Prologis (PLD) still rhymes with AIG. They both still share the same path of least resistance. Zero.

Let’s take a look at the 15 minute chart of PLD today. Look at that scripted short squeeze. Kudos to whoever is trying to squeeze this one higher. This gimmickry works….until it doesn’t.

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Now, lets look at the 15 minute chart of PLD from Septembert 19th. Remember, that was the first day of trading after they announced the ever ominous….”We won’t make earnings, but we are raising our dividend.” Back then, we saw the same scripted short squeeze at the end of the day.

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Don’t be swayed by short term market manipulations. This one is a zero. The math cannot lie. The math cannot play cover up.

For more analysis on PLD, especially the truth about their new credit facility, see Richard Woon’s blog, Stripnomics.

Speaking of manipulation, as stated here, there is no Chinese Wall in Investment Banking. The fact that there is an attempt to convince the public otherwise is a public relations gimmick.

Peace

Probe of Lehman collapse escalated: report

This collapse was easy to see and I have written on if extensively in other forums.

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On to other things…I want to tell you about my pal, Ida. Ida is a golfer. She took up golf in her forties. Ida has 11 hole in ones. Quite a large number for a golfer. She is 97. I can hear her now saying….”I’m gonna get one more.”

The other night I finally asked her. How do you do it? How do you get so many?

She says, “oh, you just hit it down the middle, say a few hail marries, and it goes in the hole.”

That rang familiar with what I wrote here. Dream it, see it, do it, repeat.

While I am away, take some time to read one of my all time favorites. Bobby Evans definitely has a place in the volatilist hall of fame. He was optioning movie scripts that didn’t even exist while head of Paramount. He created a derivative market in the movie industry. What an unbelievable story. It also translates well to film. I am looking forward to having lunch with Bobby.

Peace

Bobby Evans

So there I was, walkin’ around my favorite little place by the sea.

What did I see? I saw the sound of the ocean. I heard the light of the night sky. I dreamed I was dreaming. I still might be. It was everything the fairy tale life should be. Replete with stories of what was and what will be. Laughter, lots of laughter. And of course, lots of volatility.

This upward move we have seen so far is so so. In español así así. I am unsure how long it will last. As I write ($SPX) Futures are +23 so we could be looking at another gap up opening tomorrow morning. We shall see. We shall see. I was out at sea, and out came volatility with me as the ($VIX) ended the day at 54.99. That was off 14.96 points or -21%. We are in new territory. New lands. The cocoon is not the cocoon anymore. The butterfly is free. The crazy movement will continue. Opportunity abounds. Opportunity always abounds in the land of volatility.

My book? Oh yes, my book. The one I am writing? No. My book. On to my book, my chips, my bets, my money management, my chances, my tickets, call them what you will. What do I own that I anticipate selling for more value than it is worth at this moment in time? Well my two favorites of course. Downside insurance in Visa (V) and Prologis (PLD).

In a conversation with a trader this weekend, he mentioned the IPO price for Visa (V) is $44. It isn’t surprising to see some hope in that name at this level. Unfortunately, the volume was pathetic. I am undeterred at all. Visa has a passport, or a visa, straight to $22. It is just a matter of time.

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Prologis (PLD). Nice volume today. Not.

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As far as my other book, it is a science fiction novel. I’ll let you know the title as soon as I figure it out. Let’s just say that the main character is a private Eye (A PI). P. I.
He’s quite entertaining really. At times he’s the life of the party. At times he’s a Fly on the Wall. Whatever form, he lurks. When he enters the room, things get real interesting real quick. His first name is Mestir and his second name has several syllables and rhymes with incredibility.

And that is it from me. Today 10.13. I’ll see you when we shall see. Good night.

Mr. Volatility

Tonight, I have exercise on my mind. Exercise has been an important part of my life for many years. Today I was up in the sky with the rest of the stars. Amidst all the atmosphere, I was thumbing through Dreams of Reason. The following quote struck me.

Once I get into good physical condition my morning run through the redwoods becomes almost effortless. I turn my body over to one of my silent partners, and, liberated from the sense of major exertion (and I don’t push myself), I am left free to think.

-Heinz Pagels

Peace

I like top threes. Top three of today.

1) My trail run. When Black Nasty’s Talking to the people came over my head phones I found myself looking into the reverse prism of my life. I was brought back about 20 years, to a Thrift store in San Diego, CA. My pal Diamond, who is the essence of cool, found a very funky little gem in the 50 cent record bin. Back at the house, the prophecy came true. It may have been the funkiest groove I had never heard of. The words of Black Nasty ring true always. Whatever street you are on.

He that knows
and know he knows
follow him

he that don’t know
but wanna know
lend him a hand

he that don’t know
but think he knows
look out

he that don’t know
and don’t wanna know
look out

2) The action in Visa (V). Bearish as can be. When it breaks the low print of the IPO price, gravity will take hold.

3) Money. What is money to Mr. Volatility? Money is a store of energy. Here is the equation:

Money = Store of Energy

If you don’t think you have enough money (energy), then you don’t.

If you think that you have enough money (energy), then you do!

To re-iterate this point, I quote professional triathlete, coach, businessman, and writer Gordo Byrne:

-If you really want anything - love, money, respect, power… then the quickest and most effective method is to give it away. This is a very powerful concept.

Peace