STEVE WYNN PUT HIS MONEY WHERE HIS MOUTH IS

Shares of WYNN are down 60% for the year, thanks to the Chinese ruining gambling in Macau. Not having the powers of fortune telling, Steve Wynn had focused all of his companies resources on Macau, building a giant casino and praying to the Chinese gods that the communists would let him win.

Well guess what Steve? They didn’t let you win.

Macau used to represent 70% of the companies revenues, now just 25%. Essentially, Steve fucked up on a gargantuan scale. Sales and earnings have plummeted in recent quarters, alongside share price. But even with sales dropping 25% YOY, the price sales ratio of WYNN is at its lowest level since the 2008 crisis, just 1.5x

News just hit the tape that Steve Wynn stepped up to the plate and bought 1,003,977 shares in the open market, increasing his stake to 11,070,000. This is a significant and bold statement by the old school CEO.

Shares are up $6 or 10% in after hours trade.

I knew this would happen. The contrarians are attacking, for the sake of their fucked high yield bond books of course. Both Barclay’s and JP Morgan are defending crude here, pointing towards 2016 as the bottom in crude. All is well. Nothing to see here.

“Our overweight recommendation for the sector is clearly a non-consensus call with elevated credit spreads, an expected double-digit default rate next year, high short-interest and the Street’s stock ratings are the lowest in more than 10 years,” Lakos-Bujas, JP Morgan

Markets are being whip-sawed today with the price of crude.

This tight correlation between NASDAQS and crude offers opportunity for fast fingered traders. The play is simple: if crude spikes, get long some QQQ or your favorite NASDAQ stock. Or, if you’re super aggressive, buy FCX in anticipation of a rally. Should we rally with crude, the beaten down commodity names, like FCX, CHK and X will rally the most.

I know you peopole will think I have a vested interest in promoting StockTwits. I do not. My relationship with them is collegial, tenuous at times, often incidiery towards my person. A few weeks ago, I was accused by someone there of calling him a catamite. I’d never do such a thing. Shame on you for saying that to me.

I recall meeting H. Lindzon at some dump NYC hotel with his smarter partner, Soren Macbeth, pitch the idesa of StockTwits and the lunatic ‘cash tag’ concept via Twitter. This had to be 2008, before the site had launched. At first, I thought the idea was lunacy. Who’d want to corral stock traders and clean up after them? Little did I know, Howard and Soren were about to change the finance world with StockTwits.

When I was starting out in the business, the internet was new, so most feedback and rumors were faxed to me via Jag Notes every morning. Then there was the office water cooler, literally. After the internet got popular, the Yahoo message boards was the shit. But Yahoo fucked that up, allowing it to turn into a cesspool filled with spam giving shit heads.

Today we have StockTwits. I use the product every day and find it invaluable. Do I hate it sometimes and want to kill every person on it?

Absolutely. But that’s finance, filled with gurus and assholes. The true value in ST is the trending page.

This page produces the most talked about stocks in their giant ecosystem (more on that later), which I find to be great for gleaning news items as to why XYZ is lower or higher.

I once pitched H. Lindzon to include a StockTwits in house news feed for the most actives, doing quick video takes on why a stock was moving. The project died after Howard saw a mosquito on the wall, distracting him and causing him to forget we ever had the conversation.

As per the StockTwits staff, the site is growing pretty fast, jumping to 1.3 mill unique views per mo from 600k in 2013. They also generate about 1.5 messages per month.

It’s like a human ticker tape of information. Sometimes you have to be patient and comb through the nonsense; but it’s a great resource for traders.

(cue the I HATE STOCKTWITS comments in 5,4,3,2…)

Oil is firming here, which means equity markets should follow suit. Since we’re on the topic of commodities, I’d thought now would be a good time to inform those who are unfamiliar with the oil and gas debt markets how fucked they truly are.

The commodity landscape is in ruins. As such, the collateral behind the loans is a moving target–down–which at some point will pose as a problem. I’m thinking sooner rather than later. Many of the small time players will simply wash away, never to be seen or heard from again. But the bigger ones will not go so easily, potentionally causing ripple effects in the markets.

