The Dow Off to its Worst Start Ever

It was a jarring weak, one that resulted in a 6.3% loss for the market, even worse in the oil patch. I entered 2016 in cash and TLT–but have been legging into SPY as the market fell. As of the close of trade, I am fully invested in SPY, with a cost basis just above $197.

Do not fear for my hide lads, for I am prepared to initiate a Martingale investment strategy, delving into the degeneracy of leverage to accomplish my goals. Let’s be honest here, shall we? You’re all dicking around in commodity and tech stocks. I’m invested in SPY, immune to stock specific risk.

I still own a full position in TLT and will not sell it until the yield curve inverts.

In other news, billionaires got their clocks punched the fuck off for them, shedding nearly $200 billion in a week of tumult.

The world’s 400 richest people lost almost $194 billion this week as world stock markets began the year with a shudder on poor economic data in China and falling oil prices.

Forty-seven billionaires lost $1 billion or more during the worst week for U.S. stocks since 2011, according to the Bloomberg Billionaires Index. The combined drop was almost seven times the $29 billion lost in the first five trading days of 2015. The 400 people on the index had a combined $3.7 trillion at the end of the week, compared with more than $4 trillion a year ago.

If forced to make a call, I think markets are going full helicopter blades on shorts next week. Sentiment is do dreary and everyone is leaning bearish. I’ve been down this road too many times and know that whenever I congratulate my good friend, Zerohedge, more than 10 times in a week, it’s time for a little mean reversion.

I’m down less than 3% in my SPY position, up on TLT, in complete and total control of my destiny. “The Fly” wins all the time, especially when everyone else is in the streets with tinned cups.