BIG ASS LOSSES (BALs) MOUNT — JP Morgan Downgrades China — Cites Full Blown Trade War

It’s over, fuckers. Apparently, Trump really did it this time. China got caught open handed by Bloomberg, spying on us via Amazon and Apple, so now everything is coming to a head.

Markets are in free fall mode and it doesn’t help that JP Morgan just downgraded the dog eating nation of China, citing a full blown trade war.

J.P. Morgan is getting less optimistic about the trade conflict between the U.S. and China.

The firm lowered its rating for Chinese equities to neutral from overweight, predicting the escalating trade war between the countries will affect China’s economy next year.

“A full-blown trade war becomes our new base case scenario for 2019,” emerging market strategist Pedro Martins Junior said in a note to clients Wednesday. “There is no clear sign of mitigating confrontation between China and the US in the near term.”

On Monday, White House economic advisor Larry Kudlow said discussions with China over trade aren’t progressing.

The White House’s latest tariffs of 10 percent on $200 billion of imports from China took effect last week. President Donald Trump, in a Sept. 17 statement, said the tariffs would rise to 25 percent on Jan. 1.

Junior said China’s GDP growth could be negatively impacted by 1 percentage point from the latest round of announced tariffs, assuming it “does not take countermeasures.”

“Higher tariffs are squeezing Chinese manufacturing’s profit margin, reducing the investment incentive and hiring, which would then drag on consumption via reduced income,” he said.

Analyzing risk, I can tell you that it’s a morbid tale today. My Bubble Basket of high multiple stocks are down more than 3.5%.

I took today’s sell off to raise cash by selling ROST, UBNT, and XON. I am holding the bulk of positions and only sold these in order to be able to play an Exodus oversold, should it materialize. I’ll likely buy SPY with 20% of my assets for a duration of 10 days.

It’s over, fuckers. Apparently, Trump really did it this time. China got caught open handed by Bloomberg, spying on us via Amazon and Apple, so now everything is coming to a head.

Markets are in free fall mode and it doesn’t help that JP Morgan just downgraded the dog eating nation of China, citing a full blown trade war.

J.P. Morgan is getting less optimistic about the trade conflict between the U.S. and China.

The firm lowered its rating for Chinese equities to neutral from overweight, predicting the escalating trade war between the countries will affect China’s economy next year.

“A full-blown trade war becomes our new base case scenario for 2019,” emerging market strategist Pedro Martins Junior said in a note to clients Wednesday. “There is no clear sign of mitigating confrontation between China and the US in the near term.”

On Monday, White House economic advisor Larry Kudlow said discussions with China over trade aren’t progressing.

The White House’s latest tariffs of 10 percent on $200 billion of imports from China took effect last week. President Donald Trump, in a Sept. 17 statement, said the tariffs would rise to 25 percent on Jan. 1.

Junior said China’s GDP growth could be negatively impacted by 1 percentage point from the latest round of announced tariffs, assuming it “does not take countermeasures.”

“Higher tariffs are squeezing Chinese manufacturing’s profit margin, reducing the investment incentive and hiring, which would then drag on consumption via reduced income,” he said.

Analyzing risk, I can tell you that it’s a morbid tale today. My Bubble Basket of high multiple stocks are down more than 3.5%.

I took today’s sell off to raise cash by selling ROST, UBNT, and XON. I am holding the bulk of positions and only sold these in order to be able to play an Exodus oversold, should it materialize. I’ll likely buy SPY with 20% of my assets for a duration of 10 days.

It’s over, fuckers. Apparently, Trump really did it this time. China got caught open handed by Bloomberg, spying on us via Amazon and Apple, so now everything is coming to a head.

Markets are in free fall mode and it doesn’t help that JP Morgan just downgraded the dog eating nation of China, citing a full blown trade war.

J.P. Morgan is getting less optimistic about the trade conflict between the U.S. and China.

The firm lowered its rating for Chinese equities to neutral from overweight, predicting the escalating trade war between the countries will affect China’s economy next year.

“A full-blown trade war becomes our new base case scenario for 2019,” emerging market strategist Pedro Martins Junior said in a note to clients Wednesday. “There is no clear sign of mitigating confrontation between China and the US in the near term.”

On Monday, White House economic advisor Larry Kudlow said discussions with China over trade aren’t progressing.

The White House’s latest tariffs of 10 percent on $200 billion of imports from China took effect last week. President Donald Trump, in a Sept. 17 statement, said the tariffs would rise to 25 percent on Jan. 1.

