The market kicked into high gear this morning shortly after breaking down out of the consolidation we closely observed Sunday evening.

The idea was simple, and with it, I saved myself from the nauseating task of watching news which is centrally focused on politics.  Instead I could watch price and determine how to manage my portfolio accordingly.

When everything started breaking down early on I sold off all my shares in WLT, FB, AMBA, and BALT.  They were hard decisions to make because I didn’t want to sell any of them, but I knew there were major implications to that consolidation snap.  Also The Fly has been preparing us for a correction rather extensively.  After all of the selling my portfolio was bulked up with over 40% cash.

We are closing on the lows of the day after a high volume, large range selling candle.  Something tells me there will be better opportunities to buy soon and I want plenty of cash on hand.

The seller I was observing Sunday evening seemed big by how the orders were carried about—absorbing buy flow at the offer for a full day.  They just won big time and today’s tape is likely to embolden them.  Do not discount the bears at this junction.

At the same time keep your eyes on stocks that are trading in a microcosm.  Notice how financials aren’t as beaten down as tech.  That’s because they were dogs all last quarter.  We are nearing the time to consider another Goldman Sachs long.

Bottom line: stay cool and get out your shopping lists, but move slowly.

Top picks: CREE and RVLT, my two largest positions

http://youtu.be/JGrGwhoN0K8

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Sunday night Raul was brooding harder than Ryan Gosling in a New York City taxi cab.  The futures were lit aflame and it seemed almost certain I was due for an ole timey courrrection.  And it would make sense, because I am sashaying around these markets with impunity lately.  It is always a matter of when, not if, the market will sniff me out and drop a grand piano on my head.

Hey it happens—I won’t lie to you…truth serum is a perk of being anonymous.

But the grim reaper didn’t visit me this morning.  Instead a little bit of the Miley Cyrus trickled through the veins of the market and I had a green day (no dookie). 

The morning flowed, and after going on a seven trade winning streak in the /NQ_F I thought it respectful to make a sacrifice to the stock gods—so I sold off some RVLT over 4.

Don’t get up in arms now.  There is no need to revolt at this action.  RVLT ballooned last week to become almost 20% of my portfolio.  And I took that low floater into the weekend because I knew the move had more junk in the trunk.  When it fizzled today, I took off my bottom shares, the shares I bought down in the depths of hell, and booked them for over a 30% profit.

RVLT still remains my largest position but I did not want to start getting emotional over here so I took it to a size where I can stop pulling up the chart and a size I would consider riding though earnings.  Great company or not, you are a jackass to have 20% of your risk existence on an earning’s call.

It wasn’t long before I had a new home for the cash.  I piled it onto ONVO, making the position my third largest behind only RVLT and CREE.

ONVO 3d prints organs which is a total mind blow.  The chart is forming a tight consolidation which will blow shit up when it breaks.  My trade reviews show me I need big size on ASAP, so I can get my fat scale off while everyone else is still on the chase like I did AMBA last week.  Being up 6% on my ½ entry, it seemed imminent to buy more.

In short, the port is green, the /NQ trades more at my speed, and everything on the news is fake.

Congratulations to Howard Lindzon and the entire Stocktwits team for getting a CNBC’s John Melloy to take the reigns as CEO.  This is a huge blow to the financial news industry and no doubt speaks volumes to the decaying value at CNBC and the exponentially growing value of getting your news directly from traders.

Successful businesses aren’t the result of some magic voodoo.  They are the result of good decisions diligently executed one after another.  When presented with the right information, it does not take a genius to make good decisions.  Any of you would choose correctly given the best information.  And it is the people doing the work, day in and out, people like us folks on iBankCoin and Twitter, who know the business the best.  Not some stud on the teevee.

The investor class is realizing this, slowly.  Remember, when you venture to the internet for knowledge due diligence is paramount.  Follow “experts” for months and hold them accountable.  Don’t just follow some cowboy into a field of algo turrets.

