Redman: Tonight’s the Night

[youtube:http://www.youtube.com/watch?v=d9v8Np7v0Dk 450 300]

The market is too boring to keep “The Fly’s” interest. As a result, I will be leaving the desk, in order to do something fun.

Keep looking at your charts and shit. I’m sure they will help you get rich.

As for the market:

It is a ticking time bomb. While many of you find it “fun” to trade in and out of stocks, like fucking degenerate OTB guys, “The Fly” builds his positions over time and waits for bigger moves. If you want quick picks, check out Ragin, Wood or Danny for some hot breakouts. They’re all very good.

Once upon a time, “The Fly” would trade like that. You know, quick, fast, bang zoom. However, with time and numerous blow ups, I decided it was not for me. Instead, I rather stick to a theme and beat it to death, until I win.

Will the market close up for the week?

Who gives a fuck? Really.

Wait until commercial loans start blowing up. Just-fucking-wait.

Frankly, I do not expect any large moves, until September. All of you “corn-can fucking misfits” can call bottoms and exclaim: “the economy will rebound in the 2nd half.” I, on the other hand, will take the other side of that trade and predict we will not rebound, until the 2nd half of 2009.

In the meantime, get ready to endure a myriad of earnings misses and “CROX-like” declines on those misses.

Top pick: short [[MS]]

[youtube:http://www.youtube.com/watch?v=JFVN59sR4lY 450 300]

BEHOLD:

1.  [[SMN]]

2. [[SRS]]

3. [[FXP]]

4. [[DGP]]

5. [[SKF]]

6. short [[LEH]]

7. [[REW]]

8. short [[WM]]

9. short [[MS]]

10. [[RIG]]

If I was President, I’d place the CEO of [[STT]] under house arrest, for pulling the shit he pulled today. I thought STT had not been affected by the subprime debacle? I thought STT was the cream of the crop?

Wrong.

They’re just like everyone else. The only difference: they have a CEO who is dishonest, who was trying to pull a fast one on Wall Street.

A regular huckster, if you will.

Aside from that, there is marginal strength in the banks/brokers today, with gains in [[MS]], [[RF]], [[NCC]] and [[CORS]].

I would wait a day or two, then short the banks with “impunity.” They’re probably due for a short term bounce here.

Finally, it’s Godly to see a small decline in ag related names. The Lord knows “The Fly” prays for their destruction on a nightly basis. The top losers include: [[GRO]], [[TNH]], [[CF]] and [[AG]].

NOTE: In case you were wondering, oil at $113 is not bad for the consumer—it’s HORRENDOUS.

NOTE II: [[FXP]] is a pain in the ass, because [[CHL]] is its biggest component. Two other alternatives include, short [[CAF]] and short [[LFC]]. CAF is an ETF. LFC makes sense because those fucktards invest their premiums in the Chinese stock market.

Chinese property stocks are plunging for the second consecutive day on reports of property value manipulation. Apparently, the Chicoms have a future subprime issue in the making.

Here are some quotes of Chinese property stocks, which happen to be plunging:

Poly Real Estate

Zhejiang Guangsha

Citychamp Dartong

Sino Construction

Shenzhen Heungkong

Tianjin Reality

Gemdale Corp.

Long Yuan Const.

Tengda Const.

Shanghai Fenghwa

Shanghai Xinmei

Shanghai Indust. Develop.

Jingneng Property

Read this, a little dated, but still relevant.

America is Going Bankrupt UPDATE: Watch this!

Hat tip: Danny

Wake Up Woodshedder UPDATE:

Goldman & Wells predict market plunge.

David Kostin, the chief US investment guru for Goldman Sachs, expects the S&P 500 index of Wall Street equities to plummet a further 15pc over the “near term” as companies scramble to lower their outlook for this year.

“Although only a few firms have reported first quarter results, early signs are awful. We expect a swath of lowered profit guidance,” he said in a research note published today, entitled ‘Fasten Seatbelts’.

Hat tip: Mr. Mortgage

[youtube:http://www.youtube.com/watch?v=98i4s9iKBQo&feature=related 450 300]

You fucking lemmings are hoping for a rally, while the banks get “homo-hammered.” Sure, keep betting on tech, see where it gets you.

However, its been 2 weeks since our last 400 point spike. Perhaps the Government will give us a nice bailout package for tomorrow’s trade?

Nonetheless, “The Fly” had a stellar day, with large gains in his short positions, especially [[FED]], [[DSL]] and [[WM]]. In addition, my double inverse ETF’s did well. My favorites include [[FXP]], [[SRS]] and [[SKF]].

Those fucking bastards from [[POT]] and [[MON]] will not trade lower, effectively deballing my [[SMN]] position.

My strategy is to just wait it out. Time is on my side.

Finally, I want to take issue with the asshats who say “the worst is behind us.”

Says who?

Last time I checked, banks are doing dilutive deals 30% below current market valuations. In my opinion, as a whole, bank stocks are 30% overvalued. Should they trade down to their true value, SKF will print $160.

When trying to pick a bottom, keep in mind, the “commercial loan shoes” have yet to fall. Literally, there can be 2 trillion dollars in future write-downs, effectively rendering all banks worthless.

Odd, no?

UPDATE: [[CROX]] longs are preparing for a unprecedented “Baseball Bat to the Balls” treatment, when the stock reopens for trade. Another nice call from the retards at Fast Money.

Developing…

I sold short 2,000 [[MS]] @ $42.88.

Disclaimer: If you sell short MS because of this post, the great depression part II will strike your city first. And, you may lose money.