iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
21,309 Blog Posts

An Update on My Time Machine

There is a big difference between the Exodus and Stocklabs mean reversion algos. There were some things that needed to be addressed with the Exodus algo and I made sure thru painstaking testing with SL — they were up to my standards. The net result was LESS longer duration algo calls — but more precise. Last week for the second time in a year we saw our 12mo algos produce an OS signal. For those only long QQQ’s — this is a head scratcher. But lend me the generosity to explain to you that most stocks had been treading woefully lower and that is the market, when not balanced by market cap, not the pin action of 5 stocks.

Here are the stats for our 12mo OS signal, over the past 12 months. We measure it against the SPY.

Our 3 mo algo is far more sensitive and produces more scores. For record keeping, we only count the first signal in a 10 day cycle.

Visuals of the 12mo.

3 mo.

We do this for all stocks and sectors and industries too. One of the comforting advantages of this is to have something systematic that works without emotions. I cannot tell you how many times I’ve doubted these signals over the past 14 years, always prone to think “this time is different.” Truth is, what I produced here isn’t exactly rocket science. Humans are predictable and form certain habits. If only we can measure those habits during times of duress and make money off the insecurities of those without a Stocklabs subscription.

If curious about the platform, enjoy the free content on the Stocklabs YT channel, produced by one of our members, Quartermaster CitizenSquared.

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Traded Stupid — Won Stupid Prize

The day started off very calm, TUTTO BENE. I was up between 20-50bps, enjoying life — chatting, eating, drinking. I was mostly cash and doing small things — but soon got lured back into stocks because I was jealous of the BIG things that were happening all around me.

What transpired next is classic chicanery. Overall, the market kept going up but the sewers where I was playing got BOMBED the fuck out — skeletons everywhere. I lost my gains and more and soon found myself down 100bps due to a doubled sized GRNQ position gone awry.

In an attempt to offset this, I dove back into the fucking market with everything and more — leveraging up 140% in high graded bigger cap stocks. I ended down 65bps and find myself in a trench coat naked underneath, ready to flash the market come Monday.

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STOCKLABS WINS AGAIN

Good Sirs

I speak to you from comfort and leisure. Mother Fly is long gone back to Brooklyn to walk amongst the floods and the mice — whereas I am here banking coin in a most undisturbed manner.

There are 3 core aspects to Stocklabs aka Cocklabs.

  1. Social aspect of trading with another 1,000 lunatics.
  2. Massive data and analytics. Profound advancement in screener and real time volume alert triggers.
  3.  Mean reversion algos

Back in the old days, the mean reversion is what you paid for. Now we have delved into various other venues — such as Quantitative investments and real time intelligence algos built for momentum. But, at the heart of Stocklabs is the mean reversion algos. When the markets tilt too far in any one way — they kick in and tell you when it happens and what should happen following it.

Yesterday we flagged oversold on our 12 mo algorithm, a very rare event indeed. I even tweeted it yesterday, much to the chagrin of short sellers and bears alike — who took exception to this idea.

Voila — SL was right again.

At the moment, I am trading light +30bps, but +200bps in my YOLO that took SSO into today. All around — another good day.

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Another Gentleman’s Return

I am a picture of good health and calm equanimity. Whilst the lot of you got badgered and beat up in a little of this and that, Le Fly boosted his returns by a genteel 62bps, upping his YTD gains to a very ribald +213%.

While it’s true, the old Fly was more of a stakes taker, go getter, and over all gauche man, the new Fly simply trades for small returns, not too big for fears of alerting someone. I do not care to have the SEC knocking on my door, or Jim Biden with his vaccination in tow. The Fly is a man of modest means and wealth and would like to remain in the shadows achieving returns uncommon to the average pleb, while at the same time enjoying the comforts of anonymity and relaxation.

My opinions on the market, at this point, are in fact moot. I am in a zone that cannot be negotiated with, as my streak has begun and I shan’t cede to the market , but instead weigh into her and extract the returns I deem considerable.

I closed out the session above 60% cash.

Good day.

 

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A Narrative Buy and Hold: $CELH

I’m a sucker for consumer brand plays — mainly because they always work and are rare. If you’ve been reading me for a long time, you would know I was first to Hansen and then Monster, hopped on the GMCR/Keurig train very early and also got involved with FIZZ and the La Croix craze. Well there is another one now — ticker CELH — goes by the brand Celsius.

I know — another energy drink.

But these guys are crushing and all of the data points to higher prices.

I listened to the last two conference calls and here are some of my takeaways.

CEO’s cadence is extremely upbeat and bullish. This is anecdotal evidence, but in my experience a very good tell for how the company is being managed. He sounds like a killer and knows how to operate.

Due to COVID — aluminum can supply has been short and they’ve been forced to find alternative sources, added to input expenses. This is temporary, just like COVID lockdowns, and will abate over time.

They landed TGT and WMT and in 50% of all WMT stores and expect to be in the rest of them by the end of 2021.

In all, they are in 100,000 locations and growing, covering 75% of the metro markets in the US.

European growth is about +25%, expanding.

Their Amazon sales are up ~200%, just pushing ahead of Red Bull — making them the #2 energy drink retailer on Amazon after Monster.

In total, they have about 1% of the energy drink market. Red Bull has 20%.

Sales have been ripping, +75% and looks to be accelerating into the summer.

Inventories are WAY up, 100% QOQ, indicative of higher sales in the current quarter expected.

Stocklabs price target is $123, based on next year sales estimates.

