COMMODITIES FADE; MARKETS FADE TO BLACK; SAFE HAVENS IN SHAMBLES

For weeks commodity FAGS have enjoyed the splendor of sharply higher commodity prices which have helped shares propel to new highs. Today we had a blow off top, likely due to the trade being crowded by fucking hot money meme-retard imbeciles. Now that Reddit has entered the trade, it has since turned into shambles.

STAGGERING LOSSES OFF SESSION HIGHS pic.twitter.com/PU1ciYIysH

— The_Real_Fly (@The_Real_Fly) March 7, 2022

Nickel is +73% and this has brought me into the rabbit hole of nickel production. Pro tip: we don’t have any. All of it is mined in Asia, or most of it, and of course Russia. There is a French colony off the coast of Australia named New Caledonia that mines so much of it — the people who live there are rich. Naturally the aboriginals are subjugated to squalor whilst the Europeans eat the finest France has to offer — but we do not care about human rights any longer in a time of war.

I do not think the commodity trade is dead. However, it might pause or pull back for a week in order to destroy all of the hot money in them now. Nevertheless, the prices of raw commodities will continue to go up because Russia.

My Quant for March is mostly oil and was +5% earlier today and is now only +40bps. My trading account was +2%, left more than 2% off potential gains, only to trade my way into giving back 140bps and now stand up just 0.6% for the session.

But I am grateful.

I am 65% cash, 15% weighted in UVXY with some tech and 1 commodity stock and a whole lot of patience. The safe havens are few and this is one of those days you might want to sit out until after 3:30pm.