Futures Rise as Buyers Bust Loose and Bid Everything Higher

I did warn you about the buying and your inability to stop it.

Futures are +150.
WTI higher.
High yield higher.
Trump did shady stuff with Cohen.
TSLA is laying off 7% of workforce.
TEAM is hitting all time highs in pre-market following results.
SAAS stocks should catch fire today.

Now get to work.

Stocks were bad in December, but it isn’t December any more — now is it?

Now you might be over there eating marmalade all day, sipping from your faggotry bags of tea — eagerly and viciously awaiting stocks to reverse lower. You keep refreshing Zerohedge to read some negative news about pending upheaval, in order to placate yourselves whilst devouring pistachio muffins and rubbery panned cakes.

But I have news for you now and severely.

It doesn’t matter what you think. Your opinions are meaningless refuse, a trash heap set upon piles of rancid shit.

For the session, I bargained my way into ATTU, CLF, and BZUN. Your hatred for progress is duly noted. But just know, Le Fly is a captain of industry, a man moulded from sturdier stuff, strong, and powerful, able to shatter your jaw bones with one sweeping blow. I am both invincible and incredulous, swiftly and vaingloriously moving thru these markets with alacrity and precision. You cannot stop me; but I hope that you will try.

It seems the news about Trump and China might’ve been fake and the people who issued that leak evil; but it doesn’t change the fact that the snowball of greed is rolling very fast downhill and nothing can stop it now — not even fake news or bad news.

For the moment, prices are strongly biased to the upside.

Magic bullet fired.

*DJ U.S. WEIGHS LIFTING CHINA TRADE TARIFFS–SOURCES

— *Walter Bloomberg (@DeItaOne) January 17, 2019

I bought some CLF and BZUN. If this news is true, we might very well rally another 10% from here.

POTENTIAL FAKE NEWS ALERT:

JUST IN: Treasury spokesperson tells CNBC: "Neither Secretary Mnuchin nor Ambassador Lighthizer have made any recommendations to anyone with respect to tariffs or other parts of the negotiation…" https://t.co/Av6jyw2WOk pic.twitter.com/ACOZdA38m1

— CNBC Now (@CNBCnow) January 17, 2019

Positive breadth is once again milquetoast, lending to an air of annoyance that often frustrates me into pieces, until I writhe and toil until my bets become so gigantic that I scare myself back into cash. Now I don’t think the market is in any danger, nor do I have any issues with being aggressive with just 25% of my overall account. But what I do take issue with and fear is the complacency that seems to have taken foot again, the same snobbish demeanor that presented itself to markets in late 2007 — just before the absolute collapse.

On the other hand, there is a wide swath of you vermin on Twitter and other social media outlets prognosticating the fall of western finance, based off forlorn assumptions that was debated a century again. America is okay, in spite of its indecorous ineptitudes. Would you prefer to live elsewhere and why?

Markets were supposed to trade lower and now they’re higher. This is exactly what one likes to see if one is bullish.

I added a little something to my trading portfolio — a high conviction trade, one that cannot be stopped, no matter how many sell orders you place in front of it. It will burst thru your pitiful blockades and shit on your heads. It will, why, it will blackened your faces with the smoke from its exhaust.

Big miss at MS should not concern you. More or less, the banks are an irrelevant heap of shit. Instead, look towards the oil markets, for they are filled with all sorts of dangerous stories that can make or break this market. Consider the following, we’ve extended ourselves quite a bit the past 2 weeks.

The Nasdaq is up 8.5% since then and just about everyone forget about the pangs, and the bangs, now pretending the bear market never happened. All things considered, this could very well be just a respite, a one month sojourn down memory lane, just prior to markets resuming its down-channel. Consider it.

Early going, WTI is lower by nearly 2% and bond yields are slightly lower. Definitely look at IWM as the major tell for risk assets, but study WTI and bond markets, especially high yield markets, represented by HYG.

Long until wrong, right?

Oil up
HYG up
Oil stocks up

That’s the checklist, the things we need to see before getting long. Be that as it may, if you weren’t long banks today — you didn’t make much money — with breadth stuck at 62%.

