Friday, July 30, 2010

Sounds LIke Common Sense

I follow Nassim Taleb via Twiiter. While on the subject of Twitter, for those interested you can now follow me via Twitter by clicking the link on the upper right of the blog but I digress.

I received a tweet today from Nassim Taleb highly acclaimed author of the great read The Black Swan: The Impact of the Highly Improbable.

The tweet simply said this:

"Forget 2300 p of reg; problems are cured at the source with the RISK GOLDEN RULE: Captains go down with ships; all captains and all ships".

Ding Ding Ding we have a winner !

Regular readers know this policy, stated so eloquently by Mr. Taleb is one I have advocated since day one! Sounds like common sense to someone with a room temperature IQ like me but for some strange and unknown reason this logic escapes the MBA's and PhD's from Harvard and Yale. Oh yeah... Princeton too, can't forget those moulders of fine leaders.

You cannot tell me Nassim is the only one out there who gets this.

I will take it a step further Nassim, just so we can get some trust and integrity back in these markets, with a re-introduction of The Consequence..... The Guillotine.

Do you really believe Phil Gramm, Chris Dodd, Hank Paulson, Angelo Mozilo, Bob Rubin, Larry Summers, Franklin Raines, Bernie Madoff et al. -the list can go on for page after page -would have done the things they did had they know The Consequence.

The malfeasance, the insider trading, the duplicity, the back room deals, the absolute gotta get mine free for all fostered under the Greenspan Put. Banished forever would be the fine of $x millions while 25, 50, or 100x millions were reaped from the scam.

Oh yeah, before I forget.... that phrase "neither admitting nor denying wrongdoing" while burned into one's DNA while attending Harvard, Yale or Princeton would finally be banished from our lexicon.

Do you see what happens here? One little line from Taleb this morning gets my blood absolutely flowing and me on yet another rant!

At least it flushes out the arteries.

Before I forget, keep your eye on the bonds!

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 @ $60.30
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 @ $42.45
Long 1 unit Ultrashort Real Estate ticker SRS @ $49.10
Long 2 units Direxion Tech 3X Bear ticker TYP @ $10.52
Long 1 unit US Dollar Bull ticker UUP @ $22.52 stop @ $22.52
Long 1 unit ishares Barclays 20yr Treas ticker TLT @ 92.15 stop @ $92.15
Long 1 unit ishares Barclays 20yr Treas ticker TLT @ 93.48 stop @ $93.48
Long 1 unit Ultrashort Gold ticker GLL @ $41.25 stop @ $41.19
Short 1 unit Apple ticker AAPL @ $275.20 stop @ $266.50

Thursday, July 29, 2010

3-D World Yet More Evidence

Some anecdotal field reporting on our 3-D World. De-lever, deflate and depress.

Remember back in early May when I splurged and bought that Calloway Hyper X driver for $100 which originally went for $300?

Well, a few weeks back, addicted to the deal, I splurged at Dicks and bought my first hybrid club. I bought the Calloway Hyper X 3 hybrid which was regular priced at$180 and had been marked down to $75.

At the time I considered the Hyper X metal 3 wood 15 degree which was regular $225 and had been marked down to $149. I passed, much to the chagrin of my brother-in-law, happy with my new hybrid.

At the time my brother-in-law told me I was nuts not to buy that 3 wood. Well, yesterday I decided to take a run into Dicks for a peek. There I found that same Calloway Hyper X 15 degree 3 wood marked down to 100. I picked up the club and a sales rep walked by and says "I think that club is another 25% off, let me scan it to check".

Sure enough a $200 plus club for $75.

I know my math skills are nowhere near good enough to get me in the door at Goldman or on Treasury Secretary Tim Geithner's staff, except maybe as his accountant. Anyhow, according to my limited math, I paid just over $250 for 3 clubs, driver, 3 wood and 3 hybrid, a sum ess than my brother-in-law and many others paid for the Hyper X driver alone!

Can you spell deflation? Or in the least can you spell no pricing power? Six of one, half dozen of the other.

By the way did you happen to catch St. Louis Fed President James Bullard's comments earlier today?

Bullard had the nerve to warn that the Fed’s current policies were putting the American economy at risk of becoming


“enmeshed in a Japanese-style deflationary outcome within the next several years.”

To this I can only respond "Hello.... McFly"

Just watch all the other regional Fed presidents, past and present come out en mass, to circle the wagons and deflect criticism and obfuscate the truth. It is what they are good at.


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 @ $60.30
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 @ $42.45
Long 1 unit Ultrashort Real Estate ticker SRS @ $49.10
Long 2 units Direxion Tech 3X Bear ticker TYP @ $52.60
Long 1 unit US Dollar Bull ticker UUP @ $22.52 stop @ $22.52
Long 1 unit ishares Barclays 20yr Treas ticker TLT @ 92.15 stop @ $92.15
Long 1 unit ishares Barclays 20yr Treas ticker TLT @ 93.48 stop @ $93.48
Long 1 unit Ultrashort Gold ticker GLL @ $41.25 stop @ $41.19
Short 1 unit Apple ticker AAPL @ $275.20 stop @ $266.5

Wednesday, July 28, 2010

Neel Kashkari.... Please Go Away Already

Regular readers know I can go off every once and a while with an insult laden rant as evidenced of late by some of my All-Imbecile Team posts. Recently, at the urging of my lovely wife, I have attempted to ease back a bit in some of these rants. In particular the insults which I hurl with zest at many of these scumbags I believe are responsible for the rape, pillage and plundering of this great nation.

Taken a step further I am refusing to succumb to the urge to use profane laced insults against these most deserving individuals, remembering my old basketball coach's admonition that "profanity is the sign of a weak mind trying to assert itself forcefully".

I realize some of my rants puts many off but problem is I feel it my duty to call out these charlatans, thieves and vipers. Besides during the heavily opposed taxpayer funded bailout, ranting helped lower my raging blood pressure!

