THE END IS NEAR: SHIT IS FLOATING

I’ve seen this play out a million times and it almost always ends the same. When the worst stocks lift without the large ones — the end of the rally is imminent.

Today we saw virtually all micro cap Chinese Burrito stock lift the fuck off. In the after hours they are continuing the run. I stepped in and bought the blood of one — in the hopes of some sort of reversal tomorrow — one last hurrah, one last pick.

Ticker is NA.

After the bell AMD posted in line results and HOOD is CLEAVING 23% of their workforce, citing a fucked economy.

I closed +170bps, with 25% hedged via inverse ETFs — because WW3 will not pop off without me selling this bitch short. I don’t give a fuck about missing out.

It’s ending soon. China is gonna bomb our Taiwan after drunken Nancy leaves. Everything you loved about the planet is about to burn.

Depending on where you got it, shares of HKD are up anywhere from 10,000 to 25,000%. Imagine being short?

There isn’t any news to support such a run. It’s a Chinese company and I am certain a fucking scam. But this sort of run is infectious and causing other low float stocks based out of China run too.

Here are some Chinese burrito runners courtesy of Stocklabs.

I have seen squeezes like this before — but none as ferocious as this one and since I am a finance bloggooooor — I figured I’d document the son of a bitch here and now. Fast forward 1 yr, the gains would have dissipated and the wealth destroyed. However, shorts cannot afford to hold and their NEGATIVE EQUITY situation is ruinous and I am sorry for you if you got caught short this stock. Let this be a lesson to you to avoid shorting low flow scams.

If you want to sell short, buy puts or an inverse ETF and fuck off.

After landing in Taiwan, Speaker Pelosi made the following statements.

China releases a series of statements. This just about sums it up.

CHINA FOREIGN MINISTRY: CHINA WILL DEFINITELY TAKE ALL NECESSARY MEASURES TO RESOLUTELY SAFEGUARD SOVEREIGNTY, TERRITORIAL INTEGRITY IN RESPONSE TO PELOSI’S VISIT.

The US has been an ally of Taiwan for decades and that friendship went swimmingly before we built up China to be a global power. There was a time not too long ago when China was mostly a rural country without a Navy. After decades of money and IP transfer from west to east we now complain about how powerful China is and worry about their intentions.

We created the Frankenstein.

Bottom line: this is yet another BEARISH turn of events for globalism. We are now in a bifurcated world of west vs East. Stocks are rallying on Pelosi landing safely without incident. I suspect this euphoria will wear off and we might see some selling before end of day.

Humiliation ritual is underway, as the speaker of the house is en route to visit Taiwan, escorted by Taiwanese fighter jets — all because China didn’t fall in line with US dictates against Russia and in support of Ukraine.

This is not a coincidence and what the US is trying to do here is poke a thumb into the eye of China — call their bluff on Taiwan.

It’s a stupid game but if it works — PAX AMERICANA would be strengthened by this gambit. If it fails and China actually conducts a military operation in Taiwan while the speaker is there — this will go down as one of the worst diplomatic mistakes in American history.

Presently we have 4 warships in the area, including the carrier strike group USS Reagan. China has two carrier strike groups in the area and their military has been steaming towards the coast with Taiwan.

It’s a lot of postering and there has been a lot of talk. It seems China must do something otherwise look weak.

I closed out all of my positions for +100bps and kept VRAX for sport. And I just added back on a short, via SQQQ. The market is incredibly calm in spite of this and there is a lot of risk on occurring in the small caps. I prefer not to delve into the smalls whilst WW3 looms; but will head back into the fray after Pelosi is safe and sound — tucked into bed for the night.

I hate to be the bearer of bad news (that’s a lie) but it seems the market is communicating something truly ominous, but only in the beginning stages. We are once again seeing a SHARP decline in copper, oil, Asian markets and most importantly the US 10yr yield, now at 2.54%.

This isn’t just pricing in a slowing economy, but one completely devoid of inflation. Dare I say, the only way we get an economy that bad is if something very sharp and very bad happens to the Chinese economy.

Perhaps this is just Junior at the Trading turret doing stupid shit again at his summer internship.

OR, maybe just maybe China is about to tilt over and fall directly into the fucking blades — launch 10,000 missiles at Taiwan and turn the Pacific Ocean into a flaming pit of death and destruction.

Wishful thinking aside, the markets are far too sanguine now with the 10yr sinking like this and copper in broken elevator action.

Maybe it all changes by the morning after Pelosi shows President Xi who the fuck is boss — girl power. Xi probably thinks his male toxicity is a match for Nancy. Little does he know she hails from the most woke and gayest parts of the world and nothing but Queen power is behind her sails.

Markets barely moved down and will likely rise tomorrow after China does nothing and simply accepts the fact that Speaker Pelosi isn’t worth starting a war over. While I’d love nothing more than to see Pelosi’s plane intercepted in Minecraft and shot down, I don’t think that’s a likely scenario and god forbid anything like that happened. Speaker Pelosi is a patriot and a great trader. We support her here at iBC.

Moving on. I am positioned, nevertheless, for a potential missile strike on Taiwan via YANG. Other than that, I have a small short on oils via DRIP and the rest long with 55% cash.

I never averaged down in VRAX, in spite of wanting to triple down. The fucking stock sank so fast and so retarded without news, I was simply cowed into watching it drop by 75%. Today’s 105% bump does nothing for me, as I moved up merely 27bps for the session.

