THE GREAT CRUDE RALLY OF 2017 HAS BEGUN

*** NOTE TO MEMBERS OF Exodus: The Option Addict will be joining the Pelican Room for all of April ***

It’s not even a maybe at this stage in the oil story. With Saudi Aramco scheduled to IPO at a $1 trillion valuation, there’s too much at stake here than to let a bunch of losers dictate the direction of prosperity.

Oil had been in a bear market. All of that has ended now, only good times ahead — fuckers.

Frac sand plays like $SLCA, $EMES and $CRR are definitely in play here. Personally, I’m thinking ahead and would rather play a the plastics, via $WLK, who used natural gas to produce its products and not expensive crude. The subsequent result of much higher crude prices is greater demand and pricing power for WLKs many products.

Markets should proceed higher, regardless of what the Fed heads say. I’d be wary about following this rally into summer. But we’re just getting done with March now and there’s a thing least 2 months left of market greatness to behold.

Today’s top plays were in retail and basic materials, the two sectors that were hit the hardest. Short squeezes are coming up.

Fed’s Williams joins Rosengren and Evans in the belief that we’ve accomplished what we’ve sought out. It cannot get any better than this. Ergo, it’s now time to slow the economy down now. God forbid we permitted it to overheat and to grow more than 2% per annum.

In his own words, Fed’s Williams said that by lifting rates, we could “prevent the economy from overheating… I would not rule out more than three increases total for this year,” Williams told an economists’ club in New York.

“With an economy at full employment, inflation nearing the Fed’s 2 percent goal, and the expansion now in its eighth year, the data have spoken and the message is clear: We’ve largely attained the hard-sought recovery we’ve been after for the past nine years,” added Williams, who is close to Fed Chair Janet Yellen and who regains a vote on the Fed’s policy committee next year under a rotation.

Get ready for lots of hikes, irrespective of the data you stupid shit. The Fed knows best.

I think it’s fairly obvious what the Fed is trying to do here. They purposely tanked the economy under Bush and now they’re doing it again with Trump.

Following 8 years of unprecedented central bank easing, all of a sudden, amidst barn burning 1% GDP growth forecasts, the Federal Reserve is hawkish, to a ridiculous degree.

Boston’s Fed’s Rosengren, a non voting member on the board this year, said in a speech today he’d like to see a rate hike ‘at every other meeting’ this year.

Neither inflation or GDP expectations are growing beyond trend. I’d like to know how he could justify such tightness.

“Importantly, this would still be a fully data-dependent approach, not a preset path, as it would hinge on the incoming data — but the base case would be four tightenings, reflecting the strength of the economy that I believe justifies more regular normalization of interest rates,” Rosengren said, according to a text of a speech he was to deliver Wednesday morning to the Boston Economic Club.

Amongst his chief concern is getting ahead of a ‘potentionally overheating economy.’

Since when is productivy at 35 year lows and GDP of 1% considered overheating, especially in an economy that is consumer strapped?

“If the economy runs too hot, it could ultimately require a less gradual monetary policy adjustment – which could potentially place at risk the significant progress the economy and labor market have made since the Great Recession,” he said.

In a separate speech today, Fed’s Evans also alluded to 4 rate hikes for 2017, data permitting of course.

The market is reacting by buying bonds, pricing in crazy at the Fed.

These people need to be stopped before they destroy us all.

What we do in Exodus isn’t complicated. We rank stocks by both their technicals and fundamentals, using an algorithm that we created — which took 9 months to develop. After being satisfied with the rating system, we then began to collect the data for the purposes of analyzing it.

I did not go into Exodus, which was then called The PPT, thinking that I could develop some sort of predictive algorithm that was going to help me predict the future. That’d be crazy, right?

But then I started to see patterns develop, so we began charting the extreme ranges for the overall system, later breaking them down by sector and over 200 industries, further developing the algorithms to encompass various time frames in order to allow the system to breathe and learn the market as it changed.

We do not pretend to know precisely when a stock, a sector, an industry, or the overall market will bottom or stop going up. But we have big datasets that are analyzed that can provide you with a reference point, backed up by trasparent win/loss rates.

Case in point, retail stocks are raging higher today, partly thanks to $RH.

Just last week, the algorithms that we employ for the services sector and department stores hit an annual low. An enterprising trader might’ve seen that and said enough is enough and stepped in.

Apparel stores

And here are the standouts. Big movers.
$M, $DDS, $RH, $SHLD, $EXPR, $LE, $BKE, $ANF, $PIR.