Here are the names to look out for. The market, more or less, hates these stocks–mainly due to their debt load and rising debt/eq levels. You will want to watch these ‘canaries in the coal mines’ very carefully. On a bounce, these will be the best performers.

Here is the next layer of risk. These companies aren’t distressed like the above list. However, given enough time with cheap crude and share price depreciation, these can hunt you in your nightmares and make you wished that you had never bought a commodity related stock.

Finally, this is the last list you will ever want to worry about. Because if these companies ever fall into danger of defaulting on their debt, the stock market will be the least of your problems.

Oil is down below $37 per barrel now, sending oil stocks down the toilet again. CDS for many distressed oil companies, like CHK, are blowing out. Debt to equity levels are getting dangerously high.

This is going to lead to a liquidity event that will cascade into the market and ravage everything in its path.

According to Exodus, there is over $267 billion in debt assigned to companies whose debt to equity levels are over 5x.

Under 5x, there is approximately $1.82 trillion in debt (lolz). Of the $1.82t, there are many billions of dollars in debt becoming distressed. By distressed, I mean companies who will find it increasingly difficult, or impossible, to tap equity markets for capital.

This is how a crisis begins.

SPY futs are off by 16, after fair value considerations.

Twitter is an awesome tool, shitty business, if you know how to use it. After the close yesterday, the entire fucking Boston College (Harvard rejects) basketball team, 20 in total, claimed to have contracted e-coli after eating at Chipotle’s.

This is the absolute worst food crisis to hit any casual food chain ever. Even more, it’s a punch to the gut to all the hipsters who praise CMG for their ‘natural food’ sources. Meanwhile, MCD is cranking out absolute shit; but no one gets sick from it because MCD is a fucking machine that does one thing near perfect. And that is ‘quality control’, something CMG, obviously, is having a very difficult time getting a handle on.

Back to Twitter. I did a simple keyword search “I got sick” Chipotle and was shocked to see dozens of people claiming to have gotten ill after eating there. The thing about contracting e-coli sickness is most people don’t report it. They simply suck it up, drink lots of fluids and hope that it goes away without a trip to the doctor.

After seeing the tweets that I am about to show you, I believe shares of CMG are in for a world of pain. Now that reporting e-coli sickness from CMG is fashionable, everyone is going to be doing it now.

Clearly, the amount of incidents is being grossly under-reported.

Fuck, ban everyone. What the hell do I care? At this stage, I’m like Bill the Butcher from Gangs of NY, totally pissed off at all of the newcomers coming off the boats, fucking with my country.

The best part about Trump, for me, is how opposite he is from Obama. Being that he’s self funded, NYC based, he is a liberals worst nightmare.

Let me not confuse any of you out there, thinking that I support the GOP. I do not. However, I must admit valuing entertainment traits in my politicians above all other qualities.

Why?

Because in my experience they’re all shit and only lead to disappointment. With Trump, I get a true comedian and someone who is solely interested in what’s good for America. I don’t know about you, but with Obama and the dem-GOP control apparatus, I feel as if a foreign government is in control of the country, placing foreign interests way ahead of national ones.

One day removed from our Liberian homeland security chief, AG and POTUS calling for tolerance with regards to islam, we get this.

Zero fucks given.

An old Jim Cramer fav, KMI, has been getting its fucking brains bashed in, over the past three weeks.

As the price of oil drops, calls for KMI to slash its dividend heighten.

Here’s a data dump of some research out tonight.

I know dividend cuts for pipeline companies is blasphemy. But this stock is getting shot to hell. Something needs to be done to firm up the balance sheet to make sure KMI can live to fight another day. Clearly, management has their heads up their collective asses and they haven’t been able to assuage the panickers.

Throw the kitchen sink: cut the divvy, conduct business and when things firm up, hike it up again.

The government modus operandi is to downplay every single attack, hiding the truth of virtually every single aspect of islamic terrorism perpetrated on U.S. soil. Last week after seeing there was more than one shooter, I immediately connected the dots to islamic terrorism–all the while the media, incessantly, tried to pin it on ‘work place violence’. There was even some people on Twitter who challenged my view that it was muslim extremism to blame.

