STOCKS MELT UP; THE LEFT MELTS DOWN

Former Sec. of Labor under Bill Clinton, Robert Reich, lied to the despicable Don Lemon last night — suggesting the Berkeley rioters were purported by MUH right wingers. Even though Antifa scum have been committing similar acts of wanton violence throughout the country for years, Reich pressed the ‘rumor’, aka lie, that it was, in fact, a Breitbart plot — or a scheme mind you —  to make the left look bad. As if they needed the help.

This, naturally, was picked up by the chimps over at The Young Turks, who took to their retarded youtube channel to further these lies.

Last night at NYU, a right wing comedian, Gavin McInnes, was going to give a speech to fellow right wingers, but the left had a fucking melt down and shut him down — then pepper sprayed him.

You did mace me, yes. The other two things are lies. https://t.co/ZcuVHYMNgk

— Gavin McInnes (@Gavin_McInnes) February 3, 2017

Outside, an alleged NYU Professor had a conniption fit over the mere presence of Gavin. She declared him to be a ‘NAZI’ and then screamed and scowled at the NYPD (who really and truly couldn’t give two fucks about any of this libtard shit) ‘FUCK YOU, FUCK YOU, FUCK YOU’.

Why, you ponder?

She was livid because the police were protecting him from being beaten to death by a deranged mob.

So this is where we are with the left — total and complete meltdown.

As for stocks, we roared higher today — based off optimism for the banks, infrastructure, and industry.

Stocks broke vegan necks to the upside today — ripping higher by nearly 190. Trump’s first NFP numbers came in much better than expected at 227k and Dodd-Frank is getting the ax. Truly, we are bearing witness to America’s engine of prosperity revving up. Gone are the days of social justards and globalist schemes, specifically tailored to draw people into becoming wards of the state. Immigration will soon be under control and trade deals will be made for the benefit of the people living here. Let’s not forget the tax rate coming down to 15% — making inversions useless.

Ultimately, all of these positive elements to the Trump movement is terrifying to the dispirited left — so they coddle each other with far-fetched conspiracy theories (MUH Nazis MUH Russians) to purposely blind themselves to the fact that everything they’ve ever wanted out of America — the doctrine of fairness and equanimity, is happening right before them.

Find solace in knowing military personnel and police favor Trump 3:1.

This was the first major systemwide oversold signal since June 24th, 2016 and it has been a success — thus far.

Recall.

All that aside, material stocks are getting blown the fuck out today. Virtually everything is shooting higher, with exception to my positions in $CLF, $TECK, $UEC, $URG and $VEDL. The market is, and always has been, a fucking bitch.

I believe the expression “The Fly is losing even though he is winning” applies towards today’s trading action.

But let it be known, written down in your diaries and daily journals for the sake of posterity, for future generations to know, “The Fly” built a god damned stock market time machine and you were here to bear witness.

If applied, cities like New York, Chicago and San Francisco would be penalized to the tune of billions of dollars in Federal funding for domiciling, educating and providing healthcare to illegal immigrants without reporting it to the Federal government. Hence, the term ‘sanctuary cities.’

In all, the Federal government provides funding to cities across the country in the magnitude of $27b per annum, through a spiderweb of programs which embodies the very essence of bureaucratic corruption.

“These jurisdictions have caused immeasurable harm to the American people and to the very fabric of our Republic,” Trump’s executive order said, signed on January 25th, 2017.

As such, municipalities have been forced to disclose this new risk to their liquidity during recent bond sales.

This was affixed to a recent New York general obligation bond issuance, led by Citi.

“If implementation of the executive order results in the reduction of federal aid to the city, the city expects that it would mount a vigorous legal challenge,” the disclosure said. “However, there can be no guarantee that implementation of the executive order will not result in a significant reduction or delay in receiving such aid.”

Other states, such as Oregon and California, are disclosing risks associated with the repeal of Obamacare and Dodd Frank, citing ‘material adverse effects on the financial condition of the state’, should it be implemented.

Since the year is young and bond issuance has only just begun, expect to hear more about these sort of disclosures as time presses on.

Rumors are swirling that President Trump will do away or greatly amend Dodd-Frank — a bill passed in 2010 that was designed by a bitter Congress to hurt Wall Street. Truth be told, Wall Street had it coming, taking into consideration what it did to the country in 2008. However, that didn’t happen in a vacuum and what Dodd Frank ended up doing was leveling the asset management business to ruins, causing massive job losses and a despondency in the business I’ve never seen before.

In a presser today, Trump said he was going to unleash the animal spirits and do away with much of Dodd Frank.

