A Monstrous Rally is Underway and The Peanut Gallery

All of the broader global indices have erected themselves upon the temple of greed. Wanton depravity is currently ongoing, with the NIKKEI leading the way in a most heinous of fashions.

Right behind them, in second place, is the Ted Cruz of this party–the burgeoning nazis out of Germany.

Last but not least is our futures, vibrantly lit. They’re fucking glowing Waldo. Watch us shine.

Before I enter my coffin and sleep for the next 3 hours, I wanted to bring attention to iBankCoin’s Peanut Gallery. I started this project, bringing on writers to the site, many years ago, only to suspend it due to grave errors and syntax malfeasance taking place within its boundaries. A few month’s ago, I resurrected it; and to my delight, I was quite pleased with the results. However, as time waned on and the novelty of the PG wore off, many of the newly fashioned writers resumed their lives as alcoholic vagrant panhandlers. Ergo, I’ve been forced to cull it, out of respect for the dignity of these halls.

As you could understand, my hands were tied in this regard.

The writers billeted at iBankCoin are honored by the standards set forth within these halls, which, hitherto, have gone unmatched by any finance site in its station. This is the paragon of financial news and information.

Therefore, for the last time ever, I am opening the doors of the Peanut Gallery to a fresh stock of eager and aggressive writers. Do not waste my time if you do not have a passion for this. I am not here to fulfill a bucket list wish of yours. I would fucking kill you for much less.

All those comfortable with these terms and have an interest, email me at Flybroker at Gmail.com

nite, nite.

I like this trade a lot. J. Gundlach, bond King, Doubline, is suggesting to blow out of your corporate bonds, especially junk, that were purchased at the height of panic when everyone thought the Fed was crazy enough to hike rates four times this year.

Wait, aren’t they still saying that?

“The junk market was scared to death that the Fed was actually going to go forward with their suicide mission to raise rates four times this year, four times next year and four times the year after,” Gundlach said. “It’s not surprising that the same burst of enthusiasm for Treasury bonds, once the Fed seemed to abort their suicide mission, it also helped junk bonds. I don’t think that can continue any longer.”

All true.

At any rate, he thinks MBS are cheap relative to treasuries here. Naturally, this valuation call is predicated upon the notion that treasuries will remain all all-time highs. When you play the game of ‘this is cheap relative to that’, you sometimes get lost in the sauce and often times can drown in it.

Nevertheless, I am a fan of treasuries and agree with Gundlach that MBS are preferable to corporate bonds–whose balance sheets are vulnerable to the caprices of crude oil traders.

The best way to play Gundlach’s idea is via MBB.

Government-backed Ginnie Mae mortgage-related securities “are cheap relative to Treasuries,” the fund manager said. “That’s been a good buy point for the past six years.”

The wonders of deficit spending and a globalized economy has produced a record budget deficit for March of $108 billion, twice the amount from last year.

What’s important to note is that we’re running hot at $461 billion year to date.

If a corporation was run in such a manner, the c-level suite would be wiped out clean. Instead, like lemmings, we elect the same assclowns into office, who are literally using America’s tax dollars and borrowing power as their personal piggy banks.

The land of the free and the brave are now slaves to debt and an overwhelmingly bleak future.

This is smoky filled room horseshit, a scheme by a very large Valeant bond holder–former Blackstone guys trying to get concessions.

Centerbridge has called default in a very crowded room filled with bond holders, who have leant Valeant upwards of $30 billion.

The move starts a 60-day window, through June 11, during which the embattled company would have to file its annual report or potentially be forced to repay the bonds early. That could trigger default notices in other pieces of Valeant’s roughly $30 billion in debt, analysts have said, and become a major additional headache.

Valeant reiterated Tuesday that it is on track to file the annual report, which was due earlier this year, by April 29. That would enable it to avoid a default.

After the 10-k is filed, these menaces will go away. Until then, expect assholes like at Centerbridge to harangue the company to sweeten the pot.

Shares of VRX are slightly lower in the after hours.

Fed’s Lacker is out with strong comments this afternoon, following the Dow’s 164 point melt up.

Here are some of his comments.

