Go Eat a Sandwich — Market is Now Unclear

Lots of short squeezing taking place in biotech, with SRPT leading the fray thanks to positive clinical data. Other DMD related biotechs are scorching higher in kind, namely SLDB. I have no edge here, so I don’t even bother.

The other one that caught my eye is GEVO. I had a buy order in when it was $16.5, but chickened out. Now look at the fucker, encroaching on $24. Imagine being short from $2? Margin clerks must be freaking out.

Other than that, there really isn’t much to buy. Lots of SAAS stocks are getting murderhole’d — like SMAR. The way I see it, now is a good time to eat a large roasted beef sandwich, enjoy the comforts of cash, and wait for clarity.

Lots of old man stocks and utilities are higher — due to defensiveFAGS piling in. I have no interest in that game. Too slow and boring, and also slow.

I sold FIVN for a ~3% gain. My streak is now 31 out of 32 — the Joe DiMaggio of this stock game.

I’m eyeballing some scandalous stocks now.

Developing…

There is a lot of rhetoric being disseminated throughout the news channels, because no one likes a disruption in the status quo. For people who are doing well and enjoying prosperity, the idea of a Chinese trade war is hateful and something to be scorned. Whether this hurts markets for an extended period of time is anyone’s guess. I suppose it depends on the negotiation tactics of both countries. But one thing is clear: China can never win a trade war against us — because they’re too dependent upon US markets for their miserable goods.

Now unless they’re willing to disrupt their economy and risk everything, we should assume this latest salvo will be resolved, amicably.

This out of Beijing this morning.

“This practice of extreme pressure and blackmail deviates from the consensus reached by both parties on many occasions and is disappointing for the international community,” the Commerce Ministry said.

“The United States has initiated a trade war that violates market laws and is not in accordance with current global development trends,” it said.

Beijing will respond by safeguarding the interests of China and its people — and defending free trade, the statement added.

Nasdaq futures are -100. When I saw the news of Trump wanting to tax another $200b in Chinese goods, I knew this would rock markets. Reason being, the US only exports ~$120b worth of goods into China per annum. The fact that Trump used the $200b value is significant — because it will demonstrate that China can literally not retaliate in kind. Their only recourse is to affix taxes to ALL US GOODS into China — which would be a miserable headline for them.

Heading into today, I was upwards of 80% cash in my trading account. I’ll be looking for strength, not weakness, in order to find some ideas to trade. It’s entirely possible this could be the first of many down days — but it’s not likely.

Before I make any bold predictions, let me get a cup of hot boiling black coffee in me — God damn it.

I don’t care about right or wrong, or if this will even happen. All I care about is investor psychology and how this news might affect equities. Without question, affixing taxes on $200b in goods is something. As a matter of fact, it’s rather significant to the point that if China retaliated in kind, they’d be hitting ALL US goods with tariffs. That’s because they export so much more to us than the other way around.

Right now futures are -130, Nasdaq -50. I expect this news will marinate and work like a poison. This is toxic. Expect a sharply lower open in the AM.

Trump’s love letter to China.

THE WHITE HOUSE

Office of the Press Secretary

FOR IMMEDIATE RELEASE

June 18, 2018

Statement from the President Regarding Trade with China

On Friday, I announced plans for tariffs on $50 billion worth of imports from China. These tariffs are being imposed to encourage China to change the unfair practices identified in the Section 301 action with respect to technology and innovation. They also serve as an initial step toward bringing balance to our trade relationship with China.

However and unfortunately, China has determined that it will raise tariffs on $50 billion worth of United States exports. China apparently has no intention of changing its unfair practices related to the acquisition of American intellectual property and technology. Rather than altering those practices, it is now threatening United States companies, workers, and farmers who have done nothing wrong.

This latest action by China clearly indicates its determination to keep the United States at a permanent and unfair disadvantage, which is reflected in our massive $376 billion trade imbalance in goods. This is unacceptable. Further action must be taken to encourage China to change its unfair practices, open its market to United States goods, and accept a more balanced trade relationship with the United States.

Therefore, today, I directed the United States Trade Representative to identify $200 billion worth of Chinese goods for additional tariffs at a rate of 10 percent. After the legal process is complete, these tariffs will go into effect if China refuses to change its practices, and also if it insists on going forward with the new tariffs that it has recently announced. If China increases its tariffs yet again, we will meet that action by pursuing additional tariffs on another $200 billion of goods. The trade relationship between the United States and China must be much more equitable.

