Observe

Once again, “The Fly” will make all of you look silly, like a gay giraffe driving an ice cream truck. Much to my chagrin, the banks are on the express elevator down. It appears the pending liquidity crisis is coming sooner than I thought, as evidenced by today’s news from [[AIG]].

At the present, I am heavily short [[FED]], with great pleasure. Also, I may take the “internet advice” of the one called “JakeGint” and sell some [[FITB]]. It doesn’t look much better than FED.

For those of you who believe [[FXP]] is going lower, sell it short. I beg you to do it.

Nothing will please “The Fly” more than taxing your bullshit brokerage accounts and using the proceeds to finance some egregious landscaping project, via “illegal immigrants.”

Take a look at the banks, you fucking faggots; they’re knifing lower. Why?

Well, you will all learn soon, why this crisis is 100x worse than the LTCM debacle of 1998.

At this point, “The Fly” is not able to assist you; it’s too late. The wheels are in motion; the roller coaster is already on the incline, ready to dive.

I’ll have you know, all day, I’ve been preparing for an “exogenous event” via multiple short sales. I must be careful of what I espouse on this stupid blog. But just know, “The Reverse Four Horsemen” is a “reverse money maker,” which includes: [[FHN]], [[DSL]], [[CORS]] and FED.

This just in:

I employ many people. One of these individuals happens to be a “chart chomping” fool. Every day, he prints out like 10,000 charts and draws ridiculous lines on them.

I tell him: “Hey fuckface, why not wear a Nostradamus style hat when your predicting the future over there”?

His reply, like other “technicians,” is: “I am looking for breakouts of the 50, on large volume, out of a base.”

As you know, this is all rubbish. He, like other “technicians,” just make this shit up as they go along. When their charts work, they say: “classic breakout.” When they fail, they say: “this was an unusual exogenous event. An anomaly, if you will.”

They (chart chompers) believe they have found the keys to the secret treasure or some shit. When in reality, all they are doing is buying shit that is going up anyway.

Hey asshole, when a stock is ripping higher, 10 out of 12 days, it’s not rocket science when it goes up a couple more.

Anyway, “my guy” is telling me: “the FXP looks poised to bust the fuck out. And, CHL looks doomed for a 6 handle.”

I tell you this, with the utmost amount of selfishness, because it fits into my “fuck China” thesis.

That’s all. I just wanted to say that. Now quit reading this and go eat a cupcake, you fat bastard.

UPDATE: AlphaDawg speak the truth. Fuck Chairman Mao and his fucking boxes.

[youtube:http://www.youtube.com/watch?v=MO2tCBteW7U 450 300]

Following a glorious week of splendor, “The Fly” had his balls busted to the tune of 3.1% today, thanks to a sharp decline in FTK. However, I did catch 10,000 shares long, near the lows of the day. Also, late in the day, FXP knifed lower. The ridiculous part of the FXP decline is that it shouldn’t have traded down. CHL and LFC make up the majority of FXP‘s bear bets, and they were down.

Will some-fucking-body explain this Chinese fuckery?

All day, I covered numerous shorts. They were all egregiously profitable and big wins for “Senor Tropicana.” However, my cash position was very low (less than 1%); therefore, I felt like bulking up in the event of a classic bounce—following a sharp decline.

AAPL, RIMM and other big tech charged higher, as retards manned trading turrets.

In short, I have little interest in making big directional bets. Instead, I will trade here, invest there, sort of bouncing around like a loose cannon ball—ready to explode. Without a doubt, the economy will continue to slow and many banks will be closed.

Shockingly, the leverage in the system is at all-time highs, following the “credit crisis” hitting the front pages. My guess, all of our brilliant bankers are stuck with their bullshit leveraged bets and are afraid to sell—which may lead to a domino effect—leading to massive write-downs.

In my opinion, all of the banks will report disappointing numbers and will have a very difficult time raising money in the future. While it’s true, the banks have raised an enormous amount of coin, over the last 6 months. It’s also true, that is their detriment now, as the main underlying asset behind their paper depreciates at an alarming rate.

However, I am waiting for a bounce in the financials, before reentering short. At the present, my only short position is FED and a little LEH.

Aside from the banks, I have POT short and a myriad of 200% inverse ETF’s.

For now, my top pick has to be FXP, due to its fuckery.

The people who pull the levers on this market are sick bastards. Half the time, I feel like throwing soup at my monitor, due to all the fuckery and asshattery that takes place—day in and day out.

We all know the banks blow and should trade lower. However, consider the level of fuckery that these “lever pullers” are on, then trade on it.

Following a dreadful week, often times, the market bounces back. All of the brokerage stocks are at very cheap levels, barring new bad news. The trade is crowded, assholes. If I were you, thank the Lord I am not, I’d take profits on my brokerage shorts and focus on small thrift banks, like FED.

LEH can easily trade up to $41-43, on a squeeze. Don’t be that guy.

In general, the market may tick higher this week. However, I anticipate prices will be 10% lower, by Labor Day.

My focus will be to buy energy stocks on dips, and sell short banks/brokers/China into strength.

Also, my dice roll is on ethanol. My favorite picks in the sector are VSE and AVR.

Bottom line: Go eat a fucking sandwich.

UPDATE: Maria is a stupid bitch.

Ongoing…

I bought 1,000 PCZ @ $57.85 and 5,000 FTK @ $16.79.

Disclaimer: If you buy the above stocks because of this post, rabid squirrels will bite your nose off. And, you may lose money.

I sold 5,000 BIOF @ $4.15.

The primary alternative energy stocks, namely solar, are being “deballed” today, with comparable fury of 20,000 IT geeks, mad at Yahoo hosting.

In its place, bullshit alternative energy stocks are running. They are stocks of the lowest order. Loosers [sic], if I may be so bold.

This, as you know, is another “tell” that this market is fucked, like a gay pig or dog in Texas.

The list includes:

QTWW, SCON, BCON, CBAK, DESC, SYNM, EEE and RTK.

Bottom line: We are close to the end of civilization, as we know it.

On that future news, “The Fly” is peppering his trader/servant with ice cubes, as punishment for accepting large FTK buy orders. Taking a step back, the stock is a good value down here. I’d rather be buried alive, than book a loss on it today.

I covered my MER short, buying 14,000 @ $43.25. I covered some of my LEH short, buying 5,000 @ $36.

I sold 50,000 FNSR @ $1.81.