When $NVDA Rolls Over — Then the Market Will Collapse

Because of the recent rally in SHITCOINS, we’re seeing immense interest in NVDA — because millennials are firing up the olde crypto puzzle decoding machines in Moms basement, in an effort to mine fractions of a fraction of a bitcoin. These machines run very hot, and also draw an immense amount of energy — and could cause blackouts for entire neighborhoods. All of this is reason enough to arrest these people and commit them to asylums. But it gets worse.

They also leverage their brokerage accounts and buy shares of NVDA — based on the idea that GPUs will be flying off the shelves, now that their lambo making machines are back up and running again. This is retarded thinking.

Mysteriously, shares of NVDA just won’t buckle or bend these days, perhaps reminiscing of the days when the company actually had year over year revenue growth. Nowadays, the company bleeds out revenues and then offers promises of resiliency — thanks to the pipe dream of AI and how they’re so wonderfully intertwined with having humans crash their cars into tractor trailers whilst drinking a martini with two hands.

In short, when NVDA cracks lower, and believe me it will, then you will see a deluge of selling — ironically due to AI driven Quant selling, at which point the semi index will crash asunder and we can crack on with the summertime correction that seems to harangue us each and every year.

Old man value stocks did well and high beta retard stocks REKT. There’s nothing more high in beta than the recent string of high valuation IPOs.

Let’s have a look at the most current crop of retarded high valuation shit POs.

DAILY CHANGE:
PECK -39%
KERN -14%
RVLV -12%
DTIL -11.4%
ZM -11%
BYND -9%
PD -8%

The list goes on and on and on.

What have I been telling you to do?

Get long VALUE stocks and to pair down growth. What happened today?

See KMB.

What have I also been telling you?

BUY GOLD.

Why?

Let’s take a look at a post inside my private tutoring service, The Capstone Programme:

Ignore me at your own peril.

What fools you all are — fiat currency HODLers. I equate your stupidity to those holding Bitcoin at 20,000 or perhaps Confederate money after General Sherman took a torch to the entirety of the south.

Good people of iBankCoin,

I speak to you a free man from the shackles and the chains of fiat. Our leader, PETER SCHIFF, is out there, really out there, extolling the virtues of solid gold bricks. You can take said bricks and smash them into the soft skulls of grocery store clerks in exchange for their provisions. Nothing has been a better STORE OF VALUE, if you will, than gold. You can hearken back 10,000 years and you’ll find the gold coins ruled dominion over the economics that presided over earth.

It was only after the evil Federal Reserve took us off from the gold standard that stocks and everything else went higher, leading to unmatched prosperity and innovation in the history of the human species. To which end, human boys and girls now think they’re all gay or anime figurines, text messaging each other dressed as stuffed animals — speaking in Japanese. You can thank the Federal Reserve for that too.

If it were up to me, we’d go back to the gold standard, solid coins and bricks, and get rid of the cesspools that is the city — wipe away all of the urban areas and make everyone farm again. We will go back to the earth and produce food from it and pay for our seeds with small pieces of gold that our sons have mined from the nearby creek. This is the way humans should live, not tweeting each other from gay brothels and bathhouses, while securing series C funding from a bunch of vampire satanists who vote for Bernie Sanders every time as a joke.

You can thank the Federal Reserve for that too.

Curious as to what gold miners I am long? TOO BAD fucked face — that’s for Exodus members only.

Raising cash, booking profits — doing what needs to be done ahead of a hot hot summer.

It’s all fun and games until the President of the United States tweets something outrageous and it sends markets in a tailspin. I’m not bearish, just cautious after a nice healthy run. I booked a loss and two profits today and raised some cash. I also bought another miner today, which I consider to be equal to money.

Rates are lower, the dollar is getting hit — gold is surging. What more do you need — an engraved invitation?

Look, I cannot do it all for you. At some point, you’ll need to start making your own decisions. Buy some fucking gold miners, raise some cash, maybe even throw on a hedge here. It’s not the worst idea in the world. We live in a terrible terrible era of chicanery. Do not think for a second that this detente can last forever. Eventually it all swims down the sewer pipe and into the alligator pits and everyone gets swallowed whole.

If you’re not positioning into this melt-up — you’re playing yourself.

This breakout has been attempted for the past 7 years. If we jimmy higher back to record highs, gold miners will double from present value — in my opinion. You can dick around with tech, oil, or biotech — but nothing is more interesting than seeing the gold bugs released into the main population — creating mayhem and panic.

Is the weakening dollar causing gold to trade higher, or something more important? Is the inflation data, coupled with the specter of interest rate cuts and a stronger economy the lynchpin to all this shit? I’d argue until blue in the face the FX markets do not swing the price of gold; but at this point — what difference does it make?

It’s all part of the same puzzle — the game parlayed between friends and enemies that drives the prices of things we like and hate up and down. Gold has been flat for 7 years and now you think the dollar is affecting it?

Are you retarded?

The important part in all of this is gold is trading higher, the most undervalued and hated asset class in all the world. If you like gold, you’re denigrated in the public square as an insect — less than a human, and ridiculed for being a foolish investor.

Only wise investors buy dollar denominated stocks.

At any rate, I have a few gold positions on my books, equalling 10% of my holdings. I will like very much holding them and watching them during the morning session.

GOOD DAY.

The glamorous life at House Fly continues, dripping wonderfully into the summer sun like a moth into a hot flame.

After a full day of scrubbing and mopping, Le Fly exited his residence this morning in order to give license to a car filled of clowns to loiter inside of it with extreme circumspection. Upwards of 95% of these people are actually incapable or serious about buying homes — but rather find it amusing to tour homes and displace the occupants for the purposes of self-aggrandizement.

