Trump’s Speech Regarding the Terrorist Attack in Orlando and His Policy Suggestions

Essentially, we have an Islamic extremism problem, not a good problem. This is a powerful speech, which will be reviled by many who walk around with acute mental ailments.

Let’s keep it simple, shall we?

Markets do not like the ark floating. TLT making new highs means risk is off, with a big giant capital O. Also, gold trading higher, while the miners trade off, means liquidation of equities is starting to get serious. Couple that with the fact that European sovereign yields are diverging from one another, and there is a recipe for disaster taking form.

Eighty percent of stocks traded off today, with very few places of respite. The only spots of strength were found in dividend payers. Again, the vortex of this market concern lies with yields. If the central banks cannot send the yen lower and JGB yields a little higher, we’re got a problem.

This isn’t fear mongering, but indelible facts on the ground.

Truth be told, the BREXIT vote is a red herring in all of this nonsense. I can see how people might get bearish ahead of the vote, then it gets shot down, causing yet another market rally. Remember, the financial engineers are box watching motherfuckers and will not rest until the Dow is at 30k.

Nothing of note is oversold in Exodus at this time.

The Libyan Investment Fund’s lawsuit against Goldman continues, hoping to extract $1.2 billion from the large, insidious, pernicious, investment bank. Amongst a sundry of claims against America’s best and brightest, they claim Goldman paid for hookers to woo the Libyan barbarians into giving them money to manage. Also, and this is one of my favorite lines, they said Goldman “delivered a pitch on structured leveraged loans to someone who lives in the middle of the desert with his camels”.

Goldman lavished the camel drivers with private jets, champagne and five star hotels (the fucking horror of it all!).

The crux of the complaint is that Goldman lost a bunch of money during THE FUCKING FINANCIAL CRISIS. Their attorneys are seeking losses for nine trades that were made, one of a very outsized nature, during the hard months of 2008.

As the world burned and the LIA got crushed under a maelstrom of Goldman styled chicanery, the pimps at Goldman raked in $200 million in fees. Although disheartening and somewhat excessive, none of these charges were illegal and are part of the cost of doing business with investment managers.

One last crime that Goldman committed was hiring the brother of the LIA’s former Deputy Chief. It seems nepotism is a global phenomenon. However, it’s inherently evil when trades go wrong and someone is suing to get their money back and to be made whole.

Sorry LIA, no do overs.

That’s a truly fucked up headline. I hope you’d come to expect these sort of things from me, by this time, at this point in the game. We’ve all been playing in a hall of mirrors, imbued with smoke, since 2007. The narrative changes, in the tiniest of ways, but the overall theme remains constant. Central banks, in concert with large banking institutions, work towards the never-ending task of inflating asset prices. One of the truest enemies of this storyline is the fragility of the European Union.

On paper, all nations are the same, just like a grande olde communist block. But, in truth, Germany and France are the only countries able to withstand hard times. Even during the panic wrought days of 2011, when the currency was in crisis, French sovereign yields spiked hard, as the wolves circled the wagons in search for weak prey.

I’ll cut to the chase. The acronym PIGS stands for the weakest of the lot (Portugal, Italy, Greece, Spain). When their sovereign yields diverge from Germany, it usually means there’s some stress in the banking system. It is the proverbial canary in the coal mine.

Portuguese yields are now +319 bps above Germany, the highest in quite some time.

Additionally, all of the PIGS yields are rising, while non-EU member Switzerland plunge.

The ultimate fear index is flashing red. Hide the kids. No one is safe.

We are undergoing a significant spike in volatility, as all of the cocaine addled hedge fund managers scramble to ‘lock in’ their -3% loss for the year, before heading out to the Hamptons to perform the ancient ritual act of Prima Noctis upon their subjects. Put buyers are getting anxious. As such, VXX tits has inflated.

Overall, it’s a dreadful day for equities, with all sectors in the red and 75% of stocks lower.

Gold is higher by 0.7%, but the miners are lower. This usually occurs when markets are in distribution mode. Investors are selling their hot money gold stocks, in order to raise cash. This doesn’t affect the price of gold itself, because most of the hot money is allocated in higher beta gold plays.

Lastly, treasuries continue to be a safe-haven for large money managers. As captain of the ark, I can tell you there are only a few spots left on the grande ship, right next to the Venus Flytraps and antelopes.

Cashin started off talking about the same old stuff to the same old stuff, until he dropped a nuclear bomb on the exchange. He’s hearing the Chinese strategic oil reserve is almost full. The scary part of this whole damned crazy rumor is that he’s also hearing it amounts to 800,000 barrels per day (SHOTS FIRED!).

Oil is shrugging off greasy talk like this, off by just 0.7% for the session.

Crude is down 1.5%, but many oil stocks are up. Gold is strong, which is helping the miners. American markets have a tendency to rally after terror events. That’s American for ‘fuck you, we’re not scared of you,’ in Wall Street terms.

Still, there are many things wrong with the tape, stemming from negative rates to a rapidly increasing yen to the looming BREXIT vote. This morning’s deals (Bluecoat, LinkedIn) helped to get the wheels turning at many greedy as sin money management firms. As we speak, there are people buying YELP and TWTR now, thinking they’re next. We both damn well know that neither of them are getting a bid any time soon.

I wouldn’t be surprised to see stocks stage a rally today, although I won’t be chasing it. I’m on the ark, counting my gold bricks, waiting for the storm to come.

Oh yeah, European markets are being ravaged on BREXIT fears. So predictable.

File this one under ‘who gives a shit’?

Talk to me about Chinese frauds or maybe pharmaceutical scams and I’ll listen. But Faced book? Really? Come on, son.

“Facebook is losing an extensive amount of relevancy,” Left said in a phone interview Monday morning. “I am short Facebook.”

LinkedIn “was a monopoly in their respective space, whereas I see Facebook losing share to Snapchat and overstaying its welcome in other niches,” Left said. “I am not saying Facebook is a ‘bad company’ (it) just will not be a $330 billion company in a year.”

For the sake of humanity as we know it, I hope Mr. Left is right. Still, there’s nothing interesting about this call.

Ricky Sandler from Eminence Capital recently upped his LNKD position from a mere 400,000 shares to 1,200,000. His firm made over $70 million today.

And RBC Capital analyst, Mark Mahaney, just upgraded LNKD last week, citing a turn around.

RBC Capital Mkts upgrades LNKD to Outperform from Sector Perform and sets target price at $160. Firm noted their online recruitment survey work + updated Marketing Solutions market analysis makes them view co as still well positioned against several large TAMs. They upgrade with the stock still reasonably valued & still deep in correction territory.

Boy did they nail it.

Social media hasn’t been this interesting since Facebook embarrassed themselves with that pathetic IPO debut of theirs. The MSFT for LNKD deal is illuminating who the market thinks is the next one to go.

Share of NFLX are up a little. But the stock prices of both YELP and TWTR are taking off. My guess, Google would be interested in YELP and FB would complete their social media hegemony by acquiring TWTR.

No action, thus far, in the shares of Z or TRIP.