The Summer Rally is Coming to an End

This is your final warning. Dollar strength has rejiggered asset allocation models, throughout the globe, causing U.S. equities to spike. However, keep in mind, these same ham and eggers were long “BRIC” in size, just prior to its swift execution.

This is a light volume summer rally. Like previous summer rallies, in the midst of a bear market, it will fail (miserably), causing upright walking pigs, in tight neck ties, to wish they took up a different field of business.

With my money, I bought some more [[SKF]] at the bell. At the present, I have a decent blend of long/shorts. However, I am prepared to sell most of my longs, in order to benefit from the inevitable leg down, whenever it commences.

I am not really a big geopolitical fan. I think people who waste their time with politics and “world news” are mentally ill and may pose a risk to small pets. However, it’s worth noting, the insanity of investors, totally ignoring Russia and their stupid tanks, is impressive and appalling at the same time. On the bright side, the military-industrial complex is benefiting— in a big way.

Top picks: General Dynamics Corporation [[GD]] , Lockheed Martin Corporation [[LMT]] , AeroVironment, Inc. [[AVAV]]

UPDATE: Barry touches on a point I have been making for months: municipalities are in trouble.

I do a lot of talking on this here internets. God willing, some of you can take my wisdom and translate it into cogent financial decisions. I do this, not for the love of man or to help random slobs over the internet. If you ask around, “The Fly” is all about himself and acquiring “internet billions” through sheer force (if needed), similar to Russian tanks in Gori.

Long story short, this is a very difficult market. But, it is not exclusive in its level of trickery. If the market was easy, all of you morons would be “The Fly,” throwing idle cannon balls at your neighbors barking dog.

Let’s say I tripped over 250k, in unmarked bills, ready to invest. This is how I would deploy it, right now:

Long exposure: 60%

Banks: (10% or 25k)- Wachovia Corporation [[WB]] , Assurant, Inc. [[AIZ]]

Energy: (10% or 25k)- National-Oilwell Varco, Inc. [[NOV]] , Arena Resources, Inc. [[ARD]] , Ultra Petroleum Corp. [[UPL]] , Clean Energy Fuels Corp. [[CLNE]] and VeraSun Energy Corporation [[VSE]]

Tech: (zero)- overbought

Industrials: (10% or 25k)- Lockheed Martin Corporation [[LMT]] , General Dynamics Corporation [[GD]] , AeroVironment, Inc. [[AVAV]] , American Science & Engineering, Inc. [[ASEI]] , L-3 Communications Holdings, Inc. [[LLL]] , Northrop Grumman Corporation [[NOC]] , Textron Inc. [[TXT]] , KB Home [[KBH]] , The St. Joe Company [[JOE]]

Consumer Discretionary: (5% or 12.5k)-  Barnes & Noble, Inc. [[BKS]] , Starbucks Corporation [[SBUX]] , Chipotle Mexican Grill, Inc. [[CMG]] , J. Crew Group, Inc. [[JCG]] and NutriSystem Inc. [[NTRI]]

Consumer Staples: (10% or 25k)- The Clorox Company [[CLX]] and Colgate-Palmolive Company [[CL]]

Materials: (5% or 12.5k)- Freeport-McMoRan Copper & Gold Inc. [[FCX]]

Healthcare: (10% or 25k)- Gilead Sciences, Inc. [[GILD]] , Auxilium Pharmaceuticals, Inc. [[AUXL]] , Valeant Pharmaceuticals International [[VRX]] and Pfizer Inc. [[PFE]] .

Short exposure 30%

Inverse ETF’s: [[SKF]] , [[SRS]] , [[REW]] , [[DUG]] , [[FXP]]

Equity shorts: Lehman Brothers Holdings Inc. [[LEH]] , TCF Financial Corporation [[TCB]] , Cathay General Bancorp [[CATY]] , Goldman Sachs Group, Inc. [[GS]] , Morgan Stanley [[MS]] , Merrill Lynch & Co., Inc. [[MER]] ] , East West Bancorp, Inc. [[EWBC]] , First Horizon National Corporation [[FHN]] , [[FED]] , Marshall & Ilsley Corporation [[MI]] , Zions Bancorporation [[ZION]] , Pzena Investment Management, Inc. [[PZN]] , Legg Mason, Inc. [[LM]] , Capital One Financial Corp. [[COF]] and Continental Airlines, Inc. [[CAL]]

I bought 1,000 [[SKF]] @ $118.75. And, I allocated approximately 25k in each of the above defense names.

Disclaimer: I am too lazy to offer you a clever disclaimer. Just know, you are not smart enough to make money on your own.

NOTE: [[ITA]] is a good etf, if you are interested in defense names.

I sold 10,000 [[FXP]] @ $90.15.

Don’t speak of Vulcan Materials Company [[VMC]] . Don’t even do it.

On the backs of $112 oil, Wall Street is celebrating, via having a Liberace ‘gay fest’ with stocks. It’s not of great importance whether banks have money or not. All that matters is if Joey Bag o Sixpacks has enough bread to buy a bag of doritos at his local gas station. See, with gasoline diving to the bargain level of $3.99, now, he can afford to splurge.

Nonetheless, I am quite willing, and able, to gamble on today’s rally getting cut into ribbons, by sharp clawed bears out for revenge.

If not, I will enjoy the melt-ups in Chipotle Mexican Grill, Inc. [[CMG]] , Barnes & Noble, Inc. [[BKS]] , KB Home [[KBH]] , The Clorox Company [[CLX]] , NutriSystem Inc. [[NTRI]] , while lamenting TCF Financial Corporation [[TCB]] , Clean Energy Fuels Corp. [[CLNE]] and National-Oilwell Varco, Inc. [[NOV]] .

Gold is entirely gay.

But, my [[FXP]] is sprinting higher. Take it from me, both China Life Insurance Company Ltd. (ADR) [[LFC]] and China Mobile Ltd. (ADR) [[CHL]] are run by imbeciles with crap in their top drawer.

With my money, I may sell a little more FXP, in order to finance one more round of egregious [[SKF]] buying. And, I will sell out all of my Hansen Natural Corporation [[HANS]] ; this time I mean it.

Lastly, I will buy some ‘war stocks.’ I am into that sort of thing now. I will buy a basket, that includes: General Dynamics Corporation [[GD]] , Northrop Grumman Corporation [[NOC]] , AeroVironment, Inc. [[AVAV]] , American Science & Engineering, Inc. [[ASEI]] , Alliant Techsystems Inc. [[ATK]] , L-3 Communications Holdings, Inc. [[LLL]] and Textron Inc. [[TXT]] .

NOTE: At the present, I am long GD, Lockheed Martin Corporation [[LMT]] and AVAV.

I think I can speak for all iBC’ers when I say “we’re all illegal Mexicans today.”

[youtube:http://ru.youtube.com/watch?v=aDrTF0UFT-k&feature=related 450 300]

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.

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.

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.