Not a Good Look For Stocks

I was hoping for a clean break lower after the initial incline, in order to buy more. Instead, we have a milquetoast flat consolidation day after a fucking meltdown. This is not exactly what I wanted to see. I’m afraid that if we do not flush out today, we can and will flush out tomorrow.

Two scenarios work for me.

1. Nasdaq regains balance and gaps up 75 points from here.
2. Nasdaq flushes out and loses 75 points from here.

A flat close makes me want to raise more cash.

It should be worth noting, it’s entirely possible nothing too spectacular is on the horizon, just more hemming and hawing as summer winds down. I would not anticipate anything too large on the upside or downside during August.

That being said, positions should still be watched closely and 10% stop obeyed.

Shares of GE are getting flexed on like a motherfucker — after some Greek bastard issued a report — which has credence since he was one of the faggots who warned about Bernie.

General Electric shares fall after Madoff whistleblower Harry Markopolos targets the conglomerate in a new report, calling it “a bigger fraud than Enron.”

The 175-page report claims GE was hiding the depths of its financial problems and would need to significantly raise its insurance reserves. It also points out alleged accounting issues with its oil and gas unit.

“My team has spent the past 7 months analyzing GE’s accounting and we believe the $38 Billion in fraud we’ve come across is merely the tip of the iceberg,” Markopolos says in the report.

Markopolos says he has given the report to securities regulators and that certain information he has uncovered was given to law enforcement only, and is not in the public report.

Everyone knew about GE and their underfunded pensions and how fucked their energy division is, yet no one cared until some fucked face named Harry stepped into the fray. Whatever.

Shares are barreling lower, but junk bonds are unaffected. During this market, GE is our Lehman, the proverbial canary in the coal mine. Lots of debt. Lots of liabilities. Very little chance of surviving.

If you’re thinking we will soon be entreated to a 2008, once every 100 years decline — you’re wrong. While the bubble is frothy and filled with air, there are none of the signs of meltdown now like there was in 2008. Cramer is making some obvious points here.

CNBC’s Jim Cramer says Wall Street should not assume a recession is on the horizon.

This time around, he argues, it’s not concern over consumer confidence, credit or derivatives that’s causing markets to fall.

Cramer cites former Fed Janet Yellen who said the yield curve inversion as a recession indicator appears different this time.

Remember what 2008 was all about. Absolute homeless people buying $800,000 homes with HELOCs attached, getting BTFO when Greenspan hiked rates. Had Greenie kept rates low, that homeless dude’s house would’ve been worth $1.5m today. Instead, Joe Blow from the sanitation department bought it.

Housing is the biggest risk to the system. Everything else can be handled and dealt with.

Markets jumped off at the open and are now melting the fuck down. This is typical and customary after large decline.

My best guess is for flush out if we go negative, followed by a bounce. Let’s see how it plays.

Markets slides, Trump tosses Powell undertone bus. What a time to be alive.

“The Fed has got to do something! The Fed is the Central Bank of the United States, not the Central Bank of the World.” Mark Grant @Varneyco Correct! The Federal Reserve acted far too quickly, and now is very, very late. Too bad, so much to gain on the upside!

— Donald J. Trump (@realDonaldTrump) August 14, 2019

“So far, you’ve had Tariffs imposed on 300 Billion Dollars worth of Chinese products, but you can’t tell me that it has hurt our economy…& it really hasn’t led to any kind of serious rise in prices at the consumer level.” @Varneyco @FoxBusiness And we are taking in $Billions!

— Donald J. Trump (@realDonaldTrump) August 14, 2019

Tremendous amounts of money pouring into the United States. People want safety!

— Donald J. Trump (@realDonaldTrump) August 14, 2019

The Great Charles Payne @cvpayne correctly stated that Fed Chair Jay Powell made TWO enormous mistakes. 1. When he said “mid cycle adjustment.” 2. We’re data dependent. “He did not do the right thing.” I agree (to put it mildly!). @Varneyco

— Donald J. Trump (@realDonaldTrump) August 14, 2019

..Spread is way too much as other countries say THANK YOU to clueless Jay Powell and the Federal Reserve. Germany, and many others, are playing the game! CRAZY INVERTED YIELD CURVE! We should easily be reaping big Rewards & Gains, but the Fed is holding us back. We will Win!

