New Bubble Basket Launched in Exodus

For those of you who are members of Exodus, a new Bubble Basket was launched tonight. It’s update this index twice per annum, just like the GARP, which will be updated tomorrow. The stated goal of the Bubble Basket is to find 25 stocks that are overvalued to short. Had you done this over the past 6 months, you would’ve lost 3% — as the index rose on a media basis by 3%. However, had you also purchased the GARP, you’d be up more than 16% on a median basis — creating a 13% upside spread.

For risk averse or those looking to partake in passive investing with a hedge, this is an excellent strategy to partake in. Starting 2017, I intend to purchase GARP and sell short the BB — amongst other things. I’ll be incredibly active in 2017, after a year off of slumber and decadence.

NOTE: Prices are going up for both Exodus and After Hours at 12am New Years Eve, so be sure to lock in lower prices now.

Who said the buy and hold strategy was dead?

Talk about overhead supply. There is a lifetime worth of $QQQ-fags stuck in this shit for the past 15 years, ancient relics who decided to simply buy and hold and ignore reality.

That’s one heck of a round trip.

What else is new? I don’t care what some of you perma-bulls say, Marc Faber is wonderfully insane and always entertaining. Don’t you fuckers get it? YOU’RE ALL DOOMED, eventually.

In the meantime, carry about drinking and smoking and fornicating to your black heart’s endless desires.

Faber thinks the rally is mature, long in the tooth and higher rates will fuck it into panic. Let’s all remember the last credit crisis and how its seeds were sowed several years prior though Greenspan’s INSANE 16 consecutive rate increases.

Only in a bizarro world does this sort of shit happen before the New Year, in the middle of Hannukah. But Obama chose this time and place to call out Israel, just prior to being replaced by someone who will just have to unravel the yarn he’s tying in knots now.

In response to John Kerry’s speech, where he lectured Israel about democracy and the path to peace, Israeli President, Bibi Netanyahu, said he was deep disappointed, didn’t need to be lectured about peace and said he was looking forward to working with Trump on undoing all of the damage both Kerry and Obama have caused the state of Israel, with their last minute antics.

Benjamin @netanyahu expresses "deep disappointment" in John Kerry's speech: "Almost as unbalanced as" last week's UN resolution. pic.twitter.com/TJSyx9Nzmn

— ABC News Politics (@ABCPolitics) December 28, 2016

.@netanyahu: "Israelis do not need to be lectured about the importance of peace by foreign leaders." https://t.co/XHlINpWoH1 pic.twitter.com/8TqH2HPFf5

— ABC News Politics (@ABCPolitics) December 28, 2016

.@netanyahu: "Israel looks forward to working with President-elect Trump…to mitigate the damage this resolution has done." pic.twitter.com/iaolE7YorC

— ABC News Politics (@ABCPolitics) December 28, 2016

.@netanyahu: "I have no doubt that our alliance will endure the profound disagreement we have had with the Obama administration." pic.twitter.com/o6Gl6eWrDi

— Fox News (@FoxNews) December 28, 2016

And lastly, Netanyahu said his government has ‘incontestable’ evidence that the United States was behind the recent UN resolution.

Netanyahu: We have "absolutely incontestable evidence" the US was behind the UN resolution https://t.co/JnTnuXgCIt https://t.co/vnmQ1XdoJv

— CNN Politics (@CNNPolitics) December 28, 2016

Markets are trading off a bit here, as Dow 20,000 proves to be wonderfully elusive. Since everyone expected we’d reach 20k by New Year’s, we’ll probably never reach it at all.

Heading into 2017, it’s important to formulate a gameplan and prepare for any headwinds that might pose a problem for the stability of markets — else you’re just shooting in the dark — like morons.

Here are some things to pay attention to in 2017.

Trump’s anti-China rhetoric may start yielding some poisonous berries. Pay close attention to the USD/CNH and USD/CNY crosses. The FX markets will tell you all you need to know about China. Should you see their FX reserves shrink at the same time their currency drops, you know there is a flight of capital from China — which is bound to dry up liquidity and cause market dislocations. Remember, unlike our markets, the Chinese market is still traded and owned by ordinary people, traditionally weak hands. Plus, they’re so overleveraged, the slightest hiccup will literally destroy them.

The yuan is a constant downtick, which helps their exporters and pisses off Trump.

The US dollar index is at 14 year highs and continues to surge. Bad, bad, bad for US exporters.

American borrowing costs are surging at the same time that optimism for Trump fiscal stimulus projects buoy markets. This is counter-intuitive. Higher borrowing costs places a strain on our balance sheet and also makes it harder for Trump to enact stimulus, the whole basis of the recent 10% rally.

Crazy Grandma Yellen wants to hike 3 times in 2017, while the dollar is at 14 year highs, inflation is non-existent and has openly stated she’d hedge any fiscal stimulus by Trump with monetary tightening in order to stave off inflation — since we’re at ‘full employment.’

Last but not least, French elections will be held on April 23rd, 2017. If Le Pen gets elected, she will remove France from both the EU and NATO — something that only a deranged lunatic would liken to being bullish for stocks. This is a major event in a major EU nation, which might and quite literally lead the way towards the total collapse of the union.

The significance of Obama’s efforts to drag Israel in the mud, just prior to leaving office, is magnified by the fact that he knows Trump doesn’t agree with his position. If Obama truly wanted to exit the White House gracefully and with honor, he’d hold off the dogs at the UN from passing a resolution designed to humiliate Israel. Instead, he crafted the damned resolution himself and then sent his attack dog, John Kerry, to make all sorts of scandalous statements to the press — in one last ditch effort to toss Heinz ketchup bottles at both Israel and Trump.

