Powell Punishment: New Fed Chair Brutalized by Wall Street After First Public Testimony; Retest the LowsFAGS Bust Loose

How did you like that last hour of trading?

If you’re sitting there pondering the existence of God, wondering how it all went wrong — iBC’s RAUL offered a nice explanation as to why Wall Street might’ve disliked Powell. He answered their fucking questions and spoke very little gibberish.

you're missing the point, her jibber talk is exactly what made her great. Ask her if the sky is blue. 45 minutes later she'll still be talking. Without answering. Without offering one silent moment for you to interrupt. J-Yell slayed.

— RAUL (@IndexModel) February 27, 2018

Truth be told, we expected Powell to be punished, since he’s new and doesn’t know a single thing about economics. This assertion is Wall Street’s petty way of communicating with the new Fed, expressing its wishes through extortion — like all really good criminals do.

Now with the bear out of the bag and the Zerohedgers out and about — the retest the lows people will be screaming from every steeple and every spire for stocks to retest the lows because that’s what markets are supposed to do because technical analysis and price memory and all of that other bullshit that charlatans train you to believe is true.

Here we go.

My oil stocks were hit with bricks all session long. My hedges softened their fall. Perhaps we bounce tomorrow and finish the month off in proper fashion, or perhaps not. “The Fly” is prepared for all eventualities and can to weather the strongest of earthquakes and the most powerful blizzards the world has ever seen. While you toy there with your ornamental charts, sipping on your drinking chocolate, I assess and plot and scheme and long for harder days, charitable gifts that define the evolutionary spirit — the sort of stuff that has marked the upward surge of man for a millennia. All of your men are soft and your women retarded because you’re all a bunch of spoiled cream puffs — easily shattered, melted by just a single ray of light.

This is typical hazing for new Fed Chairs. Nothing Powell said today was crazy or more hawkish than expected. This is typical Wall Street towel snapping Powell’s ass (no homo) — testing the man’s mettle — trying to show him who’s boss.

Here’s the trade that’s playing out.

Higher rates is pushing up dollars.

TLT down, UUP up

Higher yields is hurting rate sensitive industries, like Utes and REITs.

The higher dollar is an explicit implication of benign inflation, ergo sending gold sharply lower.

Gold miners have been destroyed. I sold my JNUG yesterday.

Higher rates means a widening yield curve — bullish for banks.

Bank stocks are all higher, especially regionals.

Other than that, equities are soft and commodities are now weak — across the board. Defensive stocks are also catching a bid.

I think this trade has legs and believe rates will press higher — sending the 10yr close to 3.00% inside the next week. When that happens, pandemonium will break loose. As such, I took on another hedge, buying 3x short REIT — DRV.

Aside from my oils, I am hedged via SQQQ and DRV.

I know there’s an autistic report floating around that says QE didn’t work. However, that report is absolute shit — written by people who are literally retarded, drooling of the mouth reprobates. Anyone in the market back in 2009 knows QE worked. We lathered ourselves in the cocaine dust provided by POMO — provided by Dr. Bernanke.

Now we have a new Fed Chair, a suave banker who is going to make the Fed great again. After hearing Jerome Hayden Powell, Esq during today’s testimony, I recant my earlier opinions about him and now believe he is the best Fed Chair in American history.

Here's Jerome Powell trying to set monetary policy. pic.twitter.com/yCcejRPU4Q

— The_Real_Fly (@The_Real_Fly) February 27, 2018

Here’s Fed’s Powell setting the record straight, telling all of those assholes out there to shut up about QE not being great — effectively placing the QE tool back in the Fed’s toolbox to be used, aggressively, at a later date.

Matt Drudge just tweeted this. He doesn’t shit post so this is 100% credible.

TRUMP SET FOR SHOCK ANNOUNCEMENT

— MATT DRUDGE (@DRUDGE) February 27, 2018

Discuss amongst yourselves, speculate as to what it might be. My guess: RESIGNATION.

UPDATE: Literally nothing.

pic.twitter.com/Kq17tPsUhB

— MATT DRUDGE (@DRUDGE) February 27, 2018

I’ve always been keen on buying oil stocks; but often disappointed over the lack of rigging in the price, which in the past caused wanton disappointment and scathing losses. Thanks to President Trump, all of that bullshit has ended.

The era of the oil barrel is here now. The House of Saud are back to fucking with the price of crude and the frackers are operating 24 hours a day in the shale — working hard to extract sweet and delicious crude. I know the industry can be daunting, especially for an ignorant fool like yourself. But know this, you’re only ignorant thru lack of experience and that lack of experience makes you dumb, up until the point when you’ve earned some tangible experience.

See how that works?

Here are my oil longs and some others I like.

FTK, CRR, ESV, CHK, ECR

Frackers worth your attention.

TUSK, FRAC, SLCA, SND, HCLP, PUMP, EMES

Remember to hedge those barrel bombs with a dose of SQQQ — cause fuck the Nasdaq.

The venerable Jeffrey Macke weighs in on the Macy’s quarter, which was much better than expected.

