Reminder: Peak Degeneracy is a Sign of a Top

I used to live in Staten Island for a period of 9 years. It was a vaudeville of circus acts tripping over each other, splashed by drugs and money and really bad grammar. Betwixt in all this was an undercurrent of privilege, ignorance, and hedonism. It was, quite frankly, the very worst place I’ve ever lived.

MOBB BOSS WAS WHACKED there today, in a very quaint a rich part of town — the wealthiest enclave in Staten Island and one of the most elite in NYC.

This is how the fucking neighbors viewed the heinous crime, of being shot 7 times and then run over by a car.

The gunman sped off in a blue pickup truck after the hit, which one source described as “disrespectful” because it took place near his family home in an outer borough.

Cali is the first mob boss to be slain in New York City since a fresh-faced John Gotti ordered the murder of then-Gambino boss Paul Castellano in 1985 at Sparks steakhouse in Midtown.

“Even Gotti had more respect,” one police source told The Post. “He did it out in Manhattan.”

I bought some KTOV this morning, but the trend is failing. What’s also failing are many of these micro caps, a sign that excess is teetering out. When it happens, and believe me it will, I’m afraid your little stock exchange is going to be flummoxed and cast aside — like a cheap toy on Xmas day. Trading these small names are obstreperous, but necessary for my inner peace. The only way this resolves itself is by me injuring myself thru several trades gone astray. I only learn by the fires and the boot. Yesterday’s +24% day trade did not help in extricating me from these stocks.

Top picks: AGEN, SOXS, OKTA

I’ve been long MDB, off and on, for the whole year. I didn’t want to own it into earnings and will regret that for the rest of my life — seeing shares up 20% in the pre-market. Finding MDB was easy. I wanted SAAS and I wanted growth and I wanted stocks will high Sharpe ratios — which is a fancy term for technicals — but longer duration technicals — like on a 1-3 mo scale.

I see SNAP caught an upgrade. I see GE missed earnings. I see gold is sharply lower — bringing forth my fears of a head and shoulders top to the surface.

Lots of things interest me in the pre-market. I’ve always been one to prepare the night before for the next session. What ends up happening, however, is that everything I thought I’d like the next day turned out MEH and I’d simply buy or sell things I viewed in the moment. There’s nothing like looking at a stock and feeling it’s direction — the way the volume ticks and how the offers are ripped out. You can sense when a stock is going to drop by the jarring moves lower and small upticks, like a dam tipping and heaving from the pressure — moments away from being ripped apart.

I suspect biotech stocks will, once again, lead the degeneracy, with maybe some Chinese Burritos, if UXIN is any indicator — another stock up sharply in the pre-market. Another space that has been strong is alternative energy, and of course solar. Who wants to buy oil up here? Anyone?

Semis are a tough buy here, and I’m talking my book — short via SOXS.

I have a lot of cash to allocate into stocks in my trading account. I intend to go as high beta, shooting for alpha, as humanly possible. To accomplish this, much to your chagrin, it entails gunning for small cap stocks.

FUCK OFF.

Here are some names that crossed my favorite Exodus momentum screen. If you want to know this screen, join Exodus you absolute catamites.

Here goes.

ARRY
ACB
GERN
SRNE
CLNE (LONG)
NBRV
TLGT
AGEN (LONG)
VTGN

Here are the details.

U.S. President Donald Trump said he issued an executive order grounding all Boeing 737 Max jets.

Of the more than 350 Boeing 737 Max jets in global fleets, 74 are flown by U.S. airlines, according to the FAA.

Those include United Airlines, American Airlines and Southwest Airlines.

BA is lower by 3%, putting downward pressure on the Dow. Other than this news, a non-event for markets.

I sold out of CNAT for +24% — day trade.

I just sold SEEL for a 10% loss and NDRA, a double sized position, for a 3.5% loss. This is a perfect example of how trading can fuck you and not permit you to appreciate with the overall market. You see me doing crazy shit here every day; but let me accentuate a point that I’ve mentioned here before.

YOU WILL NEVER GET RICH TRADING.

Let it sink in.

I’m sure there are people who do get rich trading and that’s great for them. There are also people who get rich by playing the lottery. That doesn’t make playing the lottery a high probability strategy. You will make the bulk of your money by having a diversified portfolio over an extended period of time.