And always demand more, more, MOAR!R

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As horrendous as the news flow has been this week, I have these charts setting up something mint.  If I continue playing ostrich to the news, which is the plan, I have setups galore.  The market looks like a well-managed brothel and I am simply partaking in the services hoping the Feds don’t crash the party.

I bought WLT but the big story is the resurgence of LED stocks.  Everyone wrote them off after CREE reported soft numbers last quarter.  Yet here we go again, with these stocks ripping.  RVLT is leading the charge as my book propels over two percent higher on the day.

I switched over to trading the /NQ as I mentioned yesterday and I like the pace of trade much better.  I find I am babysitting positions less often.  Instead I am trading in a stick-and-move fashion that better suits my fringe lifestyle.

FaceBook will not relent and I would quite enjoy seeing it go Nicola Tesla on these shorts.  Being in a well-padded long, I see no reason to sell any.

Everything I sold continued to propel higher, so selling has been stupid.  Look at MHR and YGE.  Stupid.  Selling is for stoopid folks.

Press the boot and sip cognac instead.

Cash @ 18%

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I can do anything.

We sure do cover the /ES_F often over here on the Raul blog, discussing its…implications, if you will.  Building the contextual cake helps me to identify abnormalities, flinches, and hand tips by the big money.   The E-mini S&P is the most liquid financial instrument in the world.  It makes sense to pay attention to it.

But trading it has become a slow and painful grind.  It is like going years without a dish washer even though you love to cook.  You get by, but your soul dies a little every day.

I needed some change (No Obama) so I traded the /NQ.  I like the NQ…peep today’s stats:

Thoughts:

• today had a large range
• /NQ is thinner
• smaller contract size suits my size a bit nicer
• I trade lots of Nasdaq and Russell stocks so I may be concentrating my eggs
• It offers more trading opportunities (at least lately)

/ES has been brain numbing, while I go ‘big pimpin’ on these wiry stocks.  Speaking of which, my book was up a percent today.  That is a result of stock prowess and hanging out with traders much more seasoned then me.  Mainly my gains today were a result of being on the right end of a technology revolution.  So while sour bastards get their kicks shorting Tesla, which is fine, I am embracing the future and finding opportunities to invest in it.

In short: CREE and RVLT what what?

I started buying ONVO too, right about at these levels.  You can’t keep me out of this name.  When my pickled organs give out I want robots around to print new ones.  Seems like a no brainer at five fifty.  I consider it an investment in myself.

I sold YGE.  It felt like when I sold VIPS yesterday…too soon-ish.  However, dwelling on these thoughts prohibits the mind from seeking opportunity elsewhere.  I sold RBCN too, for a loss, because it sort of just fell out after mainlining hot money.  I do not want to be around when the Apple WWDC crowd goes running for the doors, should they do so.

ADHD is a ticker which by design frustrates me, ripping higher like a freshman jacked up on Mountain Dew and Ripped Fuel.  Ah high school…when ephedra was still legal.  I have wanted a long on this one for a few weeks but my attention keeps darting away from it.  Instead I want to Snapchat and play ping pong in the futures.

I do not really love the way we are setting up into the weekend.  The market looks like the headless horseman.  Sentiment sucks but the crowd isn’t always wrong.  I have concentrated by book down to the following positions listed largest to smallest:

RVLT, CREE, USO, LO, BALT, AMBA, FB, ONVO, F, IMMR, MJNA, O

That jackass MJNA stock can burn up and go to zero for all I care.  What a garbage stock.  I am -20% on that field play.  I thought about cutting O about 100 times, but I figure keep it and collect the yield.  My basis is a tad below here.

Everything else I hold close to chest.  As a matter of fact, I need more CREE and RVLT but I am exercising patience.  Together the stocks represent almost 30% of my risk capital.

I will let Q4 play out a bit before getting more risk into those two names.  In the mean time I can increase my LED exposure via VECO, RBCN, GTAT, OESX, and LYTS.

