MARKETS IN COLLAPSE MODE; DIP BUYERS EXECUTED INSIDE THE CITY SQUARE

I cleaned out my account, swept out all of the junk and the losers and placed them into a trash bin. The hardest part of trading is admitting that we are wrong. It’s in our nature to want to win. Humans are competitive and most of us think we are some special gift to the universe, when in fact we are nothing but particles and dust. We put on clean white coats and wear stiff ties; but we’re still just particles of dust.

I am upset that I sold my FAZ so early, taking early gains. I am equally saddened that I got caught long SHIT stocks into a maelstrom. But I can’t do anything about that now and must react to the market I am seeing, not the one I hope is there. The question I ask myself is “would I buy this now?” If the answer is no, I sell it. Ergo, I sold a bunch of stuff today — raising cash to 75%. In those sales was my last hedge, SOXS. I kicked it out because it was up and did not want to hold it with markets already down 550. Who knows — maybe we rally into the close?

ALT +12.3%
ETSY +0.8%
(SIEN -14.6%)
(OVV -3.4%)
(BSGM -5.4%)
FAZ +3.3%
(NIO -7%)
SOXS +8.9%
(ELF -9.8%)
(OLLI -4.9%)
(RUN -10.3%)
(SE -1.7%)
(TRGP -10%)
(SNAP -7%)
(VBIV -11%)

Net net, I am looking at losses at around 2.7% for the day — an awfully moribund circumstance — but the blood letting, more or less, is over. I can now refocus my efforts to recapture losses and catapult myself towards new successes. I do think, however, one should keep a sharp on the VIX and use that price action to determine the near term direction of the market. Bias is to the downside now.

Dow is off by 190 and the Nasdaq is strong. It’s weaker than earlier, but strong. People want to own stocks — because why the fuck not. We should not be owning anything now, all things considered. But if we are anything at all, we are slaves to fashion.

This morning I liquidated several positions in an effort to raise cash. One of them was one of two of my hedges, FAZ. I probably sold it early — but I did not want to own it and see my gains dissipate.

ALT +12.3%
ETSY +0.8%
(SIEN -14.6%)
(OVV -3.4%)
(BSGM -5.4%)
FAZ +3.3%

More or less a wash. When I’m positioned wrong, my knee-jerk reaction is to slow things down by raising cash. I’m uncertain about where stocks close by Friday — but I am pretty sure the fuckers in Washington will do everything in their powers to rig it higher.

Late in the day the LA Times reported that the order to STAY AT HOME had been issued for another 3 months. Markets did not like that and we fucking careened lower immediately afterwards. I did not react quickly, because, frankly, I did not believe it was true. If it is true and something that perhaps will be replicated throughout the country, we are 100% fucked.

Before this news hit, I bought a half dozen stocks, all of which went lower. To hedge them, albeit late, I bought two inverse ETFs, representing 10% of my holdings. Most of my holdings are healthcare, virus related, so there is an outside chance markets will collapse and they’ll still trade the fuck higher tomorrow. Worst case, I get stomped out and try again. Not a big deal.

When you have tools and skills to manage through any type of tape, nothing is insurmountable.

Dow closed lower by 450, crushing the spirits of bulltards everywhere.

NOTE: Dare I say, get your COLLAPSE Ts and Merlin mugs at the iBC merch store now.

Never work again. Do not fear for food or money, for the government and her tits shall provide you with ample sustenance. The market is gunning for its 7th day up in a row. While the broader indices might be struggling a bit, the Dow off by 80, speculation is running rampant is healthcare stocks.

Democrats unveil $3t relief package. JFC. pic.twitter.com/QlLDue5rXl

— The_Real_Fly (@The_Real_Fly) May 12, 2020

Since my last post, earlier this morning, I executed several day trades — one giant whale of a gain. Today’s results, thus far.

SDC +15.9%
NNVC +39.2%
INO +3.4%
MLND – wash
(JMIA -4.4%)
APRN +4.8%
SFIX +8.6%
AHPI +25.6% (day trade)
APT +8% (day trade)

Why am I telling you my trades after the fact?

Two reasons.

To document my greatness. I’ve been doing this shit since 2006, blogfathering.

And the second reason, a bit less selfish than the first, to demonstrate method and a staccato like temp that is at the core of effective trading. There will be occasions when I appear to have the faintest idea what I’m doing. Other times, I am in fact infallible, possessing super human like trading qualities. I hate to break it to you and I often repeat this point, and it has nothing to do with marketing Exodus, but most are not cut out to trade. But all can eat.

Being a man of the people, I have no problem whatsoever with you gleaning from my expertise and using those gains to finance happiness. Le Fly, as you know, is all about happiness.

See pal, there are two types of people in this world — those who bag whales and those who do not. I just told you yesterday, and I quote “You want the BIG DICKED wins right? First you got to deal with the small dicked wins like above and get through rough tapes and muddle your way through the dirt to come out the other end with a pistol in your hand and erect penis, ready to fuck.”

Today I fuck.

