iBankCoin
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
23,376 Blog Posts

Have Faith in The PPT

The PPT does not grade stocks, based upon simple moves in price. The program was developed to rank stocks, using pertinent data [commodities (soft and hard), currencies, treasuries, volume, beta, etc.] and how they correlate to stock prices. While it’s true, at the moment, 95% of all stocks in The PPT are ranked sell-st sell. It’s also true, this level of bearishness, typically, is unsustainable and often leads to an oversold bounce.

Just know, today’s drop (-17.05%) in “Hybrid score” (which combines both fundamental and technical data) represents the 2nd largest drop in PPT history. In all previous incidents of 15%+ drops in Hybrid score, the market rallied the very next trading session. Like I said earlier on The PPT, trends are made to be broken. However, for the moment, I am willing to give the market the benefit of the doubt, since it has dealt with adversity, exceptionally well, as of late.

Nonetheless, I took today’s sell off as a warning shot and opportunity, to reshuffle my deck, selling off losers, while adding to core names and new positions. At the end of the day, “The Fly” won, even though he lost, if you know what I mean.

Have a deliriously extravagant 4th of July.

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FLY BUYS: ADTN, TKLC, GLW

I bought 10,000 TEKELEC [[TKLC]] @ $16.70 and 10,000 ADTRAN, Inc. [[ADTN]] @ $23.05.

UPDATE: I bought 10,000 Corning Incorporated [[GLW]] @ $15.35.

Disclaimer: If you buy the above stocks because of this post, the market will destroy your marriage and put you on the street with a tin cup. And, you may lose money.

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Restructuring

Fuck it, I changed my mind, with regards to my current positions. I’ve been toiling over my current structure and, frankly, have been in denial for too long. I have been slowly bleeding out for about a month now, so it makes little sense to continue holding onto bullshit depreciating assets.

I have decided to build around certain names and use the proceeds of my sales to fund my new investment thesis. In other words, I have been slashing and burning through my positions, going to cash, in order to accumulate core positions at a discount and new names on the cheap. The reason for this shift is very simple: everything is dropping now. Therefore, it makes zero sense to hold onto low quality crap, when you can buy high quality crap, at a discount.

Hence, I sold out of Trident Microsystems, Inc. [[TRID]] , GameStop Corp. [[GME]] , Ingersoll-Rand Company Limited [[IR]] , Umpqua Holdings Corporation [[UMPQ]] , Sify Technologies Limited [[SIFY]] , [[CNXT]] , Arena Resources, Inc. [[ARD]] and Finisar Corporation [[FNSR]] . I’ve decided to stick with, through good times and bad, Flotek Industries, Inc. [[FTK]] , [[ENTR]] , Atmel Corporation [[ATML]] , Corning Incorporated [[GLW]] , OmniVision Technologies, Inc. [[OVTI]] , SandRidge Energy Inc. [[SD]] and salesforce.com, inc. [[CRM]] . For the moment, I am holding [[UNG]] and [[ERX]] . However, they are trading positions and subject to sale at anytime.

With the proceeds, I will likely nibble at some of my core holdings, but in a patient/methodical manner. More importantly, I will commence building a portfolio of select tech names, at a deeper discount, if possible.

Based upon past statistical data, The PPT is suggesting the market will bounce tomorrow, or at a minimum, sometime very soon. Therefore, I will not be adding any shorts to the mix.

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Scared Yet?

Ooh, U.S. employers slashed jobs, sending the unemployment rate up to 9.5%. Are we about to form the ever ominous “W” formation, with regards to the markets and the economy? Stay tuned friendly folks of the internet; we shall find out soon.

If I was to tell you “there was no surprise in today’s weaker than expected jobs numbers,” you’d call me a “market apologist” and “permabull” (an internet favorite), so I will refrain from doing so. What’s important to note today is my face being ripped off by rabid clowns, completely unexpectedly, due to my long bias. For the day, I am “enjoying” steep declines in [[ERX]] , GameStop Corp. [[GME]] , OmniVision Technologies, Inc. [[OVTI]] and Corning Incorporated [[GLW]] —just to name a few. The pendulum of death swings in both directions. Much to my chagrin, it is now stuck in my cranium.

