Radiohead – House of Cards

[youtube:http://ru.youtube.com/watch?v=8nTFjVm9sTQ 450 300]

Okay. After consulting with my personal weather man, I have decided to aggressively accumulate energy stocks, as if the last barrel of oil known to man was just filled.

Don’t worry. I have been buying shares of [[DIG]] and [[IEO]] with the utmost amount of quietness and sincerity, just in case you thought I was loud and insincere—God forbid.

In addition, I took some small/baby bets on Arena Resources, Inc. [[ARD]] , Ultra Petroleum Corp. [[UPL]] and even Global Industries, Ltd. [[GLBL]] .

Basically, “The Fly” has allied himself with Gustav and will “wishcast” that devil into the rigs, as if he had magical powers—which he does.

As an aside, I sold out of my [[REW]] position. Notice the trend of systematic reduction of short positions, going into the gayest time of year, late August.

At the present, for a trade, I like [[UYG]] , [[RKH]] , Southern Copper Corporation (USA) [[PCU]] , Lehman Brothers Holdings Inc. [[LEH]] and all of the stunt dogged energy plays that I mentioned prior.

I bought 4,000 Arena Resources, Inc. [[ARD]] @ $45.09.

Disclaimer: If you buy ARD because of this post, fat sanitation workers will spit on your car. And, you may lose money.

Pun intended, of course.

Aside from Gustav, we have a financial storm brewing in Fannie Mae [[FNM]] , Freddie Mac [[FRE]] and Lehman Brothers Holdings Inc. [[LEH]] . The trillion dollar question is: when will it happen and how will the market react?

Judging by today’s trading, no one really knows.

Since it makes little sense to try to think like an insane Fed or Treasury guy, I believe it is logical to stay away from the financials, at least for a week. Instead, go play with the hurricanes or take a wild stab at some short positions in ‘global growth plays.’ However, my top pick is still short Legg Mason, Inc. [[LM]] .

Bill Miller is just too dumb to ignore.

It’s just real boring out there. To be honest, I feel like I am wasting my time working today. However, I want to be around when the bomb explodes. Therefore, I must work everyday until it detonates.

With my money, I sold out of my remaining [[FXP]] shares and I covered my entire First Horizon National Corporation [[FHN]] short.

Sometime today, I may up my exposure to energy stocks.

Just in case this new ‘Deacon of Death’ is able to muster up some circular activity into the Gulf and knock those stupid oil rigs offline, start getting long [[DIG]] .

Then, if you really want to get fancy, playing the oil/gas lottery, get long Global Industries, Ltd. [[GLBL]] , NGAS Resources, Inc. [[NGAS]] and [[PDO]] .

On the safer side, I like Arena Resources, Inc. [[ARD]] , Ultra Petroleum Corp. [[UPL]] and Southwestern Energy Company [[SWN]] .

Basically, the market is trying to trick everyone into making bad moves. Mother Market loves to bankrupt imbeciles with online trading accounts. And, even better, she loves to beat money managers to death, usually with their own charting rulers.

As you know, “Plutonium Petey” is still hedged and will stay that way until Wednesday. However, there are some stocks that he likes, such as: Equinix, Inc. [[EQIX]] , Southern Copper Corporation (USA) [[PCU]] and National-Oilwell Varco, Inc. [[NOV]] .

As an aside, I think Yamana Gold Inc. (USA) [[AUY]] is “homeless man going out on a date cheap.”

Separately, I believe Cramer pumped my Clean Energy Fuels Corp. [[CLNE]] , again. I refuse to sell a share. The shares that I still own are earmarked for long term investing, more than a 1 year hold.

Finally, it is quite odd seeing Fannie Mae [[FNM]] and Freddie Mac [[FRE]] spike like this. It’s almost as if the Government is prepared to enter the company at the equity level. If so, it would mean they (our gov’t) are dumber than anyone else thought, putting shareholders ahead of tax payers. However, it might give the market a short term jolt, until people with brains figure out how gay Paulson is. Then the market will trade down and make the cheese makers look like donut hole punchers.

Trade accordingly.

CRH today forecast a decline in full-year pretax profit similar to the 10 percent drop recorded in the first half. The company said last month it will fail to post a 16th consecutive year of profit growth in 2008 as banks curb lending, stifling demand for homes in Britain and the U.S., where the company derives more than 40 percent of its revenue.

Add CRH PLC (ADR) [[CRH]] to your infrastructure short list, which includes: Vulcan Materials Company [[VMC]] , Martin Marietta Materials, Inc. [[MLM]] , Texas Industries, Inc. [[TXI]] , Eagle Materials, Inc. [[EXP]] , Foster Wheeler Ltd. [[FWLT]] , Fluor Corporation (NEW) [[FLR]] , ABB Ltd (ADR) [[ABB]] , Terex Corporation [[TEX]] and Caterpillar Inc. [[CAT]]

UPDATE: Some love for Krull. Go check 4:40 for Godly jargon.