One of the characters in my cross hairs was one Neel "cash n carry" Kashkari.

For those who don't remember or would, like myself, prefer to forget, 'Cash n Carry' was a Goldman VP prior to being anointed special assistant to the Treasury Secretary by surprise, former Goldman chief Henry Paulson.

Paulson then named 'Cash n Carry' to the post of
interim head of the new Office of Financial Stability. Overseen by the treasury secretary, he was in charge of creating and implementing the United States government's $700 billion financial stabilization program called the Troubled Asset Relief Program or TARP. You remember the one voters voiced their opposition to their congressperson by an overwhelming 300:1 margin yet still passed.

I just love democracy, don't you?

'Cash n carry' then left TARP to head out west to PIMCO to work for Bill Gross.

I was surfing some articles today and somehow missed one from Monday. It seems Mr. Cash n Carry penned an op-ed piece for the Washington Post entitled "No More 'me first' mentality on entitlements"

It seems the former King of Entitlements, the chief of the bailout has found religion and doesn't support them any more. How convenient! Now that his masters and puppeteers have their loot in hand the bag boy Kashkari is upwardly mobile.

You can read the piece but I would suggest you don't. This way you can save the airplane sickness bag for when you're really gonna need it. Ahhh....go ahead and read his piece. It is an interesting writing style combining hypocrisy, hubris, ego, with a faint dash of alligator tear remorse all rolled into one. I am no criminal psychologist but reading it somehow the word sociopath keeps coming to mind.

But just in case you decide to skip the article, here's a real gem from this clear thinking financial wizard Kashkari, not to mention devoted patriot serving his country:

"Cutting entitlement spending requires us to think beyond what is in our own immediate self-interest. But it also runs against our sense of fairness: We have, after all, paid for entitlements for earlier generations. Is it now fair to cut my benefits? No, it isn't. But if we don't focus on our collective good, all of us will suffer."


I simply shake my head in disgust.
These financial morons incinerate the joint, then loot the nation for the insurance money via threats of anarchy and lawlessness and what happens? outfits like Pimco line up to hire them in a heartbeat. Instead of being ostracized and better yet, behind bars they are rewarding with hefty pay packages, perks and heralded as "experts" by the brain dead media.

The Washington Post seeks him out for an op-ed piece. Think about that one more time. Why doesn't the Post get Charlie Manson to pen a narrative on family gatherings or Roman Polansky to articulate on babysitting 13 year old girls.


Somebody please help me out here!

Most criminals ride off into the sunset to enjoy their loot, laying low, below the radar so to speak. What is it called when the criminal pulls the heist and then parades and flaunts around town like the Mayor?
Maybe he is not the issue and maybe we the fleeced are? Tis a thought.

Ahhh.... CNBC's Michelle Cabruso-Cabrera is right, I am the idiot blogger. I simply don't get it.


Can you imagine what Cash n carry's mom and dad think?

That's our boy! High finance wizard on Wall St. Patriot put his career on hold to serve his country in dire times at Treasury! Did such a great job saving the world he got a fantastic gig at PIMCO.


Gerald Celente was and remains correct about the 'white shoe boyz' gang on Wall St. If their names were Mondavi, Manchini, or Castellini, they would be called the Mob.


I am at a total loss for words. I guess we must still be in that parallel universe where up is down, wrong is right.
How cats like this Kashkari look themselves in the mirror I have no clue.


Neel Kashkari, please go away already.

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 @ $60.30
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 @ $42.45
Long 1 unit Ultrashort Real Estate ticker SRS @ $49.10
Long 2 units Direxion Tech 3X Bear ticker TYP @ $52.60
Long 1 unit US Dollar Bull ticker UUP @ $22.52 stop @ $22.52
Long 1 unit ishares Barclays 20yr Treas ticker TLT @ 92.15 stop @ $92.15
Long 1 unit ishares Barclays 20yr Treas ticker TLT @ 93.48 stop @ $93.48
Long 1 unit Ultrashort Gold ticker GLL @ $41.25 stop @ $41.19
Short 1 unit Apple ticker AAPL @ $275.20 stop @ $266.5

Bronco Drilling - BRNC and Ngas Resources - NGAS

While poking around some charts both Ngas Resources and Bronco drilling caught my eye and offer a couple of extremely interesting charts.

Ngas Resources, ticker NGAS, monthly view below.

Ngas Resources, weekly view below.

Ngas Resources, daily view below.

Bronco Drilling, ticker BRNC, monthly view below.

Bronco Drilling, weekly view below.

Bronco Drilling, daily view below

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 @ $60.30
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 @ $42.45
Long 1 unit Ultrashort Real Estate ticker SRS @ $49.10
Long 2 units Direxion Tech 3X Bear ticker TYP @ $52.60
Long 1 unit US Dollar Bull ticker UUP @ $22.52 stop @ $22.52
Long 1 unit ishares Barclays 20yr Treas ticker TLT @ 92.15 stop @ $92.15
Long 1 unit ishares Barclays 20yr Treas ticker TLT @ 93.48 stop @ $93.48
Long 1 unit Ultrashort Gold ticker GLL @ $41.25 stop @ $41.19
Short 1 unit Apple ticker AAPL @ $275.20 stop @ $266.5

Tuesday, July 27, 2010

Call Me Skeptical

A couple of email questions have been posed and I want to address them publicly this morning.

Both were along similar lines so to paraphrase them both....

'the economic news from some major companies is positive, why do you continue to be bearish given these reports from the likes of Fedex, Dupont, Caterpillar?'

Well, stubbornness could be one reason but it really isn't.