Despite today’s drubbing, I’m not going to throw gasoline on the grill, by shorting stocks here, after a 170 decline. The fact of the matter is, stocks have responded very well to sell offs, in recent months. Therefore, I will tough this one out, like all of the others, unless of course the shadows near my favorite urinal tell me to hedge my positions. Last I checked, the shadows were just sort of standing there, doing nothing.

UPDATE (PPT only): THIRD LARGEST HYBRID DECLINE EVER (statistical data on previous dips of this sort)

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A Good Start

Nothing spectacular, just a good start. It’s offcial, we entered the 2nd half of 2009 intact, with the Government in control and Dennis Kneale spewing garbagio towards the financial blogosphere.

“The Fly” entered the 2nd half of 2009 up more than 60%. For the day, he was mostly unchanged, due to some retards selling off Corning Incorporated [[GLW]] on good news. Some might call that “topping action”: I call it a buying opportunity. Truth be told, ahead of the 4th of July festivities, I do not expect much of anything from the market. As dick sucking retards trade in and out of FAZ to FAS, people with moderate to high incomes are planning weekend getaways.

What’s left of my small cap portfolio is worth having patience for, so quit asking if I “am still in.” I think Flotek Industries, Inc. [[FTK]] , Trident Microsystems, Inc. [[TRID]] , [[ENTR]] , Sify Technologies Limited [[SIFY]] , [[CNXT]] and Finisar Corporation [[FNSR]] trade higher; so fuck off with your snide remarks. Remember, my time frame is different than yours, as I do not rely upon making 500 day trades, in order to pay for my cellphone bills.

Going up the market cap ladder, I like GameStop Corp. [[GME]] , Ingersoll-Rand Company Limited [[IR]] , Corning Incorporated [[GLW]] , OmniVision Technologies, Inc. [[OVTI]] , TEKELEC [[TKLC]] , [[ARMH]] , Atmel Corporation [[ATML]] , Arena Resources, Inc. [[ARD]] and salesforce.com, inc. [[CRM]] . My only sector play is in the oil/gas sector, via [[ERX]] : I think it trades up to $37.

At the end of the day, life is too important to worry about head and shoulder top formations. People with lives, and worthwhile events to attend, invest with honor and dignity, which, incidentally, excludes all aspects of technical analysis.

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Halftime Report

So, we are half way through 2009 and the market is flat. I must admit, I am shocked by how well the market has responded to a flurry of bad news. However, I understand why it is going higher and that is why I am up 60%, year to date, with a very bullish bias.

In late 2008, I made some dire predictions for the market, underpinned by delusions of deflation. I thought, there was no way the credit markets could return, and as a result, commercial real estate firms/underfunded banks would fold under the pressure. Must to my surprise, the exact opposite occurred.

Maybe it was the devils from Goldman or just plain Leprechaun luck, but the credit markets are back in full force, financing all types of stupid shit. Hell, even the ipo market is back. One tell on how the credit markets are doing is via the price action in [[JNK]] . Put it on your little monitors and watch it very closely.

If you recall, I predicted a 50% first half slide in the markets and a monster 2nd half recovery. My year end prediction was for a decline of 15% in the Dow, which is still entirely possible. We have been blessed with some sort of odd version of “investment inflation,” whereby the price of “stuff” has increased due to asset allocation, as opposed to fundamentals. Some people scoff at such a move as manipulative fuckery. However, I view it in a very bullish way.

See folks, money is circulating again and it’s being invested, in a very egregious way. There are strong signals coming out of the technology space, in particular 4g/smartphone/semiconductor names. And, for the love of green shoots and red robins, oil stocks are ripping out the eyeballs of overzealous short sellers.

Going forward, I believe the markets will trend higher, until it is proven the “so called recovery” is false. To be honest, I have no way of knowing if the economy is going to continue to rebound; that’s the whole beauty of this rally: no one knows what the fuck is going on. We’re all sort of throwing shit against the wall and hoping that it sticks. In my estimation, we have at least another month or two of “easy money,” as economic data is obscured by government fuckery and inventory restocking. If the recovery is proven to be legit, we will end the year above 10,000. If not, well, we might see the market go back to the lows.