Stuff like this only happens to me. It is the only way I am able to bank so much coin in the market: egregious things must happen to me in real life, effectively balancing out the ying to my yang.

The blood work, that almost killed me, must be done again, due to “an inadequate barrier between the red cells and serum, Optimum barrier formation requires inversion of the barrier tube 5 times immediately after blood is drawn. Clotting in a vertical position for 30 minutes. Centrifugation for 15 minutes.”

In other words, these morons who nearly merc’d me with their needles likely threw my tube of blood on their desk for an hour, while they ordered chinese food or something.

Over my dead body, will I take another blood test.

Developing…

[youtube:http://ru.youtube.com/watch?v=7QlemZ32_xM 450 300]

Up 200—down 200.

It’s nearly impossible to win when the market is jerking you around like that. Look at today’s oil trade. Oil was up, yet oil stocks fell through the floor boards.

On Friday, it appeared the worst was over. Everyone was back to doing lines of blow, while planning their trips to strip clubs. Then, after an egregious weekend, everyone remembered the end of times was upon us, effectively selling stocks for dear life and sanity.

With my money, I am still frozen, masterfully hedged both long and short. While it’s true, I am taking brass knuckled jabs to the teeth, being long Lehman Brothers Holdings Inc. [[LEH]] , [[DIG]] , [[RKH]] and [[UYG]] . It’s also true that my short positions in Vulcan Materials Company [[VMC]] , First Horizon National Corporation [[FHN]] , Legg Mason, Inc. [[LM]] and Pzena Investment Management, Inc. [[PZN]] are bountiful.

And, let’s not forget, I am still long [[SKF]] , [[SRS]] , [[REW]] and [[TWM]] .

Basically, I believe the market will get boot stomped, in a very violent way, during the months of September and October. Stocks like Goldman Sachs Group, Inc. [[GS]] , Merrill Lynch & Co., Inc. Merrill Lynch & Co., Inc. [[MER]] and Citigroup Inc. [[C]] will nose dive, effectively mugging people like Bill Miller and the Fast Money crew.

The good news: the Godly folks at iBC are diligently working on incredibly tasteful stock ranking software. It is very complex and has taken months to develop. My guess, it might be ready for launch, over the next month or two.

More on this later.

Right here, it makes sense to bet against infrastructure stocks: VMC, Texas Industries, Inc. [[TXI]] , Martin Marietta Materials, Inc. [[MLM]] , Foster Wheeler Ltd. [[FWLT]] , Fluor Corporation (NEW) [[FLR]] , ABB Ltd (ADR) [[ABB]] and Eagle Materials, Inc. [[EXP]] . And, the casino operators are so subprime, it’s not even funny. There, I like bets against Las Vegas Sands Corp. [[LVS]] , MGM MIRAGE [[MGM]] and Boyd Gaming Corporation [[BYD]] .

Finally, with the vix spiking hard today, I would not be surprised to see the market rally tomorrow.

Just remember, when in doubt, unable to discern what makes sense, bet against Bill Miller and his retarded asset management division, via short LM.

UPDATE:

Hat tip: Denninger

No one cares what Dick Bove, Hank Paulson, Ben Bernanke or Ducati have to say (note the “bell curve analogy”).

The market ignores the scurrilous rants of Cramer and grotesque recommendations of Larry Kudlow.

They spit on the machinations of “The Commodity King,” Dennis Gartman, while farting in the face of Warren Buffett.

Every time Abbey Joseph Cohen speaks, her words are ignored, as if she was a red nosed clown.

Analysts from around the globe scream louder and louder, hoping for someone, anyone, to listen to them and buy a little stock. Yet, every time they (the people) listen, they are assailed and flogged with heavy capital losses.

For years, the analysts have been wrong. As a matter of fact, they are always wrong—yet Wall Street still listens to their opinions— as if they meant something.

They (the analysts) are marched onto the sets of CNBC and Bloomberg, wearing their finest cotton and shiniest shoes. Their brains are picked and pried, as if they had the cure for cancer, when in fact their logic is nothing more than vacuous balderdash.

For years, the CEO’s of our banks have misappropriated bank deposits, leading to ghastly and barnyardesque losses, all the while our regulators focused in on naked short sellers or low end stock peddlers.

See, we have a problem and no one cares. All we get are band aid solutions, with sophisms from our leaders.

In summary, the problem is not bottom up, but top down. Nothing will change, until we start listening to the people who care (Ron Paul and men like him).

Top pick: short Legg Mason, Inc. [[LM]]