Case in point: My Quant — now up nearly 4% the past week — vs a paltry 2.2% gain for the SPY.

That being said, I cannot help but to feel the rush of a good trade — which is why I still do it.

I bought CNAT here — for the glory of it all — hoping this too will go parabolic and rinse away the bad taste in my mouth left by NDRA and SEEL.

Post earnings, I like this alternative energy play for a continued run.

With 737 Supermax death traps being grounded worldwide, it’s only a matter of time before the FAA is forced to act here at home. If one of those fuckers nosedives into a ravine somewhere in America, BA and the FAA will be, inexorably, fucked for the next 100 years.

Unease about one of Boeing’s most popular jets mounted on Tuesday after the deadly crashes of two 737 Max 8 aircraft in under five months.

European authorities banned the planes, one of the most important aviation regulators in the world to do so. The decision followed earlier moves by aviation regulators in China, Indonesia, Singapore and Australia, as well as carriers in Africa, South America, and North America, to ground the jets.

With the decision by European authorities, roughly two-thirds of the 737 Max 8 aircraft in the world have been pulled from use since an Ethiopian Airlines plane crashed on Sunday, killing 157 people.

One country holding back: the United States.

Buying puts on BA here isn’t the worst idea.

Markets look to sperg out higher in the AM — +65 on the Dow, +35 on the snazzy nazzy. Only my AGEN lotto ticket looks any good thing morning. Other than that, I have a double sized position in NUGT and too much cash.

Both gold and oil are edge-lording higher and there is an overall sense of victory in this tape — completely and entirely whimsical and wondrous.

On a separate item, the state of NJ is about to legalize pot for recreational use — affixing an excise tax of $42 per oz on that fucking shit. I don’t know how people got brainwashed into believing pot was good for you — but it isn’t true and this is more of a end of days scenario playing out than doing the public a service. Sure, give it to be people who need pain meds. But the idea that smoking pot can lead to a more productive society, outside of musicians and poets, is something of a comical farce.

If SMH breaks $105, I will sell my SOXS.

Love gold and think it goes higher. This is just one of those trades that you’ll see me revisit over and over and over — because of the potential upside. However, fuck that shit, I’ll be damned if I’m to be caught long into a head and shoulders top.

When gold gets to 1,320-1,330 — be careful.

Enough of this fucking crackhead. I don’t care how many hundreds of billions this fool accidentally slipped into. The self-professed bond king has an issue with simple arithmetic.

Let’s go through it.

The SPY is +12% for 2019. Over the past 6 months, it is down 3.5%. Over the psst year, it is up 0.5%. The definition of a bear market is down 20%.

“The stock market was and still is in a bear market,” the founder and chief executive officer of Doubleline Capital said in an investor webcast on Tuesday. He also said stocks could go negative again in 2019.

I don’t give a shit what this person has to say anymore, Hannibal looking motherfucker. SAAS stocks are lighting people’s fucking faces off. Bears are getting their legs sawed off and their arms ripped right from their sockets. There is nothing, whatsoever, aside from the faint memories of late December —  to suggest or imply that we could be, or have been, in a bear market.

We’re on the other side of it now. Before, the spray came back around and into our faces. But now, now we preside over the indices spraying freely, directly into the faces of all those below us — indecorous creatures, poor, ravaged, forked, radishes.

Now I have a story to tell you, but you’re not ready for it yet. The evolution of this site has been one of regression — folks splayed out cross the interwebs making fools of themselves. If not for me, most of you would be completely lost in this wild jungle of a market — angry apes cracking open your skulls in search for bananas.

I felt the misery and the angst this morning, seeing both DRIP and LABD sack me for some coin. I then tethered into NDRA, only to see it barrel lower. I had a choice to make — book the loss and pretend it didn’t happen, or man up and double down on this loser of a stock, just for the hopes of keeping the dream alive. I chose the latter, because I heeded the advice of JFK and chose the hard route — built atop gravel roads doing irreversible damage to my tires. But the road is wondrous and the backdrop is pastoral, brighter greens and blinding white — the smell of winship infects my persona. It haunts me in the dark and when I sleep.

Adding to my positions was easy, since gold broke loose — I doubled up in NUGT. I also selected several lotto tickets for end of day adventure: AGEN, RETA, and SEEL.