TRUMP’S GREAT BIG BEAUTIFUL STOCK MARKET IS BEING DISMANTLED

The Dow is off more than 550 points now, bringing losses to a grand total of 1,700 points since the market top on 1/29/18. I know this isn’t the biggest scare you’ve ever seen, but this is a major shift in the character of the market, blowing out on a standard deviation basis, at the same time keeping normies plugged into the matrix hoping for respite, which is assuredly right around the corner.

One thing to consider is we have a new Fed Chair now, Jerome Powell — a fucking lawyer. In other words, he knows literally nothing about the economy and is merely spitting balling this shit for the benefit of Trump.

Market breadth stands at 27% and Amazon is +6. This has to be the least jittery two day 1,200 sell off of all time. Don’t worry kids, I am sure the Fed is gonna help you out soon enough.

I am telling you right now, this market will not bounce until Bitcoin stops going lower. We’re just stuck in one of those retarded trends that is important to investor psyche now. This too shall pass. But you have to understand, many people got sucked into Bitcoins between $16,000-$20,000, myself included. The euphoria was infectious and it spilled into equities and made people fortunes in crypto proxies. Now all of that has ended and the losses in the crypto space are severe.

According to coinmarketcap.com, the entire crypto space is now worth $320 billion, a loss of nearly $500 billion from the top. That’s like the faggots from FB simply vanishing and going right to zero. How would you live with FB at zero?

Pro-tip: you wouldn’t.

Also, the ramifications of the losses in the cryptos could be more systemic than you know. According to a survey done in early January, 18% of people bought Bitcoins with credit cards. How many of those HODLers will actually pay their bills, now that they’ve been wiped the fuck out?

Just guessing here, but I imagine losses to the banks could be in the billions.

Alas, all we have to do is hold on to dear life and all will be good and just again, no?

Everyone is a genius again. I am so pleased to learn that so many people saw the market plunge coming and are now short equities. You know, often times I feel a certain sense of dread, thanks to this whacky world I live in; but after learning about so many of you marker oracles, playing the market like a fiddle, I once again have hope in a bright future for my children.

The past week has been a doozy for stocks and cryptos. Let’s do a cursory review of the biggest losers with market caps above $1 billion.

Cryptos:

ICON -66%, NANO -55%, BITCOIN GOLD -52%, TRON -52%, NEM -51%, QTUM -51%, NEO -48%, CARDANO -48%, VECHAIN -47%, RIPPLE -47%

Stocks:

OSTK -32%, CORT -30%, PRTA -27%, OMI -26%, AKS -24%, GPOR -23%, WFT -23%, EGOV -23%, GES -22%

As fucked up as it sounds, retail has been hit the hardest the past week — off nearly 8% as a group. You’d think the sector got hit enough last year and that tech would recoil from their highs during this sell off. Large cap tech is a mixed bag — with gains posted in AMZN and FB, and 7% losses in GOOGL, BABA, and NVDA.

The best performers, as a group, have been movies and wine/beer. How cliche.

MUH bond yields are NOT higher today, yet stocks are. The 10 yr is down 1bps to 2.84% and the 2 yr is down 3bps to 2.12%, creating a nice big fat spread of 72bps for banks to get rich off from.

Over in crypto world, BTC is struggling to keep its head above $7,000 — as the entire markets drowns in its own hubris.

Volatility is of course spiking — but there are signs of hope. We’re seeing strength in the metals: gold, aluminum, silver, and iron. Also, oil doesn’t look all that bad, at least not dreadful — especially when compared to the banks.

The banks are getting hit hard, naturally because their profit margins are spiking with the yield curve spread widening.

Market breadth is ~+30%, which means there are signs of life. I did purchase more XIV on Friday, so I’ll be hard pressed to do it again. I will, however, make a gigantic purchase of SPY, if and when Exodus closes oversold. We haven’t enjoyed a systemwide oversold signal since March of 2017 in this bastard of a market. In spite of losing money now, I am pleased with the vigor and the verve this market is showing now — coming back to life — playing both sides of the spectrum.