I continue to believe we have just exited the Mother of all credit/debt bubbles. This bubble pulled years and years worth of demand forward via "you can fog a mirror you get credit" lending standards. Prior generations saved up then bought a TV, saved ups some more then bought a washer, you get the picture. Today we simply lend money to people who can never pay it back and they buy everything all at once up front. Our economy has become kinda like one giant GM lease pull ahead program, just keep rolling what you owe till you can't do it anymore and blow up or if on Wall St. get bailed out.

We now live in a 3-D World one that is deflating, de-leveraging, and in depression but you can substitute any number of words like downsizing, decreasing and de-escalating as they all work here.

As for the FDX, DD, and CAT news of late. I don't buy it. Cost cutting and payroll slashing can go only so far, after that you have to have some sales. So again I don't buy it.

Just as I didn't buy the spinning of the housing start numbers yesterday which are in the toilet plain and simple or todays Case Shiller numbers which come courtesy of the tax credit. I don't buy this much the same way I didn't buy the Wall St. trading desks, Goldman, JP Morgan, Citi, and Bank America having no losing trading days in the first quarter this year. Yup 61 straight days of profits with no losses. Sure they did!

I fully realize many, many, many Larry Kudlow kool-aid drinkers and potential Brooklyn Bridge buyers out there, many whose bread gets buttered via rising markets, believe the pile after pile of garbage we are fed but this cat doesn't. Just like I didn't and continue to not believe the AAA rated NINJA and LIAR loans would ever be repaid. The banks can claim they are performing but a mortgage that hasn't had a payment submitted in 12 months is non-performing no matter how hard you try to ignore it. Just like profits that magically appear via creative accounting. Don't overlook the benefit a little 'raiding' of the loan loss provision account.

Facts like this continue to get in the way of my getting bullish.

Things like the chart below, Median Duration of Unemployment which was brought to my attention via Derek Thompson, staff editor over at TheAtlantic.com who calls it "the scariest unemployment graph I've seen yet!"


The chart which measure the time people are out of work is skyrocketing. This chart above creates this equation:

No jobs=no money=no spending=no consumption+ a debt laden consumer, which given the consumer is 70% of economy=BAD....REALLY, REALLY BAD !

Do you remember back in the housing heyday back in 2004/2005 we were getting reports that approximately 7 out of every 10 jobs created were in the housing sector. Funny how this fact is minimized, papered over or just ignored now buy the crowd on CNBC.

What else, oh yeah, volume. Volume absolutely stinks on this equity rally but that doesn't matter till it matters, kinda like a life boat on the Titanic.

What else, oh yeah, the bonds. The bond market continues to NOT buy into the equity rally.

All this may or may not make me a conspiracy theorist or a tin-foil hat wearing lunatic blogger. I feel it simply means I was born at night, just not last night! So lets just call me very skeptical.


Housekeeping Notes;

A nice breakdown in gold today equals a breakout in GLL. In yet another defensive move I want to move my stop on GLL up to break even. Lets move it up to $41.19 and be done with it.


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 @ $60.30
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 @ $42.45
Long 1 unit Ultrashort Real Estate ticker SRS @ $49.10
Long 2 units Direxion Tech 3X Bear ticker TYP @ $52.60
Long 1 unit US Dollar Bull ticker UUP @ $22.52 stop @ $22.52
Long 1 unit ishares Barclays 20yr Treas ticker TLT @ 92.15 stop @ $92.15
Long 1 unit ishares Barclays 20yr Treas ticker TLT @ 93.48 stop @ $93.48
Long 1 unit Ultrashort Gold ticker GLL @ $41.25 stop @ $41.19
Short 1 unit Apple ticker AAPL @ $275.20 stop @ $266.54

Monday, July 26, 2010

The Yen, Return OF Capital and Idiot Bloggers... again

The chart below is a nice looking weekly view of the Japanese Yen ticker FXY for your viewing pleasure.


There has been much talk by bullish analysts and purported pundits that the Fed is going to cut interest rates that are paid on excess reserves the banks you and I deal with keep on deposit with the Fed. The consensus is that this will encourage banks to lend.

I repeat, yet again, for those that missed it or have forgotten. The people and entities who desperately need money to stay afloat don't have a credit score to qualify, never have and never will. They only received financing in the first place because it was a Greenspan sponsored and endorsed reckless orgy of 'you have a pulse you qualify lending'. The people and entities who do qualify for financing aren't stupid enough to borrow.


So the bulls think the Fed cutting rates here will spur lending huh?

Try this on for size. Remember Japan?
Remember the depression they have been going through since their economy topped out in 1990? Well, the vast majority of Japanese savers gave up on the insolvent banks preferring to keep your yen on deposit with the Japanese Postal Savings System at next to zero rates.

Lowered rates spurring borrowing huh?

It's called pushing on a string and again please refer back to my above point on borrowing.

I do not have current numbers but as of approximately 2006 the Postal Savings System was the largest bank on the planet based on deposits. All the while paying minuscule interests rates to depositors.

Why?

Ever heard this phrase..... the return of capital is more important than the return on it.

When people are worried about the very existence of a deposit taking institution all bets are off. Confidence is paramount is so many aspects of our ponzi scheme but more so in this arena than any other.

Think back to any bank panic the globe has ever seen throughout history. In my opinion there is good reason why people will accept 1/4% that is 0.25% for their deposits. Quite frankly the Fed can cut to zero and then even charge I safekeeping fee and it will matter not a whit.

I completely envision a time, though I much prefer not to, when one will pay a rate rather than receive one for the privilege of keeping you money on deposit with a solvent, reliable, transparent, deposit taking institution.

Idiot Bloggers vs Brilliant Mainstream Media.

I caught the following piece where a CNN host calls for crackdown on bloggers in the aftermath of the Shirley Sherrod fiasco. Might I humbly suggest a crackdown on the lamestream media for being comatose, lazy and plain ol' on the take. Need I bring up Balloon Boy or any number of stories the Enquirer has broken the mainstream arena has refused to?