"We expect to be cutting a lot out of Dodd-Frank," Pres. Trump says on financial oversight law in meeting with CEOs https://t.co/2XFXqysjo7 pic.twitter.com/CHPQ8skcRC

— CBS News (@CBSNews) February 3, 2017

Now everyone is jumping into banks, ahead of a lessening of regulations in the industry. But most people are chasing phantoms without even knowing what’s going on.

Using the valuation tools in Exodus, I’ll show you why buying the banks is too late and why you should be buying asset managers and brokerages.

Behold

Big banks’ PE and PS ratios. You’re gonna want to look at the second to last column that juxtaposes the median ratio v the overall industry to get an idea where valuation is now v the previous 12 years.

Notice how valuations are pretty much in line with historical standards?

Now look at Asset managers and brokerages.

Notice the bigly discounts that started soon after Dodd Frank took effect? The Asset management field almost always traded at a premium to the sector. Now it trades at a discount.

Some of the bigger names include $BLK, $BX, $BEN, $TROW and $AMP. But there are a slew of them. As for the investment banks, I’d look at obvious ones like $GS, $MS and maybe go fishing with $NMR or even $COWN.

Earnings season is lots of fun, until you’re on the receiving end of a $FEYE or a $GPRO. Seeing these unbelievable blow ups happen on a regular basis really makes a strong argument for going 100% ETF, saying ‘fuck it’ in the process.

My chief issue with ETFs is that it lacks romanticism. There’s nothing like picking a stock that truly works and makes you a lot of money. While it’s true, any fiduciary worth his salt will tell you that the main goal is to achieve incremental returns over a long period of time, allowing said gains to compound and build wealth over time. I get all that.

But I’m the sort of guy who speed chops carrots while my balls are placed atop the counter. I drive a car made from dynamite sticks and steer it towards the sun.

I’d be lying to myself if I said I was going to trade conservatively because MUH risk. Fuck risk and fuck earnings too.

If you’re trading, you’re better off selling your stock ahead of earnings and just playing the options market. That way, you have defined risk. In other words, if you had $10k in $AMZN heading into earnings and worried that it might drop 10%, why not either hedge it with puts or simply stake your bias on $1k worth of options and liquidate the stock ahead of the announcement?

Shit, with the major moves in these earnings plays, like $FEYE, $FTNT, $GPRO, $HBI, $DATA, $GIMO, $ELY and $ATHN, you’d be crazy not to play a little earnings lotto with a small fund allocated to the options market.

He called them out, almost all of them.

Having received his doctorate from UC Berkeley in 1978, Dr. Michael Savage offered a unique perspective today on the trajectory the famed college has taken over the subsequent decades since.

Wistfully, he compared the present day cadre of left wing anarchists, known to us as AntiFA, to communist anarchists in Germany, circa 1920s. The response to the agitators then paved the way for Hitler’s brown shirts. The rest, as you know, is history.

But, have we learned from history, posited an inquisitive Savage? For every action is a counter-reaction and so forth. Hence, law and order is the only tonic to quell the present day disorder, fomented and encouraged by democratic politicians, carefully cultivated and organized by left wing groups for the explicit purposes of strong arming those who do not fit into the zeitgeist of their political ideals.

“This was the start of the free speech movement back in the 1960s. Now we complete the arc, from free speech to dead speech.’

Dr. M. Savage, Feb. 2nd, 2017

‘Tis a slippery slope. Behold a momentous monolog by the good Dr.

Because they believe Trump to be the second or third coming of Hitler (if you recall, Bush was Hitler too), the folks over at Grab Your Wallet have pursued anyone who did business with the Trump family — as a form of political persecution to punish those even remotely affiliated with the Trump brand. Look, they even went through the trouble of slapping a rudimentary spreadsheet together, so that fellow minded snowflakes might protest with their, err, wallets.

To that end, it appears they’re activism worked. Nordstrom has announced they’re officially cutting ties with the Ivanka brand — citing poor sales as the reason for the ‘de-stocking.’

“Each year we cut about 10% [of brands carried] and refresh our assortment with about the same amount,” a Nordstrom spokesperson told Business Insider. “In this case, based on the brand’s performance we’ve decided not to buy it for this season.”

The founders of Grab Your Wallet, Shannon Coulter and Sue Atencio (they met on Twitter), are quite pleased with this news. Coulter said, “I am absolutely thrilled, and I know the vast majority of Grab Your Wallet participants will be as well.”

Indeed.

The cucked Coulter has bee meticulously tracking the availability of Ivanka’s brand, wherever it’s sold. The fashion website ‘Racked‘ chronicled Coulter’s journey in an article published this evening — to celebrate the apex of Coulter’s success — the rueful malevolence towards another human being for the sole purpose of making another person suffer.

