“The Fly” Shall Rise Again

My new occupation is also my destiny — to become a gentleman southerner of extreme qualities. This summer, amidst the stifling heat and the hazy pollen produced by the magnolia trees of the Deep South, Le Fly shall step into these once occupied territories and call them his own. Like the great General Tecumseh Sherman, I shall conquer the south and teach my neighbors to behave nicely, otherwise feel the backend of my sword — and I will also burn down their homes and businesses.

Ever since young, I was destined to be a Southern Man — white suite, handlebar mustache, an easy demeanor, and a sweet accent — both thick and delicious like a jar of black strapped molasses tipped over into a plate filled with corned bread.

Once I establish my plantation and take my position amongst southern society, I will treat all yankees as northern aggressors, behave unkind to them for destroying the crops of my forefathers, and for soiling the south with their very liberal digressions. Amidst the confusion and mystery of my sudden existence upon those lands, Le Fly will call himself “Colonel Fly of the 33rd Brigade” and host grandiose parties, serving the finest collard greens, fried chicken, and copious amount of lemonade — south of the Mason-Dixon. I shall sit on my porch, rocking back and forth, contemplating the sins and the plight of my forefathers — destroyed by great and monstrous armies who set fire to churches and schools. As I smoke my pipe and tip my hat to my wonderful neighbors, I will thank the lord for the gifts bestowed upon me and pray that I have the strength to defeat my new enemies — hordes of northern families relocating and occupying the south — expressly degrading a once proud land — steeped in rich and saccharine traditions.

I will tell these people: “Even though you walk upon these lands — you shall never be accepted, no different than a mosquito is accepted at a swimming hole, or a fly at a cookout.”

I bid thee a mighty fine weekend.

Trump must be doing this shit on purpose — agent of chaos theory.

Enter idiot, Stephen Moore — supply side shill — permanent bull and regular retard on CNBC.

Just a short while ago, Moore was calling for the dismantling of the Fed due to their hawkish policy.

Let’s be clear. Stephen Moore will have ZERO friends at the Fed. Trump is using a fan-boy, a campaign advisor, to wrestle control of this corrupt organization. This will not end well.

The Dow is down by ~400 points and the bond market is dislocated today, with the 10yr down more than 10 basis points to 2.43%. Just yesterday, stocks were invincible and could not go down. Today, we are enduring nothing but tragic horrors.

Most of my stocks are tanking, pausing for a few minutes, and then tanking again.

Unlike previous occurrences, I am not reacting to this pin action.

My course is action is simply to watch the market, eat intermittently, and then watch the market some more. I have no interest in betting against stocks, other than position long in TLT. I also have 20% of my account in cash, and another 20% in gold.

Am I enduring the pangs and the bangs?

Yes, of course I am. I own stocks like COUP and AYX. However, I’m not concerned — not even in the least.

My sense is today sucks — but the dips will be purchased next week and bears will be shredded again. My opinion can change, however, and I reserve the right to say the exact opposite of what I just said now.

Playing my part in bringing forth the deflationary vortex to America — I stepped in and bought some TLT.

On a global scale of epic proportions, the deflationary vortex is back. Look at bonds in Austria, Germany and Switzerland. LOOK AT THEM.

Now look at the Italians. We have divergence.

Futures are sharply lower — but I’m twisted in knots over the simple fact that stocks do not trade lower on Fridays.

Here are all of the Fridays for 2019, thus far.

Nasdaq % change

3/15 +0.76%

3/8 -0.18%

3/1 +0.83%

2/22 +0.91%

2/15 +0.61%

2/8 +0.14%

2/1 -0.25%

1/25 +1.29%

1/18 +1.03%

1/11 -0.21%

1/4 +4.26%

8 up Friday’s to just 3 down.

In other news, Maria Bartiromo interview Trump today.

pic.twitter.com/qjoe0rc3rQ

— Donald J. Trump (@realDonaldTrump) March 22, 2019

Same China FUD news.

Happening now: @realDonaldTrump @POTUS – "there is no snag in china negotiations. I think we will get a deal." @MorningsMaria @FoxBusiness "the Europeans charge us eirse than china."