CNN host Kyra PHillips is officially on board the idiot blogger train. Check out this winner of a line:

"There's going to have be a point in time where these people have to be held accountable," Phillips said. "How about all these bloggers that blog anonymously? They say rotten things about people and they're actually given credibility, which is crazy. They're a bunch of cowards, they're just people seeking attention."
Ms. Phillips comments harken back to CNBC village idiot Dennis Kneale's comments last July when he described blog criticisms as "the anonymous, dark and cowardly corners of the blogosphere".

In my post Anonymity Reigns, I outlined the issue of anonymity as
I am one of those bloggers who writes under a nom de plume as they say. So do many other blogs and sites on and off the internet. One of the more famous publications known for this is the Economist Magazine. Bloggers are not the first to write anonymously nor will we be the last. Anonymous writings have been around far longer than the internet for sure. Am I to believe people like Ms. Phillips and village idiot Kneale that ones' anonymity renders his/her information moot? That simply refusing to identify ourselves invalidates our point? Tyler Durden (nom de plume) over at Zero Hedge responded as follows to this exact issue and which I have selfishly now adopted as my own;

"though often maligned (typically by those frustrated by an inability to engage in ad hominem attacks) anonymous speech has a long and storied history in the united states. used by the likes of Mark Twain (aka Samuel Langhorne Clemens) to criticize common ignorance, and perhaps most famously by Alexander Hamilton, James Madison and John Jay (aka publius) to write the federalist papers, we think ourselves in good company in using one or another nom de plume. particularly in light of an emerging trend against vocalizing public dissent in the united states, we believe in the critical importance of anonymity and its role in dissident speech. like the economist magazine, we also believe that keeping authorship anonymous moves the focus of discussion to the content of speech and away from the speaker- as it should be. we believe not only that you should be comfortable with anonymous speech in such an environment, but that you should be suspicious of any speech that isn't."

Maybe journalistic reporting should be judged on the content of your work and not the cover of your face thereby leaving former beauty pageant winners and Calvin Klein models quality and content of work to fend for itself. Tis a thought

Oh well, should you expect anything less from the likes of people who might be dupes when it comes to reporting and insight but sure know what their shelf life is and can sniff out their cheese is being eaten for sure. One thing I can assure you of is that were there more of the ilk of an Edward R. Murrow and less of what I like to call boobs and boobs in chairs, (thx Mike Morgan, never stop laughing at that one) this whole conversation would be moot.


Housekeeping Notes;

In a defensive move I want to move my stop down on AAPL to $266.54


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 @ $60.30
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 @ $42.45
Long 1 unit Ultrashort Real Estate ticker SRS @ $49.10
Long 2 units Direxion Tech 3X Bear ticker TYP @ $52.60
Long 1 unit US Dollar Bull ticker UUP @ $22.52 stop @ $22.52
Long 1 unit ishares Barclays 20yr Treas ticker TLT @ 92.15 stop @ $92.15
Long 1 unit ishares Barclays 20yr Treas ticker TLT @ 93.48 stop @ $93.48
Long 1 unit Ultrashort Gold ticker GLL @ $41.25 stop @ $38.84
Short 1 unit Apple ticker AAPL @ $275.20 stop @ $266.54

Friday, July 23, 2010

End of Week - Random Thoughts

GM

News yesterday that GM is now back in the sub prime business as it has bought AmeriCredit for 3.5 billion. It seems the auto maker is frustrated losing customers who, get this one, can't qualify for financing. So rather than lose a sale due to bad credit score, buy the lender, be the lender and go back to "you can fog a mirror you qualify!" Lovely!

Newsflash for GM management, and while it may appear complicated I will simplify it for you..... a sale to a customer who cannot pay for the product is not a sale at all! But it sure looks good on your quarterlies for the Wall St. analysts that's for sure.

Still own those Muni's?

In what seems like a daily basis we get news on how ludicrous municipal finances have become. I know many jokingly refer to California as the land of fruit and nuts but this story, Is a City Manager worth $800,000?, seems to provide credible evidence to that claim.

In what is sure to make your blood boil, we got news that in Bell, California the city's chief administration officer Robert Rizzo is paid $787,636. As if that is not enough Bell also pays police chief Randy Adams $457,000.

Do you have any idea how many aspiring MBA's at Princeton, Harvard and Yale are reading this-that little mouse is up running in that wheel- contemplating a career in civil service? I cannot count that high.

But wait, this whole story gets better. What? How?

Well, this devoted civil servant 55 year old Rizzo, if he was forced out, would be entitled to at least $600,000/year pension for the rest of his life! This would earn him the title of highest paid retiree in the CalPERS system, just edging out former Vernon, CA city manager Bruce Malkenhorst who makes $509,664.

Remember Randy Adams, the 59 year old the police chief? If he were to step down his pension would be $411,300.

The seeds of class warfare have been sown folks, and while on the topic..... anyone still own those tax-free muni bonds?

Class Warfare

Now given you know all this, I highly recommend the following which is an article, forwarded to me by a friend (thx B.H) out of the American Spectator entitled America's Ruling Class -- And the Perils of Revolution by Angelo M. Codevilla who is
professor emeritus of international relations at Boston University.

It is must reading. Take some time over the weekend, I assure you, no make that strenuously assure you will not be disappointed.

Charlie Rangle

In more news from the WWF eeer, excuse me I meant to say congress, it appears Rep. Rangle has been accused of using his former position as the Chairman of the House Ways and Means Committee to benefit his financial interests.

What does one say to this other than to ask what the over/under is on him doing time? Cause I'm surely taking the under, it's Washington which Wall St. is only second to in self-policing.

Transocean and British Petroleum

I hope you all took the time to listen to Matt Simmons comments the other day in his interview with Eric King which I had posted. Given that BP is down so hard and psychologically it is hard to pull the trigger shorting something so beaten up, I have been contemplating watered down version, that being long RIG short BP as a spread trade. Still thinking about that one.

