IBankCoin’s May Boot Camp and a Delightfully Abysmal Open for Trade

Stocks aren’t really down all that much. I am merely trying to send them lower via unwishful thinking.

iBankCoin is hosting its 3rd boot camp, starting the week of my birthday, on May the 23rd. The Option Addict will be hosting the event, who has been absolutely on fire this year inside of 12631 and Ahwoa. If you’re interested in his methods for finding great swing trades, I strongly advise you to give it a try. It’ll last for 5 nights, via webinar, and will be very interactive. Think of it as a hugely robust college course that can change your net worth.

Both crude and gold are higher this morning, so I guess wanton inflation is just beyond the bend. Also, the CEO of PRGO defected to VRX. What a lunatic.

Lots of interesting stuff happening today. Stay tuned.

I can’t remember the last time 83 of 100 Senators got together to agree on anything, let alone draft a letter to Obama. Israel wants more funding for its military. They’ll probably need it now that Obama’s friends in Iran have U.S. drone technology (courtesy of Obama) and ton of new money coming in thanks to the lifting of the sanctions.

Eight-three of the 100 senators signed the letter, led by Republican Lindsey Graham and Democrat Chris Coons. Senator Ted Cruz, a 2016 presidential candidate, was one of the 51 Republicans on board. The Senate’s Democratic White House hopeful, Bernie Sanders, was not among the 32 Democrats.
“In light of Israel’s dramatically rising defense challenges, we stand ready to support a substantially enhanced new long-term agreement to help provide Israel the resources it requires to defend itself and preserve its qualitative military edge,” said the letter, which was seen by Reuters.

Obama will be forced to act, with this bipartisan act. But you know damned well he doesn’t want to.

Monarchies are the worst form of government, even worse than dictatorships. These self entitled brats ruling Saudi Arabia, with their harems and private jets and solid gold cars, make any sane person disgusted by them.

Emter the 30 year old Crown Primce Mohammed, who is not only in charge of the countries multi trillion oil business, but also national defense.

Huh?

At any rate, he has a plan that will enable Saudi Arabia to survive without oil by 2020.

“I think by 2020, if oil stops we can survive,” Prince Mohammed said. “We need it, we need it, but I think in 2020 we can live without oil.”
As part of his Vision 2030 reform plan, Prince Mohammed said the state-controlled Public Investment Fund had been restructured to become a hub for Saudi investment abroad, partly by raising money through sales of shares in national oil giant Saudi Aramco.
“We restructured the fund. We included new assets in the fund, Aramco and other assets, and we fixed the problems of the current assets that the public investment fund owns, both in terms of companies and other projects,” he said.
“Initial data say the fund will have control over more than 10 percent of global investment capacity.”

Within 5 years, he’s going to implement a green card system that would permit for longer term stays in Saudi Arabia for those looking for work.

This is a move born out of stupidity and desperation. Rafael Cruz and John Kasich have agreed to team up in order to deny Donald Trump the republican nomination.

Have you ever seen such a thing?

Trump went apeshit on Twitter.

Trump is expected to win big in 5 primaries tomorrow, so this move is viewed as a Hail Mary of sorts.

How wonderful. I hope Jim ‘Bow’d Tie’ Rogers is enjoying the deflationary vortex he moved himself and his family into. The decadent state of Singapore just reported a record 17th consecutive month of consumer price drops, indicative of an economy under significant deflation pressures.

The record price slump is the latest sign of a sputtering economy. Gross domestic product growth was flat on an annualized basis in the first quarter compared with the previous three months, the trade ministry said earlier this month, just as the Monetary Authority of Singapore unexpectedly eased its policy stance, adopting an approach last used during the 2008 global financial crisis.

“The slump in oil prices is certainly one of the key factors for the negative inflation,” DBS Group Holdings Ltd. said in a research note before the data release. “But the slowdown in growth momentum and the impact of earlier macro-prudential measures on housing and car purchases are also having a significant impact on the headline number.”

Everything I read says “THIS IS THE WORST DISASTER SINCE 2008”, yet markets are straddling new highs. The argument for that is “well, this news is priced in. The markets are merely forecasting future growth, future inflation, future economic boom.”

Or, another theory would suggest you’re all dodo birds, ostriches with heads firmly placed in the sand, waiting around for an anvil to drop on your heads.

Look at these two guys. It’s like a piece of sandpaper talking to a face with just eyebrows. Geez.

