bottom or top; they capitulate. In my estimation, we have yet to capitulate.

In closing, beware of weak volume advances or declines. In my opinion, right now, you should be prepping the battlefield for a September war.

Position yourself accordingly.

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