Several months ago all of you were tripping over yourselves to get some CBD stocks. Hedge funds sprang up out of the trash, procuring money from unseasoned wastrels. It was supposed to cure everything and indeed it did for a period of time, up until people got bored with it and sold everything. That’s the problem with fads or hot trends, they fade and with it the idiot class of investor grows wearisome and then retires back into bankruptcy protection. Let this be a lesson to all of you traders out there, attempting to earn a living by managing the letters and numbers — hot stocks are temporary phenomenons, always. Case in point, TLRY and BYND — from fags to fags — gone.
The past month has marked a resurgence in health care providers — which in turn has lit a fire in biotechs — another one of those hot sectors to sell into rallies. Aside from healthcare, tankers have gone up and other sub-par groups — casting technology stocks to the sidelines in many trading accounts. The lauded and praised SAAS sector has been left for dead, only traded a few times the past month with any notable strength. Semis have also been MEH in the big scheme of things, which leads me to my next question.
With all of these shit sectors running hot, are we nearing the top? Are we setting up for a January execution? It would not be the first time. I recall vividly during January of 2004 getting my brains blown out in semis, and then I made a crushing in January of 2008 when market capsized and went out for the count. Bear in mind, and listen to me now, the market of December is not the market you need to pay attention to. It’s the details that matter, when the real trading begins in earnest — January of 2020.
My best guess is for a rally, but as always, I am prepared for all eventualities. There is much to fear, after all. Balance sheets are leveraged as fuck, share buybacks are out of control, and there is a general complacency and malaise amidst the Wall Street elite. Why, I would not be surprised, or bothered in the least, to see several of their heads removed from their bodies, watching as they tumble down the cobblestones of Stone St, washed away with the blood of the greedy. There are so many great banana eating experts these days, fat slovenly men sucking the dick of an automatic bull market, pretending to have talent. Fuck you and your charts, Sir, they will mean nothing in the coming fires.
Happy Sunday.
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“Balance sheets are leveraged as fuck, share buybacks are out of control, and there is a general complacency and malaise amidst the Wall Street elite. Why, I would not be surprised, or bothered in the least, to see several of their heads removed from their bodies, watching as they tumble down the cobblestones of Stone St, washed away with the blood of the greedy. There are so many great banana eating experts these days, fat slovenly men sucking the dick of an automatic bull market, pretending to have talent. Fuck you and your charts, Sir, they will mean nothing in the coming fires.”
Pure bliss!
Indued.
Paul Volcker has passed away.
Don’t go bearish unless one of either 2 things happens: (1) the federal government stops running up deficits like a drunken sailor, or (2) the Fed switches from its current loose/accomodative to tightening posture.
We are in the midst of a new era of financial engineering as Fly so eloquently put it. This is the era of hyper-interventionalism which means our policy-makers will quickly jump to cut rates, print money, bail out credit markets, ramp up spending, etc, the moment the economy slows just below comfort (really, anything below 1.50 – 2.00% GDP growth). Any bearish action won’t be allowed to last more than a quarter at most, so you’re an idiot if you’re betting bearish for anything other than a very short-term period.