Junior said China’s GDP growth could be negatively impacted by 1 percentage point from the latest round of announced tariffs, assuming it “does not take countermeasures.”

“Higher tariffs are squeezing Chinese manufacturing’s profit margin, reducing the investment incentive and hiring, which would then drag on consumption via reduced income,” he said.

Analyzing risk, I can tell you that it’s a morbid tale today. My Bubble Basket of high multiple stocks are down more than 3.5%.

I took today’s sell off to raise cash by selling ROST, UBNT, and XON. I am holding the bulk of positions and only sold these in order to be able to play an Exodus oversold, should it materialize. I’ll likely buy SPY with 20% of my assets for a duration of 10 days.

It’s over, fuckers. Apparently, Trump really did it this time. China got caught open handed by Bloomberg, spying on us via Amazon and Apple, so now everything is coming to a head.

Markets are in free fall mode and it doesn’t help that JP Morgan just downgraded the dog eating nation of China, citing a full blown trade war.

J.P. Morgan is getting less optimistic about the trade conflict between the U.S. and China.

The firm lowered its rating for Chinese equities to neutral from overweight, predicting the escalating trade war between the countries will affect China’s economy next year.

“A full-blown trade war becomes our new base case scenario for 2019,” emerging market strategist Pedro Martins Junior said in a note to clients Wednesday. “There is no clear sign of mitigating confrontation between China and the US in the near term.”

On Monday, White House economic advisor Larry Kudlow said discussions with China over trade aren’t progressing.

The White House’s latest tariffs of 10 percent on $200 billion of imports from China took effect last week. President Donald Trump, in a Sept. 17 statement, said the tariffs would rise to 25 percent on Jan. 1.

Junior said China’s GDP growth could be negatively impacted by 1 percentage point from the latest round of announced tariffs, assuming it “does not take countermeasures.”

“Higher tariffs are squeezing Chinese manufacturing’s profit margin, reducing the investment incentive and hiring, which would then drag on consumption via reduced income,” he said.

Analyzing risk, I can tell you that it’s a morbid tale today. My Bubble Basket of high multiple stocks are down more than 3.5%.

I took today’s sell off to raise cash by selling ROST, UBNT, and XON. I am holding the bulk of positions and only sold these in order to be able to play an Exodus oversold, should it materialize. I’ll likely buy SPY with 20% of my assets for a duration of 10 days.

I had a busy morning and was unable to view the market and to see BLRX above $1.80. I’ve done nothing, thus far, other than give back gains and lose money today. I suppose 10 yr rates at 3.2% is cause for concern; but it really isn’t.

We had a fairly docile September and it looks like markets are freaking out because it’s October and because stupid people are superstitious. Maybe if I threw salt over my back and skipped across some lines I could escape the wrath of October. Truth is, this shit can happen during any time of the year.

My game plan is simple: wait for an Exodus OS and then buy SPY or QQQ. Meanwhile, I’ll respect my 10% stop limits and enjoy sandwiches throughout the day. When I said 100 NASDAQS were stolen, I mean it. Whoever took it will have to return it. The NASDAQs aren’t rightfully theirs.

Who do you believe — the shills at Bloomberg trying to garner clicks or the techFAGS at Amazon and Apple who depend on China for their manufacturing?

If true, BIG.

Data center equipment run by Amazon Web Services and Apple may have been subject to surveillance from the Chinese government via a tiny microchip inserted during the equipment manufacturing process, according to a Bloomberg BusinessWeek report on Thursday. The claims in the report have been strongly disputed by the technology giants.

The chips, which Bloomberg said have been the subject of a top secret U.S. government investigation starting in 2015, were used for gathering intellectual property and trade secrets from American companies and may have been introduced by a Chinese server company called Super Micro that assembled machines used in the centers.

Apple, AWS and Super Micro dispute the report. Apple said it did not find the chips as asserted by BusinessWeek — which cited anonymous government and corporate sources. Super Micro reportedly denied that it introduced the chips during the manufacturing.

Asked by CNBC for comment, Apple pointed to denials already published by Bloomberg.

Apple has issued strong denials of the report, stating: “We are deeply disappointed that in their dealings with us, Bloomberg’s reporters have not been open to the possibility that they or their sources might be wrong or misinformed. Our best guess is that they are confusing their story with a previously reported 2016 incident in which we discovered an infected driver on a single Super Micro server in one of our labs. That one-time event was determined to be accidental and not a targeted attack against Apple.”

AWS has also denied the report, telling Bloomberg: “We’ve found no evidence to support claims of malicious chips or hardware modifications.”

