Zero Muscle in the Russell — Small Caps Disintegrated

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There isn’t anything to worry about — believe me. The small caps are weak and I’m brooding a bit — unrelated to the market. Just when you think life is easy, BAM, you get smacked in the face by life.

Barreling into October, one could only wish for something dreadful to happen. But it probably won’t. Right now I’m situated like a clown, mostly in high beta tech stocks strewn in with cannabis and some off-shots that will likely fail. My Quant went mega cap yesterday, $100b+, effectively escaping the wrath of this shit.

For those of you trying to read into this loss, don’t. It’s merely a pit stop en route to more hedonism. All you need to do with genuflect to the altar of capitalism and then wait in the pews for things to work out and then walk out of this place of worship with lots of money.

What will you do with the money? That’s an interesting topic.

Will you save it? Spend it on trendy shit? Travel? More stocks?

Tell me.

I used to spend my money on all of the above, especially trendy shit. Now, with age and wisdom, I’ve calcified around the idea that consumerism is for asshats and my money is best served building an Orbital Space Cannon (OSC), designed specifically for offensive purposes only.

I thought the trade was gonna fizzle out — but it didn’t. It only morphed into high key degeneracy, ingratiating companies of low standing and quality.

IGC — through the fucking roof.

DTEA — through the fucking roof.

PYX — through the fucking roof.

TRPX — through the fucking roof.

The last one is important, and not just because I sold it last week for +9%. I told you Israeli cannabis plays were ripe. Now TRPX is running. Well, what is the other only Israeli cannabis play here?

Correct!

BLRX

I bought more and made it a double sized position.

Let the good times roll.

I suppose we should all be concerned with trade wars again, or whether or not Kavanaugh threw some ice at someone back in 1991. My dreams of selling NEPT at $7 today have been cracked asunder and it looks like losses are on the horizon, at least for the first hour of trade.

WTF sort of position sizes are you taking anyway? I’m sick and tired of hearing about accounts being blow up due to one stock going down. What the fuck are you doing to yourselves.

Positions should not be more than 5%, initially. Remember it and repeat it and obey it.

Gold and silver are strong this morning. In other words, go eat a sandwich and wait for something more exciting to materialize.

Cannabis plays should NOT be bought on dips. They should be bought into strength.

Regrettably, I was away all day and wasn’t afforded the opportunity to buy more pot stocks. I sold NBEV for a staggering 45% profit and it kept going higher afterwards.

Now, all of the pot stocks are running this evening, spearheaded by my new position NEPT — higher by 10%.

Separately, it was a weak day for a lot of stocks and several SAAS plays are currently OS. You want to accumulate tech now, ahead of the Xmas season and certainly on any dips. I cannot think of a better stock, a more charming stock, than HUBS.

You should fade this move in cannabis and wait for a reversion against the mean. We’re hours, if not days, away from an abrasive pullback. However, enjoy the lift and the times we’re living in now and make lots of money. With said money, I hope you buy things that make life better and also become members of Exodus. We are, as you know, all distinguished gents, fitted with top hats, white gloves, and canes, which double as swords. Said swords can and will be used to defend the auxiliary outpost against mongrel elements, thrusting steel into their black hearts and releasing their evil spirits back into hades.

Fresh off my TLRY and NBEV victories, I perused the Pelican trading room and bore witness to NEPT on the move higher. This was discussed before and apparently they’ll presenting in a conference next week.

This was posted to the NEPT site, a brief discussion about how awesome cannabis is and what not. You must understand, I don’t believe in any of this horseshit. I’m just following trends, trying to get in and out before others, having fun.

I’m long NEPT from the $4.70s, looking for a vertical move thru $5 and then onto $1,000.

I sold NBEV this morning, which was a double sized position, for an outrageous return of 45%. If you recall, incredulously, I bought MOAR on Friday, while it was +30% for the day. This is how I roll.

Additionally, I sold TLRY for a modest 21 point gain, or +15%.

Those two sales put my cash position back to 20% and now I’ll be reallocating the Exodus Quant for October.

As you can tell, I just saw Sicario 2 — a very good film and acting performance by Del Toro. The headline mimics a line in the film and applies nicely this morning, especially for GE and TSLA shorts. I don’t mean to ridicule or piss in your disgraced waters; but it must be said. You cannot keep up this routine, always being contrarian, attempting to profit during a great bull market.

The only way to be in a bull market is bullish. The only manner to trade in a bull market is to chase momentum. Period. For longer term investors, follow quarterly trends and allocate sensibly.

Pre-market, both TSLA and GE are up like cannabis stock, +15% a piece. Speaking of cannabis stocks, they’re running again and I’ll likely book profits in NBEV and TLRY.

Today is reallocation day for Exodus Quant, so I’ll be busy for the first two hours of the day.

Happy trading.

Just when you thought President Trump’s MAGA hat was out of style, in comes a new NAFTA deal to coerce everyone to start wearing them again. I fully expect to see all of my friends in Princeton prancing about Palmer Square tomorrow in their vintage MAGA hats, sipping on glasses of chardonnay.

