The Cold War, Part II

This is great. Being that we are in a 73-74 market type of mode, why not top it off with hostilities between the fucking Soviets and the U.S. too?

I never liked those fuckers—always pointing missiles and shit at me.

Russia’s will be forced to make a military response if the U.S.-Czech missile defense agreement is ratified, the Foreign Ministry said Tuesday.

If the agreement is ratified, “we will be forced to react not with diplomatic, but with military-technical methods,” the Foreign Ministry statement said. It did not give specifics of what the response would entail.

NOTE: This news can rattle the markets, while giving a bump to crude and natty.

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Do not attempt to give me advice or suggest market stratagem. “The Fly” could give two fucks and a gay giraffe about your opinions or machinations. Just know, you giving me advice is equal to the bat boy giving advice to Ty Cobb, and shit. Fuck around and I’ll drop kick you in the chest, with my spikes on.

In other news, I am all about betting against global infrastructure plays now. I don’t believe it. It’s all Hollywood.

Stocks like [[ACM]], [[JEC]], [[FWLT]], [[FLR]] and [[ABB]] are in bubble mode; and I have a pin.

Just in case you are wondering, I am not diversified. We’re in def con 5 mode. There is no need for asset diversification, when shit is moving in a convoy lower. I know that is a very unorthodoxed strategy; but I believe it is prudent.

I can’t be saddled with 100 positions while the market is coughing up blood, falling all over the place. My approach is to have no more than a dozen core or trading positions, while keeping a large cash horde available.

My positions include both long and short. In order for my hedges to be effective, they must have some sort of inverse relationship to one another. Over the past 6 months, I have been long crude/short banks. At the present, I am short infrastructure/long rig makers. However, my largest position is cash.

If done right, a hedged portfolio can have far less risk than a dumb ass diversified one. This, as you know, is a major shift in my investment philosophy. For many years I was emphatic about sector diversification, using the strictest guidelines. Nonetheless, as the market changed, so did my opinion on optimal money management methods.

With the market shooting higher here, I do not want to get in front of it short. We can easily rally 300-500 points, before the next leg down. Instead, I will bide my time, throwing water balloons at my trade/servant, while nibbling (not biting) at [[RIG]], [[PCZ]], [[FXP]], short [[JEC]], short [[MXB]] and short [[CAT]].

NOTE: I covered my [[PACW]] short.

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The market has bottomed, again.

Yaaaaa-whoooooooo!

[youtube:http://www.youtube.com/watch?v=m_Yyao8obPc 450 300]

NOTE: I’m going for a walk; maybe beat down a few local old guys.

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I sold short 10,000 [[JEC]] @ $73.65.

Disclaimer: If you sell short JEC because of this post, the next time you are at Lowes, you will be run over by a speeding forklift. And, you may lose money.

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I covered my [[CLF]] short, buying 13,000 @ $88.50

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You can’t make this shit up, even if you tried. “The Fly” is just minting new money, on a daily basis—sort of like the U.S. Treasury minus the fucking homos.

[[MXB]] announced a secondary; the stock is eating pavement. Oil is gapping lower, effectively pile driving commodity stocks, with exception to [[RIG]].

[[SMN]] and [[DUG]] are sprinting higher.

And, last but not least, [[CLF]] is being raped.

Thus far, I am up 2.5% for the fucking morning.

If the market can’t climb on oil being bled like this, there is no hope. My guess, there is some sort of bounce in the making. With my money, I want to be short the basic resource sector, long rig makers, while cash rich.

[[AA]] is reporting after the bell. They will miss, mainly because they are loosers [sic].

Oh, by the way, now we know why [[VMW]] had such a big short position.

Fuckers.

Finally, I want to short all the industrial and basic resource stocks. All that stupid shit that makes up the ‘global growth’ story. I want to sell [[CAT]], CLF, [[X]], [[PCX]], [[TEX]], [[VMC]] and the whole gambit, if I may be so bold.

Top pick: Long SMN

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Developing…

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[youtube:http://www.youtube.com/watch?v=u6X1M-dL-zo 450 300]

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I covered all of my shorts, with exception to [[CLF]], [[MXB]], [[PACW]] and double inverse longs: [[FXP]], [[DUG]], [[SMN]] and [[TWM]].

Here are some final parting thoughts:

Was it a good idea to raise Fannie Mae’s GSE portfolio caps to $730,000? Everyone with an IQ over 100 knew it was a horrid idea.

When will CNBC stop inviting fucktards who have been poleaxed in this tape, in exchange for stock Gods like “The Fly”?

Finally, beware of more “this is the bottom” calls.

Top pick: long [[RIG]], short MXB

NOTE: [[FED]] hit 5 and change today.

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I always find it amusing when talking skulls espouse the theory of “foreign decoupling” from the U.S. wreck. Please, for the zillionth time, there is no such thing.

As sure as I’m sitting here, Asian and South American banks will get compressed into small pieces of candy, for the bears, on the news of a widespread/global housing crisis. If you thought the California real estate market was nuts, wait until you see what happens to the speculators in Hong Kong. Those fuckers will be swinging from lamp posts.

Swinging, mind you.

Assholes like Cramer have been sucking the balls off of South American banks. For what?

Those ham hockers know how to run financial institutions like “The Fly” knows how to operate a server farm.

Just in case you thought “foreign assholes” have been laughing at our banking crisis, take a look at their banks:

[[IBN]], [[HDB]], [[STD]], [[MTU]], [[NMR]], [[BBV]], [[RBS]], [[BBD]], [[ITU]], [[UBS]], [[CS]], [[DB]], [[BNS]], [[AIB]], [[SAN]], [[BCH]], [[BMA]], [[BFR]], [[BLX]], [[CIB]], [[BCS]], [[HBC]], [[KB]], [[LYG]], [[MFG]], [[NMR]], [[SHG]], [[WF]], [[UBB]] and [[WBK]].

From my vantage point, thus far, the only bank unscathed is [[BAP]] aka “The Bank of Cocaine.” Obviously, they’re an “ag play.”

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