I have an excellent relationship with President Xi, and we will continue working together on many issues. But the United States will no longer be taken advantage of on trade by China and other countries in the world.

We will continue using all available tools to create a better and fairer trading system for all Americans.

Lucky for me, I step into tomorrow with ~80% cash — like a true man — bacon, whiskey, and cigars all wrapped up into one being, winning.

Starting today, we are permitting free trials for a period of 7 days — because the product literally sells itself.

If you’re looking for motivation to try it — read user testimonials in this comment thread. The reason why I changed policy to permit free trials is because I’m interested in customer success and teaching you how to use the platform, something I’ve neglected in the past.

Naturally, repeat offenders will be executed and I hope you do not abuse my graciousness. Take this opportunity to envelope yourselves in the winship of Exodus and Le Fly.

Join us in the Pelican Room and feel free to ask me questions. Onboarding emails will be sent to best explain the platform over the next week.

Enjoy.

I own BOX, QTWO, FIVN and CTRL. You can watch them if you like, for they’ll all trade up. I will eventually take profits on them and extend my streak to 34 of 35 successful winning trades.

I’ve been blogging in these confines for more than a decade and the markets have certainly given me a leg up in being able to boast about my escapades into the dreamy land of Chinese burritos and SAASFAG companies; but please don’t play yourselves by implying or even suggesting that anyone has come close to these Pete Rose tier god-level winship on these blogs — live and with plenty of color.

If you thought my success ended with my trading prowess, think again. My fucking quant money making machine printed +1.3% today, against a -0.17% SPY.

I cannot lose. Even if you tried, you couldn’t stop me. The ride will never end.

You can literally not stop me. This is getting some of you haters so mad. I’m twisting your nuts into a knot and ripping them off (no homo). You keep waiting for me to flag and falter and yet here I am doing there unthinkable — a streak that is performed live for the world to see — trades timestamped and discussed in detail inside Exodus. That too irks you and annoys you to no end.

I sold NEW here, purchased this morning in the $23s, sold now in the $28s.

I will continue this streak forever — because I am the new stock God — and the old stock Gods are miserable faggots, whom I’ve locked away and stored in an cold, damp cellar.

Try to disprove anything I just said. You cannot.

Here is the running tally of my trades.

PS +20%
SOGO +16%
MDB +12%
PVTL +13.5%
QD -3%
SSTI +7%
HUBS +10%
IQ +32%
BITA +4%
SMAR +26% (doubled up)
ZUO +21%
BILI +12% (doubled up)
HUYA +19%
OSTK +2.7%
BILI +20.5%
CBLK +16%
EVBG +7.2%
APPN +9%
ZEN +6%
CLPS +104%
BL +2%
PS +4%
SMAR +4.8%
APPF +0.15%
FIZZ +16%
SHAK +12%
YEXT +12%
AMBO +37%
NEW +23%

I am going to bowl over you now, as the market barrels lower — my shit will propel higher.

I already booked a one day +37% win in AMBO. Now I’m buying two new stocks. Going ahead and watch them trade on your computers. Do not buy them — because you’re scared and spineless.

The first is BOX. This is revered by all SAASFAGS and the stock is heading sideways into $28, soon to bust loose like the Kool-aid guy into $30. All SAAS stocks in their $20s trade into the $30s. It practically written in stone.

The other is far more riskier and could lead to complete disaster in your wife’s IRA. It’s a Chinese Burrito — ticker is NEW. It’s a piece of shit — but barreling higher.

I bought them high and intend to sell them even higher.

I blew out of AMBO this morning, in spite of my high expectations for the continued surge in said price. By doing so, I booked a 37% one day returns.

Current streak is now 29 of 30.

Fortunately for me, I moved to a heavy cash position on Friday and now have 75% of my account in King Dollars eagerly and feverishly awaiting to be redeployed. Futures are off by more than 200, based off Trump’s tariffs that we already knew about, which were nothing-sauce then, and still are nothing-sauce now.

The Nasdaq forked higher by more than 1% last week, an annualized return of more than 52%. It should come as no surprise by anyone of you here that stocks are taking a breather today. However, I’m prepared to buy dips, and you should too, because nothing can stop the onward march of gilded prosperity, no matter how hard they try.

I have a few ideas boiling on the surface, which of course will be discussed and plotted upon inside the comfy confines of Exodus.

Good luck.