Last week, the entire system flagged Oversold for the first time in 9 months, sporting a hit rate of 86% over 5 days. Basic materials were most depressed and Oversold, which I saw why I went all in on $WLK, even before the system flagged oversold.

Expect more upside, followed by an easing of the gains. The fast money will be made now.

This doesn’t feel right. At what point in our evolution as a species does the relegation of our species to be nothing more than builders of robots to eventually take our place begin to take on an overt anti human flavor? Where do we draw the line?

Clearly, a pizza delivery boy is not a very expensive proposition for $DPZ, but they felt it was necessary to eliminate that expense altogether by working with Starship Technologies to supplant them.

Coming soon to people who love horrible pizza in Germany and the Netherlands, Dominoes will begin utilizing robotic, self driving, robots to deliver their provisions.

Pizzas will now be delivered by way of robot to select European customers who live within 1 mile of their local Dominoes shoppe.

“Dependent on size, we can carry up to eight pizzas on a delivery or a variety of combinations of pizzas, sides and cold drinks or dessert products,” the company said.

Starship was founded by the former founders of Skype, naturally.

Aside from the Starship robots, Dominoes is testing drones in New Zealand.

“With our growth plans over the next five to 10 years, we simply won’t have enough delivery drivers if we do not look to add to our fleet through initiatives such as this,” Domino’s Pizza Enterprises Chief Executive Officer Don Meij said in a statement.

Fuck you

I know, don’t stand in the way of progress.

When can we start automating the roles of C level executives, in order to truly cost save at our fine corporate giants?

I was listening to this in the car, with two of my little ones in tow, on the way to school. This speech had the sound of something that was both historic and important.

In the middle of her speech, PM May was interrupted by a political opponent, only to be thoroughly chastised for lacking statesmanship and decorum during the historic moment. Classic British parliamentary chicanery. I strongly advise all of you to take a few minutes out of your wasteful days to listen to this moment of oratory greatness.

Here is the letter that was delivered to the cucks in the EU, triggering article 50.

This is "a historic moment from which there can be no turning back," Theresa May says https://t.co/SfsZ8UruHD pic.twitter.com/XCHjDo95nR

— Bloomberg Brexit (@Brexit) March 29, 2017

We'll work constructively with the EU on a "deep and special partnership," Theresa May says https://t.co/SfsZ8UruHD pic.twitter.com/dtfYIjiEPs

— Bloomberg Brexit (@Brexit) March 29, 2017

Britain has "a proud history and a bright future," Theresa May says https://t.co/SfsZ8UruHD pic.twitter.com/LnepVzfb6S

— Bloomberg Brexit (@Brexit) March 29, 2017

The euro is sliding v the dollar by 0.60% on this news.

If you ever had any reservations about who’s shilling for the Federal Reserve, look no further than today’s vote on increasing oversight into the Federal Reserve, including an audit.

The bill was passed by way of verbal vote and will now be introduced to the House, where it will likely be killed by shills.

Several democrats, including Stephen Lynch from Massachusetts, had voted to audit the Fed back in 2012 and 2014 — but are now against it. Why you ponder? They’ve had a change of heart, especially since the bill has a real chance of passing. They cited an aversion to ‘political interference’ at the Fed.

Right.

Source: Reuters

“We should not in any way hinder their independence,” said Representative Carolyn Maloney, a New York Democrat, echoing the sentiment of Fed policymakers who say they could come under political pressure to avoid making unpopular decisions such as raising interest rates to slow growth and control inflation.

“This bill would open the floodgates to political interference in monetary-policy making,” said Del. Eleanor Holmes Norton, a Democrat from the District of Columbia.

Rep. Carolyn Maloney, a Democrat from New York, said the measure would lead to higher interest rates because it would undermine the market’s confidence in the independence of the central bank.

Republicans said the measure was needed to rein in the Fed.

“It is ironic that the arsonists that caused the financial collapse are now being given credit…for putting out the fire. Almost every macroeconomist concedes in retrospect that [the Fed’s] extended period of easy money led to the financial crisis,” said Rep. Thomas Massie, a Republican from Kentucky.

Did you read what Rep. Maloney actually said? She believes that if we looked into the Fed’s business, they’d punish us with higher interest rates.  What are they hiding?

Absurd.

We’re heading into the fifth day since the system flagged oversold. Based on the data, there is a high probability that stocks will trade higher in the short term. As of now, equities are higher than where they were last week, already placing the signal in success. But I think there’s more coming.

I’d focus heavily on commodities for a mean reversion spike.

