Wait For It

The dollar will drop; mark my words. If you believe the European printing presses are in the same league as our AMERICA3000 printing press bots, you are in for a rude awakening.

Looking at the dollar trade up is sort of like watching MNCS trade higher, back in the day. Some of you old FOWS vets know what I am talking about. It’s a temporary phenomenon, but ultimately, you know what will happen: dollar fuckery.

The Fed will not raise rates and our government will not cut back on spending. Our demands for fiat currency are much greater than anyone than anyone else (pardon the sudden tourettes episode), which is why it makes sense to bet against “le dollar,” with the tenacity of a hungry mountain lion trapped inside a room full of punk, teenage skateboarders.

Petroleo Brasileiro SA (ADR) [[PBR]] is worth a look down here, if you are interested in Brazil/oil. The stock has been punched in the face and has a history of outperforming other oils.

With my money, I am vexed by Masco Corporation [[MAS]] , and elated by TEKELEC [[TKLC]] . The good news for me: my TKLC position is 3x the size as my MAS. I will wait a few days on MAS, then look to average in. Additionally, I like the metals here, namely POSCO (ADR) [[PKX]] , Nucor Corporation [[NUE]] and United States Steel Corporation [[X]] .

UPDATE: I sold another 25% of my Cummins Inc. [[CMI]] position, north of $53.40

Poof! Your bullshit dollar rally is gone.

-Merlin

While in the bathroom, Bradley Hamlargular was accosted by the bathroom attendant for a small tip, namely for providing talcum powder, paper towels and a dash of cologne. Bradley, who was well known by members of his local country club and business associates for being the most frugal man alive, told the bathroom attendant “fuck off and die in a hole filled with pig vomit.” Stunned, the bathroom attendant grabbed his paper cup filled with $1 tips— and ran out of the bathroom crying.

Composed and collected, Mr. Hamlargular returned to his quaint table, where Peter Rotesque was busy filling out some forms, all pertaining to their business.

“Let’s get this wrapped up Peter, I really need to go,” exclaimed Bradley.

“No problem Brad. I just need you to sign these… (burp!) Oh my Brad, I am sorry about that. It must be all of that club soda I was drinking (laughing nervously without composure). Anyway, like I was saying..”(interrupted by Bradley)

“Just give me the damn forms Peter. Where is my pen?”

“What pen?” said Peter

Bradley fired back “the fucking $20,000 pen that I left on this very table, when I left for the bathroom. That pen.”

Calmly, Peter replied: “I don’t know what you are talking about Brad. I’ve been here working on these papers” (Peter lifted up a 3 inch thick stack of papers and waived them in the air).

Enraged, Bradley left the table and demanded to speak to Andre, the maître d’ of The Four Seasons, who, at the moment, was busy talking on the telephone booking a party of 15 for one of his best customers. Annoyed by Bradley Hamlargular’s presence, Andre snapped his fingers at one of his underlings to assist Bradley with his pressing issue.

Back at the table, Peter paid for lunch (minus a tip), stuffed his briefcase with papers, then got up and walked towards Bradley.

“Hey Brad, come over here. The pen was probably stolen by one of those greasy waiters. Forget about the stupid pen. I will buy you a new pen. Look, I need to get back to the office. Take my pen and sign these papers please.”

Bradley, caught off guard by Peter’s brazen attempt to brush off the loss of his prized $20,000 Grayson Tighe Limited Edition rollerball pen, agreed and quickly signed the documents.

Peter said “thanks buddy. I’ll give you a ring later on” and quickly left The Four Seasons, shuffled into a yellow taxi, destined for his office.

Much to the bewilderment of the anxious cab driver, inside the taxi, Peter (with a big grin on his face) pulled out an oversized mirror from his briefcase, looked into it and said “A great many rotesqueries Peter. A great many rotesqueries.”

To be continued…

Related: Part 1

Brocade Communications Systems, Inc. [[BRCD]] is running on strong volume, due to renewed takeover chatter. It’s been a few months since I have been an active buyer of the 4g space. With this sell off, I believe it’s time to look over some names and take down some positions. At the present, I am pretty heavy in commodities, particularly because the sector has been beaten like a red headed step child. However, on a rebound, I will sell some of my commodity plays, in exchange for tech.