The news is fruitful and also bountiful.

The deal will also modernize what was covered by NAFTA by adding provisions on digital trade and intellectual property, the administration official said.

A U.S. official also pointed to the prospect of enforcing the agreement, calling it “one of the most enforceable trade agreements we’ve ever had.”

“This is going to be real, and it’s going to change people’s lives, and it’s going to make the U.S. economy stronger and better,” that official said.

Of note, the new trade pact will come up for review every six years, which will give the U.S. a “significant new form of leverage” to make sure the arrangement is to its liking, according to that senior American official.

The issue of enforcement was front and center in a statement on the deal from Senate Finance Committee Ranking Member Sen. Ron Wyden, D-Ore.

“As I’ve said many times, NAFTA has long needed a serious overhaul,” he said. “The crucial test for a new NAFTA, or any new trade agreement, is whether it is enforceable, particularly with respect to promises to protect worker rights and the environment. Americans are sick of hearing speeches about the benefits of new trade agreements when the agreements in place aren’t even enforced and their opportunities don’t materialize.”

On this news, futures are +175. This is one heck of a way to start off Q4. I’ll be reallocating the entire Exodus Quant portfolio tomorrow, which will be focused on mega caps.

Sleep tight Tesla shorts.

I just got done cavorting in some of the dicier areas of NJ on a real estate expedition. Without casting wide aspersions and insulting stupid people without cause, it should be noted, as an observer of people and their ridiculous actions, that the poor are dumb and the dumb are poor. I mean that both figuratively and literally of course. There is a genetic reason for failure, abject perversion, gauche clothing, poor hygiene, and a general poor demeanor that is both mean spirited and criminal. People with money live gentler lives, and preside over generations of genetic curation. As such, they’re smarter, prettier, and easier to keep company.

This doesn’t mean the rich are a moral kind of people. As a matter of fact, too much money often perverts the mind and creates a vacuum and instills a lack of purpose in a man, which leads to all sorts of bad things.

Case in point, American Pickers. These fucking boomer retards travel the country in search of absolute junk, catering to an upper class in America that obsesses over collectibles. Believe me, I get why people collect. I’ve collected baseball cards, old newspapers, and bodies of my enemies for many years. But these fuckers take hoarding to a next level, sopping up random pieces of brass junk for $500 at a clip — a Harley frame for $10,000, old gas station signs for $300. FUCK YOURSELVES.

I hate these guys

I know some men who collect stocks like junk, with portfolios fitted for morons. I’ve seen portfolios with over 1,000 stocks in it — completely bogged down in mediocrity by men with too much money and not enough wits to grow properly. The most interesting thing to me is watching very smart people do stupid things, especially when it comes to investing. There’s never a reason to own more than 50 stocks. If you do, you’re asking for trouble. There’s no way you can properly keep track of so many positions. More importantly, you’ll never crush the SPY.

You know who you are, you fuckers. You’re the same type with junk in the attic, shit in the basement, fixing on how to hang onto your 4th wife.

David Einhorn is a legitimately good person, in spite of his immense wealth. His long term track record is one to be envious of and his grasp of financial matters is second to none. So how the fuck is his fund down 26% YTD?

We’ve all been there, haven’t we? But Greenlight’s struggles have been ongoing for years, resulting in redemptions and all sorts of fucked up articles like this one. But this isn’t meant to poke fun at David. Plus anyway, he’s winning the game of life in numerous ways, much greater than me, so who the fuck am I to critique him? With this particular tape, during this very moment, Greenlight Capital hasn’t a clue what they’re doing.

According to the most recent filings, these are Einhorn’s positions.

Why?

I get value investors need to droll on in boring ass stocks in a flaccid attempt to extract returns, but that right there is ridiculous. GM, really? The stock is down 18% for the year and showing no signs of a turn. Brighthouse Financial, ticker BHF, is down by 24% this year. MYL is also a bowser, off by 13%. In addition to his wrong longs, he reportedly has a ‘Bubble Basket’ of high value names that he’s short. I recall this revelation in 2014 and I attempted to mirror it based upon his criteria.

My Bubble Basket inside Exodus is +93% for the year.

In other words, Greenlight is short the best stocks, flying higher in the face of unreal and surreal valuations, whilst his value longs get beat down to a pulp. The entire value space has been disjointed and flayed during 2018. Have a look at some of these fucking stocks — spearheaded by the pavement apes at GE.

BALs (Big Ass Losses)

Is there a teachable moment here?

YES.

You aren’t smarter than the market. As much shit as I talk about being the best trader to have ever lived and not on the verge of suicide, I place 75% of my account in a Quant, designed by me, to track the market and become a slave to trends. If Greenlight wants to turn things around, they need to dump those fucking stocks and start fresh, long the names that are working — because during a bull market like this, one that defies all logic and tenets of value investing, you must conform or you will be eliminated.

Like all things in life, Darwinism applies here, filtering out those who’ve gotten weak and stubborn, rewarding those who are malleable and energetic.