As a manager of assets, it is my job to gauge the temperament of the market and make directional bets. In my opinion, as long as people have hope, the market will go higher. Right now, much to the chagrin of many bearshitters, this market is chockful of hope.

As for my investment style, it is about to change in a dramatic way. I will be moving away from the randomly selected small cap space, in exchange for a heavy technology oriented theme, as outlined, exclusively, on The PPT. It will be egregiously Godly. And, most importantly, it will be profitable.

That’s all.

Via The PPT, here are the top 50 winners for 2009, thus far:

1 DDRX 6,319
2 VNDA 2,300
3 DTG 1,228
4 CTIC 1,114
5 AIG 1,093
6 UEC 880.65
7 BGP 820.00
8 NEPH 742.50
9 SMRT 702.65
10 PRSC 656.55
11 IFON 632.00
12 HEB 580.56
13 ANPI 561.54
14 STEC 507.59
15 WAVE 499.11
16 VVTV 490.91
17 PIR 483.78
18 DNDN 436.90
19 GSAT 435.00
20 PALM 434.53
21 NGSX 417.09
22 RAD 400.00
23 RFMD 399.00
24 LNET 398.57
25 CBOU 397.06
26 ENTR 388.00
27 VCI 387.88
28 ONTY 371.25
29 NBS 361.70
30 CHUX 361.50
31 DFT 357.49
32 SPPI 357.05
33 VM 355.95
34 COT 351.56
35 APAC 350.41
36 KIRK 342.26
37 CHLN 335.66
38 RT 332.69
39 MRNA 332.35
40 MGPI 330.15
41 TSTR 330.00
42 ISLE 328.44
43 ISCO 325.00
44 AGEN 320.85
45 NAVR 320.00
46 CMRG 319.23
47 KERX 318.32
48 JVA 313.25
49 WZEN 309.76
50 BZ 309.30

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Kneale Rocks

ball on his chin.

Last time, Commissar Kneale took on the blogsphere, belittling those who write anonymously, while embarrassing some dipshit who called in for a “CNBC one on one.” First of all, Kneale should quit being such a big baby and take the criticism like a fucking man. He shouldn’t be using the CNBC bully horn to even out scores with some bloggers, who happen to think he is a moron. Furthermore, he should understand and respect the fact that some people need anonymity to blog; because, without it, blogging would not be an option, if you know what I mean.

Personally, Dennis Kneale’s on air swagger grates my soul. He is an empty vessel, with too much make up on his face and a fucked up hair cut. I think, if I might so bold, he’d look better with lipstick and a red clown nose; but then again, I’m just some disgruntled (ARGHhhhhhhhh) blogger tossing salt on a few slugs. What do I know?

As for the tape:

Everything seems to be going according to plan, sans Flotek Industries, Inc. [[FTK]] . What a bitch of a whore. Nonetheless, the day is young. I believe in magical miracles.

Tech stocks are leading the way up, with gains in [[ERIC]] , Akamai Technologies, Inc. [[AKAM]] , Intel Corporation [[INTC]] , amongst dozens more. In short, it’s time to get your popcorn ready. This fucker (market) is about to leave you cash holders in the dust, while mudstomping those of you who are opposite of Mr. Kneale’s market position.

Across the board, Wall Street analysts upped their eps estimates for Corning Incorporated [[GLW]] today, yet the stock is down. Without a doubt, Gloworm is a buy under $16.

In closing, this is not your Grandmother’s stock market, old pappy. Quit dreaming of dust bowls and get your share of the billions being made.

Top picks: Corning Incorporated [[GLW]] , OmniVision Technologies, Inc. [[OVTI]]

UPDATE: In order to show you lowly folks how fair and balanced iBC is: DENNINGER IS WRONG. Karl, I believe Woodshedder is calling you out. Good day to you, Sir.

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