Minor Pullback Underway

The Dow and Nasdaq are diverging, with big ass losses (BALs) found in a sundry of biotech stocks. I don’t want to make a mountain out of a mole hill. This is ordinary distribution — a gigantic nothing burger on a vegan grill.

“The Fly” has errands to attend to and might be out for the next few hours. Pray for my stocks and hope to God that the banks drop in the furious manner. As of right now, I am not banking coin in stocks, believe it or not. All of that should change soon, but I’m rather impatient.

Drop your top ideas in the comments section, so that when I get back I can ignore them.

Gratis.

Yicai is reporting that China might ban all local cryptocurrency exchanges by September. Zerohedge delves into the price differential quoted in Yuan, down 35% now.

Yuan-denominated Bitcoin has crashed as much as 25% 35% in Chinese trading, plunging from 25,000 yuan to as a low of 16,000 on local exchanges BTCChina (and as low as 20,000 on OKCoin), following confirmation of last week’s Caixin report that Beijing would stop cryptocurrency exchange trading. China’s second largest exchange, BTC China, said that it would halt all trading on the platform beginning September 30, launching a liquidation panic.

I know some of you are thinking ‘so what, who cares, BTFD’. Let me remind you that the only reason why Bitcoins and other cryptocurrencies were trading up in the first place was because of Chinese demand. It wasn’t because some fucking idiot in Bushwick, Brooklyn was buying ETH and hoping it would replace the dollar once day.

WRONG.

The very essence of cryptocurrencies is to enable fraud and money laundering. Jamie Dimon was right and you should heed is warnings, in spite of what his daughter is doing. Governments will shut it down.

This was published on Weibo earlier today:

China will stop all trading business on September 30th

Dear Bitcoal Chinese users: According to the September 4 issue of the “People’s Bank of China Central Office of the Ministry of Industry and Information Technology Ministry of Industry and Commerce, China Banking Regulatory Commission, China Securities Regulatory Commission on the prevention and treatment of the risk of the issuance of the currency,” the spirit of the document, adhering to the protection of investment risks, the maximum protection of users

The principle of interest, Bit Coin Chinese team by careful discussion, is to make the following decision:

1. Bit currency China’s digital asset trading platform today to stop the registration of new users;

2. September 30, 2017 Digital asset trading platform will stop all trading business.

Beitou China’s pool (pool) and other business will not be affected, continue to normal operation.
We apologize for the inconvenience. If you have any questions, please contact [email protected].

BTC and ETH are leading the fray lower. Total market cap is now ~$115 billion, which is still very, very, rich.

1/ After carefully considering the announcement published by Chinese regulators on 09/04, BTCChina Exchange will stop all trading on 09/30.

— BTCC (@YourBTCC) September 14, 2017

Good morning ham and eggers. I have a long day filled with duties atop of chores atop of things that must be done. Markets are expected to trade down a bit — with S&P futs -3. Over in Europe, the Eurostoxx 50 is down 0.22%, in line with US markets.

Gold is stable, +0.17%, but copper is getting nailed again, -1.4%.

WTI is higher by 0.6% and the dollar is off v the euro by 0.16%.

Over in cryptofagland, ETH is down 5.8% and BTC -3.7%. The ICO market has been getting smashed the past few days. Overall, it’s still worth more than $128 billion, or $128 billion more than it should be.

Here are some other headlines, courtesy of my fucking Twitter feed.

And here’s what’s trending on StockTwits. I believe THC is looking for a merger.

This just in…
Ultragenyx Pharma upgraded to Outperform from Neutral at Wedbush

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I was the first person in finance to demonstrate my utter disdain for Shkreli, a man who flouted his illicit gains in KBIO, helped his buddies get rich in the stock to boot, all under the auspices of ‘activist investing.’

Since then, Marty has become something of a cult hero, larping around on the internet, live streaming his boring as fuck life — brandishing his $2 million Wu Tang record like a street badge of honor. He even picked a fight with Ghost Face Killer — something that cannot be forgiven.

This evening a judge revoked his bail and sent him directly to jail for goading his followers to grab Hillary Clinton’s hair for the purposes of extracting her DNA.

While we might not be the biggest fans of the former First Lady/Secretary of State/US Senator/2 time Presidential candidate, this is hardly something that should tolerated by a civil society who fetters out its problems through non-violent methods. We can’t have a bunch of faggots running around grabbing hair out of people’s heads, after some arrogant fuckhead issues bounties for it. People who do that should be punished. More importantly, people who’ve been convicted of crimes and are awaiting sentencing, like Shkreli, shouldn’t get to enjoy their spare time motivating others to yank hair out of the heads of others.

Once again, this concludes the bizarre saga of Martin Shkreli.

When in doubt, bet against volatility. This is truly like beating up people in wheeled chairs and stealing their baseball caps.