— Donald J. Trump (@realDonaldTrump) August 14, 2019

Smells like fear.

Women should not participate in this sort of fucked up tape. I repeat, this is not a market for the fair sex. Leave this to the disheveled and 5 o’clock shadow man, who has nothing to lose but his pride, dignity and all of his money.

There’s nothing to analyze here. Either you buy now betting for a morning dip, or you sell short, hoping the collapse is here and will rip off the face of President Trump.

Which do you think will occur? I can tell you how I’m playing this, but you’d need to be an Exodus member. So sorry.

I will tell you that I kicked out my FAZ position into this melee if that helps at all.

Ciao.

It’s over bull-tards. It’s over.

Do not place orders, but instead CANCEL THEM. I entreat you to remind yourselves that “The Fly” is a superior trader and person in every way possible.

It’s over.

Apologies for the tardiness. I was up past 5am packing my house for the big move and hadn’t realized how much shit I had accumulated — truly disgusting and appalling. I am never going to buy anything again. I wish I could say the same for my wife, who simply cannot help herself and must hoard all of the items from all of the stores. When does it end? Does it ever?

Markets are careening lower and you’re all on the edge of your seats, eagerly awaiting my assessment. It’s very grim.

The 10yr is at 1.58%, down 9bps.

Oil is crashing, down 4%.

Gold is spiking, just like I said it would.

Stocks are down more than 500.

Time to seek safer harbors.

“The U.S. equity market is on borrowed time after the yield curve inverts,” wrote Bank of America technical strategist Stephen Suttmeier.

Yesterday I bought CRWD for an overnight hundred dollar roll trade. I do not even know how it opened up — since I was deep into REM sleep. I fucked up and ended selling it for a 5% loss. It was an overnight trade, so rules are rules — you sell no matter the outcome. It does not become an investment — just because it’s down. I lost, so I move on.

I still have a triple inverse hedge on the books, so that’s cushioning my decline — plus all of that fucking gold too. Damn I’m good.

This is who I am and you’re nothing.

Early this morning after seeing the market blast the fuck off, I stepped in and bought some China-coms, knowing sloppy jalopy traders in the US would ebb into them and chase them higher. The thousand strong man militia inside Exodus enjoyed these alerts, unlike the lot of you miscreants.

I bought JD and BZUN, amongst others. I just sold JD and BZUN for a 4.74% and 3.7% profit, respectively.

Others try to duplicate my success, but fall woefully short.

In summary of today’s trades:

JD +4.74%. (day trade)
BZUN +3.7% (day trade)
MDLA +7.43% (overnighter)

Fly wins again.

For the past year, morons have been talking about yield curve inversion for fucked up time frames — but not to do with 2s and 10s aka the only yield spread that counts. Well here we are — INVERSION DAY — and faggots are out strong buying stocks with their cocks.

Bear in mind, INVERSION has predicted the last 7 recessions without flaw.

By my math, by next year this time you will be dying off the vine, thirsting for more QE dick. Today is a grande day for stocks — but it will not last!

Big balled rally today. My gold stocks are getting lit the fuck up. Normally under such conditions, I’d consider getting rid of them. After all, this is a trading account, not a buy and hold. HOWEVER, I do believe lesser men sell gold here. I do believe that if you sell your gold here, on such a stupid fucking day, you deserve to die.

Also, I have just 1 inverse ETF on the books, everything else is long or in cash.

Regarding the cash, I allocated back into stocks about an hour ago — trades only given inside Exodus now — because electronics are apparently off the table when it comes to trade wars. Apparently, video game consoles are a matter of national security.

I bought an American name and several Chinese.

Do we hold these gains and build from here? Who fucking knows? But the timing of this bullshit news seems suspect AF, right when the 2s and 10s were going to invert — BAM! — out comes the USTR chicanery. My sense is you don’t bet against Trump’s stock market for an extended period of time. But he deserves a market calamity more than any President in the history of America.

That being said, shit looks good now.

Yesterday’s overnight trade was MDLA — booked it for +7.4%.