MARKETS COLLAPSE — NASDAQ BLOWS THRU SUPPORT AS HIGH MULTIPLE NAMES GET SHOT AND KILLED

It looked too good to be true, and it was. Since the opening recovery of the 50 point dip, markets have shattered new lows and are now swimming in blood. The Nasdaq is down by more than 115. You can be bullish if you want — but I have no choice but to toss in the towel.

As a result, I sold the following stocks this morning, moving to a 60% cash position.

TEAM, SOXL, NOW, TWLO and SQ.

Again, this has nothing to do with whether I think stocks will bottom or not. If they do bottom, I will, unfortunately, miss out on the uptick. That is the price to pay for buying into stocks too early. I’d rather protect my account than enjoy a nice 10% lift off the lows. By the way this market is dangling, it could very easy close at the lows, causing a new and fresh panic amongst the unwashed, barreling into the November elections.

I’m bound to get a lot of push back on this topic, more so than any opinions on the market. The important topic of what a gentleman should eat for breakfast is one that has been angrily debated for thousands of years. Back in the old days, men would head out and hunt for dinosaurs, take their baby dinosaur eggs, and then eat them with a side of wooly mammoth. Nowadays, we have much bigger options, some of which are cultural, but I’m saddened to tell you in spite of your biases — there is only one acceptable form of breakfast.

Down south, men clad in white suits and straw hats take morning repast over a nice hot bowl of grits and greasy eggs. To accompany this lard, they eat a side order of pig stomach. This is why they lost the war.

Up north, many of us are cold and calculation, no time for breakfast, so we eat granola bars and black coffee, so black it looks and tastes evil.

Out west, there’s no work to do other than enjoy the scenery, so they eat avocado and black beans with eggs over easy and a side order of burrito.

***CEREAL IS NEVER AN ACCEPTABLE FORM OF BREAKFAST, NOT EVEN IN THE DEEPEST BOWELS OF THE SOUTH***

While panned cakes is still universally enjoyed, especially in the Florida panhandle, home of the absolute moron. However, as I alluded to before, there is only one breakfast a man of distinguished qualities should have his chef prepare for him.

And here it is.

French Omelette, two slices of bacon, black coffee, piece of toast.

When making the French omelette, it’s important to roll it over three times and for it to have zero color. The eggs should be almost done when you roll it over — because it will cook when in your dish whilst rolled. Moreover, after plated, the omelette should be glazed over by a slice of butter for proper finishing. It should be noted, anything more than two pieces of bacon borders on gluttony. And if you take sugar in your morning coffee, you do yourself a great injury. The piece of toast is of course optional, especially for those not interested in gaining weight. Bread is both delicious and enjoyable, but offers zero nutritional value and often leads to fat stomaches and faces.

For more on the French Omelette, I give you Chef John.

That was too easy, hardly anyone died. There wasn’t enough time at the lower levels to stew up panic and cause people to chimp out. Suffice to say, I am suspect of this quick recovery and will not participate in the recovery.

Plus anyway, I’m already long a boat load of SPY and I own SOXL in my trading, in addition to everything else. The 25% cash I have on the sidelines is designated for momentum and rips. While this sort of qualifies as a rip, it’s still every early and anything can happen on evil Columbus Day — the time when some European moseyed down to America in order to execute all of the natives living on the land, getting fat off corn, trading in wampum like god damned savage animals.

Off to drink some coffee.

The news is the same — Chinese-American trade war, blah, blah, blah. We’re flushing down the toilet bowl, as is customary in October, on a Monday, following a hard and horrible close on a Friday.

The main question to be answered is whether this dip is different than the others?

Bottom line: Columbus was a god damned retard, but he knew the earth wasn’t flat and defeated the flat-earthers by discovering America for his Spaniard overlords. Everything he did after that was sort of meaningless, especially his time in Hispaniola, when he chimped out.

Respect your stops. You can always buy back later. If in cash, choose a place to buy dips, but still respect your stops.

Side note: Brazil is +6% on right wing victory.

I’m not sensing any panic in markets and the people I know who trade are almost all united in their allegiance to the Order of the Bull market. I’m not obnoxious to the point that this should get me nervous. There are some who believe the sheep always lead to slaughter. Again, obnoxious. I’m more of the belief the sheep will lead to where the food is hidden. Follow the sheep and BAAAAH like a sheep, and then head out when the wolves come.

Are the wolves coming?

I think if markets drop hard next week we’ll be entreated to a lot of heart attacks amongst the pledged elite in the bull camp. Many will lose faith and start to become afraid of October and what it has meant to markets in the past. I do believe next week is a pivotal moment for stocks in the interim, a make or break time for stocks that could lead to a very healthy bounce and continuation of the rally, or a complete panic, led by a mania and throngs of traders spilling out of their high valuation positions in search of safe haven.

You’d be wise to adhere to your stops.

At this stage of my blogging career, the last man standing in finance blogs who doesn’t cavort the globe atop a bicycle, if you’re not selling positions after they’ve gone down 10%, I’ve failed you. Either that or you’re an idiot. And please, do not take offense when I call you an idiot. You really don’t have a choice in the matter. We’re all born into what we are. Some of us are brilliant artisans and scientists, and others are plain old idiots who resort to criminal acts of depravity for leisure. Life isn’t fair sometimes and we don’t choose to be here. We’re all sort of tossed out into the world and told we could be President if we wanted to. Truth is, none of that is true. But if we’re wise enough to know our limitations and to learn by shadowing others who are both smart and decent, we might just make life interesting enough and profitable enough to be worthy of a legacy.