Long XIV — because I like kicking old men in wheeled chairs down stairs.

Long FAZ — because of MUH yield curves.

Long FIZZ — because people are parched and PEP will buy them to amend for their sins.

Long PGTI — because Florida and Texas have been destroyed.

Long GOOS — because Canada Goose is an evil corporation and darkness always wins.

Any questions?

Yes indeed, there will be blood. It will flow freely from your head if you continue to buy oil stocks into momentum. They are, for now, purely designed to fuck with people — mean reversion tools of destruction.

Today, for no good reason, a slew of oil stocks are up 10%, including OAS, BBG, WTI, NGL, ECR, CRZO, EMES, SDRL.

Are we seriously going to do this to ourselves? Let me be explicit: oil isn’t going higher you fucking assholes. Do you know how I know this?

History is on my side, dating back thirty years.

If you want to buy oil, do it during Xmas time, heading into 2018. What you’re doing now is wasting valuable time and resources in a sector that is bound to beat your ass until your bones break.

Look what I’m doing, jogging on with leisure, making all sorts of easy money in XIV.

What the fuck are you doing with your lives?

This is such a multi-tiered story of fuckery of the very first order — I had to buy this stock, if only for its novelty qualities.

Pricing wise, their products are considered mid to high end, affordable for folks with money, way the fuck out of wack for those living on a fixed income.

We like to see that in a retailer? Why? Because it’s aspirational. Like another Canadian bullshit retailer, LULU, this product will become desired by American shopping mall savages.

Secondly, they literally kill animals to make their products.

This is from their website, describing their policy for skinning coyote’s for their coats.

We only use the best quality fur from the Northwest regions of Canada and the United States, where coyote populations are confirmed to be highly abundant. In fact, in many regions of North America, coyotes are considered a pest as they attack livestock, endangered prey species, pets and sometimes even people. We know that wearing fur is a personal choice and we respect that. In turn, we hope that people will respect our responsible use and ethical sourcing of fur.

LOL, did you fucking read that?

If you’re interested in the step by step process of how Canada Goose traps, kills, and skins coyotes, read PETAs blog on it.

These are some dark motherfuckers. We like that. Why? Because the dark always wins.

Share price wise, it’s off the 52 week high list, but has been trending towards it. You can tell this is going to be the hot retailer this Xmas, typically of Canada to supplant good olde fashioned Mexican made American clothes.

Angry short seller

I’ll bet your fucking balls this stock hits new highs inside of the next month.

Here’s the latest research note I have on it.

Canaccord Genuity reiterates GOOS with a Buy and raises tgt to GOOS.TO (currently CAD23.66 +0.36) to CAD34 from CAD33 . GOOS reported solid FQ1 results in which both sales and EPS (-13c vs. our -20c est.) handily beat our and consensus estimates. Total revenue grew 80% vs. our flat estimate due to (1) a pull forward of wholesale deliveries of $5.1M and (2) strong DTC growth of 559%. Robust gross margin expansion of +1700bps benefited from both its two retail stores and solid e-commerce growth. While the company did not raise guidance as its policy is to only raise it annually, we firmly believe the traction seen in Q1 is a harbinger for a solid fall/winter selling season.

My unchecked hatred for the banks has little to do with the current state of the market, but the fundamentals of the banking system, as defined by the yield curve.

What is the yield curve?

In short, for you newfags, it is the spread between the 2y and 10y govt bonds. After Trump stole the election, the spread blew out, which caused banks to rally by 30%. Since then, helped along with Fed tightening, that spread has shrunk.

It’s a real risk and the best predictor of recession we’ve got.

UBS: "Recession odds low, but wages and yield curve raise risks in 2018-19"

— zerohedge (@zerohedge) September 13, 2017

As you read this, the 2y is 1.35% and the 10y is 2.188%, equaling a spread of 84bps.

The important feature of this spread is the fact it is flattening, indicative of trouble ahead. Plus, the tighter the spread gets, the less money banks make.

The banks are barely down today and there isn’t a sense of urgency to short them, unless of course you believe the spread will continue to tighten, causing this narrative to spill out into the public conscious. If and when it does, you will be thanking me for tossing you into the FAZmobile for a spin around Wall.

I’ve looked at DLB from afar. Years ago, I admired how well the stock did — but never bought any. Now the stock is in play again, this time because the new iPhone and the Apple TV 4k will include their tech.

Shares are barreling higher on the news.

Both products will include ‘Dolby Vision’, helping produce high resolution content.

Analysts at Piper Jaffray called Apple’s shout-outs “significant wins” for Dolby.

“The stock reacted favorably on the news and rightfully so,” JPMorgan’s Paul Coster wrote in a research note. “Apple’s adoption of Vision on mobile may entice other [manufacturers] to follow suit.”

In case you’re eyeballing the stock, wondering if you missed the boat — not at all. The shares are still cheap, on a historical basis.