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After I sold MHR and VIPS it felt good to book the ten digit gains, and it made sense with my trading plan, but I suspected my mind had gotten in the way almost immediately.  But being overly concerned with booking gains would just jumble my mind further, so I jumped back into the waters looking for my next meal…essentially.

USO, perfect, full size

Bullet point reasoning:

• “I’m an oil man”
• USO moves slow like sludge
• All my mind wanted was crack stocks
• Was sitting on multi-month support, chillin’
• An esteemed 12631 member and I discussed and agreed it had a good look

Two of those reasons pertain to how juiced up I was coming off of yesterday.  iBC Chief Market Strategist “The Fly”, the brains of this whole outfit, eased up and I felt overconfident.  Then I missed an entry I really wanted on ONVO.  Then I made an earnest attempt to punch a hole in a solid wood security door after storming away from my desk.

Yeah…it was like, cool out hot head.

So I stopped trading.  I stopped watching the market mostly, too.  There’s over 30% cash in my books and no doubt that I can’t trade my way through a deeper pullback.

Completely aside, the burning Tesla Youtube video has the stink of fabrication.  I have no intention of proving it.  But if all news is fake then so is this spoof video.  Well done.

All news is fake.

Good night

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The kabuki theater kicked into high gear, scaring people.  That is because when you are scared you flinch, and when you slip just that much, JUST THAT MUCH, algos will lance 100 holes in you.

The market is behaving itself like a top tier executive after a good night’s sleep.  The market is reading the Wall Street Journal (have not read this paper in five or so years) while eating roasted duck and poached eggs.  The market is driving the Bentley patiently into the office and greeting the security guard at the entrance with a gingerly tip of the hat.  Then the market is meeting with its top advisors and strategizing the next big move.

The market is behaving very top hatted.

Yet jolts of fear are shooting across the bow of the stock world.  They don’t want to chase your winners.  Instead the smart money wants you to panic so they can buy your blood.

Stick with your best ideas, grab a wad of gumption and stick it in your cheek.  Then spit at the losses you are incurring and welcome a little pain into your life.

I sold out of VIPS and MHR because these were trades aka cheap thrills.  I want to focus on my core.  I’m still an oil man so I simply took down a large position in USO.

Cash is 33%

Top Picks: LED industry

Wish list: ONVO, ADHD, VLTR, OESX, VECO, SFM

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The market has been unable to compel me into action today.  Instead I have sat here drinking coffee and watching my peers rip the faces off of shorts with supreme ultra-violence.  My goodness, RaginCajun extracts a solid win off of EGLE, passes the baton to Le Fly and here we are, winning the relay.

One of my twitter buds was all over the shippers move too, well done @Apoms24 on the DRYS.

The day after a huge move, overnight or RTH, tends to be tricky intraday.  Therefore, I sat in the bleachers and enjoyed the view.

Book largest-to-smallest: CREE, RVLT, RBCN, AIXG, Z, MHR, FB, CLF, LO, F, IMMR, MJNA, and O

Cash: 20%

Tickers of interest: YGE, FSLR, ONVO, ZNGA, FRO, END, and GMCR

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Take your fancy words like masochist and stow them under your chair.  I don’t want to hear them.

YOU SHOULD SEE MY PERFORMANCE CHART OVER THE LAST 3 MONTHS, IT LOOKS LIKE THIS:

///////// \\\\\\\\\\ ////////// \\\\\\\\\\\\\\\\\\

That’s literally how it looks if only to see the chop a bit more pronounced.  MY WHEELS are spinning, you see?

LED stocks as a whole are retracing their 2013 gains after the tepid Q1 forecast from CREE.  To call the move in CREE a retracement however, may be an understatement.  This is panic and margin calls rolled into a giant blunt and smoked, like a clown, by yours truly.

Of course I bought some more CREE today, adding to my [still] green core.  I bought some into the closing bell for $58.85 #timestamp.  Even if only for a trade, I can’t stand by idle and watch my ‘ace boon coon’ CREE get bludgeoned by panicking idiots.  Oh and believe me, I have more bullets to fire at these bitches while they’re concentrated in this back ally trough.