He sees a ‘less leisurely, but gradual’ pace to hike henceforth.

The case for hikes is clear.

He backs FOUR rate hikes in 2016.

Two percent inflation occurring faster than expected.

Well anchored inflation expectations enough reason to hike.

Strong dollar days are behind us.

Wonderful companies like ORIG, BBEP, sex with REXX led the market higher today, on news that Russia and the Kingdom of Saudi Arabia agreed to freeze oil production at all-time highs. As noted late last week, the only country that is truly cutting back on oil production is the United States. The House of Saud has never drilled more. Putin’s Russia has never been so prolific in the production of crude.

But they’re going to freeze at these levels, which should provide succor to an otherwise greatly oversupplied market–one that forces companies to store crude in tankers indefinitely.

Italy announced their $5.7 bill bad bank scheme, which was greeted with creme pies to the face.

Today was all about oil and energy stocks. The oil and exploration sector trounced higher by 9% today. Nothing else was impressive, aside from the 1% bounce in the finnies.

I’ll leave you boozehounds with one last item of curiosity. It should come as no surprise to any of you that oil is flagging overbought by Exodus. Inside of the platform, one is able to view said levels through a proprietary oscillator. Here is it is, spread eagle, for all to bemuse themselves with.

This is fuckery of the first magnitude.

The Federal Reserve has become a perverse part of pop culture. Plus, they seem to rule the world. They control the money supply, after all. Now they’re going to compete with one another for making GDP predictions.

Talk about smoke and mirrors and obfuscation.

The NY Fed launched ‘NOWCast’ today to compete with the popular Atlanta Fed GDPNow.

The New York Fed’s model — the “Nowcast” — pegged growth at 1.1 percent for the first quarter, according to its latest update on April 8. Growth in the final three months of 2015 came in at 1.4 percent.

That’s a lot rosier than the Atlanta Fed’s read, which has first-quarter growth at 0.1 percent.

Really, a 1% differential in GDP forecast?

I need this like I need a fucking hole in my head.

This is why investing in biotech stocks is the equivalent to gambling. HZNP enjoys stupendous growth for its products; but they warned, ever so slightly–causing its head to be summarily chopped off.

Via Briefing.com

Co reaffirms guidance for FY16 (Dec), sees FY16 (Dec) revs of $1.025-1.05 bln vs. $1.03 bln Capital IQ Consensus Estimate; sees adjusted EBITDA of $505-520 mln5

First-quarter 2016 net sales guidance would represent 79 percent YoY growth at the midpoint (Capital IQ consensus 101% growth); second-quarter 2016 net sales guidance would represent 35 percent year-over-year growth at the midpoint. First-quarter 2016 adjusted EBITDA guidance would represent 114 percent year-over-year growth at the midpoint and 34 percent of projected first-quarter 2016 net sales at the midpoint versus 29 percent of net sales in the first quarter of 2015.

Long Term Guidance: $2 bln in net sales in 2020.

It’s worth noting this company has been called a ‘little Valeant’ and has been tied into the whole corrupt system of hiking drug prices for profligate profiteering. Also, this is what happens when you warn, whilst trading north of 70x earnings.

A ‘diplomatic source’ is citing an agreement has been reached between the two giant oil producing nations, both duplicitous liars, cheats, and scam artists in nature.

Ten thousand apologies for missing this news item that was tucked away on the internets. Apparently, this is the reason why WTI volume and price spiked.

The Dow is up 150 now. Off to the races.

I turn around for 10 mins to eat a sandwich and next thing I see is the Dow up triple digits and everything is fucking roaring higher again. Didn’t everyone read my last bloggery?

Look at that volume spike in WTI and subsequent move higher in crude. Crude up, stocks up.

Yen is lower for this first time in April. This is another reason for wanton celebration, apparently.

To see prices rise is normal. It’s human nature to build and progress and improve standard of living. Well, at least these things are true in civil societies. It’s never a ‘scam’ or ‘fuckery largess’ when stocks rise. When you’re selling short markets, you’re betting against the evolutionary spirit of mankind.

Having said that, I remain short XLE. Indeud.