Trump reacts to recent Obama comments and derides the lack of ‘seamless’ transitioning of power.

Doing my best to disregard the many inflammatory President O statements and roadblocks.Thought it was going to be a smooth transition – NOT!

— Donald J. Trump (@realDonaldTrump) December 28, 2016

Trump defends Israel and tells them to ‘stay strong’, a bit melodramatic, but you get the gist.

We cannot continue to let Israel be treated with such total disdain and disrespect. They used to have a great friend in the U.S., but…….

— Donald J. Trump (@realDonaldTrump) December 28, 2016

not anymore. The beginning of the end was the horrible Iran deal, and now this (U.N.)! Stay strong Israel, January 20th is fast approaching!

— Donald J. Trump (@realDonaldTrump) December 28, 2016

Put the validity of Kerry’s claims on pause for a moment and think about what Obama is doing here. He is the very definition of lame duck. His legacy was roundly repudiated on election night with the election of Trump. They know Trump is very pro-Israel, yet according to Israeli sources they put the UN up to the task of passing a resolution that demanded an end to Israeli settlements.

This is the exact opposite of creating a seamless transition to power for Trump. Everything these clowns are doing now, their vindictive agenda trolling, will have to be undone by Trump.

Here’s Kerry calling Netanyahu the most right wing in Israeli history. I’ve never heard an America Secretary of State speak like this about Israel.

Kerry says PM Netanyahu’s coalition is the “most right-wing in Israeli history” https://t.co/dO3ZqGI7vI

— NBC News (@NBCNews) December 28, 2016

And here is Kerry chiding Israel about its values, saying ‘they can either be Jewish or democratic, it cannot be both.’ I don’t recall Kerry doing a presser suggesting the same advice for our dear friends in Saudi Arabia.

Kerry speaks on Israel: “If the choice is one state, Israel can either be Jewish or democratic. It cannot be both.” https://t.co/M7xk7tf45h

— NBC News (@NBCNews) December 28, 2016

$NVDA has been the best performing semiconductor stock for 2016. But the stock is woefully stretched by any measure. It’s kind of funny that people are freaking the fuck out and selling now, just because Citron issued this tweet, warning that the stock is vulnerable to a little downside. They believe the shares are heading to $90.

Citron readers know we have long been fans of $NVDA,but now the mkt is disregarding headwinds. In 2017 we will see $NVDA head back to $90 pic.twitter.com/n4U7f6eV7G

— Citron Research (@CitronResearch) December 28, 2016

In Exodus, we visualize valuations using graphs, in order to crystallize data. Have a look at NVDA’s PE, p/s, p/b and fair value analysis and tell me the stock isn’t ridiculously overvalued here, based off historical norms.

Many of you said you missed the old Fly swashbuckling around, playing with sticks of dynamite for the sole purposes of banking coin. Well, I’m swashbuckling like a motherfucker here, playing with live nuclear bombs in a last minutes gambit to execute an XMAS MIRACLE — long $UEC with all of my trading assets. The whole fucking account is in a god damned penny stock and I haven’t worried about it for a singular second.

Do you know why? Because my winship is all but guaranteed. Donald J. Trump is going to build the biggest and the best nuclear bombs the world has ever seen. He’s gonna build so many of them, alien races from other planets will come here to attempt to slow him down.

Do you know what will happen then?

He’ll take 1,000 of his finest nuclear missiles and send them through a fucking space portal to blow up their ancient planet, easy come, easy go, like a fucking Deathstar exercise from the movie Rogue One.

Meanwhile, I’ll be here chewing on pieces of bread with meat in it, celebrating my swashbuckling adventures into the nuclear bomb business.

In the three days that I’ve owned UEC, my 10.5% gains have nearly matched all of the hard fought efforts of the market for the entire year.

The winship is palpable. New Year’s celebrations will be magnanimous.

The government of Germany is considering imposing a legal regime that would allow fining social networks such as Facebook up to 500,000 euros ($522,000) for each day the platform leaves a “fake news” story up without deleting it.

In the name of combating harms from false news, the German government next year will consider the bill, which has bipartisan support, that will allow both official and private complainants to flag content that is considered “fake news”.

The law would also force the social networks to create in-country offices focused on responding to takedown demands and would make these networks responsible for compensation if a post by individual users were found to slander someone.

“If after the relevant checks Facebook does not immediately, within 24 hours, delete the offending post then [it] must reckon with severe penalties of up to 500,000 euros,” said Germany’s parliamentary chief of the Social Democrat party, Thomas Oppermann in an interview with Germany’s Der Spiegel magazine.

German lawmakers believe this bill will help tackle the possibility of Russia meddling in Parliamentary elections scheduled for next year. This follows the allegations that the Kremlin was behind the hacking of the Democratic National Committee that led to the leak of thousands of emails by key aides to Hillary Clinton.

The German intelligence agency has warned that Russia could try to undermine the elections next year by employing automated bots on social media to spread fake news articles.

Some members of the government have advocated criminalizing the spread of so-called “fake news”. Patrick Sensburg, a senior MP in Merkel’s party said recently: “Targeting disinformation to destabilize a state should be a criminal offence.”

Hans-Georg Maassen, the head of Germany’s domestic intelligence agency, told Bild am Sonntag: “Facebook is earning an awful lot of money with fake news.” He added: “A company that earns billions from the internet also has a social responsibility.”