Macy’s is a much better retailer when consumers are spending. Nice statement from the new guy. Comps up 1.4% (vs overall growth >4%) and online meaningless but death is off the table for M and a lot of other retailers. $M pic.twitter.com/rRMfvctSWV

— Jeff Macke (@JeffMacke) February 27, 2018

And then he tweeted this shit, which really got my almonds going.

Macy’s beats. Nothing like a tail wind. Huge run for the shares this AM. America has a love affair with retail. $M

— Jeff Macke (@JeffMacke) February 27, 2018

How dare Jeffrey suggest America has a love affair with retail. The grim narrative I’ve been comfortable with is abandoned shopping malls with overgrown weeds inside of them and shattered glass storefronts. But Macke is saying retail is awesome and he knows much more about retail than I’ll never know. So what’s the fucking status update on the mall?

All we have to do, frankly, is gander, mind you, at the share prices.

Returns over the past 6 months:

KSS +70%
M +45%
DDS +20%
ANF +73%
URBN +72%
AEO +55%
ZUMZ +52%
BKE +48%
GCO +43%
LE +40%
TUES +56%
BURL +43%
TGT +39%
SITE +53%
HD +26%
TLRD +100%
FOSL +61%
OLLI +37%

The list goes on and on. Color me surprised — but it appears retail and the mall are back — in terms of higher stock prices.

As for the fundies…

…I guess dying at a slower than expected pace is good news in this environ.

Good morning lads.

It’s a beautiful day here in Princeton, NJ — a tad above 30 degree with clear skies — but it feels like zero. America has a great big beautiful stock’d market and the President of the United States tweets shit like this on a regular basis.

WITCH HUNT!

— Donald J. Trump (@realDonaldTrump) February 27, 2018

Futures are slightly higher ahead of Jerome Powell’s congressional testimony. I am certain it will go well. After all, he’s a fucking lawyer and is a trained liar with an incentive to be as nonplus as possible in order to skate into the crime organization called the Federal Reserve.

Nothing stands out this morning, so I might as well hit you with some actual news and then go fetch myself a scalding hot cup of coffee. Fuck with me, I swear to God I will throw it into your digital faces.

DPW +8.9% (announces California finance lending license issued to subsidiary)
ABIO +20.1% (Initiated with a Buy at Ascendiant Capital Mkts)
Macy’s beats by $0.14, reports revs in-line; guides FY19 above consensus
Cree target raised to $36 at Williams Capital Group
GW Pharma receives Orphan Drug Designation for the European Medicines Agency (EMA) for cannabidiol for treatment of tuberous sclerosis
AutoZone misses by $0.39, reports revs in-line
SeaWorld Entertainment misses by $0.05, beats on revs
Veritone target lowered to $10 at B. Riley FBR, Inc. on lower ests
NTRI -26.7% (Target lowered to $52 at B. Riley FBR, Inc. following earnings/guidance)

It’s all very well and good that we’re all enjoying ourselves — getting fat and sloppy — thanks to an evergreen bull market that only gets interrupted by volatility ETNs gone wrong. But we’re up 2,000 points over the past two weeks.

The FAANG fags have forklifted nearly 10% over a fortnight, all the while David “Boss” Hogg bullies you impotent manlets into ceding over control of the 2nd amendment. Boss Hogg is truly an inspiration to all aspiring dictators.

I am still positioned very long and my YTD gains in Exodus‘ Quant strategy is humiliating passive SPYfags into killing themselves by jumping out of airplanes. But I took on a hedge today — SHORT NASDAQ x 3 — and would like to eventually liquidate my entire tactical account in order to short more. I want the market to crash and for accordion playing monkeys to litter Wall Street when the blood flows thickest and people are at their lowest. It’s at that point, that utter despair, will Le Fly step back in to save the day and sop up the margin liquidations of so many lesser men and clownish women who’ve lost their nest egg in the market that never went down.

The Dow scorched higher by another 400 today and XIV is now gone — terminated from existence. Had Credit Suisse not terminated XIV, it would’ve been a fine trade — worth hundreds of dollars. The philosophy behind the trade was exactly correct — but the mechanics were false, a fiction concocted by Wall Street to fleece investors for all of their money and more.

BEHOLD, the Almighty prospectus, filled with all sorts of treasures and predictive data. One would have to be a supreme idiot not to read at least one per night.

I cannot stress to you enough how much the prospectus means to those in the know on Wall Street. Before any deal gets done, whether it be primary or secondary offering, all of the coked out stockbrokers go to their desks and read the entirety of this living document at their desks, over a nice cup of hot tea.

In case you’re wondering why I’ve been absent from Twitter today, Le Fly has been banned for making some very harmful and incendiary remarks to some truly dumb fuckballs on the platform. It pains me, really, to converse with some people there. I try my best to be nice and pleasant, but more often than not I get fucking TRIGGERED by the ineptitude and lackluster acuity in the dialogue, which leads me down a long windy road of unrelenting assaults upon others. My punishment isn’t the suspension, but my own empty sadness.

I like frackers so much, I just bought another one. This time I went deep into the pits to find the dirtiest, most disheveled, piece of shit out there. I walked out with a handful of ECR shares.

I did so because I enjoyed staring at the chart. It was quite delightful.

May markets fall and become unhinged and burn lower, yet oil, miraculously, sprint higher.