I’m telling you now, send CREE lower, I want it lower.

Send RVLT down too, I’m patient.

I have zero edge trading earnings let’s make that clear as crystal, which it already should be.  I’m building investments here…they’ll make fine x-mas presents.

MOVING ON, AGAIN

I cut some small names off my books because the /ES was trading in a downdraft.  I cut PBF, KWK, and ONVO.  I made a killing in ONVO, BTW.  The other two, not so much…

Speaking of the /ES: There’s simply no way for me to broadcast my strategy out to the world.  Back testing and optimizing has created a medium frequency beast that even I can be overwhelmed by.  I took ten trades in the /ES today, 7 were winners and I made 160 bucks trading a 1 lot.  When this system is making 160-250 bucks per contract 4-5 days/week, which it will, it can be scaled to as many contracts are needed to sustain my lifestyle.  Cool, yes?  Then I can abandon this corporate hole and go work for Cree or something.

I’m down a percent and a half today.  My cash is nearly 40 percent partially because of a series of decockings and partially due to the aforementioned sales.  Why the silver trade is back on, I have no idea.  When I return to winship lane I will be wearing an undersized tunic so you can admire my cajonies.

I want you to take that thought and hold it close this evening.

http://youtu.be/G8rGNk6vkM4

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Pardon my intraday absence, today was certainly one for the record books in tasks-completed terms.  My head, it’s still spinning.  At this point I’ve abandoned hope of completing today’s docket, stared out the window hopelessly, shot gunned my last Monster beverage (kidney stones in a can as I call it) and picked up my pen to debrief my internet people.

This was one hell of a trading session if you ask me.  The SPY was dead tuna.  I traded early on, via my /ES_F, putting in two really impressive trades, if I do say so myself.  Aside very quickly: did you see scenario 1 on this morning’s market profile report?  I wield a razor sharp fife before dawn and the market is my fiddle, dancing like I’m shooting bullets at its feet.  I’m not caring so much about mangling that metaphor to bits.  Anyhowdooski, I bought the LOD, so very nice, so very clean, grabbed two handles, then I bought again, grabbed another 1.5 handles and went on my merry way.

The volume was awful in the futures, it was like trading /6e_F back in my 3am polyphasic days.  I used to run such a tight schedule I even timed my shits, times were odd to say the least.

In the stocks, I sold GTAT and END, nearly top ticking both.  I felt like such a boss.  GTAT reported today after the bell and guess what?  They’re crushing!  Something about the current economy and their involvement in the LED and solar game has demand picking up on their end.  Indeud.

END was a little spinner for me, a marvelous few nights gaining all over it, then I sold out, leaving it without notice.  But I’ll tell you this, if it keeps acting right, I’ll be back before you know it, especially because my girl Sooz is all over it.

All of the sudden and without warning, my cash was over 60 percent!  Puke, I don’t care if we’re printing high water marks on low volume, there are stocks setting up, I needed more exposure.  So this little piggy went to the market:

I bought ONVO @ $4.82

I bought YGE @ $4.00

Then I bought more YGE @ $3.96

I had a little bit of YGE kicking around in the old port prior to these purchases.  I’ve been in YGE for a while now, we have a thing sort of going on, YGE and me.  So…we’re going to make it a little more serious.  Why?  Because FSLR reports tomorrow, it could be a catalyst for the whole industry if they report strong.  And if Premier Obama wants to hang his fedora on anything during his administration, it god damned better be outperformance by the solar industry in AMERICA.  Home of the free baby!

And the irony of course is how I’m looking to benefit from this via a CHINESE solar stock, MAU!

Say what you will, but the manufacturing goes down in China, not our backyards, Gus.

ONVO I can’t say much for except, if I keep drinking these Monsters, somebody better be around to print me a new kidney, the tube that runs from my kidney to my bladder, a new bladder, and a new penis, because it’s all on the line.

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