There Are Patterns to this Rally

A common misconception amongst the proles is that stocks go up randomly, or anointed by “powers that be” — information that cannot be gleaned from the uneducated swaths of public. This is not true and I have proven it over and over again.

I haven’t been in money management since 2017 and even when I was — I barely talked to anyone in my industry. I’d much prefer to talk to independent traders who dedicate their lives to trade and trade well than fucked for faces whose sole motivation is to make fees off their clients. This way, the way I prefer, I surround myself with people who want to excel at the very thing I want to excel at, instead of discussing schemes to raise more assets of fee structures by cocaine addled greed mongers.

Look at the winning themes and industries YTD.

While at first glance those winners might appear random — they are not. What do these groups have in common? If you were setting up a screen in Stocklabs based off that criteria — what would you look for? Let’s discuss what you wouldn’t look for.

You would not look for FCF winners or stocks with good EBITDA. You would not look for conservative revenues and earnings growth — or areas in commodities.

You’d look for heavily shorted, down big over the past 12 mos, high growth, high debt, small float, small cap, high volume, money losers, strong technicals.

After you’ve done all that, you’d then look for stocks in similar groups and if you see XYZ in LIDAR lift, you might want to look at other companies that do LIDAR. Trading well takes decades of refinement and I am sure for new traders it is daunting. But it’s fucking easy in markets like this and it’s easy to find winners when most stocks are lifting. The hard part is knowing when to stop. Sometimes, after a big run, the hubris and latent narcissism kicks in and you believe the market had topped because it had gone up big. You’ll take it a step further and sell short and after it goes up some more  — you’ll sell short again. Before you know it, you’re deeply embedded in a bear trade, not because you’re bearish — but only because you believed stocks had gone up too much and your feeeeeelings got in the way of stopping out.

DON’T BE FOOLED.

I sold all of my margined positions at the open, many of which soared higher. I have a feeling of uneasiness about a market like this, extreme exuberance supported by retail. This almost always leads to some great big collapse. It doesn’t mean once we fall we are done. It only means, once we fall and the momo halts, those caught leaning will hate life for a day or two.

I’m still leveraged, although I also have a hedge now. I can see how the open was sold by most and now we are in the middle ground of greed and fear. I had been up 2.7% at 9:31 and as if write this now at 10:06, I’m merely up 0.93%.

Some new additions include JMIA, HOOD. I had to stop myself from buying more, remembering that I already had a fully long book. You can’t buy everything and you’re never gonna trade perfectly. With gains of +20% in early Feb, I really should shut the fuck up and be content. But I want more. I feeeeeeel as if I need just 1 more trade, just one more before I’m careful again. The market might collapse headlong into concrete cinder blocks. But if I could just have one more day of ebullience to grab more gains and more money, that’d be great too.

After all, I’m a good person, great even at times.

At the apex of my glory today, I was +4.6%, in frantic trading. I felt, if being honest here, that I could not be stopped and that it was my right to make more. I wanted more; therefore I had more. I leveraged up and gambled heavily and it paid off — probably because I am a good person. In the after hours my position is LOTTERY DOT COM $LTRY is exploring new highs and my GAME is also partaking in a little extravaganza.

META and ALGN smashed estimates and it’s fair to see, in spite of all the bad news, the bull market is back.

This might be hard for many of you to grasp — but get a look at this.

I am +19% YTD and although you’d like to believe it wasn’t true — I trade live inside Stocklabs with a proper pnl for all to revel in my glory.

I have hedges and I am keen on the idea of waking up at 4am to trade again, as we did regularly back in the COVID era. At the end of the day, we all get what we deserve and I most assuredly deserve more.

In spite of the late morning COLLAPSE and subsequent pull back in many of the SHIT names which were running earlier, I do not believe we are done with the extravagance.

There is a risk on aspect to this tape that you can’t just turn off. We aren’t just getting oversold stocks bounce, but thematic runs in specific areas of the market that speaks to energy and spirit amongst traders. People are actively hunting for names and through that hunt are ganging up and boosting share prices of the biggest pieces of shit known to mankind.

It’s very easy to be a bear, especially since the world is ending. Aside from that, stocks want higher.

I pulled back from session highs of +2.6%, now up +0.82% without hedges. I will now progress into said market in search for sport.

NOTE: The Feb quant is now up in Stocklabs.

Doing a little reconnoitering, it’s clear to me risk is very on. At the top of my agenda is to find volume delta breakouts near session highs. I had EBET and MVIS at the top of my lists yesterday — but opted not to get involved. I had FAZE, EXAI, and SLLG and made good money. The common denominator is, for whatever reason, they’re all in the same general industry.

Inside Stocklabs, I have things organized as such I am able to pull up entire sub lists of industries and monitor it like a proper Gentleman-Trader without having to worry.