I don’t need to show you any charts, or analyze patterns for you. Quit being a fucking baby and try to understood the mood. Risk is on, fuckers. That’s all there is to it. Now your job is to figure out where the money is going next. The stocks you buy today that can blossom within 3-5 days for swing trades.

Look to the SAASfags for your answers. Believe me, that’s where the growth is at.

NOTE: Le Fly is accepting new Capstone Programme members on a limited basis. If you have questions about the programme, email me at Flybroker at Gmail.

I have a stinging feeling in my gut that I made a mistake by selling FAZ and TZA. Because of the rapid movements and the nature of the 3x instruments, I give them very little air to ‘breathe’ for fear of digging myself a deep hole. When they turn lower by 5-7%, I like to sell them and limit my loss. At 5% of my overall trading account, that drawdown is manageable.

However serious you are about trading, at some point you’ll need to inject some bias into your trades, else fall victim to the blades as they swing to and fro. As I type this, markets are on the cusp of making me look ridiculous, as they slide and become increasingly bearish. If I were to react to this now, I’d have to sell the stuff I just bought, maybe even short something to hedge or trade, and then be stuck watching the box all day like a god damned idiot.

This is no way to lead a life.

One can manage the intra-day risk by merely buying or selling near the close of trade. As a matter of fact, many of my trading mishaps have come via intra-day gambits, some out of impulse, others from boredom, frankly. This is another side effect of trading for a living, certainly one of blogging for a living and running a trading room for a living, and being a god damned recluse — hiding out in the cabinets of an oversized house that requires too much money to maintain. I’d prefer to live out the rest of my days like a vagabond, drinking gin in a green field naked.

But I can’t — thanks to my responsibilities. So I sit here and I toil. After I toil, I sit down and toil some more.

I’m trading poorly because I’m scared of risking too much at the top of the trading range, and also fearful of missing out on a potential V shaped recovery. We’re already seeing the signs of reflation, the rumors that the other rumors of recession were bullshit, the calm normality and elegance of robo-advisors taking charge and jimmy-rigging stocks higher. This is a hard job, and a difficult task. I do not pretend to know everything and never assume that my position is 100% perfect. But I do know that if I muddle through the difficult tapes and limit my losses, I’ll eventually land a monster winner or string of double digit winners to make up the difference, AND MORE.

Number one rule in trading, and doing so successfully: stay in the game.

WRONG AGAIN, this time in another 3x downside ETF. I probed with these instruments in a flaccid attempt at catching a pivot point. I should’ve take my own advice and waited for confirmation.

Plainly, there is no justification for having shorts now. Having said that, I sold out of my TZA, the last of the 3x downside FUCKERIES, for a 5% loss.

With the proceeds, I bought TDOC.

It does not appear the market is done going higher.

You can get the details elsewhere. Just know that both BAC and GS bet numbers and are rallying in the pre-market. In the BAC notes, they cited credit quality as being very good, showing no signs of a recession on the horizon. I suppose this is the sort of side note that gets lost in the shuffle, but could be of extreme value for people paying attention.

Futures are marginally higher, but the market has a positive vibe to it, barring the minor decline in WTI in the pre-market.

Bonds are selling off and Fiserv just bought FDC for $22 billion.

It appears stocks will continue jogging higher. Time to cover those shorts.

The software as a services sector was higher by 3% today and represented alpha personified prior to the recent downturn. It was, mind you, the best sector to trade, sporting gains of +35%, and it will be once again — should markets break higher.

The fundamental story is revenue repeatability, the same simple business model that made NFLX so successful and took Amazon from retard book seller to AWS and then prime Gods. The subscription model is precisely where you want to remain invested, especially in names growing rapidly, like HUBS, ZEN, NTNX, and NEWR.

The giant of the industry is CRM, higher by 150% over the past 5 years — 98% better than the SPY.

According to the Exodus seasonality tool, the software sector is just getting started.

The double edged sword is embedded in the overpriced nature of the sector. People pay up for growth, especially reliable growth, so during downturns expect this sector to get its fucking brains blown out.