After all, what good is making money if there’s never any risk of losing it?

Overnight, futures bounced hard and even went positive for a short while. But now things are dreary again — all hope has been lost — time for panic mode.

Dow futures are down an astounding 362, Nasdaq -69.

Eurostoxx 50 is rather contained, off by 1.5%.

Gold is +0.17%, WTI -1% and Bitcoin is -11% to $7,600.

Total crypto market cap has been reduced to just $362 billion. Morons will point to US bonds yields as the reason for the sell off. They’re wrong, especially since the yield curve has steepened during this sell off, up from 50 to 70bps. Meanwhile, people have lost more than $400 billion in about a month, long cryptos. That’s like Berkshire Hathaway going to zero and fucking disappearing from the planet. If you don’t think losing $400 billion in a few weeks of speculation isn’t deleterious to investor sentiment and liquidity, you’re fucking nuts.

Expect extreme downside at the open and do not expect a bounce right away. We’ve been waiting for a sell off like this for quite some time. Perhaps we’re finally getting it?

Good evening lads, you’re all gonna lose an incredible amount of money tomorrow, yours truly included. While you guzzle down some swill, watching the fools ball game, know this: Dow futures are -300 and sinking fast — NASDAQ -55.

Both gold and oil are little changed, which leads me to believe this might be a dip worth buying tomorrow morning; but it’s very early, so anything can happen.

Over in crypto-fag land, BTC is at 8,340 and ETH at 842, off by ~10% or more.

It’s all coming to a head soon. Everything you’ve known to be status quo over the past year has ended. We have a market that is embracing the downside, which, ultimately, is a good thing.

Being a devout atheist, I can say without a question of a doubt that God prefers Tom Brady and the Patriots over all other sports teams. I know this because I grew up a NY Mets fan, always the victim of NY Yankee championship parades.

During the 80s, there was a brief and magical era of Mets dominance — a cocaine fueled team, befitted by hookers and mobsters, which helped propel the Mets to the King’s throne of NYC sports. Later on in the 90s, the Yankees started to win rings again, which all culminated to an unbelievable showdown between the Yankees and the Mets in the 2000 Word Series, where Mike Piazza was cucked by Roger Clemens and the entire Mets squad, obviously cocaineless, was humiliated and defeated — never to be heard from again. Years later the Mets would collapse, up by 7 games with just 17 games to go, ceding to the very evil Phillies — which marked the end to my fandom and I never visited the Mets stadium again.

I like to say that I stopped caring about sports when I became an adult. Truth is, I find the games interesting and fun, especially when someone gets injured or in a fight, but I don’t have time to spend idly watching morons toss balls around the yard.

However, I do make an exception on Super Bowl evening. I used to spend it at a friends house and we used to watch the games and scream at the teevee. Now I spend it at home with my sons and we scream at the teevee — amidst tables festooned with fatty snacks and foods.

Face it faggots, God loves Tom Brady and will deliver him a 6th ring tonight, further emboldening Donald John Trump to making America great again, building walls, starting wars, and tossing Mexicans out of this great nation. While you might disagree with everything written above, they are facts, sort of like science, but better.

I’m not buying any SHITCOINS today because I want to wait until the volume is greater on Monday; but this is certainly a level worth exploring. My primary reason for wanting to buy here is due to the fact that all of the HODLers have been wiped the fuck out. Many of these people have been stuffed into bongs and smoked out of their shitcoins — back into dollars. It is a reasonable proposition to take their shitcoins away from them now and summarily kick them down a flight of hard stairs.

For now, I’m sticking with my favorites: ETH, STORJ, INS, and ELF.

Truth be told, I don’t have any true rationale for buying into the asset class, other than price action coupled with an ignorant faith. But I’ve allocated assets for lesser reasons and at the end of the day — this is merely speculation.