This could very well be some lag time before its spring inventory. But Coulter has been keeping track of the number of Ivanka Trump items the 116-year-old Seattle-based retailer is selling on its site, and the merchandise has been on a decline: From December 2 to December 27th, the number dropped from 71 products to 48. As of January 11th, Nordstrom was selling 43 products, but by January 29th, it was down to 26, according to Coulter’s calculation. (The Macy’s site, on the other hand, has 90 items listed, all with deep discounts.)

As of today, February 2nd, Nordstrom is down to four items. On the Ivanka Trump website, the items from outfits posted four days ago that link out to Nordstrom are no longer available on the site.

That said, stores are still selling the label; a Racked editor who visited a Nordstrom location in White Plains, New York, last Sunday confirms there were plenty of Ivanka Trump shoes in store.

The #GrabYourWallet was started by Coulter and Sue Atencio, a woman she met on Twitter. The duo felt hesitant to shop at retailers that carried Trump family-related products, and when they spoke about it on Twitter, they were met with tons of similar feelings. They started a Google spreadsheet, and the list has since been moved to its own website, GrabYourWallet.org.

The boycott list now includes many major department stores, including Macy’s, Neiman Marcus, Bloomingdale’s, and Lord & Taylor, as well as HSN, Century 21, Overstock.com, and DSW. Each retailer is listed with an explanation as to why it’s being boycotted.

“What this boycott means to me is that companies that I love, like Nordstrom and Amazon, are making money from the Donald Trump campaign, which to me is synonymous with hate and divisiveness so I can’t, in good faith, shop there anymore,” Coulter told Racked back in November. “People aren’t boycotting them to punish them or ruin any businesses. They want to support these companies but can’t do so in good conscience.”

The Ivanka Trump line was included in the boycott, Coulter added, because “she made her father palatable to many young female voters, and her being on the campaign trail, and returning to campaign with him after the Trump tapes, has as much to do with her ambitions as it has to do with her father’s.” (Ivanka formally left her namesake label earlier last month, after her husband, Jared Kushner, took the position of senior White House adviser.)

If Nordstrom is, indeed, dropping the Ivanka Trump label, it won’t be the only retailer to heed to the boycott. In November, Shoes.com told Coulter via Twitter it was dropping the line. There will likely be backlash-to-the-backlash, as evident when L.L. Bean was boycotted by anti-Trump shoppers, then Trump encouraged his fans to buy L.L. Bean as a result.

But this would be a big win for #GrabYourWallet. Coulter says that on January 21st, participants voted that Nordstrom was the most boycott-able company on the list; based off a poll that had 249 participants, Nordstrom was ranked number one, Coulter says, because “that’s the store they’d most like to be able to shop again.”

The tolerant left.

All is not doom and gloom for Ivanka, however.  According to G3’s 2016 annual statement,  ticker $GIII,  the manufacturer and distributor of Ivanka’s clothing line, the brand is doing quite well — enjoying a $29.4m bump in sales to $100m.

“Initially, when her father started to run for President, I wondered if there’d be a negative or positive effect,” said Sammy Aaron, vice chairman of G-iii, who oversees the Ivanka Trump brand at the company as well as being CEO of its Calvin Klein division. “We’ve really seen very little effect.”

Source: Forbes
That it’s already seeing revenues of $100 million a year is impressive. “You have designers who do less than that,” Stone said. By way of comparison, sales of Mary-Kate Olsen and Ashley Olsen’s high-end line The Row are reportedly closer to $50 million — itself a high estimate, per an insider. And while some celebrities have little involvement in their licensed brand beyond the approval process, Ivanka Trump is hands-on.

Ivanka is “very involved on a weekly basis” in all stages of the design process, said Aaron, who described her as “one of the most impressive young women” he’s ever met.

“She’s super sensitive to things with her name on it,” he said. “She’s not one of these names just looking for revenues. She’s an assertive person who has definitive taste and a definitive opinion.”

It sounds like Ivanka will survive the scourge of the Twitterati army of Grab Your Wallet miscreants.

The company will come public under the ticker SNAP. They’ll raise $3b, placing their valuation at around $25b. For the year, they’ll do ~$400 mill in revenues — booking losses of $514m. That was not a typo.

