A SEA OF RED AWAITS WALL STREET

North Korean H-bomb tests, although awful, is not the reason why stocks are being “Clubber Lang’d” this morning. For the 7th consecutive day, China has walked its currency lower, a huge red flag amidst an idiot train filled with red flags. Also, despite Wall Street’s inclination to upgrade oil stocks, the commodity keeps getting cheaper–further deepening the debt crisis bubble that everyone keeps ignoring–hoping that will just go away.

There are $300 billion reasons for you to pay attention.

NASDAQ futures are getting hammered into clown dust.

This is how I am playing this.

My largest position since before the New Year’s was TLT. It’s a play on safety of principle and my crazy belief that eventually the yield curve will invert. After that, cash is my biggest. As of yesterday, 1/3rd went into SPY. I’ll likely lose 2-3% on that trade today, not exactly a hell storm of loss. Nevertheless, I do not like to lose any money, let alone during the first week of the New Year.

However, since my equity exposure is so limited, it’s in my interest to see stocks lower, buy the blood, acquire your margin call. That’s exactly what I intend on doing soon.

Based upon further oversold readings in Exodus, I will add to my SPY position, in a quasi martingale approach with a time limit of just 10 trading days. Details will be forthcoming inside the service.

I wish you all good luck and happy fortune. But you were warned of this eventuality and you bet against me.

Never, ever, bet against the guy in the time machine.