— Maria Bartiromo (@MariaBartiromo) March 22, 2019

The other day I stated we’d easily push to new highs, which of course was mocked and derided by the very worst person in the world — a horrible and vicious man, slavic and slovenly — a man who needs no introduction — insidiously venomous and unseasonable in every way imaginable.

Now with today’s feverish jump higher — everyone is all on board for more gains — the ascension to new highs is all but a foregone conclusion.

Exodus flagged overbought for QQQ today, a signal that has resulted in sharply higher prices for our 6 mo algorithm. Six up, zero down — as good as it gets. Will human behavior remain in line with recent history? I do believe so.

Playing devil’s advocate here, the QQQs could, potentially, be setting up for a head and shoulders top. These rabid analyses are always unpopular when markets are in bull mode. It’s only after the fact do we hear of these technical events. Look at it now and see it.

Same thing is setting up for gold. I’m a fan of gold — heavily long the commodity, but the technicals patterns of a sinister nature are lining up here.

On the bull side, big ass white candle today. View all recent big ass white candles and see it has brought nothing but gains. Prepare for higher prices.

Ignore the biotech grenades. Ignore the small cap gambles. This is melt up mode — the movement of big money is underway. You want to ensure that your portfolios participate with the market. The only way to do that is by buying stocks tightly correlated to the Nasdaq.

Top picks: RPD, AYX, COUP, ROKU, ACIA, MTCH.

How wonderful. Are you still bearish?

Markets are definitely heading back to record highs and there’s nothing you or your stupid friends can do about it. Look at MU — bad earnings, but not bad enough — rippage to the upside.

Try to stand in front of this freight train and find yourselves broken, stuck, forked, radish.

I bought CPG into the closing hour of trade, not because I like the company or ‘feel’ that it has good prospects. I couldn’t care less about that, frankly. I bought it because it’s going higher, and that’s all there is to it.

My biggest winners today were SOLY (+19.2% booked gain), HCLP, AYX, and COUP.

I also bought a little ACIA — for the glory and for God.

Over in my quantitative strategy, I enjoyed gains of nearly 200bps. Nothing you can do will ever compare to my level of winship. You might as well give up and go play video games, instead of feigning competition against the greatest trader in the history of the world.

Good day.

Sometimes you just need a little blind faith.

Imagine yourself to be an idiot moron, a person devoid of rational thinking — making directional bets long and long only. Market goes up — you buy. Markets go down — you buy. There can be no deviation — because like a dog, whenever the bell rings and you place money into the market — you win!

What grandiose superlatives!

I stand before you a very victorious man. My Quant is higher by 143bps — +5% over the past two weeks or 150bps more than the SPY. As you struggle to produce returns for your clients, I assure you — I can do better.

My trading account looks like Michelangelo himself etched it out and placed it on a ceiling of some random church, simply astounding. I took profits in SOLY, +19.2% for a two day hold, not because I don’t think losers will have their tattoos removed, but because it’s time for me to harvest gains in a stock designed to be a trade. It was never an investment, old sport.

I’ve got about 25% cash in there, also heavily long NUGT, so I’ll probably attempt to offset that conservative bias with something spectacular.

Stay tuned.

This is the sort of tape that wrecks people, truly. I got whipsawed today and yesterday, as we’ve vacillated thanks to news flow. First it was the Chinese trade war news, then the Fed, then people second guessed the Fed — perhaps viewed it as an institutional weakness due in large part of a concern of theirs.

Maybe the economy is slowing much faster than is being reported.

WRONG.

The Fed works in not-so-mysterious ways. They want higher stock prices and they are aware that hiking rates was getting in the way of that primary goal. The foolishness of today should be resolved tomorrow.

Here are the main take aways.

Oil, gold sharply higher.
Dollar, bond yields sharply lower.

As you were. This will all work out in the end.

Top pick: NUGT.

Markets are totally BOGGED today — but that’s ok. I like directional weakness in dollar and upwards tilt on gold. I bought NUGT, increasing position to max size, AU, AYX, HCLP and PUMP — the last two a play on fracking — late state, WTI over $60 plays.