Got Me A Jump On Next Week

That's how I roll.

Added to an existing long position in RDC. Monday is the final day of the second quarter and I anticipate more upside in energy names. Regardless, the chart is just a thing of beauty. Who knows whether or not the breakout comes next week, but it's just a matter of time.

Trouble Ahead, Trouble Behind

As the stock and bond markets join the housing market and the economy in a generational death spiral, severe pain will ensue. Retirees and those on fixed incomes are fucked as inflation continues to rage and the government continues to understate all measures of said inflation. Company pension plans and your 401K are going to be much less valuable when the tide goes out.

Just when the pain becomes unbearable we will bounce. Things might not be so bad. Sell that bounce because we are nowhere near a bottom. This all has the potential to be very bad and it's not too late to protect yourself. Sell something and watch it go down. We have not yet seen fear but the fear will come. Oh yes, fear will come.

By then I'll be trading from a remote location high in the mountains. I'll have a food plot and shit. Off the grid with potable water. I'll corner the uranium market just for fun. Get a couple hundred head of cattle and some tricked out grain silos. My strategic petroleum reserve will be stacked thereby granting my private army military dominance.

I hope you have a plan amigo.

Closing Bell

Dow down 358 points. Time to count my coin. Shit, I got paid like a CEO today. I'm up about 15% this MONTH.

I will now redirect my attention to the important matter of the NBA Draft. It looks as though my team, the Chicago Bulls, will be taking this chump-ass point guard Derrick Rose. I, for one, am looking forward to trading Kirk Hinrich. Two birds with one stone. It's a good day.

Time to go pre-game. I know it was a tough day, try to keep yourself from jumping out your office window.

What Did I Say?

I believe it was something like..."The market remains uncomfortably close to the edge of a cliff. Sooner or later it goes over."

Apparently it was "sooner". The absolute panic low set in January on the DOW has been convincingly violated. Obviously dip-buying is no longer a viable strategy. Instead you want to sell rallies.

I am less than optimally positioned for this move having gotten smaller ahead of the Fed. Although I did put on a big fat IWM short position yesterday afternoon. I added some SRS this morning in addition to a few shorts. I'm not getting too aggressive in chasing anything here. We are in a bear market and that's not going to change anytime soon. There will be plenty of time to take advantage of the incredible pain that lies directly ahead.

From the long side I see very little to get excited about. The metals are the exception. Gold and silver are extremely close to breaking out and de-balling the shorts. I am cautiously adding more GLD in anticipation of the breakout and when it happens I'll be buying with both hands.

More Bailouts and Handouts

http://apnews.myway.com/article/20080624/D91GO9J80.html

"A massive foreclosure rescue bill cleared a key Senate test Tuesday by an overwhelming margin, with Democrats and Republicans both eager to claim election-year credit for helping hard-pressed homeowners.

The mortgage aid plan would let the Federal Housing Administration back $300 billion in new, cheaper home loans for an estimated 400,000 distressed borrowers who otherwise would be considered too financially risky to qualify for government-insured, fixed-rate loans."

Nice Day For A Rally

The Fed is in session. Bears beware.

We have been awfully close to the lows too and it's end of the quarter. Just something to think about.

I have taken down a lot of risk, into this morning's weakness, and built a war chest of epic proportions. Give me higher prices!

We shall see. The market remains uncomfortably close to the edge of a cliff. Sooner or later it goes over.

Just Nibbling, For Now

The next leg up in the metals is so close I can taste it. Haven't taken any significant action thus far but I'm nibbling- adding a bit here and a touch there in the trading account. As for my longer term accounts I'm an aggressive buyer.

Yes I Am...

...short MBI. This bitch goes to zero.

Just For the Record

In regards to all of the aforementioned problems that we currently face allow me to just say:

I CALLED IT.

Disclaimer: In "real life" I am not an outwardly arrogant person but for the purposes of this blog...

Better Late...

Here we are again: headed straight down the toilet. Makes me wonder what the Fed has up it's sleeve to bail us out this time. Tomorrow they announce their next move. They should absolutely be raising rates to fight inflation, if not tomorrow then going forward into the remainder of the year. The market seems to think that's a likely possibility but I would put the chances somewhere around 0%. If there is one thing I know, it's that the Fed could give a shit about inflation. Period. Bailing out the banks, for instance, is a much higher priority.

The Associated Press actually had a headline over the weekend that read "Everything Seemingly Spinning Out of Control". Isn't that the truth. We have natural disasters, raging inflation, two seemingly endless wars, a housing crash, a stock market that is circling the bowl and an oil crisis. That's the tip of the iceberg. Don't forget global warming. It's uncanny that at the very moment in our nation's history, and world history for that matter, that we need real forward-looking leadership we have the worst presidential leadership in my lifetime (maybe ever). To be fair it's not just Bush and Co. but the entire structure that is rotten (both parties share responsibility). Not only are we not working towards solutions to any of these problems but we are working to exacerbate them.

I am legitimately frightened for my family going forward. In the meantime I am raping and pillaging this market. Up 10%+ for the month of June after poor performances in both March and April. The second half of last year represented the best six months of my trading career and I seek to replicate it this year.

Not much has been posted here of late. Hopefully I can get back in the groove. Things are only going to get more interesting.