Maximum Trickery Afoot: Rates Soar, NASDAQ Rises

Here is a day hand-spun directly from the devil himself unto my trading screen. Mega caps are up, but smalls are down. Oils were up, but now sinking. The US 10YR is defying every notion of normalcy and is now SOARING +10bps to well over 4.3%. We have the NASDAQ +76 with overall breadth in the 40% range and my person DOWN 1.45% for the session.

I won’t beat myself up too much about it since this is something crafted by celestial beings meant to be malevolent. I will say that the US 10yr and rates in general are pretending as if Biden had not already defeated inflation. Dare I say the FOMC has another 100bps in them before they can subside these pressures?

To make matters worse, the Dow Jones is -175. That might be a meaningless piece of information to the uneducated reader class of investor — but it’s important too. It means industrial powered stocks, aka risk averse old man stocks, are getting hit too. In other words, if you’re not long TSLA, NVDA or FANG stocks today you’re getting drilled — which is terribly demoralizing. You might feeeeeeel as if the world is ending and everything you do is wrong and that it’ll never get better. This is also not true. The sun will rise again and the blue birds will chirp and sing and drift atop the meadows shitting on the snails below. There will be better markets where you and I can laugh heartily with mouths filled with food — good food and not that shit you buy at the gas station. We will eat steaks and drink wine and order our wives to “fetch us some ale” and be happy — because stocks had gone up and we increased the digital value of our online accounts that we’re building for the “long term” to do something grand with. Maybe we can buy a beach house, or maybe a ranch. That’s right, we can become ranchers — just like Rip from Yellowstone and slap people around and take them on train rides and dump them off when they get out of line.

The good life is ahead lads. Do not give up on these ideas.