These are the areas of interest to me now

Esports
AI
EV
LIDAR
Drones
VR
Autonomous tech

Names include VERI, GAME, VS, DPRO etc

The list goes on and on. The point is, I happen to know what I am doing and this happens to be a hot market now being led by thesis trade — my core competency.

+254bps early going.

I am not here to teach any of you anything. I am only here for self-aggrandizement — writing these things down for historical purposes. Once there lived a man called Le Fly and he traded to and fro — floated through the room amidst pomp and circumstance — bowling on his competition both real and imaginary.

My month to date stats.

Sometimes I might even give you the wrong advice on purpose in order to keep my trade secrets safe. It’s important that only I win and that my percentage gains outstrip all others.  While at times necessary to show the public that I too can falter and complain on the blog about how finished I am and how I lost my trading touch, it’s important to sit back and behold the pageantry of it all — a long historical track record of excellence for all of you to gaze at and even duplicate — providing you’re a member of Stocklabs.

It is true, a great many of you, hundreds even, have been CHASED OUT of Stocklabs, mostly due to feeeeeeeelings of inadequacy or temporary delusions of grandeur, there are some of you former members out there I’d like very much to see again. For those whom are out there, and you know whom you are, find solace in knowing we have all transmorphed inside The Pelican Room — kicked out the racists and the BIG RUSSIA lobby in favor of a more genteel trading community of cigar smoking zealots.

What to expect going forward?

Higher stocks and even more degeneracy in areas of the market like LIDAR, AI, EV, autonomous tech etc. It’s like explaining the workings of the universe to an ape, really.

I stand before you a most victorious man. I haven’t traded for many hours, mostly because I don’t need to anymore. I am +3.2%, after executing innumerable trades which worked to my advantage. I have taken from the market what I felt like taking, knowing that I could, if I wanted to, take much more.

One mustn’t be too greedy, lest the stock Gods might frown upon you and strike you down with a margin call or two.

I only have one margin position now, which is SLGG. I do believe it can run, which is why I am long. But I also do believe that it has the potential to tank. Either way, my position size is small at 5%.

Month to date and year to date, I am +14.3% — and I have achieved these returns in the most genteel and fashionable way possible.

My first and second inclination is to sell short, mostly because I am a permanent bear. The good news is — I am aware of this malady and take measures to fight against my inner bear. It’s fun to pretend, after all — so here I am a bull now sashaying throughout the markets — rooting for NATO and the FOMC and all of the wonderful power structures that make up our lizard government.

At times, I catch myself reverting back into the bear cave, selling short into an upward tape. But I soon correct myself.

I did a pastiche of trades today — but ended up where I am now which is +110bps with 115% long. My intention is to pare down to 100% long, unless of course there is something rally cool to trade which happens almost all the time.

My AI thesis is popping today, with SSTK and AI leading the fray. The only “AI” stocks I am long now are UPST and LMND.

BOTTOM LINE: Since I am such a good person, the Gods have bestowed monetary gifts upon me — showering me with the knowledge necessary to make wise decisions. It’ll take some time to get used to this NEW BULL MARKET; but rest assured I am wholly adept at conforming with upward surging tapes and will make the best of it.

I barely looked at the market today — no need since I am able to quite literally make money at will now. I carelessly allocated 100% long into 20 stocks and took the balance of the day off — not because I needed to but because I felt like doing it.

I know — so many of you toiled in front of a hot screen with your eyes burning out from your skull — ANGRY at Le Fly aka “El Midge” in some circles — because I make it look easy. There was a comment in the previous post, the only comment as a matter of fact since these halls are now a whistling corridor, alluding to yours truly partaking in what he described as a “SWITCHAROO” — in reference to me selling BBAI at 4:00am +35%. The accusation, or the implication, suggests that I was being somewhat untoward with my sale. But the fact of the matter is, the stock closed +70% today, reducing said accusations to a pile of shit stacked high atop a mountain of trash.

See pal, this is hard for you to accept and I understand why. I am simply better than you, not just in stocks and bonds — playing the game of capitalism — but in most respects. I am most likely a better MASTER CHEF, Barista, Mixologist, Historian, Writer, etc. The list is almost endless. I do not need anyone to acknowledge this — but I am merely stating it as a matter of fact.

Into the close, I leveraged to 150%, with a 15% hedge via SQQQ. My book is overall bullish and I believe, as it is my right to do so, I deserve more.

At around 4am I was fortunate to be able to trade from my Webull account and blow out of BBAI and ATER for +35% and 20%, respectively. I liquidated the balance of my 140% leveraged long account after 10, just as the market began to turn lower for +64bps. I had been up more — but we cannot quibble about suchness.

For the year and month, I’m +11.4%. I was +9.4% last month, which basically means I’m on fire and cannot be stopped.

It’s not a coincidence that this breakout coincided with my weekly quant strategem, which I shall reimpose again after 12:30pm today. Even though the market is sketch and I feeeeeel it goes lower, I’ll just have to deal with a 100% long book and hedge around it.