Richard Tetherington, CIO for JP Morgan’s EM asset management horseshit, wants you to broaden your EM exposure up here, sans Philippines. Those fucking Filipinos are meddlers, I tell ya. Condescendingly, he reminds you how ‘dangerous’ it is to be bearish on EM, pointing towards the gorilla raping run Brazil just went on.

Later on in the video, he started ranting and raving about how impressed he was with Saudi Arabia’s economic diversification efforts, at which point I turned off the video–thinking he was just pulling a prank.

Farage is the UK’s version of Trump, minus the $10 billion in net worth. He doesn’t give a shit what you think. He has his beliefs and they are very pro-Britain.

“I think Obama has been the most anti-British President there’s ever been. His Grandfather grew up in the empire, in Kenya, and I suspect he has a bit of a grudge against us for that.”

–Nigel Farage

There is a ton of footage out there, echoing the same stuff. Obama is meddling and should not interfere in British affairs, etc.

Oligarchy.

Give doom a chance.

Some people believe I’ve gone mad, having transformed from 200 trades per month to a handful. My prognosis for the stock’d market for the year of 2016 is one of inexorable doom. Dare I say, markets will plunge and take a decade to recover. But before that happens, we can all revel in the absurdity that you believe to be ‘bullish’ for stocks, such as 1.5% growth, mountainous amounts of sovereign debt and financial engineering like we haven’t seen since 1929.

The NIKKEI and China are both lower by 0.60-1%.

S&P futures are down, plunging, by 0.03%.

And crude oil is lower by 1.3%.

I’ll be providing some news stories throughout the night, as I deem fit. I intend to post 100 bloggeries this week, most of which will make you laugh so hard it’ll make you depressed.

In most weekly updates you will bear witness to Le Fly bragging about his almighty Exodus, laying waste to the minions of low-leveled, low-brow’d, cocaine addled stock traders. On this occasion, you get to behold Le Fly, as he’s formally addressed in France, devour some humble’d pie.

The XLE trade that I’ve partaken in has been an unmitigated disaster. I wouldn’t declare it to be of the first magnitude, or even the second, but definitely of the third magnitude.

For the record, I was only supposed to partake in systemwide oversold signals this year. The last one being a month ago.

I am going to use this occasion to show you how the system adjusts and learns new levels from which it can potentially provide profit off from.

Notice how the tech OS score for XLE has been adjusting during this gorilla run to the upside?

The technical scores are produced by ranking acceleration/dist, price performance, relative strength, volatility and volume. In addition to that, the scores are greatly influenced by real time movements in the price of crude. The oversold/overbought status of XLE is based upon a moving average that is adjusted over time, which is why we have 3,6,12mo and historical all-time algorithms. As the price of XLE moved higher, unabated, the technical score OB threshold was raised and raised and raised some more. Eventually, the score will reach a point in which it will represent a true level to pivot off from. In the future, this score will represent an albatross for the ETF and it can be readily shorted upon seeing it.

In the meantime, crude continued to short squeeze higher. My risk is mitigated by the holding period designated to each trade of just 10 days. Here is my schedule, as posted inside of Exodus.

For the week, crude was higher by 8%. Crude stocks were higher by 8.6%. However, judging by using 35 years of seasonality data for the energy sector, I strongly believe the rally in crude is very long in the tooth.

Due to Abenomics and Japan’s QE program that includes the explicit purchase of ETFs, the Bank of Japan now owns nearly 2% of all Japanese stocks and is #2 in net holdings next to Japanese pension funds.

This is manipulation of a wanton varietal.

To critics already wary of the central bank’s outsized impact on the Japanese bond market, the BOJ’s growing influence in stocks risks distorting valuations and undermining efforts to improve corporate governance. Proponents, meanwhile, say the purchases provide a much-needed boost to investor confidence. With the Nikkei 225 down 7.7 percent this year and inflation well below official targets, a majority of analysts surveyed by Bloomberg predict the BOJ will boost its ETF buying — a move that could come as soon as Thursday.

“For those who want shares to go up at any cost, it’s absolutely fantastic that the BOJ is buying so much,” said Shingo Ide, chief equity strategist at NLI Research Institute in Tokyo. “But this is clearly distorting the sanity of the stock market.”

How does this end? Does the BOJ, eventually, own 10,15 or 20% of all Japanese stocks? Every time you take note of the NIKKEI gapping higher, just know, it’s a facade.