Meanwhile, back at The Factory, the internet continues to be the largest communication platform I’ve ever been involved with. If I didn’t own the darned thing, I wouldn’t be where I am–in hiding.

On another note, some noteworthy happenings impressed me recently while speaking to my assistant, Tonya:

–Last week Goldman Sachs downgraded EPS estimates for the banks by 15%.

–The federal reserve hiked interest rates by 25 bps from .50% to .75% on February 19th in a surprise move. Since then, stocks have marched higher while volatility has slunk lower. There are various rumors making the rounds that the fed will repeat it’s actions from February–hike rates by 25bps in another “surprise move.” Moves are moves, but I definitely appreciate surprise moves and use them often.

S&P Futures / VIX

–Ratings agency Standard & Poor’s changed their ratings on Greece last week from negative to stable. Does anyone care about rating’s agencies anymore? Haven’t they been proven meaningless?

–I will be working the Ironman II premier in various locations, including Los Angeles. My client–Ms. Pinky Megiston–is involved with the show so though I’ll be there, absolutely no one will have any idea who I am. After all, not even I know who I am anymore. Whenever I have lost my mind in the past it has always led to bigger and brighter things. This time shall be no different.

Meanwhile, back at the office, I just hung up with Tony Stark. Due to client confidentiality, I am unable to disclose whether I run money for Tony. I can say that due to the magnitude of cash flows in and out of Stark Industries, Tony often comes to me for guidance. He has also borrowed my plane, The Errol Flynn, on occasion.

Before I run off to afternoon meetings, my thoughts turn to the replay of today’s tape.

The S&P closed off .34% or -3.64 points. The NASDAQ closed positive 5.18 points or .24%. Spot gold was off $3.25 and sits at $1,002.90. Oil futures closed lower by 3.57% to settle at 69.50.

Friday Night Announcement

After a strategic late Friday night lowering of guidance, Potash (POT) gapped lower this morning. The bookies — who make money no matter where Potash trades — were out in full force and their comments boosted the stock off it’s lows at $90.82 to close at $93.09. Broadpoint AmTech reiterated their buy rating, price target $116. BofA/Merrill maintaned their buy rating, price target $114. Fading the crowd was Soleil Securities, who cut POT from to hold from buy, price target $88.

Friday night press releases are an ominous sign. If I owned any Potash, I’d be selling it as fast as I could.

Caterpillar Stats

In other news of interest, Caterpillar (CAT) released dealer statistics for the June to August period. Retail machine sales were down 48%. CAT has rallied from the low 20s to the mid 50s since March. Valuation seems unjustifiable here, especially when the forthcoming rally in the dollar is factored in.

Ponzi Accounting

One of my favorite shorts of yesteryear, Prologis (PLD) was back in the news today with an announcement of a consent solicitation for $2.96 billion in debt securities. Prologis has taken advantage of the market strength over the past 6 months to — through various mechanisms — raise an exorbitant amount of capital. The accounting at Prologis continues to resemble that of Enron. At some point, the common equity in this company will be wiped out. In reaction, Wall Street will respond with the ever popular retort: How could we have known?

Nostalgia

On September 23, 2008 I posted my analysis of Research In Motion (RIMM). In what was one of the largest profits on my P&L last year, RIMM moved from $100 down to $40 in just over a month. This year, sports analysts on business TV are pushing RIMM even harder than they were last. On a technical basis, the price action in RIMM looks healthier this year. However, the cycles run with the seasons. When RIMM lowers guidance this week, the shock factor will be of greater magnitude than last year. In what mirrors the timing of their release last year, RIMM is announcing their earnings on the same date — September 24th — and the same day of the week — Thursday. I own puts in RIMM and my nostalgic mind is counting down the time until their numbers hit the wires.

Rimm - September & October 2008

The market is gearing up for something big and I’ll continue to document it here — where as always — the beat goes on.