Today’s Drop is Child’s Play; I Am Prepared for Much Worse

Actually, that headline is total bullshit. I am getting my carrots chopped for me today — cascading lower with real piss and vinegar. The commodity sector has been upended, likely the result of this broken elevator trading action. People view that as deflationary. As such, bonds yields continue to spike at the same time the TIPs drop in value too.

Explain that.

If rates are going up because the almighty Fed says we need to get ahead of inflation, due to a strong economy, then why the fuck aren’t inflation adjusted treasuries gaining traction with smart money?

Answer: there’s no inflation. It’s a fucking fiction.

As such, gold bugs got squashed today and I went along for the ride. My NUGT and smaller gold plays smashed to smither-fucking-reens. I’m getting my nuggets mashed with a mallet.

Also, my oil stocks: wrecked.

But that’s just small talk, isn’t it? We’re all used to easy money, grand wins, lamborghinis, perpetually rising money lines — big business scores thanks to all of the excess. This has made us into creatures, horrible people, and devils.

I speak for everyone when I say “Dear Mother Market, please give us MOAR downside and wash the landscape clean of all the irascible caitiffs who soil these markets. I pine for the days when market crashes were a regular occurrence, providing me with puzzles and intrigue to accompany my daily drama.”

Amen.

Brace yourselves HODLers. After watching this clip, you’re gonna want to kill yourselves.

Nouriel Roubini, aka Dr. Doom, is out pouring salt on the wounds today, declaring Bitcoin to be far worse than the tulip mania. In fact, he declared it was the ‘biggest bubble of all-time’, unmatched by its sheer perversion of the laws of finance taught at NYU. Moreover, and finally, he said “the fundamental value of Bitcoin is zero.”

Watch.

I remember back in 1996 when Greenspan warned of ‘irrational exuberance’, warning the market of overvaluations. Shortly after, markets really took off and everyone laughed at Greenie. I remember it vividly — because I was one of the people making fun of him. Now he’s like 100 years old and still saying the same shit. I have to give it to him, however, he definitely is sharp and has all of his faculties working for him. He aged like shit — but not all of us can look young forever.

Here’s Greenspan talking shit again, warning of US deficits, leverage being the highest since World War 2, saying we’re in a god damned bubble.

Good morning lads. On this joyous day when we genuflect and bow down to the ancient creature called the groundhog, I bring you news of broken elevator trading action in both equities and cryptos. Don’t believe any other news story but this, when trying to figure out where it all went wrong. See, people believed in the HODL, tossed money into the furnace, and now it’s gone. Shattered dreams and stretched out credit card balances have led to a 50-90% decline in the crypto currency sector, maligning the major cryptos and reducing their prices to laughable levels of smugness.

This has spilled over into the general market place. After all, total crypto losses are in the magnitude of $400 billion since the highs — real money. Dow futures are now off by 234, but both gold and oil are flat to marginally higher. Over in Europe, the DAX is off by 1.36%.

Here in America, the fucking memo is coming and it will destroy the FBI as we know it. How glorious. While we’re taking out American institutions, why stop there? Does anyone have a memo that might destroy the Federal Reserve or Board of Education? I cannot think of a time when a secret memo lived up to its hype — but this one, according to all of the people close to it, promises that it will.

I’d love to sit here with you and write all day, highlighting the amount of money you stand to lose today — but I must be going now. I have exposure to the markets and need to take a good look at the internals and make a judgement call as to raising cash or buying more. Into the close of trading yesterday, I did raise some cash, so I have some dry powder to work with now.

God speed.

The recriminations are going to be surreal — a green investor class with zero experience and ability to sustain losses — leveraged to the hilt through credit cards and second mortgages — sold on the idea that Bitcoin and other cryptos would trade higher forever — are now under siege — getting ripped from lion to limb in broken elevator trading action akin to what equity traders bore during the 2008 market crash — only this is happening with decentralized, non-regulated, alacrity.

I do not poke fun at anyone enduring loss, but merely find it interesting when a nonsensical narrative falls apart. Bear in mind, I too got sucked into this trade, but with only a very small amount of iBC assets. My plan was and still is to dollar cost average over the next 12 months. I will be making some cheap purchases for the month of February, perhaps even cheaper ones in March.

With the crypto market cap now at just $420 billion, total losses from crown to root now approach $400 billion, aka real money. This is AIG bailout type money, Citigroup government emergency bailout at midnight type money.