For the session, stocks drifted higher by 150, led by shipping, department store, airlines, oil and gas, and copper. The laggards were gold, silver, semis and biotech.

On paper, Charles Murphy had it all. He was a tall good looking man, father of two, educated at Harvard and MIT — married to a beautiful woman. He lived in a limestone Victorian era mansion in NYC that was for sale for $36 million. He was employed at Paulson and Co. where he was a partner and rubbed shoulders with the elite.

At 4:42pm today, donning a navy blue suit, Charles jumped to his death from the Sofitel Hotel in midtown Manhattan, from the 24th floor.

Why would he do such a thing?

Back in 2008, he fell victim to scumbag Bernie Maddoff and lost an astounding $7.5b in assets from his feeder fund — Fairfield Greenwich — making it the biggest loser in the Madoff scandal. In 2013, Fairfield Greenwich settled a class action suit for $80m for failure to protect client assets. His fatal mistake was believing the horseshit coming out of Bernie’s mouth.

As for his mansion, he bought it in 2007 for $33m. He tried to sell it last year for $50m — but the high price tag didn’t attract buyers. There’s a very limited market for ultra-high end properties. Shortly thereafter, he dropped the price to $36m and is still for sale.

The NY Post reported that his wife had recently crashed their Honda Odyssey, hardly a vehicle befitting a man who lives in a $36m mansion, and couldn’t afford to pay for the damage.

‘She didn’t even have enough money to pay for the damage,’ the attendant said.

At the time before his death, he was being treated for depression.

I can relate to this story, from the perspective of my grandfather. Albeit on a much smaller scale, my grandfather died penniless, after a long life in business. His downfall was two fold. He never saved money. As fast as he made any, he spent it and was very generous with friends and family. As he got older, his capacity to earn money lessened and then he lost his vision. One morning he woke up and he was legally blind. The blood vessels in his eyes had popped, due to high blood pressure, and it rendered him permanently unable to work and earn a living. For the balance of his life, he’d tell me about his regrets and how he blew it all — lamenting over not being able to buy things and instead dependent on social security to finance a meager existence — marooned at home listening to books.

I’ve always wished that I had been born earlier, so that I could’ve helped him with his troubles. When he died, I had just become a stockbroker and was making less than a cashier at the grocery store.

Money has a captivating effect on people. For those who’ve never had it, from afar, it possesses the elixir for all of life’s troubles. But for those who’ve ever made some and lost it, I doubt there are many punishments out there that can test a man’s soul with such harrowing effect. Failure is not losing money, but society often judges those on the size of their donations, model and make of their car, and square footage of their home.

On a personal level, I can think of far greater and more interesting ways to die than bouncing off the fucking pavement. I’d rather head over to Afghanistan and open up a bacon stand than take my own life — go out in style and with vigor.

Rest in piece Mr. Muprhy.

How does it feel to know that you have literally zero power? After Rep. Nunes disclosed that Obama had in fact surveilled the Trump team, democrats have been going apeshit, sleuthing around trying to gather evidence to remove their latest arch enemy — Devin Nunes — from the ongoing Russian investigations that he chairs.

His democratic cohort, Rep. Schiff, publicly called for him to recuse himself — further circle jerking the left into a frantic state of delirium built around the idea that their party still weilds any power at all.

After much consideration I believe Chairman should recuse himself from involvement in investigation/oversight of Trump campaign & transition pic.twitter.com/jpfA1x80Si

— Adam Schiff (@RepAdamSchiff) March 27, 2017

Hillary’s senior advisor, Phillips Reines, has been shilling extra hard as of late.

Devin Nunes's days as House Intel Boss are over. That's clear to everyone not named Devin Nunes. Even Speaker Ryan knows.

"Next in line…" https://t.co/BRmQVZnplr

— Philippe Reines (@PhilippeReines) March 28, 2017

Offering a $2,500 reward for finding the Uber driver that had Devin Nunes last Wednesday as he took the shady call & jumped out of the car.

— Philippe Reines (@PhilippeReines) March 27, 2017

Joining the democrats is Bill Kristol and his cadre of neocon filth calling for investigations and constantly subverting as best they can — but they’re utterly powerless.

Nunes said thanks but no thanks and Speaker Ryan just said ‘no.’

Paul Ryan says, "No and no" when asked whether Devin Nunes should recuse himself and if Ryan knows his intel source https://t.co/96eGDx85ac

— CNN Politics (@CNNPolitics) March 28, 2017

Tell me, do you feel in charge?