SDC +15.9%
NNVC +39.2%
INO +3.4%

Two monster overnight wins, no big deal. I am now 8 for my last 8 and I don’t even know what the market is doing. I am certain that heart attacks will be endured during the next decline. But for now, these runners, at least for me, is like snatching baby bottles from babies.

Wild day in markets. The Nasdaq is up for the sixth day in a row, longest streak of the year. Yet, the economy is zero and 50 million people are without meaningful work. People collect cans and scrap metal for crumbs now.

Today’s catch.

(UAA -8.7%)
(CC -4.6%)
CAPR +8.6%
NK +7.2%
STMP +7%
CODX +8.3%
BL +2.3%

Sure, I could sit down and relax for the balance of the year, up 150% in my trading account. But then what about the people — the small plebs inside Exodus who joined today hoping for a morsel of scraps to feed Tiny Tim this evening? There are scores of you FILING IN to the Pelican Room now at record rates. Our subscription numbers are at record highs like a fucking zombie invasion is happening and I am the only one with the bullets to kill them.

I get it — jobs are non-existent and life at the Amazon CAGE FACTORY isn’t appealing. But you need to fucking listen to me when I say, manage your position sizes. You want the BIG DICKED wins right? First you got to deal with the small dicked wins like above and get through rough tapes and muddle your way through the dirt to come out the other end with a pistol in your hand and erect penis, ready to fuck.

This business isn’t for rookie and I am not here to teach you anything. I fish and that’s all I know how to do. So shut the fuck up and sit down. Dinner will be served early tomorrow.

My opinions on the market are changing on an hourly scale. Much of what lies ahead of obscured by the unknown. Therefore stocks are following the past of least resistance and jimmy-rigging higher. I placed several day trades on this morning and closed a few out. Here is what I booked today.

CAPR +8.6%
NK +7.2%
STMP +7%
CODX +8.3%
BL +2.3%

Both NK and CAPR were day trades, the others were swings. I am presently 50% cash, looking at healthcare breaking out and the Nasdaq up nearly 100. It’s incredible and incredulous — but it doesn’t help to fight against it.

Comply or die.

Admittedly, I have to reduce my IQ by 100 points each time I decide to buy a movie theatre stock or anything consumer facing. The intellectual heft is indeed on the side of the bears, or at least the people who are reticent to buy here. I do not understand how anyone can justify adding to long term position now, which is why my retirement account is still in cash. Granted, I sold at the wrong time, now with the benefit of hindsight. But I’d do it again — because this shit is crooked and wicked and of course WRONG.

In a just world, stocks would crash in half, get Thanos’d, and get cooked in an oven. Instead, we are left with this Frankenstonian mockery of a market, totally dependent and totally reliant upon central banks to prop us up. It’s a bastardized form of capitalism that caters to the compliant and the institutionalized favorites.

As of right now, bank shorts look great. CRE shorts too. But by 3:30pm, after another buy program, I bet they’ll look dreadful. Or maybe we’ll close poorly and then BOUNCE hard tomorrow based off some meaningless vaccine news. The point I am struggling with and conveying to you is I sense I am on the wrong side of history betting for higher prices but do so out of necessity and compliance.

Rebels die penniless and without land.

Small caps are getting smoked, as well as anything consumer facing. We are talking about 4% losses today, not the FANG bullshit. As for me, I sold two losers — UAA (-8.7%) and CC (-4.6%) and have 40% cash — nothing too exciting happening as of right now. My positions, all things considered, are doing ok.

Dow futures are +200. People are CLAMOURING to get back into the swing of things — booking hotels and restaurant reservations at classy eateries — saloon and salon appointments — the works. Whatever fears people had last week are gone today and most Americans rather die inside of the Jacob Javitz center on a Tesla respirator than have to stay cooped up for yet another month.

I think I can speak for all Americans on Wall Street when I say “thank you Main Street for losing all of your little jobs.” You provided us with license to steal from the treasury and liquify markets to the point of lunacy. We will celebrate your unemployment straight away and pop champagne corks into each others faces over our 4 pound rib eyes, with greedy faces, during tomorrow’s session.

Eventually, Target will hire you or Amazon can assign you to become a CAGE MANAGER. Until then, sit back and enjoy your unemployment and feel good knowing your sacrifice helped all of us get richer.

I’ve always been schitzo when discussing markets, so bear with me. Let’s just forget about the whole depression aspect to this economy and only base trades by price action. Does this look like a market topping or about to head for another leg up?

And the top rated stocks in Exodus. Lots of virus related names in there, including a position of mine CODX.

If you sit there with your Austrian book of economics and live by it, you’ll never make any money in this rigged game. You need to rethink your approach and ignore reasonable suggestions in favor of the obscene. While you may believe I am being tongue in cheek, I am not. I am merely a reflection in the calm waters of the Federal Reserve, water that liquifies everything and nourishes the soil for the crops to be eaten later.

Admittedly, I was reticent to press the envelope on very small cap stocks these past few days and the past week I reduced my potential returns by having too much cash and hedges. Nevertheless, I am in fact very much willing and able to careen recklessly into markets next week — in celebration of the great big titted opening of the global economy!