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 @ $60.30
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 @ $42.45
Long 1 unit Ultrashort Real Estate ticker SRS @ $49.10
Long 2 units Direxion Tech 3X Bear ticker TYP @ $52.60
Long 1 unit US Dollar Bull ticker UUP @ $22.52 stop @ $22.52
Long 1 unit ishares Barclays 20yr Treas ticker TLT @ 92.15 stop @ $92.15
Long 1 unit ishares Barclays 20yr Treas ticker TLT @ 93.48 stop @ $93.48
Long 1 unit Ultrashort Gold ticker GLL @ $41.25 stop @ $38.84
Short 1 unit Apple ticker AAPL @ $275.20 stop @ $280.06

Netflix and MasterCard

Below we have a weekly view of MasterCard ticker MA.

And now a close up of that MasterCard chart, daily view below.


Below we have a weekly view of Netflix ticker NFLX, every hedge fund valet and institutional managers favourite must own stock. Can you imagine the embarrassment of lunch with your Wharton friends -over bonus discussion on what to do with your bonus' for losing 15% while the market lost 20%- and having to own up you missed this puppy?

NFLX is a poster child for exactly the type of story stock today's hollow Wall St. types absolutely adore.


Netflix, exhibit #112 and yet another crystal clear symbol of why our economy is in the shape it is.

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 @ $60.30
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 @ $42.45
Long 1 unit Ultrashort Real Estate ticker SRS @ $49.10
Long 2 units Direxion Tech 3X Bear ticker TYP @ $52.60
Long 1 unit US Dollar Bull ticker UUP @ $22.52 stop @ $22.52
Long 1 unit ishares Barclays 20yr Treas ticker TLT @ 92.15 stop @ $92.15
Long 1 unit ishares Barclays 20yr Treas ticker TLT @ 93.48 stop @ $93.48
Long 1 unit Ultrashort Gold ticker GLL @ $41.25 stop @ $38.84
Short 1 unit Apple ticker AAPL @ $275.20 stop @ $280.06

Gold in a 3-D World

Okay time for a look at Gold. Below is a weekly view of gold via the GLD

Next up we have a weekly view of the Market Vectors gold miners ticker GDX.

As I have said countless times in the past, the stocks should lead the bullion due to leverage to the underlying commodity. Using this the GDX has failed to confirm the new highs in gold. Many will point to the globe "being off it's debt rocker" as the reason for this 'anomaly.

I continue to remember what gold did in 2008, sell off hard, and continue to worry that in a global margin call, it becomes the asset 'du jour' for sale, simply because it can be sold. Never a no bid flash crash here.

Also to be noted is that I, in case you were wondering, completely realize that ....
gold is a safe haven
gold is no ones obligation
gold is money
gold is security
gold has stood the test of time

But I also completely realize that in a 3-D world, that is one that is deflating, de-leveraging and in depression gold with always have a bid and no matter how sturdy the asset, in the 3-D environment, they all go down.

Based on this I am punting gold short. I shall do so by getting long 1 unit long of the ultra gold ticker GLL here at $41.15 with a stop at $38.84

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 @ $60.30
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 @ $42.45
Long 1 unit Ultrashort Real Estate ticker SRS @ $49.10
Long 2 units Direxion Tech 3X Bear ticker TYP @ $10.52
Long 1 unit US Dollar Bull ticker UUP @ $22.52 stop @ $22.52
Long 1 unit ishares Barclays 20yr Treas ticker TLT @ 92.15 stop @ $92.15
Long 1 unit ishares Barclays 20yr Treas ticker TLT @ 93.48 stop @ $93.48
Long 1 unit Ultrashort Gold ticker GLL @ $41.25 stop @ $38.84
Short 1 unit Apple ticker AAPL @ $275.20 stop @ $280.06

Monday, July 19, 2010

Matt Simmons on the Gulf Oil Leak

I have refrained from commenting on the oil leaking in the Gulf of Mexico but the time has come to do so. The oil leaking into the Gulf, as anyone with a functioning room temp IQ should know is a major big time issue. I am no missile or in this case petro-chemical engineer but were I in charge, fixing this Gulf oil issue would absolutely, unequivocally be priority number one!

That said, one person in the oil industry I have some respect for is Matt Simmons. He is extraordinarily knowledgeable on the industry and when he speaks you would do well to pay attention. Many might recognize his name as the oil industry financier but he also is the author of the fantastically enlightening book Twilight in the Desert.

I realize some may disagree with my assessment of him and that is fine. What I do know is that Matt is unafraid to communicate facts of the industry, as unpleasant as they may or may not be, facts that many yes men out there haven't the onions to.

Simmons has claimed from the get go that this was not a rig fire but a blowout. He also contends that the real leak is not from the riser pipe but rather miles away on from the compromised sea floor where oil and methane are gushing into the gulf and that BP is concealing this.

Matt has stated the only way to stop the flow is to detonate a nuke below the sea bed to encase the oil below. This stuff is way over my head but what I do know is that Matt has access to and is in contact with many of the sharpest minds in the industry who do know what is going on.

This article from Reuters reports that Methane in Gulf 'astonishing high' according to U.S. scientist. Recently BP announced claims to much fanfare that they have sealed the leak but today we get this news Gulf oil spill sea floor leak now confirmed confirming what Simmons has been saying all along.

I came across an interview over the weekend with Matt Simmons by Eric King of King World News where Mr. Simmons covers all of these details along with some other shocking news. The interview is not long and I consider it absolutely must listening. Please, I urge you to click on the link below:

Eric King interview with Matt Simmons July 17, 2010

I sure do hope Matt Simmons is very wrong but I truly worry that he isn't.


