PEAK DEGENERACY

If you’re not paying attention to the subtle under-currents of the market, we are in the midst of extreme risk taking in sub-culture stocks. These aren’t even real companies — but shells of companies domiciled inside communist countries without audits. People are chasing them, playing the game, for profit.

Rule #1 when playing them.

Sell fast.

Rule #2.

Never believe these stocks to be anything more than a quick trade.

Sometimes the trade goes sideways and you get fucked. This is life. Get over it. I am taking a diversified approach to peak degeneracy and intend to roll into tomorrow with a full fist of rage, filled with these names. I can do this because I am partly hedged by TZA and TVIX. Should the wheels fall off this bitch, I have a fluffy pillow to fall back on.

If you’re playing some of these names and want the action, GET IN Exodus for the real time commentary and hive-mind group think.

I’ll be adding 2 or 3 more names by the close.

NOTE: I bought GPRE.

I’m interested in 100% returns again.

I bought SFUN — because Chinese burritos are fun and easy to trade.

As we fixate on high returns in disheveled sectors, there is REAL DISTRIBUTION taking place in the market. You’ve been lulled to sleep.

SAAS stocks are down another 1%.

I took the following actions.

Sold VERI for a 9.4% loss.

Bought CCCL — high beta Chinese alpha trade.

Bought TVIX, in the event this all unravels.

I have good reason to believe the market is setting up to dump out. WAKE UP.

Sold NCTY for +111% and JRJC for +26% — overnight holds.

Anyone notice the trade war with China? They said if we raised tariffs on China, people wouldn’t shop at Target anymore. They told me that items in Target would be too expensive for the slothful American — greedily eating hammed burgers and speedily maneuvering their shopping carts up and down the aisle, filling it to the brim with cheaply made goods from Beijing.

It appears the China trade war is nothing more than another fiction, just like tax cuts and shutting down the government and US credit downgrades and all of the other shit that was supposed to ruin and soil the party.

Target: Solid 4Q18 results; impressive 2019 outlook — Telsey Advisory Group (72.67)

TAG: “Target reported solid 4Q18 results and provided better-than-anticipated 2019 guidance—highlighting continued success of its omni-channel transformation. The company’s 4Q18 EPS of $1.53 beat our inline estimate of $1.52, with same-store sales of 5.3% vs. our inline forecast of 5.0%. Traffic was impressive at up 4.5% and digital sales grew 31% (comp contribution of 240 bps), reflecting market share gains. The operating margin also was well managed, coming in essentially flat YoY at 4.9%, despite the gross margin decline of 46 bps to 25.7%, related to higher digital fulfillment and supply chain costs. Importantly, Target’s 2019 EPS guidance of $5.75-$6.05 is well ahead of our estimate of $5.72 and the FactSet consensus of $5.61. The company anticipates EBIT dollar growth in the MSD area, reflecting the company beginning to benefit from multiple years of investment to transform the business. Target shares are trading up in the pre-market, reflecting the good 4Q18 results and better-than-expected 2019 outlook. Overall, we believe Target’s strategic transformation initiatives—price investment in everyday items, differentiating merchandising with new private brands, remodeling stores, and investing in digital and delivery, including Shipt—are resonating with consumers. As always, our estimates and price target are under review pending further details at this morning’s analyst meeting at 9:00 am ET.”

Another retailer, Kohl’s crushed earnings too.

Kohl’s: First look at Q4 print — Telsey Advisory Group (66.47)

TAG: “Kohl’s 4Q18 EPS beat expectations as performance across key metrics moved in the right direction. The company generated a full quarter comparable sales increase of 1.0%, one of the strongest outcomes within the department store universe and resulted in a 2-YR stacked comp of 7.3%. Further, the 4Q18 comp was the company’s sixth consecutive quarter of growth. The operating margin was in-line with our forecast and inventory at quarter-end was down 1.9% YoY. The guidance for 2019 appears strong, with EPS forecast at $5.80-$6.15 (up 3.6%-9.8%) vs. consensus of $5.75 and our estimate of $5.80. We await further details on the company’s 9AM ET conference call, but believe Kohl’s fundamentals have been evolving in conjunction with consumers’ shopping behavior and preferences. Importantly, the company has been experiencing strength across the business in both digital and B&M channels, and in national brands and private label. Reiterate Outperform rating.”

Futures are flat, however, with oil edging up. A sundry of China stocks are popping off, including my NCTY.

Have a terrific Tuesday, fucked faces.

If I told you that we made a lot of money and had a lot of fun in the Pelican Room today — you might think we made a little bit of money and had a little bit of fun. Take an Exodus trial or if you can’t — join for a month and tell me with a straight face — you didn’t bank coin.

Truth is, I’ve always been able to pick good stocks and nail breakouts. But something has changed inside Exodus and the room is brimming with ideas, many of which stem from my process. It’s as if I’ve created a machine of greedy traders — fixed along the same wave lengths as myself — save for Salty Diddy.

Father Fly is proud of them and looks forward to cashing in his chips tomorrow. Nothing can stop me now — not even a load ze dip program.

Here’s my trading account positions into ze bell.

No-one can stop me. Try to do it and lose your limbs.

Top picks barreling into tomorrow: JRJC, NCTY, JP, and VERI.

The SAAS plays and all of the main stream sectors aren’t working today. What is working, for lack of a more eloquent term, is the shit. These are the type of stocks you’d be embarrassed to be caught owning — the stuff you can’t tell your wife or readily admit to partaking in when talking to mature, responsible adults.

But this is iBankCoin and we do not judge those by the method of their greatness — but instead by the size of their balls.

Here are the small caps that I like, heading into tomorrow.

JRJC, JMU, JP, LUNA, BLNK, and maybe even a little LEJU or MARK. Lots of shit popping off.

Let’s first analyze what’s going on today.

Shit is rising to the top, always a precursor of ruinous market topping action. Last week we had a major push in bond yields highs, implying the Fed is back on the table. Gold collapsed too. This is the reason why I went to cash and bought TZA.

Presently, SAAS stocks are -4.5% for the session.

See that on the far right? Yeah, even with today’s dip, SAAS stocks are +27% YTD.

Also, the Bubble Basket, which is my custom index of highly valued stocks, is lower by more than 3% today.

Year to date, that index is +23%.

So what should you do?

Well, I am 55% cash, with 5% in TZA, so that’s where I stand. You should be hedging or going to cash too; knowing the market deserves to pull in a little, but also feeling confident the dip will be short lived.

NOTE: I bought VERI — because I can. My trading account is on fire now and not incurring losses with the overall market.

Today’s is a fake out day, in my opinion. Risk is off for your typical alpha strategy, as shone here by my Bubble Basket being down 1.7%.

But the shit is still floating to the top, as indicated by the sundry of China-coms popping off.

So how do we resolve this? After all, the Nasdaq is still +23.

Taking a look at the VIX, it’s clear to me, at least as of now, it wants lower. It wants to dive back into the FAGBOX between $11 and $13.

Conclusion: If you’re short into this weakness, cover and be grateful. Oil is still pressing higher. Gold is being destroyed. Markets want MOAR.