Futures Fall as *** TRADE WAR INTENSIFIES ***

Trump is doing the fucking rounds this morning. Let me recap for those of you bewildered by the about face in futures, presently down 37 NASDAQs.

Fuck France.

In comments to the press ahead of a NATO meeting in London on Tuesday, Trump said Macron’s words had been “very, very nasty” to the other 28 member states. He added that it was “very insulting” for the French president to label NATO as brain dead. “You can’t go around saying that about NATO,” Trump added.

The U.S. president said relations between the U.S. and European NATO members were not causing any divide, with the exception of France.

“I do see France breaking off. I’m looking at him and I’m saying he (Macron) needs protection more than anybody and I see him breaking off, so I’m a little surprised at that,” said the American leader.

And tax the shit out of them.

On Monday, the White House had said it may impose duties of up to 100% on $2.4 billion in imports of French Champagne, cheese and other luxury goods.

Phase 1 of the China trade deal agreement never happened and might now have to wait until 2020 before getting inked. What did I say?

“In some ways, I like the idea of waiting until after the election for the China deal, but they want to make a deal now and we will see whether or not the deal is going to be right,” Trump told reporters earlier on Tuesday. When asked if he had a deal deadline, he added: “I have no deadline, no … In some ways, I think it is better to wait until after the election if you want to know the truth.”

BONUS: Fuck S. America too.

Trump announced Monday the U.S. will restore steel and aluminum tariffs on imports from Brazil and Argentina. He also suggested the move was necessary because Brazil and Argentina had been “presiding over a massive devaluation of their currencies.” However, in recent months, both countries have been seeking to strengthen their respective currencies against the dollar.

To think we’re at record highs amidst all of this craziness makes me think craziness is all that was required for record highs.

Big fucking happenings after the market closed you faggots. BOLD got ripped out for a 102% premium. First thing tomorrow, from my vantage point, lemmings will spill in sloppily into the sector trying to gamble their way towards greatness. Obviously, it is the duty and the responsibility of every trader to partake, which is why I am here now — WASTING MY FUCKING TIME, speaking to the likes of you.

Doing some ancillary searches, I have several gene editing stocks on my fucking radar. Here goes. Feel free to get off your asses and partake in this orgy of lists. I’m gonna add CRSPR stocks in there — just because I can.

EDIT, NVTA, BLUE, CRSP, ABEO, ADVM, AGTC, ANCN, AVRO, AXGT, BMRN, FCSC, FIXX, GNPX, KRYS, MGTX, ONCE, ORTX, PRVL, QURE, VYGR, XENE, MBIO.

Obviously you’re gonna want to further screen this to exclude piece of shit low volume boiler room stocks, pitched heavily by stock broker faggots. Buy what’s moving, not what you think might move. Trust me, I am a Dr.

People with money understand this is when you step aside and count your blessings. You survived an entire year of fucking Trump trade war lunacy and came out ok. As a matter of fact, your gains are extraordinary. This is where you sell and relax for the balance of the year, comfortable in your pastoral settings, amidst the country and the birds and the fucking trees.

On the other hand, in the housing tenement inside of the squalor of a city, is a fool margined out x 1 billion at Robinhood, trading like a jackass in the hopes of escaping bullet rounds each and every night. You hide behind 40 ounces of malted liquor and trade in the most indecorous stocks around.

At the moment, those stocks are all in biotech. Do not ask why. It is what it is (extra Irishman).

So I bought 3 of them, reducing my cash to 80%. No big deal. On one hand I feel the wheels can roll off this wagon, tipping it off the cliff and into the crevasse. On the others, there is a chance the new money third estate musters enough verve to get this fucker jumping again. Plus there’s always Trump and his shit. No one knows!

I hope I’m wrong and markets rally tomorrow. In the event I am now, however, I am prepared to buy the fucking dips.

End of year business. Men do not want to risk it all — just for another percent or two. Make no mistake, this sell off is stupid. The rationale, based on manufacturing data, is laughable.

Manufacturing activity in the U.S. continued to contract last month, the Institute for Supply Management said. The ISM Manufacturing PMI dipped to 48.1 in November. That’s below an estimate of 49.4. Stocks hit their session lows after the data was released.

