MADE IT ALL BACK, AND MORE

The market is white hot now, amidst the news of Trump destined for prison on ironically Trumped up charges. Perhaps investors believe this is just the thing to endear Trump to America for another term. I just happen to think he’ll end up the way of Assange.

I made some appropriate moves today and pressed my fate with the gods, +233bps in spite of a crashing of one of my quant generated picks: AEHR -16%.

Yesterday all was lost and forlorn. Today I’m tossing bowling balls down at the ants below. This is the life of a Senor Tropicana, captain of industry.

I’ll probably buy some more FAZ by the end of the day, as I close out March in extreme style up more than 13%.

I made a pastiche of errors which led to my swift dispatch towards SESSION LOWS and I am delighted by the specter of having to roll up the olde sleeves and MAKE IT ALL BACK, and more. Adversity is good for the soul and since my health is very excellent and my mood superb, I thought it would be fine to lose some money today, and so I did.

I edged lower by 122bps and was in search of a clue all day and for the love of God — I had no idea what I was doing out there — fumbling over myself — making a fool out of me and everyone who mirrored into my trades.

All that said, I was in search of the alleged bear market.

NASDAQ 100

And I found it here.

Russell Small Cap

We have some real doldrums in the small caps — piece of shit companies not afforded the express protection of the US govt and its foreign interlopers.  I took a small TZA hedge, long NUGT position and additional longs of the ribald nature to offer me a very positive net long position heading into Friday.

Earnings season is fast upon us and Q1 is ending with a bullish intonation — with markets up 20% since December.

In summary, The Fly lost money today in true moron fashion and his run may in fact be over. It was a very excellent journey into profit and I was happy to be a part of it. But all things whither and eventually end, so I am eternally grateful whenever things go my way and will always reflect upon these days as the very best.

SCHW has been dealing with the ‘cash sorting’ issue for about a year. In layman’s terms, there has been on ongoing run on the Charles Schwab bank for a year, as clients transfer out of their weak money market accounts in exchange for treasuries. The simple fact of the matter is, banks cannot compete with the Fed and now need to figure out alternative methods to keep cash in house.

A downward spiraling stock market doesn’t help.

Today we are seeing -30% PIN ACTION in MCB. But that doesn’t matter. Nothing matters other than FRC, PACW and SCHW. Even if the FDIC guaranteed all assets, it would not change consumer behavior — which is to find higher yields for their money.

Because of this, the FOMC will need to LOWER RATES and soon. If not, all eyes on the likes of SCHW as they circle the drain to $00.00.

Fear mongering 101 demands that if SCHW opens down 5% tomorrow, on a Friday, people will panic the fuck out of stocks — out of systemic risk fears. On the matter of systemic risk, we are seeing how people behave during a mini crisis — barreling headlong into BTC and GLD. I’d advise you to take measures to build both or at least one into your asset allocation models.

Renew the plunge. Sell all banks. Make Mr. Schwab cry.

Until we resolve the issue of FRC and PACW and other weak regionals, SCHW and friends will continue to suffer and the contagion will continue to fester. The govt needs to find buyers of these piece of shit banks and SCHW needs to figure out how to keep the plebs money in house.

I was bullish coming in, but much less so now that I see the banks are dumping out again. I am presently without hedges, but that will likely change from now to 4pm.

I had 10 stocks lined up for purchase to LEVERAGE myself into tomorrow. Bro, I was feeeeeeling so bullish. I was like, bro, “this shit is going to moon.” And then it dawned on me to ignore all of my animal sentiments and do the complete opposite.

For the record, I AM BOOLISH AS FUCK and have a 100% long book. But because I feeeeeeel this way and when emotions get involved people tend to get tricked and fooled, I maintained a slightly underwater TZA position at an astounding 40% of assets using leverage.

If markets run up tomorrow morning, best case I’ll be flat.

THIS IS A NET SHORT POSITION AND A BET AGAINST PAX AMERICANA.