One last thing before I venture off into my Saturday, who’s buying a REIT down here? You can’t possibly believe rates are going to rise, appreciably, from present levels. That being said, they are the worst performers of 2017. This is a sector that has been impugned before and always seems to come back and reward investors for having faith.

Sorry I was out the remainder of the day. I had a luncheon appointment and was eating a most wonderful salmon dish accompanied by a Reisling, celebrating the present day festivities which saw stocks cry for mercy. As fate would have it, the Dow dropped by a heart wrenching 666 points, led lower by everything, and the Nasdaq -144. I got caught in the shower by a raping gorilla, long volatility and gold, and suffered a sailors fate.

The carnage also resulted in a complete breakout of the mental patients at the Bellevue asylum — who are now rummaging throughout the iBankCoin comments section accusing me of performing cunnilingus on my favorite politician, Hillary Rodham Clinton. I kind of like the insane rhetoric, so I think I’ll let them roam around for a bit longer. They make me feel wholly sane and normal.

In case you’re wondering, I didn’t raise any additional cash today; instead, I added to XIV. Over in my quant account, it’s always outfitted with 20% cash, which is to be used only for Exodus oversold signals. We aren’t there yet. As a matter of fact, we haven’t had once since March of 2017. But we’re getting close.

Our 6 month algorithms are flashing oversold — setting up for what could be a systemwide signal early next week.

There was nothing extraordinary about my response to this sell off. In fact, I did the exact opposite of what a nimble trader should’ve done. I took the hardened emotional trade of believing this sell off would be just like the others and faded volatility, while remaining long a slew of stocks getting burnt. This will either pay off in spades or cost me a limb next week.

Ideally, I should’ve shorted something or grabbed a hedge, in light of the sentiment shift. But I was care free, more interested in fine dining, cavorting with rich people, eating salmon. I drank Reisling. There will come a day when all of this grandeur you see before you spoils and a patina of negligence covers every inch of iBankCoin. These halls will become haunted and Fly the Ghost edition will harrow strangers with the sounds of heavy and foreboding chains — warning others to not follow in his footsteps — to avoid investing into an economy that is wrought with dangers, over-leveraged balance sheets, and leaders who are both perverted and corrupt; but I believe that grim future is way off into the horizon. For now, we sing and dance, gayly, traverse, mind you, drunkedly throughout Wall Street — getting into bar fights with others because they’re weak and our dominance must be displayed whenever the alcohol makes us feel strong.

The Dow fell 666 points and the memo has been released — a warning shot to President Trump’s beloved stock’d market has been received.

When my estate is divvied up and my net worth tallied, I imagine my great, great grandchildren will come to blows over who will inherit my XIV holdings. By that time, they’ll be worth billions of dollars — an appreciation enjoyed through decades of constant and persistent beatdowns of the VIX index.

The market will be north of 500,000 and people will travel to work in fucking teleportation machines.

I originally bought XIV a week ago around $120, bore witness to it as it shot to $130, and now watch it again whilst eating potato chips at $119.

Now’s a good time to buy, as far as I am concerned. With the Dow off 400 and people running in the streets of DC with their hair on fire because of the Nunes memo, I think today’s subterfuge is sufficient to extract value out of the tape.

If I’m wrong, I’ll simply redeploy my Martingale Stratagem on Monday and keep buying until it is immensely profitable.

I really don’t have an interest digging through this, in spite it being very short. Here is the Nunes memo and some commentary by Fox.

Excerpt from @DevinNunes Memo: "Steele admitted to Ohr his feelings against then Candidate Trump, in September of 2016, when Steele told Ohr, that he Steele 'was desperate that Donald Trump not get elected and was passionate about him not being president.'" #MemoDay pic.twitter.com/7xMdBpLCDm

— Fox News (@FoxNews) February 2, 2018

In summary.

Nunes Memo by zerohedge on Scribd

And here is Trump’s response.