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 @ $60.30
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 @ $42.45
Long 1 unit Ultrashort Real Estate ticker SRS @ $49.10
Long 2 units Direxion Tech 3X Bear ticker TYP @ $10.52
Long 1 unit US Dollar Bull ticker UUP @ $22.52 stop @ $22.52
Long 1 unit ishares Barclays 20yr Treas ticker TLT @ 92.15 stop @ $92.15
Long 1 unit ishares Barclays 20yr Treas ticker TLT @ 93.48 stop @93.48
Short 1 unit Apple ticker AAPL @ $275.20 stop @ $280.06

The Captain of the All-Imbecile Team

Many out there have been following with baited breath my All-Imbecile Team. Like other famous outfits in history the All-Imbecile is not your ordinary idiot outfit. This team is for the creme de la creme of imbeciles. No run o' the mill morons or numbskulls for this team. To gain access one must distinguish ones self as a true imbecile, head and shoulders above the crowd of nitwits.

This morning the time has come to do what everyone in their right mind knows has been coming all along. That is to name our captain of the All-Imbecile squad. Every ship needs its captain, every unit needs its vocal leader and yes every ponzi scheme needs its, well, ponzi leader-in-chief.

In what can be described as anti-climatic at best or in the more infamous words of the accented cleaning company owner Charlie Sheen partners up with to access insider info in the movie Wall Street, "thank you for telling me what I already know" I am formally announcing not only his addition to the squad as a vital cog but also as the unit's captain..... Allan "the maestro" Greenspan.

As an update for readers our current All-Imbecile Team members are:

Ken Rosen from Cal-Berkeley,
Roger Farmer from UCLA and
Alicia Munnell from Boston College.
Paul Krugman from Princeton University

Did you really think anyone else was more qualified wear the C on his jersey or the armband if you will than the maestro himself Greenspan? Don't get me wrong, there is an plethora of economic imbeciles in this country the likes of which the republic will be hard pressed to replicate, but some just distinguish themselves over and above the crowd.

Like a Jordan, a Pele, or a Nicklaus some separate themselves from the field with distinction. In the field of economic imbeciles Greenspan has no peer, no equal.

In proof that Greenspans hubris knows no bounds we must watch his history revisionism tour as he travels the globe, telling any and all who will listen how none of this mess was his fault and how none could see it coming. Exception being those lunatic fringe idiot bloggers right?

Greenspan presided over bubble after bubble infamously proclaiming that bubbles were only detectable after the fact. This statement alone should have led to one way ticket to a weather station in Alaska but no, in this country it's grounds for a promotion or in the least a nomination for a nobel prize in economics.

This morning I came across this article "Greenspan Says congress Should Should let Bush's Tax Cuts Lapse." Yup, raise taxes, super idea maestro, that'll really kickstart the economy! Can someone please explain to me why anyone besides Andrea Mitchell is still listening to this buffoon? Why anyone would pay a red cent let along mucho dollars per plate to hear him spout his economic idiocy is beyond me.

I often think back to earlier this year, February to be exact where in a Bloomberg piece you can view here Greenspan Says Crisis 'By Far' Worst, Recovery Uneven. the maestro had this to say,

The financial crisis was caused by a “fundamental misjudgment in the marketplace,” Greenspan said. “I hope we can find a way of resurrecting the subprime market,” because it was working well until those mortgages were widely securitized, he said.

I want you to re-read the above one more time, please.

Crisis caused by a financial misjudgement?
Resurrect the subprime market?

Do we even need to even dignify this monumental stupidity of these statements with a retort?

Sure maestro, Bernie Madoff's ponzi scheme was working swimmingly well until it imploded too. I am going to mince no words here this morning. This man is VERY dangerous. Dangerous to your's, mine, and the country's economic well being and survivability. He is infinitely more dangerous than mass murderers like the Hillside Strangler or Son of Sam. We have less to fear from a Charles Manson running loose among the populace than from Alan Greespan's policies running loose on our economic landscape.

The internet bubble exploded and rather than let the natural course of events occur that has been occurring since the beginning of time, the brilliant one decided he could circumvent the laws of nature. So instead of washing the rot from the system the Maestro, lowered interest rates to next to nothing thereby spawning the housing bubble, where as we all know now, when you give money away for free terrible things happen.

I know many MBA's PhD's and other laureates may find this next sentence preposterous but had Greenspan simply left things alone, as painful as the re set may have been, we might well be on our way to a meaningful, sustainable, sound recovery.
But not this narcissistic egomaniac, just slap more makeup on the decomposing carcass as that will surely make everything okay.


What is wrong with people that so many cannot see what should be plain as the hand in front of your face, that this Greenspan is pure poison. What baffles me is that now, after some of the dust has settled and it is clear to see the havoc he has wreaked on the economy, we continue to seek him out for opinions and advice. Simply mind boggling. Would someone somewhere finally slap duct tape over his mouth so we do not have to entertain more of his poisonous remedies for the cancer HE CREATED! Yes, the cancer HE CREATED. I would counsel that we should do the exact opposite of EVERYTHING he recommends. Period, end of discussion.


Sadly this was the man in charge of the monetary strings in this country. Future generations are going to mercilessly ridicule, mock and lament those of us here today who stood by and let this ignoramus destroy what was once the economic envy of the planet.

Former Fed Chairman and now perpetual history revisionist Allan Greenspan captain of the All-Imbecile Team.



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 @ $60.30
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 @ $42.45
Long 1 unit Ultrashort Real Estate ticker SRS @ $49.10
Long 2 units Direxion Tech 3X Bear ticker TYP @ $10.52
Long 1 unit US Dollar Bull ticker UUP @ $22.52 stop @ $22.52
Long 1 unit ishares Barclays 20yr Treas ticker TLT @ 92.15 stop @ $92.15
Long 1 unit ishares Barclays 20yr Treas ticker TLT @ 93.48 stop @93.48
Short 1 unit Apple ticker AAPL @ $275.20 stop @ $280.06

Thursday, July 15, 2010

Please Pay Attention to The Bonds

A friend graciously invited me to play in his club golf tournament, which I am the next few days so posting will be spotty.

