The Great German Sovereign Bond Rally is Unraveling

On one hand, the negative yield situation in Europe was inherently deflationary. It was causing all sorts of problem with asset prices and pension funds, thanks to QE. On the other, the low rates in Bunds and other sovereigns dragged down the borrowing costs of corporates, which made it easier for companies to access capital to buy back stock.

One thing is indelibly certain, the great bull rally in German bunds is over, at least for the moment.

It’s not like people are selling bunds to buy stocks. And it’s not like markets aren’t near record highs, alongside bonds either. The fact that people are selling bonds and also selling stocks is indicative of fuckery, largess, which is likely a temporary problem and will be worked out soon.

One thing is certain, when comparing Bunds and other European sovereigns to American treasuries, they’re wildly overvalued, so maybe a firm repricing is in order.

A Norwegian writer penned a story about ‘seven photographs that changed warfare’, featuring Pulitzer prize winning photo by Nick Ut, ‘The Napalm Girl’, and was banned from Facebook because of it. When Norway’s largest paper, Aftenposten, reported on it– using the photograph– the fucking drones at Zuckerberg’s palace of tyranny asked them to remove it or pixelate the nudity out.

I get it. The Facebook algos are programmed to restrict nude photos of children. However, there should be some human intelligence involved here too, especially after reaching out to Aftenposten, clearly understanding the context of their story.

Facebook wrote: “Any photographs of people displaying fully nude genitalia or buttocks, or fully nude female breast, will be removed.”

Next, the little trollops at FB deleted the Aftenposten article and then went back to skateboarding inside of their offices.

Espen Egil Hansen,  Editor in Chief and CEO of Aftenposten, penned an open letter to the oddballs at Facebook, pointing out that Facebook’s decision to remove the post was inane and troubling since they’re unable to “distinguish between child pornography and famous war photographs”, as well as an unwillingness to “allow[ing] space for good judgement”.

Hansen carried on, declaring Zuck was ‘abusing (his) power’ and was “upset, disappointed – well, in fact even afraid – of what you are about to do to a mainstay of our democratic society.”

Hansen, obviously livid with unchecked rage and venom, furthered his assault: “even though I am editor-in-chief of Norway’s largest newspaper, I have to realize that you are restricting my room for exercising my editorial responsibility. I think you are abusing your power, and I find it hard to believe that you have thought it through thoroughly.”

The incessant censoring of  content on social media networks, from Facebook to Twitter, that appeals to a PC, juvenile, culture  goes a long way to “simply promote stupidity and fail to bring human beings closer to each other”, words eloquently written by Hansen in his open letter to Zuck.

Some of Hansen’s solutions include using actual intelligence to distinguish the difference between editors and the plebians. This is somewhat funny, in an elitist, holier than thou, sort of way. Hansen was also somewhat perturbed that Facebook’s customer service reps didn’t respond to him in an agreeable time frame.

Even after fully reviewing the situation, Facebook doubled down in a statemet to the Guardian:

“While we recognize that this photo is iconic, it’s difficult to create a distinction between allowing a photograph of a nude child in one instance and not others. “We try to find the right balance between enabling people to express themselves while maintaining a safe and respectful experience for our global community. Our solutions won’t always be perfect, but we will continue to try to improve our policies and the ways in which we apply them.”

Just a week ago, a former editor, from the Facebook News division, revealed fuckery largess had been taking place at the company, pointing to a very liberal ideology being imposed by their Orwellian thought police.

Naturally, this is an emotional response from a man who is under fire by Amazon, also suffering from the pangs of an illiterate nation. On top of that, the mall is dead and no one has any money, after healthcare and groceries, to make discretionary purchases anymore.

Leonard Riggio, founder and Chairman of BKS said traffic at stores are  ‘close to a historic low point.’

Moreover, aside from retail being inexorably ‘terrible’ and miserably wretched, Riggio doubled down on his bearshitting commentary, saying  “better put, is it is one of the worst I have ever experienced in the 50 years I have been in this industry.”

Then the old fucker veered off course and tried to blame Trump for his shitty sales:

“The current trend can be traced precisely to the current election cycle, which is unprecedented in terms of the fear, anger and frustration being experienced by the public.”

Being a collector of old books, I believe BKS is an inartful experience for clowns and pseudo intellectuals who peruse soft cover books like the imbeciles they are. However, there is potential for BKS to be truly great, especially if they used their space to appeal to people like me, who’d gladly make large purchases for items worth buying.

Also, they’re vinyl record section is a fucking joke. In short, BKS is being dreadfully mismanaged.

Shares of Twitter are down more than 5.5% on news that the company is a huge piece of shit that is cutting expenses and had a board meeting today to discuss ZERO BIDS for the company. Recently banned from the platform and outspoken tech reporter at Breitbart, Milo Yannopoulos, took to CNBC to drag Twitter through the mud a little more. His main points were that Twitter has been sledding downward ever since they’ve started a totalitarian campaign to restrict free speech, opting for a more deranged business model instead of one that attempts to ensnare the maximum amount of users with a big fucking net.