But there is much to lose for managers who rely upon the calendar year to get paid — so they will most assuredly be selling into any fear. Taking a quick gander at the market, there is an overabundance of it now. Consider the fact that low brow biotech hand grenades were the leading sector into today and now look at SAAS, -3.8% for the session.

Here’s the other thing that makes no sense — the dollar is getting smashed and bond yields soaring, +5bps on the 10yr. So both bonds and stocks are getting lit, but oil is up. Try to figure that out. You’d think gold would be up, but it’s not — down. But gold miners are UP. Confused yet? It’s by design.

When markets get confusing like this, at the same time I see high beta stocks getting routed, I step aside.

I am now 95% cash in my trading. My Quant has bee liquidated, aside from a few stocks, and will be re-allocated later on today, with a new stratagem.

Who gives a shit anyway? Markets are rigged, not rigged, makes no difference to me. Do you want to know the type of person I am? How about a generous and charitable gent, cavorting with morons online in the hopes money can enable you to marry up and improve upon your fucked bloodlines?

“The Fly” is not only a man of the people for the people, but he’s making bloodlines better. Without coin, no woman in her right god damned mind would marry you. But with coin, all of a sudden, you look interesting and with that interest comes babies — offspring is gifted with a +10 on the olde IQ and athletic ACTN3 speed gene granted by the Gods — making your family bloodline stronger and better.

Thank me later.

Futures are +42 Nasdaqs and I have a 20% position in CLVS — which I am telling you only because I know the inevitability of the stock’s trajectory and because I am a very hospitable man. You’d be wise to follow me and stop trying to learn how to trade. “The Fly” feeds hungry investors fish and never requires nor begs them to learn how to do it themselves. Trading, like speed racing, isn’t for everyone. You either have the trait or you don’t.

Why, you wouldn’t pretend to have the ability to race in the olympics would you? Then why bother trying to learn how to trade? Rigged, scam.

Dr. Fly is the truth. CLVS — write it down.

My Quant is up 15% this year, which is a solid year by any measures. But compared to the SPY it sucks. The reason is simple — bifurcation of stocks occurred several months ago, first punishing high fliers and then certain sectors broke out while others did nothing.

Let’s examine what occurred in November.

I happened to be 20% weighted in GLD — bogged out for 4.3%. That hurt tremendously. Then, as the rules go, I had to buy 2 stocks per sector — which is a normal thing to do. But that only works when markets are actually doing well over a broad spectrum. Markets have diverged wildly and are only showing gains in certain sectors.

I have two Quants to choose from– Growth and Value. For November, I was 100% growth and the raw data was great — up 5.4% vs 3.4% for the SPY. Then I choose two stocks per sector, rated by Sharpe ratio, and build a portfolio. That’s where the problems occurred.

Here are the returns for my growth Quant per sector (raw pool vs my holdings)

Basic Materials: +0.79% / +1.53%
Consumer Goods: +6.94% / +7.6%
Financials: +2.77% /+2.1%
Healthcare: +5.8% / +2.5%
Industrial Goods: +18% (only two stocks in pool) / -0.66%
Services: +1.76% / +4.27%
Tech: +7.1% / +7.77%
Utilities: +8% / +1.8%

As of now, my Quant was only +1.2% for November. Without my gold position, which was implemented as a sort of hedge against markets, I’d be up 3%. If I only bought the highest rated stocks without forcing diversification, my gains would be fucking outrageous. Starting this month, at least for a time, I am going to experiment with buying only the highest rated stocks.

As for the GLD and TLT hedges that fall into place when markets underperform, I am going to eliminate the portion and only put it on when GLD outperforms SPY. As it is now, the trade lingers month to month until the SPY beats GLD for months in a row. I think this strategy is flawed. For now, when GLD and/or TLT beat SPY — there will be an automatic 10% position in the asset and that asset will be maintained the following month only if GLD and/or TLT beat the SPY again.

In short, the way the Quant will be managed now can in fact lead it to being 100% long tech stocks, which might be an err, but the risk will be mitigated by the holding period — which is only 1 month.