Here’s the full report.

I hate trying to be cajoled into hating another country. It’s just above my tolerance threshold now. Whether China did this or not, I really don’t care. If Apple is stupid enough to simply give away their tech, well they deserve to be cannibalized by Chinese pirates.

In a rush…too busy to discuss things with you. You can’t keep relying on me to fix your fucking issues. You have the mental capacity of a fish.

Watch this and see it run. You were warned, so no kicking yourselves in the nuts when it prints $2.

Geez, I sound like a pumping fool. Full disclosure, the company is likely worthless and also a piece of shit. I’m just reading the tea leaves for you. The majority of my portfolio is SAAS related, bogged down in HUBS, TEAM, ZEN and BL.

Looks like HDP bought out CLDR after hours.

It won’t stop running higher, so grab hold of the rocket and try not to get burned.

Listen to me. The character of this market hasn’t changed. There is nothing to fear, but trade wars, political instability, kinetic war, and fear itself. That being said, I stepped up and grabbed my nuts, bought some HUBS and TWLO.

The HUBS purchase is an increase, now a double sized position. Truth be told, I now have three double sized positions: HUBS, TEAM and BLRX.

During this recent ‘downdraft’ in tech, I’ve been incredibly predatorial, acquiring shares of the best companies on slight discounts. One shouldn’t expect large discounts in great companies, otherwise they wouldn’t be great. What I’m leveling for now is some epic sort of grandeur — a market loose and pinless, free to explore the outer boundaries of hedonism. There is nothing that will stop us, not even a young and drunken Brett Kavanaugh.

Here is the present oversold nature of the SAAS sector, courtesy of Exodus.

By the way, and let it be noted, if you’ve been freeloading off Commodore Fly for the past year, enjoying his picks and living fat off the land and not joining Exodus, I would like to express my severe dismay. This is not the behavior of a gentleman, certainly not of a lady of good quality that still has a honorable reputation to uphold. You should be ashamed of yourselves, feeding off the giant shark that is Le Fly, whilst summering in exotic locales and eating white fish at $30lb — and not demonstrating a minimum appreciation by way of tipping your hats inside The Pelican Room.

Top picks: BLRX, TEAM, HUBS, and EB

Nothing is worse than a big mouthed fool, spewing things he/she isn’t qualified to lecture. You know the guy, talking greasy and with energy, entirely bereft of facts or an argument that can be deemed cogent. While you might think I’m ranting about random things, all of this philosophical stuff can help you become a better trader and investor.

If you’re dumb and unable to learn, outsource. If you’re sharp, judged by a career in school, self-educate yourselves now and try to become an expert in a field you’re interested in. That entails ~10,000 hours of study/practice.

Pro-tip: if, by chance, you’ve always been a C student in school, you’re likely not an academic. However, you can still possess extreme intuitive skills, coupled with work ethic, that can become very valuable and lead to success.

The first step in any awaking is self-awareness. Best way to avoid being viewed as a fool in public is to reserve oneself. Best way to avoid trading into bankruptcy is to avoid entering areas of the market you’re not well versed in.

Case in point, I largely avoid biotech — unless I am being directed by someone whom I deem an industry expert. I do not have the proper training to be an authority in the field; but I have made some excellent contacts over the years with people who are experts and lend invaluable advice.

If you’re in the money management business, it’s important to drum up new business, but it’s equally important to network with people who know more than you on certain subjects. Keep those lines of communication open and brain drain these people when it’s most opportune for you.

In my next life tip, I will discuss the wife/husband and how their poor habits often lead to ruin, casting a horrible pall upon an otherwise sanguine household, barreling towards a lifetime of self-inflicted poverty.

Nothing irritates me more than people who complain. Believe me, I get the irony of complaining about complainers, but how else will I drive my point home? There are some people, and I’m sure you know some of them, who complain from the moment they wake up until bed. They blame the world for their struggles, make decisions based on spite and jealously, and live insecurely — always disgruntled and utterly miserable.

Everything about your life is fair. It is the sum total of all of your actions, rooted in the place you started — your family bloodline. If you have a poor bloodline and a sense of awareness about this, do something about. Create a new legacy. It can start with you now, and improve over the generations to come.

These are extremely salient points that many people never quite grasp, nor understand, so think about it and try to go a day without complaining about things. Blame yourself and then take action to do something about the problem.

Nasdaq futures are +25, Dow +100. It looks like there are gains to be had this morning. But it’s probably not a good idea to chase pot stocks barreling lower.