Enough shit-talking. Futures will mean nothing tonight. Head on over to Exodus and be sure to watch the opening hour of trade with us. We’ll figure it out.

I’m drinking some bullet proof coffee now, not for its ‘medicinal values’, but because I’m attempting to kill myself via clogged arteries. I’m playing the long game and it should be fun and delicious.

Here lies Le Fly — DEATH BY HAMMED BURGER.

So the market corrected last week and now you don’t know what to do. Let’s put some perspective on this dip. The drop from the top is roughly 5%. Some of the higher multiple stocks have fallen more, many dropping 10-20%. But this is standard for any correction.

My Bubble Basket, filled with the highest valuation growth names, is down 6% the past two weeks.

And stocks with growth rates greater than 15% have retreated by 4.8% the past month.

The Exodus Quant shed 1% last month, while the broader indices gained ~0.7%.

Over in Exodus, I doubled down in ZEN towards the end of the session and have 25% cash in my trading account. We are also, in fact, oversold. Here is the data for this signal. Note how the efficiency of this signal increases with number of days held. By the end of next week, we should, in earnest, be back in the good graces of speculators and markets swimming again in gains.

Today I bought SOXL and I’m down a fast $12. I was forced to sell BL and EB — because they breached my 10% loss threshold. I also sold BLRX for a 40% profit — because the catalyst no longer exists. I sold BAND, fortunately, for a 5.2% gain. And, lastly, I sold WK — for breakeven, just because I no longer desired to hold a second tier name.

All of this culminated to raising 30% cash, in an account that is built like an automated fucking machine — designed for pleasure and, dare I say, ejaculatory wins. Because of this indelible fact, I am often reminded of the occasions when I pressed down hard on the gas into similar tapes and was shredded and cracked asunder, cock chopped off and head used to be punched by midgets in clown uniforms. For the love of all that is mighty and just, I am Le Fly and my mission here is to outstrip and to crush and to definitively out-man those in my realm, an exalted manner passed on thru the generations — a bloodline that is both violent and wise — filled with rampant alcoholism, murderers, and genius.

I stand before you a man of extreme confidence — placed into this situation to tell you that we are, in fact, oversold, according to the intelligence from Exodus — on a historical basis — dating back to 2009. What this means for you, the unwashed laymen, is that this is a ***RARE EVENT**, one that was last enjoyed on 4/2/18 and produced an immediate shock to the upside in markets. Whether or not history repeats itself is entirely immaterial. I step into the arena, filled with bravery and verve, because it is the only way I know how to behave. My losses are reminders of my discipline and my gains my eloquence. You’re reading this now — most likely because you’re unsure. Markets are testing your mettle and you lack the gumption, or, dare I say, the eternal fortitude to cast a light upon the darkness, leaving you in an oblique state of disarray. Do not fear, Le Fly is here, immortal in both body and spirit, presiding over you in a most charitable way.

I stepped in this morning and bought SPY and SOXL. On the SOXL, that was done in my active account, where I take outsized risk, so naturally I’m down a fast $7 from my basis. Truth is, I’m rather complacent about this move lower. I’m not buying the 3.22% 10yr as cause for legitimate concern. I’ll have you know, markets, on occasion, tend to sled thru rough patches every now and then. Without pain, there can be no joy, and vice versa.

So what is a man to do who is already long and enduring losses?

You still must abide by your stop losses, even if that means you miss the upturn. I’m very sorry to tell you this, but the future is not guaranteed and although I believe this time is no different from the past, I can be wrong. I’ve been wrong before and my biggest losses are rooted in stubbornness.

Stop losses are set at 10%. The mood should be optimistic, yet measured. Let’s not make a big deal about a Friday afternoon sell off — heading into a banking holiday. It won’t be long before we’re celebrating our gains amidst candied treats and carved pumpkins, eagerly planning for Thanksgiving.

More or less, the SAAS sector is down in the order of 10% the past month, a phantom correction in an otherwise sanguine tape. The technical damage, however, is at 52 week highs.

What does that shit mean?

Exodus measures stress points in stocks and sectors. Right now, SAASFAGS are stressed AF, literally dying now. So, we can conclude two things from this signal.

1. This time is different and down we go.
2. This time isn’t different. Buy the dips.

Top picks: HUBS, ZEN, BL, TEAM, TWLO

I’ve had enough of this bullshit. Unemployment is at the lowest since 1969. America is great again and Brett Kavanaugh is a force of nature that cannot be stymied.

Stocks will head higher, rest assured. A wise man is one who doesn’t shrink from a challenge and instead barrels into danger with a hand filled with pinless grenades, naked and angry. I happen to be such a person and will be exercising my god given rights to purchase stock at the open.

Since this is a holiday affair, the Exodus OS signal being flagged and all, I will do with via an index.

More on this later. Should markets sell off, consider yourselves exceedingly fortunate to be offered an opportunity as grande as this.