The government controlled media is constantly asking the public “why did this married couple with a 6 month old baby committ these heinous acts?”

Trying to understand the savage is your first problem. It’s like trying to understand why a lion hunts and a homeless man drinks himself to sleep every night. A savage is a savage because that’s what he is. Our time would be better served trying to decapitate the savage, take away his resources, and annihilate him, than understanding his psychological profile.

There is a Facebook post circulating the internet from a friend of one of the slain in San Bernardino. Read it for yourself.

So why isn’t the media discussing this topic?

Because it’d paint the terrorist as the islamic extremist that he was, something the government is desperately trying to avoid.

How do I know this?

Since 9/11, this country has been incredibly tolerant and accepting to muslims. There isn’t this giant backlash against muslims that would require a lecture from the President, during a prime time address from the oval office. But that’s exactly what we got. Over the past three days, AG Loretta Lynch, President Obama and the head of Homeland Security, Liberia’s own, Jeh Johnson, have all warned us about hate speech against muslims.

What the fuck?

You people are literally out of your minds for believing this is an appropriate response, climate change and islamophobia, post San Bernardino.

By the way, look at the sort of elephant shit that is coming out of the mouth of Syed Farook’s insane father.

In Sunday’s La Stampa (link in Italian) report, Farook said, “My son said that he shared [IS leader Abu Bakr] Al Baghdadi’s ideology and supported the creation of the Islamic State. He was also obsessed with Israel.”

“I told him he had to stay calm and be patient because in two years Israel will not exist any more. Geopolitics is changing: Russia, China and America don’t want Jews there any more. They are going to bring the Jews back to Ukraine. What is the point of fighting? We have already done it and we lost. Israel is not to be fought with weapons, but with politics. But he did not listen to me, he was obsessed,” Farook explained to US correspondent Paolo Mastrolilli.

Farook’s son is suspected of carrying out a mass shooting that killed 14 people in San Bernardino. The father was interviewed in Corona, California, where he lives with his older son, Syed Raheel Farook, a US Navy veteran.

Farook senior was born in Pakistan and arrived in the US in 1973. The family has been described by many as very integrated in American society, almost the embodiment of the American dream.

Farook told La Stampa how, once in the US, he got a degree in engineering and started to work hard to guarantee his children “an education and the opportunity to succeed in life.”

Other reports told a more nuanced story: Farook split from his wife Rafia, also Pakistan-born, who filed for divorce in 2006 and, according to The New York Times, said her husband was violent and an alcoholic and beat her and the children.

In the La Stampa interview, Farook denied the accusations, saying that “Rizwan’s mother is very religious, as he was, and they united against me. Once we had a dispute over the historical figure of Jesus. My son called me a godless person and he decided that my marriage with my wife had to end,” he recalled. “They destroyed the family.”

Last night’s Obama speech got people thinking to buy more guns. It’s kind of funny that people are doing the exact opposite of what he wants them to do. I am sure the IRS will be paying you a visit shortly.

The idea of tethering a no fly list to no buy gun list has people nervous, because it’s a super populist idea on the surface. As Americans, we are generally uninformed when it comes to what Homeland Security does all day long. We believe the no fly list is filled with terrorists and men running around with nitro-glycerine in mason jars.

The truth is, the no fly list is a some random computer generated algorithm, built by incompetents, that can be manually adjusted whenever a political enemy arises. For example, I am sure all of the readers at Zerohedge are on a no fly list. It’d be a shame to take away their 2nd amendment rights all because they want to see equity markets at zero…all of them.

As such, shares of RGR and SWHC soared today, with SWHC taking out new highs.

As for the overall market: oil is tipping us into the black sea of nothingness. A few more days like this and I expect to see zero bids in the market. The debt load is mountainous and the underlying commodity, by which the loans are secured, are being discounted daily.

As an aside, ISIS makes 25%+ of their income from oil, approximately $500 million per annum. It’s widely known that they retail crude at 1/4th the price of market prices, meaning they are selling in the Brent markets for about $10 per barrel now. It’s not a coincidence that ever since the rise of ISIS, oil prices have been shattered.

Exodus is now flagging OVERSOLD. Get your buy tickets ready, for we rally inside of 5 trading days.