Wednesday, March 17, 2010

Let The Good Times Roll

Those of the 80's with recall with much fondness the above referenced song by The Cars. I use this title for this post because this song title sums up the markets perfectly. Nothing can stop it.

I came across this article today via the WSJ in which the FDIC is looking for buyers for 3 Puerto Rican banks. But of course this is nothing to concern yourself with as Harley Davidson, the epitome of conspicuous consumption, has a moonshot on rumors of a takeover.

The Dick Fulds' of the world will stop at nothing chasing another dollar. Speaking of Dick-I'm gonna burn the shorts in Lehman- Fuld, anyone know his whereabouts? (maybe down in Uruguay, next door to Hank Paulson?)

While on the topic of Lehman, I am not going to re-hash what I have said but what I want you to focus on is how long a charade can continue going when significant interests are fully committed to keeping it going.

Think back to Lehman equity trading as Lehman was swirling down the toilet. It defied all logic at the time, which one needed only a few minutes to figure out, (full disclosure I was short Lehman back then) and refused to decline. Only to finally succumb.

Think back to General Motors as it was swirling down the toilet. Yes, the same GM that was borrowing money to pay interest on borrowed money. That mattered little as the charade that was GM's finances carried on. Until finally one day, it didn't anymore.

Think back to Enron, ditto the above.

Think back to World Com ditto the above.

Think back to the Nasdaq bubble and the likes of,, and that quarter after quarter out performer
, yet again ditto the above.

This market will simply ignore the facts until one day it suddenly doesn't anymore. Foreclosures, delinquencies, credit contraction, job losses, muni and state financial implosion matters not a whit until this market has it's epiphany. The moment when all of this "shit", for lack of a better word, will matter and how.

What was the quote by Orwell again, oh yeah I remember it now,

"during times of universal deceit, telling the truth becomes a revolutionary act".

Lies, piled on top of fraud, stacked upon avarice. Orwell's quote is a perfect fit for this market, for our corporate climate, and most fitting of all for our political leadership.

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

Open Positions:
Long 1 unit Direxion Large Cap 3X Bear ticker BGZ @ $19.34
Long 2 units Direxion Small Cap 3X Bear ticker TZA @ $12.06
Long 1 unit Direxion Emerging Mkts 3X Bear ticker EDZ @ $60.50
Long 2 units Direxion Financial 3X Bear ticker FAZ @ $19.65
Long 2 units Ultrashort Xinhua China ticker FXP @ $8.49
Long 1 unit Ultrashort Real Estate ticker SRS @ $9.82
Long 2 units Direxion Tech 3X Bear ticker TYP @ $10.52
Long 1 unit US Dollar Bull ticker UUP @ $22.52 stop @ $21.97
Short 1 unit Daimler ticker DAI @ $52.23 stop @ $52.23

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