Source: CNBC

Net revenue: $404.48 million in 2016, up from $58.66 million in 2015
Net loss: $514.64 million in 2016, wider than $372.89 million in 2015
Loss from operations: $520.39 million in 2016, wider than $381.73 million in 2015
Usage: 161 million daily active users in the December quarter (60 million daily active users in the United States and Canada)
Average revenue per user: $1.05 in the December quarter ($2.15 in North America)
Time spent: 25 to 30 minutes a day
Head count: 1,859 employees
The company filed for a $3 billion IPO, though that is a placeholder amount and certain to change as the company sets a price on the deal.

The company claims to have 158m daily active users — up from 107m last year.

For 2017, they guided revenues up to $1b, placing their price to sales ratio at around 25x sales — putting them at the very pinnacle of overvalued social media stocks. Juxtaposing SNAP against Facebook’s 14x sales or BABA’s 14x sales makes me wonder what in the actual hell the VCs and investment banks think they’re doing? This is bound to woefully underperform, like all of the other shit IPOs that have been flung in our faces, like pieces of shit, the past 6 years.

The stock will begin trading in March, led by underwriters Morgan Stanley, Goldman Sachs, JPMorgan, Deutsche Bank, Barclays, Credit Suisse, and Allen & Company.

Avoid.

After weeks of protest over the CEO of Uber’s decision to join President Trump’s advisory board, and after his own CTO’s flagrant missive against the President, Travis Kalanick informed the President that he was removing himself from the economic council.

“Earlier today I spoke briefly with the president about the immigration executive order and its issues for our community,” Kalanick wrote in an internal email obtained by the Times. “I also let him know that I would not be able to participate on his economic council. Joining the group was not meant to be an endorsement of the president or his agenda but unfortunately it has been misinterpreted to be exactly that.”

Radical leftist groups have been protesting Uber on social media, under the hashtag DELTEUBER.

The creator of the hashtag, Dan O’Sullivan, was quoted saying “let this be a warning: if you are a corporation who thinks you will ride out Trump, and quietly make money at his side, you will be made to pay a price.”

When protesters took to JFK and the yellow cabbies ceased service, in solidarity with the protesters, Uber served the public. This caught the ire of said O’Sullivan, prompting a most acrimonious tweet.

congrats to @Uber_NYC on breaking a strike to profit off of refugees being consigned to Hell. eat shit and die https://t.co/19gbpIc9m9

— HUNTER S. FAILSON (@Bro_Pair) January 29, 2017

What else is this O’Sullivan up to, you ponder? Oh, I don’t know, how about DELETELYFT and DISNEY too?

Delete Disney? sure why not https://t.co/2FabBLSGW1

— HUNTER S. FAILSON (@Bro_Pair) February 2, 2017

Please don’t – they are a kinder, not gentler, @Uber. They continue to steal wages from their employees. #DeleteLyft https://t.co/lC5OQVvvIT

— HUNTER S. FAILSON (@Bro_Pair) February 2, 2017

In case you’re still pondering, all mighty O’Sullivan is leading the path towards protesting more than a 18 other companies in total.

1 down, 18 to go. Trump’s Strategic & Policy Forum is a not-so-subtle means of Big Business influence-peddling. #DeleteUber pic.twitter.com/ixZXo0GZWJ

— HUNTER S. FAILSON (@Bro_Pair) February 2, 2017

Here is the CEO of Uber’s internal memo to employees, explaining his actions.

Dear Team,

Earlier today I spoke briefly with the President about the immigration executive order and its issues for our community. I also let him know that I would not be able to participate on his economic council. Joining the group was not meant to be an endorsement of the President or his agenda but unfortunately it has been misinterpreted to be exactly that.

I spent a lot of time thinking about this and mapping it to our values. There are a couple that are particularly relevant:

Inside Out – The implicit assumption that Uber (or I) was somehow endorsing the Administration’s agenda has created a perception-reality gap between who people think we are, and who we actually are.

Just Change – We must believe that the actions we take ultimately move the ball forward. There are many ways we will continue to advocate for just change on immigration but staying on the council was going to get in the way of that. The executive order is hurting many people in communities all across America. Families are being separated, people are stranded overseas and there’s a growing fear the U.S. is no longer a place that welcomes immigrants.

Immigration and openness to refugees is an important part of our country’s success and quite honestly to Uber’s. I am incredibly proud to work directly with people like Thuan and Emil, both of whom were refugees who came here to build a better life for themselves. I know it has been a tough week for many of you and your families, as well as many thousands of drivers whose stories are heartfelt and heart-wrenching.

Please know, your questions and stories on Tuesday, along with what I heard from drivers, have kept me resilient and reminded me of one of our most essential cultural values, Be Yourself. We will fight for the rights of immigrants in our communities so that each of us can be who we are with optimism and hope for the future.

The left is really pushing the envelope this time, aren’t they?