Wish me luck.

I made 1.27% for the session, gains frozen since 2:30pm.

OFF TO THE FUCKING GYM.

I locked in gains of +130bps vis a vie opening up a massive long position in TZA. Ostensibly, I am net short with 40% in TZA — but that can change swiftly — with just 1 or 2 red candles sending it up 1%. I will most likely liquidate it and pray to the Gods for good fortune.

The daily trend has been to fade the morning pops and buy the dips. The overall trend has been sanguine, especially in the face of crisis. For all intents and purposes, the banking crisis is over. The next panic, however, is just around the bend.

I have no bias in my trading — but an egregious one inside of my brain and in my heart. My soul craves for COLLAPSE but I am content, and patient, to just plod along with the status quo — providing it suits me.

What suits me is supremacy in trading, having a fun time writing, making people laugh, providing panic when people need it most etc.

I feel like I’m on borrowed time so everything is gravy, more or less.

Into the final hours, I am expecting some weakness. Let’s see if I’m right.

If you put me up against an IBM super computer I’d turn it into junk in a trading contest and you’d give up on the notion of AI. I get into these freaky streaks from time to time, occasions when even if I tried I couldn’t lose money. This isn’t meant to boast — just stating facts.

I’m invincible now.

I closed out my small hedges and let my dogs run free, +115bps now. YTD, I’m up 39% and Q1 isn’t over just yet.

The plan is simple: let the longs do their thing and if it gets reversy, apply hedges to stem the tide. This isn’t rocket science. It’s rather easy, once you have a core portfolio to work around — which the Stocklabs quant does for me better then I ever could.

Here are my gains for the day — so fuck off.

The market sucks but I get the sense we’ll rig higher at the open. I have just 10% hedges on via DRV and FAZ. I inherently hate the banks and could never live with myself if I missed out on a bank run crisis.

NEVERTHELESS, as frustrating as this action was, it would behoove me to sleep on the PERMANENT BULLS who are always lurking for chances to stick a knife into the backs of the bears. I am aware of these people and cannot be fooled.

I was fooled only once in these halls, back in 2014. Since then, basically, all wins and winship.

Since my YTD gains are ribald and my trading superb, my mood is very excellent and my feelings towards humanity is very generous.

I want to believe. I too want to revel in the glory of upward surging prices. Alas, we cannot have nice things.

A few news items intra day:

Apple is competing with AFRM — sending AFRM even lower.

Amazon might acquire AMC

I had hedges in the morning and closed them all out by 9:35 and then put them back on after 12pm and now I am +38bps. The market is sick and there is nothing here for you to trust. Do not gaze upon the market and see opportunity. You must change your mind to see danger.

All of the foibles lie in Silicon Valley. Even their banks are stupid. These are vacuous, evil people and they should be sold short. I know it’s not possible to sell short a human being — but the closest you can come to that is to identify the evil of Silicon Valley and to bet against their industry: tech.

I am not suggesting tech is finished — far from it. But what I am saying, if anything should go down — it will be tech that goes down the most. These are companies that were started via VC Ponzi schemes, kept alive with an abundance of cash and then dumped onto the proles and sold to them by their media as the next big thing. We have come to realize over the years that maybe 10% of what they dump on the proles is any good. And here we are betwixt a crisis and the lunatics running the asylums with juice bars and personal chefs keep tossing good money after bad in their SAAS models — aka cash burners and pretenders of wealth creation.

Meanwhile, the reviled oil sector, mostly filled with conservatards, just recently survived NEGATIVE $35 per barrel crude, are on sale. If it were me, and thank god I am not, I would REDUCE my tech holdings in favor or oil and gas.

Since I do the quant I have no need to even think about where I am allocated, since my brain only focuses on hedging and overnight trades. But for you, the layman worker inside the coal mines, do yourselves a favor and avoid high growth tech — maybe down to 10% of holdings.