The issues with my large Mercedes truck continues, with malice.

The following have been diagnosed.

Timing chain
Busted gasket on centrifuge
Valve misfiring — spark plugs
Leaking coolant, oil
thumbnail CRACK on fucking windshield (NEW!)
brakes and rotors (NEW!)
Tires

Grande total to fix all of this shit is around $10k. No fucking problem.

My other car, after examination, has a FUCKING cracked windshield too. No idea how these things happen, but they do.

For the balance of this beautifully wonderful day, I shall remain caged inside of the manor, patiently awaiting another car filled with clowns to spill into my house and discuss its maladies. I’ve been informed that we mustn’t cavort outside today, in spite of the perfect weather, because we would, in fact, come back into the residence ‘smelling like horses.’ It’s important, I am told, to remain neutral smelling at all times — because the people inside of the clown cars prefer it that way.

To entertain myself, I might sit in front of the television and droll on for the next few hours, in true American spirit. I cannot, I am told, cook anything either, as it leaves a distinct non-neutral odor in the house, which clowns dislike. Ergo, I must nibble on grains and granola, maybe some nuts, in between my designated tasks.

As you bake your skin in the sun atop of flaming hot sand, Le Fly will be Ajaxing the floors and washing the walls — eating jelly sandwiches and drinking neutral flavored beverages in a neutral colored house, in a neutral fucking hell.

Good day.

You’re gonna get painted by going long oil during the summer months. This isn’t the time to go long, believe me.

Here’s the seasonality data from Exodus for the oil majors. Notice how no one gives a fuck about oil this time of year?

Here’s the news that is likely to get those oil lovers to add to their positions on Monday. It’s a trap, god damn it.

U.S. special representative to Iran, Brian Hook, told CNBC on Saturday that the U.S. is going to increase sanctions on Iran.

“We are going to increase our sanctions on Iran and continue our foreign policy,” Hook told CNBC’s Hadley Gamble in Abu Dhabi on Saturday.

Hook said that a lot of pressure is needed in order to address Iran’s “regional aggression” and the a new foreign policy devised by the U.S. aims to bring Iran back to the negotiating table.

“When the President (Trump) got out of the Iran deal, we put a new foreign policy that does a couple of things. It is going to deny the regime the revenue that it needs to run a violent and expansionist foreign policy. But it is also designed to bring them back to the negotiating table,” Hook said.

How can I be certain? Because I remember the answers. Anyone recall getting lured into oil stocks during the Iraq war? Yeah, it was a whole lotta rhetoric, which resulted in a giant nothing-burger.

Here is the seasonality stats for XOM one month before the 2003 Iraq invasion and three months following.

XOM seasonality, Iraq invasion, coalition of the willing

Feb: -0.4%
March (WAR MONTH): +2.04%
April: -0.48%
May: +2.25%
June: -1.70%

We might incinerate Iran over the weekend.

And now this just in from China.

Five more Chinese companies are banned from purchasing U.S.-made components.

The Commerce Department said these companies’s activities “pose a significant risk of being or becoming involved in activities contrary to the national security and foreign policy interests of the United States.”

Shares of U.S. semiconductors came under pressure after the announcement.

Semis are soft on this news. What to do? Figure it out you fucking brainlets.

I don’t have anything to do, other than watch over my slowly appreciating value stocks. They’re as interesting as a piece of cardboard, or maybe aluminum foil. But it’s SAFU and I need that in my life now, as I attempt to market my home and manage a website filled with degenerates.

I just spilt half a cup of coffee onto my white shirt. That was nice and refreshing.

This will be the final post of the day, as I am inclined to do anything but this. I just tossed a trade on for the weekend and I’ll sacrifice several goats tonight at the Druid Lodge to ensure the trade is a success. Other than that, I foresee a weekend filled with toil and grit and unhappiness at House Fly, grinding and dragging and slogging about sloppily into the summer. I’ve had better times before and I’m sure there will be better times ahead.

Until Monday lads, fuck off.

NOTE: I sold the following stocks to raise some cash.

DLTR +4.8%
ETR +3%
ED +2%
KMB +1.1%
DLR +4.3%

I don’t feel like trading today, so leave me alone. Over the weekend, I’m sure to have several showings for the house and there will be people dragging mud into the house and touching shit, peeping around with curious beady eyes. Had I known selling this home would be so much of a fucking hassle, I would not have done so.

Stocks are screaming higher and I do not have a reason for it, other than the indelible notion that things in motion tend to stay in motion. This is physics 101 you morons.

I’m fully invested! I have a large portfolio of old man stocks — Tootsie Rolls and shit like that. I’m essentially impervious to market drawdowns. Nothing can stop me.

I’ve been playing the IPO market recently and have been pleased by the results. It’s more or less a black box theory, where value can be extracted from something because it’s an esoteric mystery.

“What’s it worth?”

“Not fucking idea, mate. It just came public.”

“Well then how about we buy some to see what happens?”

“Sure, sounds like a formidable plan.”

This will work until it stops working and then the trade will sour and do the opposite of what it once did. Maybe the hot money will move into value next — once people realize that low rates is good for them.

Speaking of rate — they’re heading higher today, by a full 7 bps to 2.07%.

Am I worried?

Nope, since I don’t care, I cannot be worried.

I doubt I’ll trade today, but you never can tell. I have a meeting in about 30mins and then after that — I’ll probably get around to scrubbing the floors with Ajax again, washing the toilets bowls, and getting ready to vacate the residence for a sojourn into the pit of New Jersey.