At 35x sales, the stock seems expensive. However, based on 2022 estimates, which are probably too low, the stock is only trading 15x. MNST, which has only 15% growth, is trading at 10x sales.

For me, I have little to go on here in terms of the product — as I have not tasted it. But I bought the stock based on these numbers and know these trends do not die fast. Sure, there are plenty of energy drinks out there — but this is the cool kid stealing share from everyone else. During the call the CEO could not stop talking about their TGT roll out and how their sales were outperforming all other energy drinks. Online, their sales are beating out peers by 7.5x.

At some point they will slow down and the stock stall. But, at just $50m in qt sales, heading into the best season for beverages and coming out from COVID lockdowns — I like the stock and will likely hold it for the next 6 months minimum.

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Paper Hands Fly

Markets are at it again, fucking with people’s emotions, causing people to trade poorly. I just had a terrible trade close out in BLM stock BYFC.

I bought it because another black owned bank CARV was up 250%. Little old BYFC was up 15% and wanting MOAR. I bought it at $3.19 and quickly saw it rise to $3.43, a 7% gain. I didn’t sell of course because I wanted MOAR. More money, more prestige, more greed.

It topped there and then quickly traded lower, as CARV collapsed to +135%. I ended up selling for a 5.5% loss, which is always the worst type of loss. My emotions were like “but I was just up” but my mind said “asshole you fucked the trade, now manage the risk.”

It might very well go up and exceed $3.4 — but I will not lament it because I simply traded it poorly. This new culture of having “diamond hands” and never sell is toxic and stupid. You fucking piece of shit traders are gonna bankrupt yourselves with that asinine mentality.

At any rate, I am down 60bps, 90% cash, mostly watching the market get clubbed.

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Genteel, Conservative, Easy Gains

I had an easy day, mostly in cash — trading whenever I felt like expressing some gratuitous risk tolerance. I was range bound and cautious due to the dislocation of the entire fucking market, safe a handful of secular stocks.

We are without question on the verge of tilting over and diving lower. But I will wait for confirmation before betting against the market.

I gained 46bps in what can only be described as a risk-free, genteel, pastoral even, trading session. I ended with 80% cash, betting DIBS will perform like NEGG tomorrow — worth a shot — taking advantage of the stupid fucking morons who pile into shit stocks for the laughs.

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Approaching Oversold Levels That We Can Trade From

Breadth has been dreadful for weeks, if not months now. While many larger capped stocks treaded higher, many of the smaller more popular trading stocks plunged. We are now oversold on Stocklabs 12mo algorithm, which is a RARE event. The data is good and a mean reversion bounce is just around the bend.

Here is some more data for you.

Our custom indices in SL, suggest and point to strength in risk aversion. Reason being: rated have plunged and many of those stocks pay dividends. You’d be wise to heed attention to this.

Industries not in play include the riskiest/funnest ones — the stocks that Bill Huang and Kathy Ark buy often. There is nothing but gloom enveloping these plays now.

We break down the market by market cap — all real time, custom made indices. As you can see, Tera cap ($100b+) are doing great whilst small is drowning.

This is my go-to screen inside Stocklabs. It takes the volume of a stock and pro-rates it down to a minute, comparing it to monthly min volume to produce a delta score. If a stock is spiking in volume, I see it first and you most likely buy my sales.

 

For the session, I am +25bps, 80% cash.

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It’s Over

The US 10yr has collapsed in yield to 1.30%. Small caps have been bludgeoned to the tune of -2%. Everything but NEGG, AMZN, and AAPL is getting hammered. Each and every morning — gains fade and dissipate in a whirring and repetitive process designed to cause disillusionment and despair. Confidence is waning.

We perceive things based on recency bias mostly. Six months ago I would have and probably did suggest we were in a new era, a dawn, of great intellectualism forged by a wave of innovation and technology. I willingly ignored social strife and all of the bad things because markets were going up. When markets go up, the perception of greatness is overwhelming, which is why more people buy into tops than at the bottom or on the way up. When prices are high — the advertise themselves and normies pile into the riskiest stocks because they’re mostly ribald caricatures of what humans should do with their investment income.

This morning, as always, I sold everything (save 1 stock) and booked 200bps in gains in my YOLO account and I am about break-even on my trading. The Quant is still fully invested and I will not touch that until the first of every month. The way it works is Stocklabs chooses, via a quantitative process, 20 stocks to buy all equal weighted. I buy all 20 without offering my own opinion and rinse and repeat the first of each month. YTD, it is +22%.

The YOLO account chooses 1 ETF to buy per day, based on the SL Intelligence Algos. Yesterday it chose QLD.

As for my trading, I do not feel like ebbing into this fire. When I see stocks like NEGG +155% while small caps are down by 2% and breadth is 25%, I am immediately reminded of 2014 — a year which will always live in infamy with me. We are seeing the same sort of pin action in 2021 and if we are to follow that path — the NASDAQ should do fine — but the breadth will be narrow and the trading favorites dispatched into hell.

More later.

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MAGICAL MAGIC

I am off to tennis within minutes. It was a hard fought battle for nearly everyone but me. I managed to sashay in and out of several late day trades, sell out of most of my positions, and close the day near session highs +120bps. See pal, that’s who I am and you’re nothing. Good father? FUCK YOU GO HOME AND PLAY WITH YOUR KIDS.

It’s very important that you understand this — I am on the precipice of another grandiose run. It’s gonna be a hot hot summer you fucks.

Ciao.

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