Breaking New Lows

With all major indices set to break new lows, be careful trying to time a bottom. Typically, when new lows are breached, the kitchen sink gets thrown down the elevator shaft, greatly damaging the people who are trying to take it up.

Frankly, the market is not down nearly as much as it should be. Should tomorrow’s data be “recessionary,” we will break 12,000.

Trying to be early, I have large positions in [[SMN]], [[DUG]] and [[EFU]], despite the components holding up well.

When the market breaks, all of those ag plays that Cramer has been touting will get annihilated, as everything becomes a source of funds.

Keep in mind, many troubled hedge funds are heavily long oil stocks too. The closer we get to quarter’s end, we can see a serious unwinding in names like [[XOM]], [[SLB]] and [[COP]].

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So sorry for this bullshit website being offline; the bandwidth has been choked to death by our hosting company: Webstrike Solutions.

In short, the goat lovers from down under want me to take my business elsewhere, due to the egregious amount of bandwidth iBankCoin takes from their shared server. So, as soon as Jeremy gets back to his iBC job, we will move this fucker to a dedicated server.

As for the markets, we have a worst case scenario unraveling. I regret covering some of my shorts, yesterday. However, I still have extraordinary exposure to the downside, in a highly levered way.

This is what I did today:

Covered [[DECK]] in the low 100’s

Sold [[CMO]] at $14

Sold short 5,000 [[BSC]] @ $72.14

Bought 5,000 [[EFU]] @ $88.50

Bought 3,000 [[SRS]] @ $117.54

Bought 2,000 [[SMN]] @ $38

As you can see, I believe we still have significant downside left, as the GSE market gets rocked. Shortly, we will hear of multiple hedge fund blow-ups.

Good times.

NOTE: The alarming strength in the Yen [[FXY]] is, well, alarming. Kiss your carry trade goodbye.

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I just blew out of my fledgling [[CMO]] position. I am shocked to see the GSE market getting raped. There is a strong possibility I am selling at the bottom. But, in the big scheme of things, it’s such a small position—it’s not worth the headache.

I covered my entire [[DECK]] position, in the low 103’s. The easy money has been made. Time to move on.

For the most part, I am making a “fantastical” amount of coin today, as the credit markets melt away, thereby enriching my [[SRS]] and [[SKF]] positions.

My top pick, by far, is SRS. I want to be long the fucker in the biggest way, in order to pleasantly and profusely sack the bulls who buy REITS.

So, just to recap: We are in meltdown phase, which means there is some quick money to be made on the downside.

The following stocks are all shorts:

[[FED]], [[WM]], [[SOV]], [[ASBC]], [[KRNY]], [[PFS]], [[DSL]], [[ORIT]], [[FED]], [[FBC]], [[CORS]], [[IMB]], [[FHN]], [[CLMS]], [[PHH]] and [[DRL]].

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I have a myriad of “ass banks” worth shorting to zero.

Developing…

UPDATE: Behold ASSBANK!

In other news, I just went over the balance sheets of 75 banks and asset managers. Let me tell you, many of them will be zeroed out, within two years. For starters, sink your teeth into [[DSL]], [[FED]] and [[CLMS]].

UPDATE II: Oh, and for good measure, an old position of mine (stupid, stupid) [[CORS]] has half of its cash reserves in a portfolio of BANK STOCKS. Talk about egregious mismanagement of capital.

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[youtube:http://www.youtube.com/watch?v=xkbL4LIpBJ4&feature=related 450 300]

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Forget about the news. Tune it out.

Right now, amidst the rubble, idiots will attempt to run up equity prices. After all, as a country, it’s all we have.

Towards the end of the day, I switched positions and decided to raise money, via covering some short positions and selling some of my double inverse ETF’s. I did not look at my cost basis, since it’s irrelevant. I believe there was some minor losses booked in [[REW]]. But so what?

The big picture is this: Get ready to shoot at spastic zombies who buy stocks. These fuckers, led by “Zombie Cramer,” are everywhere, like a virus. They are NOT interested in the resounding effects $105 oil, $10 natty or $1,000 gold has the the economy.

All they care about is a pending short covering rally in tech.

So, with that in mind, the game plan is simple: Get there early.

If you’re short [[WM]] from $18, like “The Fly,” cover some and buy a few cars with the proceeds.

Bottom line: I have minimal long exposure and aggressively large bets against Commerical Re, via [[SRS]]. Additionally, I will continue to sell short the basic resource sector, since the herd is always wrong, via [[SMN]].

Oil is tricky. I will refrain from trying to figure out that sandbox. And, finally, gold seems easy here, via [[DGP]] or [[GLD]].

NOTE: The announcement of the entirely irrelevant, non- ground breaking deal, at [[ABK]] should shame CNBC and their whoring of rumors ways. I spit on CNBC.

UPDATE:

TMA Thornburg Mortg discloses receipt of default notice from JP Morgan after TMA failed to meet a $28 mln margin call (3.40 -0.16)

TMA discloses it has received a letter from JPMorgan Chase Bank (JPM) dated February 28, 2008, after failing to meet a margin call of approximately $28 mln. The letter states that an Event of Default as defined under that certain Master Repurchase Agreement, dated as of August 3, 2006, as amended on February 7, 2007 by and between the co and JPMorgan exists. The letter also notified the co that JPMorgan will exercise its rights under the Agreement. The aggregate amount of proceeds lent to the co under the Agreement was approximately $320 mln. The co’s receipt of the notice of an event of default has triggered cross-defaults under all of the co’s other reverse repurchase agreements and its secured loan agreements. The co’s obligations under those agreements are material.

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I sold 3,000 [[SKF]] @ $125.50, 3,000 [[REW]] @ $73.15 and 3,000 [[FXP]] @ $94.10.

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I covered some of my [[LEH]] short, buying 5,000 @ $48.01.

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I covered some of my [[DECK]] short, buying 2,000 @ $104.50.

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The [[ABK]] news was entirely irrelevant. So, with all the facts on the table, it is clear that the banks were using and manipulating CNBC, via Gasparino, in order to prop up shares of ABK, in order to price an offering. As you know, “The Fly” predicted this, long ago.

Now that the news is out, investors/trading fools are selling the banks with great vigor. However, as sure as I’m sitting here, the “cup fuckers” who run our banks will leak more potential “good news” to CNBC, in an effort to get their share prices up, prior to the release of their 10-k’s. Maybe a potential [[MBI]] news? Why the heck not?

What’s amazing to me is the ridiculous stupidity and naivety of big dog money mangers, buying into this hype. To put things plainly: going long now, without hedges, is nothing more than riverboat gambling. Do not be surprised, at quarter’s end, to read headlines of hedge funds closing up shop.

For the most part, they all suck.

With my money, right now, I’m going short [[MON]]. Fuck those seeds.

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