The BIG mover in recent weeks has been scam stock HKD, up from $12 to $850, also sans news.

It’s a low float China stock and rules do not apply here. At some point it will crash to zero. But for now, it is ANNIHILATING the shorts and crushing them into dust. This is why you do not sell short runners.

I don’t think so — and that’s a compliment. Who in the fuck wants war — aside from the United Steaks and UK? It seems Nancy is en route to Taiwan tomorrow and will visit parliament and also stay a night at the Hilton in Taipei. China has threatened military action should olde drunken cunt Nancy head out there on her own and make a mockery of them. I suspect they’re bluffing and because of that — I AM NOT FOOLED by the postering. HOWEVER, just in case they KILL NANCY I am long YANG — which is short Chinese stocks — because being part of the YANG GANG while on the cusp of a potential World War is the way to go.

To be clear: I do not view KILLING NANCY as a likely scenario, but one that is remote and one that would certainly RACK Chinese stocks for good until they went to zero here in America.

The notion that Nancy needs to fly out to Taiwan in order to be relevant is sad, and it’s because she’s old and she’s gonna die soon anyway. Nevertheless, do not be fooled into thinking the Chinese are stupid enough to throw it all away for a geriatric.

NOTE: Yes I still own VRAX — not selling.

It was rumored last night and then confirmed by Taiwanese media and this morning the WSJ is reporting that Speaker Pelosi “will not be intimidated” by the freedom loving Taiwanese and the only question is — WILL SHE SLEEP IN TAIPEI?

Naturally the Chinese will do nothing, as the Chinese always do. Should they attack Taiwan or perhaps shoot down Pelosi’s plane all because she is visiting there in an attempt to humiliate China?

Of course not!

They should just shut up and continue to be happy with our money and stealing our IP.

I suspect NOTHING will happen from all of this rhetoric and I’m not being fooled unto believing a drunken geriatric will be the cause of WW3. I know, it’s an unpopular position and you’re probably thinking that I’m thinking “WAR IS LOOMING” but I’m not. I’m actually thinking peace is just around the bend.

How about them oils knifing lower off China concerns?

New month, new themes. Try to adjust to all of the chicanery.

Here is a full rundown of the new thing.

European Commission President Ursula von der Leyen calls for an end to tensions on the Serbia-Kosovo border

ZAKHAROVA ON SERBIA:

Such developments are another proof of the failure of the mediation mission of the EU. This is also an example of the kind of place prepared for Belgrade in the European Union, offering Belgrade de facto to suffer the lack of rights of its compatriots.

RUSSIA:

“The US and the EU, which stand behind Kosovo, deliberately escalate in order to launch a use of force scenario.”

NATO-AFFILIATED KFOR UNITS AND ITALIAN CARABINIERI UNITS CAME TO THE KOSOVO-SERBIA BORDER AFTER THE DEVELOPMENTS.

We call on Pristina and the US and EU behind it to stop provocations and respect the rights of Serbs in Kosovo – Russian Foreign Ministry spokeswoman Maria Zakharova

NATO HAS A FULL DEFENSE MANDATE IN KOSOVO *

NATO HAS CLOSE TO 4,000 PERSONNEL IN KOSOVO

Serbian ruling party MP: “Serbia will have no choice but to begin the de-Nazification of the Balkans.”

Serbian President on the situation in Kosovo: ‘All I can say is that we will ask for peace and ask for peace, but I will tell you right away: there will be no surrender and Serbia will win. If they try to start persecuting Serbs, bullying Serbs, killing Serbs, Serbia will win’

SERBIAN PRESIDENT VUCIC IN EMERGENCY ADDRESS SAYS KOSOVO ARMY MAY ATTEMPT ATTACK ON NORTHERN SERBIA TONIGHT ###

China sent HQ-22 surface-to-air system to Serbia a few weeks ago

God save #Kosovo!

Kosovo stay strong! Ukraine with you! pic.twitter.com/POmMX80t1B

— ?????? ???? (@_iBodik_) July 31, 2022

Futures open soon.

The Quant fund inside Stocklabs rebounded by 10.5% in July, thanks to its heavy overweighting of the oils. This has been the case, long the oils, since the beginning of 2022. Much to my surprise, the quant is moving away from commodities for August and its allocation will be in the following industries.

Not a single God damned oil stock.

Here are the annual returns for the quant since I’ve employed this new method.

I buy 20 stocks at the 1st of each month, rotating out the previous month — based on technical and fundamental filters in our screener. If I was basing this purely on technicals, I might’ve been buying piece of shit companies all along. But because I have some fairly strict standard — I am surrounded by only the best of stocks.

I did not create the quant for subscribers or some smart business plan. My goal with it and the evolutions it will take will invest my money and the resources of my children once I finally drop dead. I ask myself “do I want my money being invested in piece of shit stocks when I am long gone?” The answer is always no. I also think about the destiny trust and how big it could grow over the next two hundred years and figure I ought to work on it now when I am young — because when I’m gone my kids won’t know the first or last thing about stocks.

What I’m saying is, for better or for worse, this is my life’s work — not my trading or my fucking VRAX gambits into brick walls. I intend to increase the levels of sophistication of the quant in the future by deploying better market timing mechanisms and risk analysis.