I have just been sitting here watching, paying close attention to the things I pay close attention to. I want to address an issue a friend of mine brought up to me recently. We were discussing the state of the markets as he knows my work and he countered my bearish posture with this...

"I hear ya big guy, but I gotta tell ya rates are sooo low, corporations are sitting on tons of cash, all that money has gotta go somewhere and stocks are it."

First off, that conclusion is quite a leap. In my opinion corporations are raising cash for good reason..... big trouble dead ahead. As I have mentioned previously, if you go around and ask 10 local business owners if they are gonna expand and hire new workers in the next 12 months or if they would borrow 4, 3, or 2 million dollars, you name a figure if you like, to expand or buy a competitor and see how quick they look at you like a crack head and request a urine sample.

But let's put that aside for now and examine the issue of rates being soooo low. Rates on their face are low but one needs to examine real rates. If rates are 15% like in the early 80's and inflation is 13-14% your real rate is 1-2%. Right now I do not see any inflation but rather see deflation so a 3-4% yield with negative GDP, (yeah, yeah, yeah Steve Liesman GDP is up on stimulus, sure!) you have a real rate of 4, 5 or 6%. So you tell me if rates are sooo low.

Other than that
I have just been sitting here watching, paying close attention to the things I pay close attention to. I want to make something very clear to anyone reading this idiot blogger's blog. I urge you all, wait... check that... make that strenuously urge you to pay attention to the bonds and what they are doing!

I repeat, yet again, for those that thought I was kidding or was just being sarcastic, that the equity guys and gals rode the short bus to school. The bond cats are the ones you must pay attention to.

Now, later in life nothing has changed and you, being a participant in these capital markets, if they can still be called such, absolutely, positively and without equivocation must pay attention to what the bonds are saying.

Hint, it starts with 'D' and ends with 'tion' but one could argue it could also end with a 'ssion'
but then I would be accused of engaging in hyperbole.

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 @ $42.45
Long 1 unit Ultrashort Real Estate ticker SRS @ $49.10
Long 2 units Direxion Tech 3X Bear ticker TYP @ $10.52
Long 1 unit US Dollar Bull ticker UUP @ $22.52 stop @ $22.52
Long 1 unit ishares Barclays 20yr Treas ticker TLT @ 92.15 stop @ $92.15
Long 1 unit ishares Barclays 20yr Treas ticker TLT @ 93.48 stop @93.48
Short 1 unit Apple ticker AAPL @ $275.20 stop @ $280.06

Friday, July 9, 2010

Krugman, Paulson, Buffett and Lebron

Back in the saddle and at my post. Lots to talk about so here goes on a variety of items.

Paul Krugman

Did you happen to catch Paul Krugman being interviewed on CNN by Fareed Zakaria. Thank goodness it was over the holiday weekend and most missed it, as I must confess it was a most difficult interview to stomach without an airplane sickness bag. The best part of Krugman getting all this air time is that the Nobel laureate and his reputation are going down the same drain the Maestro's (re: Greenspan) did. Fitting.

John Paulson

In the Denver airport over the holidays I saw a cat reading Zuckerman's book The Greatest Trader Ever which, as most know, is the story about how John Paulson made about $40 billion on the housing bust and approximately $4 billion personally from it.

This blogs 7 regular readers know that previously I have been extraordinarily critical of Paulson and the trade. I took serious issue with his 'stacking the deck' as he specifically arranged which monumentally toxic paper were to go into the vehicle he would short. These were also not your run of the mill, average low probability pay back mortgages, these were the creme de la creme of dog shit paper, there was no chance in hell they would get paid back. No mediocrity allowed here. So, as I sat waiting patiently with my lovely wife for our flight out of Denver into the back country that is gorgeous Colorado I had an epiphany.

Paulson is a pure genius! He is the greatest trader ever! This is the greatest trade ever!

So why the dramatic change of heart? Well, hear me out.

Paulson knew the powers that be would never let anything tank (stocks are always supposed to go up) without throwing every monkey wrench and kitchen sink in the way to upset the most carefully laid plans. As anyone who was short any number of dog shit housing and mortgage stocks (re: Countrywide, Great Western Financial, et al.) can attest to, the gamz that were played (re: buyout rumors, CEO statements, Fed comments, etc.) gunning these worthless stocks to keep the ponzi going was something to behold. Paulson knew this and realized he could not short a "mainstream" investment as anything traded on a public exchange could be thereby subject to the manipulations and machinations of da boyz and leave him hanged, drawn and quartered.

No dear readers, Paulson was shrewd. He resorted to the black market, the underground market where all the unregulated derivatives traded. You know the ones sitting on all the banks and pension balance sheets valued at 80 cents to par on the dollar when they're really worth a dime but who's counting anyway. By tapping this black market Paulson could get short a package a guaranteed toxic shit, remember now he chose the pinnacle of shit for this vehicle so guaranteed means GUARANTEED, and never be subjected to the stomach churning, margin call inducing short covering gamz da boyz were playing upstairs, int the light of day, in full view of eunuch-in-chief at the time Chris Cox and the SEC!

For the record I stand corrected. Paulson did pull off the greatest trade ever and did so in an extraordinarily canny, astute way. He fully anticipated da boyz moves in advance. He knew they would cheat him, so just like Paul Newman did in poker game on the train in the absolute must see training video for ALL capital market participants 'The Sting', Paulson CHEATED FIRST and CHEATED BETTER !!!

Kudos to John Paulson. What a grand story to pass from generation to generation by his work-free heirs and heiresses to tell their children.