The ramification will be deflationary and we should expect volatility to increase, as HODLers run for dear heavens into the comfort and confines of the US dollar.

How many times do we have to go through this? Volatility is always to be faded, especially when you little fuckers get panicked.

Both AAPL and AMZN smashed earnings and are higher in the after-hours. Nasdaq futures are +44 and no one gives a shit that Bitcoin is about to break $9,000 to the downside. The big VC already got liquid on Joe Schmo who was depositing his paycheck into his local Bitcoin ATM machine the past year, thinking he found the magical fucking shortcut to fame and wealth. Guess what? You didn’t. You’re not the clothes on your back or the money in your account. You’re just an insecure faggot who defied the laws of economics and got ransacked as a result.

That being said, I’ll be buying some more cryptos during the month of February.

Back to the narrative at hand. My XIV position is grand and will be grander tomorrow. I am already +10, a meager move in light of my recent successes. Nevertheless, I purchased this magnificent financial product for my great, great grandchildren and look forward to leaving it for them when I am dead, at a price no less than 100,000 per share.

Markets were slightly higher today. HOWEVER, cryptos and pot stock aficionados were throughly ravaged about the cheek and gum.

Here are two cannabis stocks for you to laugh at.

And a cannabis ETF.

The whole sector is like that, which comes as a severe scolding to the Canadian cucks from the north. I am always amused by their schemes. Canadians are very similar to the Chinese in this regard. Because they’re unable to achieve true greatness, they’re susceptible to committing fraud and forgery, always mountebanking around town in a most dishonorable manner.

It should not come as a surprise to anyone bearing witness to both cryptos and pot stocks being blown the fuck out at once. They share the same user base — stoned out faggots trying to get billions by way of criminality.

On a more distinguished note, I bought ESV and sold out of a bunch of my positions, many of which were Chinese, just to have a clean slate. My top performer and favorite pick at the moment is XIV. I am +10 from my basis and looking for MOAR.

The new portfolio is up now in Exodus. January was fantastic, which was buoyed by a very strong market. But do not misconstrue that strength in mega caps for the overall tape. As a point in fact, my quantitative trades are based upon the premise that market cap spectrum has a huge effect on overall price performance. We saw massive divergence in returns for January, with mega caps returning ~+6% and mid and small caps less than +2%.

I was positioned almost perfectly. My returns would have been slightly higher had I not been in gold and if I had more tech. But the rules of the portfolio dictate that I can’t have more than 2 stocks per sector at a time. Ergo, I was concentrated amongst a handful of mega cap stocks that fit the criteria the system sought.

My sense, February will not be this easy. Nonetheless, I look forward to the challenge and will be posting my monthly returns all year so that you retards can see how a real man invests, systematically.

My right wing friends often complain to me about TWTR, FB, AMZN and GOOGL, sometimes even NFLX, over free speech abuses or content that is objectionable. While many of those claims might be valid, I want to remind you that your job is to make money first, everything else comes after that.

Case in point. FB is hated by nearly everyone I know, yet how do you explain the numbers they’re spitting out on a quarterly basis?

These are exactly the type of revenue and earnings graphs that you want in your portfolio. Free free to take the gains from these stocks to help fund your animalistic desires to destroy them.

I’m not a believer in boycotts or basing my consumption of goods and services based upon some moral code. I like to think of myself as an ethical person with high moral standards. However, I also like to enjoy life and avoid unnecessary tumult. Injecting politics into your investments is a cardinal sin. If you’re letting juvenile bias cloud your judgement, perhaps you should let someone else run your money for you — permitting one of those evil money changers grow your money, helping to finance your political aspirations.

Stupid fucking shitheads.

Lots of fake headlines out there this morning, blaming the drop in futures to comments by the Fed. Let me remind you that the Fed has been jawboning about higher rates for years. The reason why stocks are pointing to a -140 open is because there are more sellers than buyers. I realize there isn’t anything aesthetic about that — but it’s the truth.

We were hotly overbought and now we’re working it off. Relax.

Bond yields are spiking, but nothing too crazy. In Europe, both Swiss and German yields are up way more, yet Spanish and Italian yields are lower. In other words, people are buying shitty higher yielding German bonds and selling the quality. Makes sense.

WTI is higher by 1%.