For the most part, the tech space is in terrific shape, with 4g/LTE rollouts underway and company balance sheets rich with cash. Needless to say, the sector is ripe for consolidation. Currently, TEKELEC [[TKLC]] is my largest tech holding.

With all of this snow, look for sales of rock salt to shoot through the roof. Compass Minerals International, Inc. [[CMP]] is your play.

Should the market close with minor gains or losses, look for it to springboard tomorrow, based upon the will of the stock market Gods. Go ahead and treat yourself to a meal of mutton and sweet ambrosia. Your fortune is about to change for the better.

For the day, I added to my Ctrip.com International, Ltd. (ADR) [[CTRP]] position and initiated new positions in Gammon Gold, Inc. [[GRS]] and [[TAN]] . With regards to TAN: the solar industry is ridiculously cheap. I believe the pressure is due to the fact that Europe, especially Spain, are huge consumers of solar crap. For some reason, investors are pricing in European VAPOR-LOCK mode. It is my belief, these grave concerns are way overblown, which is why I am long Spain, via [[EWP]] .

I sold 25% of my Cummins Inc. [[CMI]] position, for a nice profit, in order to raise cash for new buys. My current cash position is less than 8%, with year to date losses of less than 1%—thanks to yesterday’s run up. Essentially, for me, 2010 has been one great circle jerk, thus far. In order to escape from the claws of boredom and mediocrity, I will need to step up my “A-game,” and trade with greater frequency. In other words, today’s trash is tomorrow treasure etc.

I bought 15,000 [[TAN]] , based upon laws of reason, @ $8.30. And, I bought 1,000 Ctrip.com International, Ltd. (ADR) [[CTRP]] @ $32.90 and 5,000 Gammon Gold, Inc. [[GRS]] @ $9.58.

Disclaimer: If you buy the above stocks because of this post, your family hamster will drop dead. And, you may lose money.

Just doing a little trimming, in order to rebalance.

I sold 25% of my Cummins Inc. [[CMI]] position, north of $52.20

Young man, you are very stupid and naive. The game, better known as globalization, will not be disturbed willingly. The Chinese will not stop buying our treasuries and the Greeks will get bailed out. If you seriously think the Chinese will start dumping treasuries, in order to “get revenge” for some oddball reason, you are delusional. If you believe that, I have a spare time machine for sale. Are you interested?

Enough of the dramatic conspiracy theories. KEEP THAT SHIT ON OTHER low end sites, where tinfoil and burlap are the preferred evening attire.

Into this fucking melt up, I like stocks. I like lots of them, particularly POSCO (ADR) [[PKX]] , Ctrip.com International, Ltd. (ADR) [[CTRP]] , TEKELEC [[TKLC]] and [[EWP]] . That’s right fucker, I like Spain.

I will fucking destroy you—rip you apart limb by limb. I know what you are thinking. Let me remind you, I do not lose, nor am I accustomed to being in a losing position.

While you fuckers get “greek’d out” short stocks, I will be buying. I will be buying with both hands, eating clams, playing in the sand. I am joining Uncle Fucker ‘Gint in betting against the dollar. The time for half measures and FAZmobiles are over. I will begin buying gold soon, with great vigor and uncompromising tenacity. I have names worth buying; but they are none of your concern.

I am not “mean,” as some of you softer folk like to whine about. I don’t have time to be nice. It fucks with my galactic balance.

In short, Dennis Gartman aka “The Commodity King” is wrong, once again. The market will not trend lower and only morons name themselves “King” of an entire asset class.

You’ve been warned and told. Now be gone.

I bought 10,000 ATP Oil & Gas Corporation [[ATPG]] @ $14.43.

Disclaimer: If you buy ATPG because of this post, you will get herpes. And, you may lose money.

The greasy monkeys from Greece have been SAVED!! As a result, short sellers are getting the “Greek treatment,” by way of large and unsustainable capital losses. Wins can be found everywhere, especially in the beaten down commodity sector.

My top picks are POSCO (ADR) [[PKX]] , Cummins Inc. [[CMI]] , United States Steel Corporation [[X]] and Nucor Corporation [[NUE]] .