Warren and Tony

I get a lot of email whenever I challenge or trash his excellency, the oracle, Warren Buffett. Many refuse or simply are incapable of seeing or hearing any ill with 'the oracle'. I on the other hand, see some serious warts on the investment legend and refuse to bow down before his excellency, unlike the mainstream financial media, which caters to his every whim.

That said and trying to keep separate the eerily awkward and uncomfortable Howard Marshall/Anna Nicole Smith thing between 'the oracle' and his CNBC concubine, eerr excuse me, exclusive designated interviewess Becky Quick, lets review Mr. Buffett's recent comments regarding embattled BP CEO Tony Hayward. In particular Buffet had this to say regarding Mr. Hayward:

"Tony Hayward should not continue as BP's CEO, so that the American people can "feel better" about the company's response to its massive oil spill in the Gulf of Mexico."

Now I am not defending Tony but say again Warren? Feel better?

Let me get this straight in my itty bitty cranium. Tony has to go but Lord Blankfein of Goldman, who led the rape and pillage of the taxpayers should stay? Did I get that right? If so, please let me introduce you to a brand new word for your vocabulary.

Hyp*o*crite
[hip-uh-krit]

-noun

1. a person who pretends to have virtues, moral or religious beliefs, principles, etc., that he or she does not actually possess, esp. a person whose actions belie stated beliefs.

2. a person who feigns some desirable or publicly approved attitude, esp. one whose private life, opinions, or statements belie his or her public statements.


I thought I would share that with you Mr. Buffett, just in case you may have skipped the word in the dictionary or your copy has that particular page torn out. Maybe comprehension of this word just depends on whether you own the underlying stock in question or not? Just in case you think I am throwing around words haphazardly and being unduly harsh you Mr. Buffett, didn't you recently say in your testimony before the Financial Crisis Inquiry Commission that;

"CEO's of companies that needed public help should go away broke"

If I recall correctly it seems to me that Goldman needed some of that public help you mentioned. You surely remember them now don't you? Goldman Sachs that is, the company you threw $5 billion into, the one's doing God's work. With the same CEO in change.

Warren.... it's spelled H-Y-P-O-C-R-I-T-E. Just in case you forgot.

Lebron James and the NBA

First up the NBA. I am a sports fan, in particular U.S. college basketball and non-MLS soccer. Many friends and associates have been bewildered at my absolute detest for the NBA. My refusal to watch the NBA, let alone pay to watch should be obvious to anyone who has stomached even 5 minutes of the garbage.

Sure Commissioner Stern, I will pay $40-200/seat to watch 10 overpaid, lazy, tatooed from head to toe, purported greatest athletes on the planet, put in any adjective you want here, walk up and down the court to play one on one and then complain for a foul. Of course everyone would much rather do this than pay $8/ticket to watch U of D Mercy play Loyola as the 10 players out there sprint the floor and dive for every loose ball, playing each play like it's the last of their lives.

The NBA is a cess pool and you can stop putting all the blame on the players and give a giant mirror to the Napoleonic owners and their money losing franchises, recycling coaches like the L.A. Clippers Mike Dunleavy who don't know whether they are a coach, GM, scout or ball manager like former New Jersey Nets coach Lawrence Frank. Basically cats like this who would be working at an Arby's outlet were they not ensconced in the merry go round clique that is the NBA.

Amare Stoudamire, 5 years 100 million? Yeah sure. You want odds on the over under on more money or brains for those NBA owners? Mr. Stoudamire must be laughing all the way to the bank. Hopefully he made sure that the bulk of that $100 mill is front loaded.
The billionaire club that is the NBA owner fraternity should stick to doing what they do best, besides extorting taxpayer funded stadiums, which is collecting Arabian horses, 100 ft yachts, overpriced real estate and last but not least trophy wives.

Finally a note to Dan Gilbert, owner of the Cleveland Cavaliers. You give me a payroll of 3 million dollars and I can provide you a .500 team and the franchise makes money, guaranteed! And yes Mr. Gilbert you can take that to the bank!

Next up Lebron James.
I was on vacation the past few days and could not help but howl at the Lebron spectacle and the frat boy sports media led by ESPN with their hour long "special" on his decision. Have some pride you guys for crying out loud.

Did you happen to catch Ted Strictland, the Ohio governor grovelling to Lebron with other assorted Ohio politicians as they sang with the rest of the brain dead zombies to keep Lebron in Cleveland? The video seems to be disappearing now though. Maybe if Strictland spent time autering the Ohio budget instead of singing Ohio might be faring better.

But really are you shocked Strictland would do this? Or any other politician for that matter? Water seeks its own level and this is something the village idiot can wrap his/her arms around.

State
finances are collapsing, the Mexico border is lawless, the gulf is being poisoned, and yet where Lebron plays is deemed important and must see television. Who the bachelorette marries is important? As Donnie Brasco would say fugget about it.

How truly pathetic we have become
. Are you still wondering why I'm bearish on stocks?

Markets

Don't you just love the volume on the rally of the last 4 days. Speaking of volume, does anyone at CNBC even look at the volume anymore?


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 @ $42.45
Long 1 unit Ultrashort Real Estate ticker SRS @ $49.10
Long 2 units Direxion Tech 3X Bear ticker TYP @ $10.52
Long 1 unit US Dollar Bull ticker UUP @ $22.52 stop @ $22.52
Long 1 unit ishares Barclays 20yr Treas ticker TLT @ 92.15 stop @ $92.15
Long 1 unit ishares Barclays 20yr Treas ticker TLT @ 93.48 stop @93.48
Short 1 unit Apple ticker AAPL @ $275.20 stop @ $280.06

Sunday, July 4, 2010

Fourth of July Celebration

Just wanted to wish everyone out there a Happy Fourth of July !!

Please be safe and enjoy this wonderful holiday !