Fly Buy: $NCTY, $JP

No-one can stop me. Try to do it and lose your limbs.

Top picks barreling into tomorrow: JRJC, NCTY, JP, and VERI.

The SAAS plays and all of the main stream sectors aren’t working today. What is working, for lack of a more eloquent term, is the shit. These are the type of stocks you’d be embarrassed to be caught owning — the stuff you can’t tell your wife or readily admit to partaking in when talking to mature, responsible adults.

But this is iBankCoin and we do not judge those by the method of their greatness — but instead by the size of their balls.

Here are the small caps that I like, heading into tomorrow.

JRJC, JMU, JP, LUNA, BLNK, and maybe even a little LEJU or MARK. Lots of shit popping off.

Let’s first analyze what’s going on today.

Shit is rising to the top, always a precursor of ruinous market topping action. Last week we had a major push in bond yields highs, implying the Fed is back on the table. Gold collapsed too. This is the reason why I went to cash and bought TZA.

Presently, SAAS stocks are -4.5% for the session.

See that on the far right? Yeah, even with today’s dip, SAAS stocks are +27% YTD.

Also, the Bubble Basket, which is my custom index of highly valued stocks, is lower by more than 3% today.

Year to date, that index is +23%.

So what should you do?

Well, I am 55% cash, with 5% in TZA, so that’s where I stand. You should be hedging or going to cash too; knowing the market deserves to pull in a little, but also feeling confident the dip will be short lived.

NOTE: I bought VERI — because I can. My trading account is on fire now and not incurring losses with the overall market.

Today’s is a fake out day, in my opinion. Risk is off for your typical alpha strategy, as shone here by my Bubble Basket being down 1.7%.

But the shit is still floating to the top, as indicated by the sundry of China-coms popping off.

So how do we resolve this? After all, the Nasdaq is still +23.

Taking a look at the VIX, it’s clear to me, at least as of now, it wants lower. It wants to dive back into the FAGBOX between $11 and $13.

Conclusion: If you’re short into this weakness, cover and be grateful. Oil is still pressing higher. Gold is being destroyed. Markets want MOAR.

In light of the recent success of CIFS, I took to Exodus to execute a keyword search. This is what I found.

Sometimes, it’s as simple as that. I bought JRJC.

I sold CHK this morning for a 15.5% win. Annualized, I’d be up 1,000% by year end.

Over in Exodus — many of the lads held onto my pick CIFS and are enjoying 100% wins. I, regrettably, sold before it got going; but I’m not upset in the least. Even though I sold at $2, I am comforted by the fact that I am able to pick these type of winners on a continuous basis. I’ve been doing this shit all my life. Missing out on one 300% win is disheartening — but it isn’t going to make me sad or anything like that.

It’ll only motivate me to find the next one — which I am in the process of doing right now.

Good news FUCKERS.

Our eminence is on the verge of yet another win, of largess magnitude. Words cannot express how overwhelmed I am with pure fucking joy — especially since I am long TZA. I expect to get zapped at the open. I do, however, have way more longs than just the 5% weighting in TZA. Plus, I have a mind to get right back into the swing of things, diving into the riskiest stocks with reckless abandon — begging for the Gods to ruin me.

Source: Bloomberg

The U.S. and China are close to a trade deal that could lift most or all U.S. tariffs as long as Beijing follows through on pledges ranging from better protecting intellectual-property rights to buying a significant amount of American products, two people familiar with the discussions said.

Chinese officials made clear in a series of negotiations with the U.S. in recent weeks that removing levies on $200 billion of Chinese goods quickly was necessary to finalize any deal, said the people, who weren’t authorized to talk publicly about the deliberations. That’s the amount the Trump administration imposed after China retaliated against the U.S.’s first salvo of $50 billion in tariffs that kicked off the eight-month trade war.

One of the remaining sticking points is whether the tariffs would be lifted immediately or over a period of time to allow the U.S. to monitor whether China is meeting its obligations, the people said. The U.S. wants to continue to wield the threat of tariffs as leverage to ensure China won’t renege on the deal, and only lift the duties fully when Beijing implemented all parts of the agreement.

My best guess — those two people would be Kudlow and Trump.

Dow futures are +115. I am long some NTLA — because the Druids love gene editing and CRISPR. I expect a huge run in CRISPR stocks soon. The chimeras aren’t going to make themselves, you know.

Last month, the US economy added the most jobs in 11 months. Next week Friday, the US economy is expected to have added 185k jobs in February with an unemployment rate of 3.9%. Average hour earnings are expected to have gained steam, up 0.3% vs 0.1% the month prior. All of this is coming due on the tail end of one of the best rallies known to mankind — certainly the best start to a new year in a very long time.

Recently, government bonds have been creeping, ever so quietly.

So what have we learned over the past 4 months?

Markets do not like trade wars. Markets do not like rates rising too high — because we’ve learned they, at some point, apply too much pressure to the leveraged loan markets and others areas of the bond market — specifically junk.

If the 10yr breaks 3.00% next week and the jobs numbers are better than expected, you will begin to hear rumors and innuendo that the Fed is back on the table — them and their disgusting dot plot.

Markets don’t like dot plots, or anything that increases the borrowing costs of the trillions owed across a sundry of industries.

Thus far, we’ve V shaped up — done the improbable and mostly every person that I know is shocked by this occurrence.

My best guess — shit gets resolved by St. Patrick’s Day. We’ll all be drunk by then anyway — but I suspect we’ll have a clearer view of what this economy is looking like by then, even under the influence of some Irish whiskey and burdened by fatty meats.

Nice day, especially the early fake out and subsequent rally.

Here’s the point.

We’re still at the maximum level of overhead resistance, predicated upon the price memory that was endured several months ago.

Because of this, I am hesitant to be very long, and I have a TZA hedge. Overall, the market is fine and not in any imminent danger of breaking down. This TZA position of mine is an anticipatory trade and low conviction.

Have a great weekend.

Top picks: CHK, NTLA

I bought both NTLA and VNRX — seeing this massive breakout in biotechs today.