Also, he said @Jack Dorsey is mailing it in and really doesn’t give a shit about the company. As far as @Jack is concerned, the company could drop dead and he’d still be combing his stupid fucking beard, playing games at Square.

Best case scenario, Europe gets out of their QE scheme without causing an event in markets that would make them rue the day they started it. Thanks to Draghi’s comments today, in regards to not extending the ECB market rigging programme, bonds are getting smashed across the globe.

Stocks aren’t getting hit too bad, so consider today a grande success.

Crude oil is through the roof, thanks to stupidity largess. Volatility is flat, indicative of a market sitting on its laurels, rich and fat and without a care in the world. Investors aren’t really pricing in the end of QE, just pretending to do so. If the market were to truly price it in, markets would be fucking nose diving, Portuguese, Spanish, Italian and Greek bonds would be blowing out–diverging from the nazis.

Enjoy the pastoral views. The fall is coming.

Jeff Osborne from Cowen is out with a long report today, describing all of the reasons why TSLA is too risky to own here. He’s particularly concerned about the Solar City integration into the model, suggesting it could increase an already onerous cash burn of $3b to upwards of 5 billion monopoly dollars.

Tesla bulls will tell you that Jeff Osborne is a fucking idiot bookworm who doesn’t understand the genius that is Musk. Bears might says Musk is a con artist who preys on the small brains of the Third Estate.

Either way, it makes for good theatre.

“In the 12-month time frame our rating contemplates, we see Tesla as a great company led by a true visionary, but must acknowledge the asymmetric risk/reward profile for the stock at the market’s current valuation,” Osborne wrote.

“Simply, we see a lot more that can go wrong than can go right as the company transitions into Mr. Musk’s greater vision.”

TSLA is off 2% today.

Crude is fucking lambasting to the upside, now higher by 4% on reports that Saudi Arabia slowed production by an astounding 40k barrels per day, down to 10.63m.

Separately, Iran increased production to 3.63m barrels from 3.62 and Iraq’s production increased to 4.638m barrels per day from 4.606 and Kuwait increased production to 2.987m barrels per day from 2.95m. Also, Nigeria’s production increased to 1.456m barrels per day from 1.27m

And, it’s worth noting, that Saudi Arabia’s production in March was only 10.22m barrels per day, more than 400,000 LESS than current production levels.

In other words, the people who are bidding up crude here are criminals of the first magnitude. This is a non-event and the headline of a Saudi production freeze is 100% horseshit.

But, don’t let the inconvenient truths get in the way of a little wanton speculation and depravity.

Oil stocks are through the fucking roof, higher by 4%. But, as you can see below, many of these names are playing catch up to losses endured over the past 3 months.

We’re barely off by 40 points because Draghi wouldn’t commit to extending QE in Europe. The fucking program doesn’t end for another 6 months. Are you people insane for believing a single word out of his filthy Italian mouth? That fucker will mash you up and roll you into a meatball, faster than you can say Godfather 3, if you think he’s gonna let markets and bonds drift away into the oblivion.

QE for life, or until something goes KABOOM!

Bear in mind, markets are in firm control of the central banks and there really isn’t much that can disrupt it, aside from the occasional BLACK SWAN event that seems to rear its head once per annum.

Speaking of which, we haven’t seen an Exodus OS signal in quite some time. The algos are running at a smooth 79% win rate since 2008. I’m very eager to buy the SPY on an oversold signal, but haven’t been afforded that luxury in a while. In case you’re wondering why I’m being so fucking stubborn about trading and getting involved in a bulls market, I told you in the beginning of the year that I’d stick to Exodus trades only. Most of you dismissed my words as subterfuge horseshit. But I’ve proven all of you wrong, yet again.

WTI is up 1.4% and analysts are beginning to get super aggressive with their upgrades. This seems like poppy-cock to me, especially heading into the worse time of year for oil. Frankly speaking, there are better places for your money than a commodity driven market run by a mafia.

TIVO is not up 86%. The merger with RIVO was completed and the new entity is trading under TIVO.

Thus far, the action is light, but acrimonious. Biotech and oil are trending higher, while everything else drifts lower after the ECB disappointed by not extending QE. You people are fuckhead, motherfuckers.

Don’t worry lads, she left the engine of her plane running the whole time for a quick escape, obfuscate things a little, if you will.

Here is Hillary discussing her idea to get the leader of ISIS. How fucking novel. You mean, instead of arming them and creating a vacuum for them to thrive in and sell oil to Turkey, we should get the leader of this group and bring him to justice?

Holy shit, why didn’t Obama think of this?

Hillary Clinton: “We should make it a top priority to hunt down the leader of ISIS” https://t.co/6OZtrfIwim https://t.co/t9y7tqr4BC

— CNN Politics (@CNNPolitics) September 8, 2016