Monday, January 26, 2009

Rotton to the Core

I realize many readers can get a little sick and tired of my ranting, my complaining and my taking to task of the many who seem to think they were born with a better pot to piss in 'so to speak'. Often my schtick tends to wear thin on many, for people want to believe in the tooth fairy, the fairy godmother, the wizard behind the curtain (think Oz) and in general, happy endings. The problem with this is the real world, more often than not, fails to confirm to the storybook ending.

I want you to read this article out of the Mail online of London which I caught wind of via Karl Denninger over at Market Ticker. (thx Karl)

It is not just the lying, the cheating, the pillaging, the unbound greed and avarice but the willful deceit, the knowing fraud and it is all much WORSE than this chronically complaining trader ever imagined !

I cannot conjure up the appropriate words to describe my anger, my frustration, my outright disgust at what we are up against. I had been doing some self-reflection not only in regards to my trading but my commentary in this blog and was a little taken back by the sharpness of my barbs and the bearishness of my notes. The issue for me is that each time this happens and I think I am too over the top, news and information comes out that makes my words and my criticisms seem downright tame compared to the degree of and magnitude of malfeasance being perpetrated upon us by our own.

I know many still disagree with me so try this article by Don Bauder out of the San Diego Reader on for size. The article centers on the SEC in all in glory. Remember when John Mack was at Pequot Capital, before Morgan Stanley and the insider trading investigation and subsequent firing of the SEC investigator in charge, who months prior just received a glowing review? It's all in there for you.


This is economic and financial terrorism being perpetrated upon us by our own elected officials. I wasn't going to post the following link to a recent note published by Gerald Celente entitled Code Red: Economy in Collapse-Drastic Actions Will be Taken. but the above 2 linked articles out of London and the SEC made me change my mind. For those unfamiliar with Mr. Celente I would counsel that you ignore him at your own peril.

The money honey of TV Maria Bartiromo has another blockbuster interview today with another from dirt bag central. The former NYSE and Merrill CEO John Thain. He of 5 figure toilets and other assorted office furnishings. I wonder what grovelling, boot licking, hard ball questions she intend to lob at John "like watching paint dry" Thain. I'll hazard a wild guess she will work her tail off and pull out the Paulson interview transcript. Truly fitting.


I have witnessed some economic and market lunacy over time but the news today regarding Chrysler from the NADA meeting in New Orleans is breathtaking in its idiocy. I realise that the boyz at Cerberus are everywhere and always the smartest guys in the room but this takes the cake. Sales are down over 30%, dealers lots are filled with cars and the take away is order more vehicles to help survive.

I am at a loss for words to describe this. You are running a business that is bloated with inventory, you cannot sell what you have so what do you do ? Of course you order more product. Yes, dear readers, more supply. Just think back to when I took to task Cerberus's hiring of Bob Nardelli to run Chrysler. Obviously I was not critical enough.

To be truthful I really am not shocked by this at all. Everyday investors in the stock market, both novice and professional, employ the time honored playbook of averaging down their losers.

Hey Liz Claiborne having trouble selling dresses ? ..... no problem, order more !
Hey Starbucks having trouble selling latte's and espressos ?.....no problem, order more !
Hey Coach having trouble selling handbags ? no problem, order more !

Someone pinch me so I can wake up from this nightmare.


Housekeeping notes;

I was stopped out of my long SRS position at $148.05 for a gain of about $46 pts on 1 unit long.

I was stopped out of my short MANT position at $60.20 for a loss of 43.5 pts on 1 unit short.


Good speculating to you all and never forget that "an investor is a speculator who made a mistake and will not admit it".

Open Positions:
Long 2 units Ultrashort MSCI EAFE ticker EFU @ $89.80 stop at $89.80
Long 1 unit Ultrashort S&P500 ticker SDS @ $66.15 stop @ $66.15
Long 2 units Ultrashort Real Estate ticker SRS @ $55.23 stops @ $54.75/$55.670
Short 1 unit Darden ticker DRI @ $27.70 stop @ $28.70

7 comments:

Becky said...

I really like your blog and love receiving your comments in email. I'm glad I discovered you. Thank you!

Harleydog said...

B,

thx for reading and the note. nice to hear !

HD

synthetik said...

Excellent comments... I think you posted SRS when you meant SKF.

Harleydog said...

Synth,

thx. yes meant SKF, thx for the note.

HD

HistoryRepeatsItself said...

There are many Gerald Celente videos on YouTube if any of your readers would like to research further

Raj said...

Thanks for the Celente link. And please don't tone down the rants - somebody needs to speak the truth all the time.

Raj said...

And about the Bartiromo "interview" about Thain vs Lewis, one is really torn - does one cheer for the scumbag or the rapist?