The Stupidity Continues

When I was walking my dog earlier I thought about a great thing.

“Why don’t I just buy 20 stocks and lever up in an effort to book micro gains and go green for the session?”

After picking up shit for two moronic life forms, I went to work at my “turret.” I had a grande time, shifting from one stock to the next. About an hour or two in and my plan was working. I had reduced my 1.75% loss to just 20bps and it stood there staring at me for an hour. Meanwhile, I was trading really fast, in and out — micro gains. I took 0.3% here and 0.9% there. On occasion I booked a monster winner for 3%. And then it happened. I went green. I stared at it like a proud father presiding over his son’s college graduation, a little teary eyed.

Did I in fact crack some sort of autistic code to assured gains?

Answer: no

It took all but one minute for me to stumble into catastrophe, bogged down in KOSS for 8%, as the short squeeze meme stocks laddered lower. I then decided to remove my margin and raise cash to 22% and call it quits.

In total, I booked about 150 trades and am exactly where I started the day, -100bps.

At the same time, my YOLO account, which takes 1 trade per day, is up 145bps.

Early going I was entreated to 55bps of gains which quickly fell into quicksand, sending me plunging lower by 95bps. I didn’t take notice of why — just knew I needed to sell. So I did. I sold and then scanned for NEW IDEAS. I scanned quickly and saw commodity related stocks breaking out — so I bought. I quickly flipped 5 of them for gains, but then we legged lower and I was right where I started, -95bps.

So then I worked real hard and scanned some more and bought some more — flipped numerous stocks for losses — since the commodity trade lost steam. I was down 100bps, right where I started. So then I figured something was wrong, might as well buy some old man stocks and get defensive, so I did. I bought them, but then I figured I should enliven it up with some trading stocks. I sold those for losses shortly after buying.

I was down 140bps.

Then I worked real hard again and bought stocks — because they were heading up.

I just sold those too for 1-3% losses.

I am now down 175bps, still stuck with my going nowhere old man stocks.

Meanwhile, GE and F are both PINNED at the highs.

I extricated myself from a potentially ruinous trade, long MVIS at 20% of holdings for a stout loss of 4.5% x 4. This removed 100bps of gains from my portfolio and I am certain it can now run freely without me. The idea of losing money in a short squeeze stock on a day when short squeeze stocks run was something that caught me off guard. The old stubborn Fly would’ve kept it out spite, only to be forced to sell later for an even deeper loss.

I managed my day like the space alien magician that I am (SAM) for a gain of +110bps. The gains could’ve been greater and should’ve been +300bps — but I got in the way of a melt up, something that is rare but happens to us all.

Into tomorrow’s light, I am 118% levered long, without a care in the world, up nearly 190% YTD.

Value investors beat the fuck out today, as the GME-AMC cabal spreads its roots to virtually all high beta, heavily short stocks. See BBBY and EH as examples.

I should be up 300bps today, but instead decided to FUCK MYSELF via a 4x sized position in something I had gains in earlier, only to watch it slip lower. Picks are for SL members only, so sorry. We will launch it soon.

I should extricate myself from this trade — because it’s toxic to the mind. Instead of hunting for ideas — psychologically I am banking on it to reverse. It will not and I am almost certain it will lead to even further losses. When something is down when it shouldn’t be down — it lost momentum and should be discarded. As a rule of thumb, I regularly closeout stocks down 2% or more intra-day in order to make room for new ideas. I run and operate a stock trading mill, from which I produce extravagant returns.

I will have more on this later. For now, I am +45bps.

We are looking at heavily shorted stocks to squeeze the faces and heads of those attempting to profit from wanton declines in share prices. Dare I say, if you’re still short high beta stocks now, after a 50% drop, you are in fact too greedy and deserving of severe punishment.

The entire market is fixed on GME and AMC tripping higher; but there are many other names worth looking at too. I have in my portfolio several worth buying, all degenerate and low brow, but heavily shorted. When a stock is heavily shorted, the natural buyers are more or less fixed, but the short squeezers come in like a wave of sharks to bite off arms and legs — rampage thought the market — using short sellers as the tinder to heat stocks up and burn them higher.

The flames are indeed rising and my May bounce is looking like it’s happening, with all of the gains concentrated in small cap stocks. This is, however, the final salvo — so enjoy it while it lasts.

Top ideas: MVIS, CLVR, AI, NKLA

Fuck this shit. I am out.

Ciao.

Fast markets are a boon for day trading, providing liquidity and alpha enough to make a fine living. But this sort of rancid 0.1% intra-day swings is almost too much to bear. It might be time to pack it in and sojourn into a marsh for the balance of the summer, counting frogs and crickets while down warm gin from the bottle.

I am flat for the session, +200bps in YOLO because of my one trade deal, and up 60bps in my Quant. I just caught some daylight in GME and KOSS and booked those gains, erasing a 70bps deficit. If not for these short squeeze plays, I’d be among the dead, resting peacefully or quietly in the graveyard.

Presently, the short squeezes are the only ideas worth pursuing. I am talking about GME, AMC, KOSS, MVIS, VLDR, GDRX, ACB and a slew of Chinese names.

They always say never to short a dull market and I don’t intend to. But it sure it hard trading it.

You think I’m fucking with you. I am not fucking with you. Inflation is a fiction made up on Twitter and in the grocery aisles of America. I can go out there today and buy a television for the same price I could in 1985. Having said that, there is no doubt we are in the midst of a transitory spate of rapid inflation, only caused by the stimulus checks provided to easy spenders (poor) around the world. Once it abates and the specter of universal income dwindles, commodities will revert back to their mean.

We see the 10yr treasury now in the 1.5s and no one is looking at it — but I am. Because if inflation isn’t a problem then the Fed won’t need to taper. If the Fed doesn’t taper, then we’re off to the races, or at least I’d like to believe that.

I slept in today, being that it is my birthday, and it cost me 200bps in gains. I am now down 90bps and I’m afraid I will not be able to trade out from it, lest I really turn up the amperage and pick wisely. Honestly, I just don’t feel up to it.

Markets look flaccid, fat, and slow. I’m 35% cash, betting against oil, overlooking the spectacle but finding nothing I like at the moment.

I gained +121 bps today in an easy sunny side up sort of trading day. I do not think the market is set to rip higher, I know it is. With that said, I am 100% long and betting on Cathie Wood’s ability to summon God to favour the bulls.

Over in crypto land, Elon Musk tweeted some bullshit about environmentally friendly ways to mine for BTC. All bullshit, but the crypto-tards love it and the bounce we had this morning is now accelerating to the upside with a red hot fever.

This is all stupid transitory soap opera bullshit of course. But it’s the job I am tasked to do, the career I’ve chosen for myself.

Alas amongst a pastiche of great holdings, I expect to rip to my annual highs this week and without much effort. I just turned positive for the month, up a whole 1.1% for May. Tomorrow being my birthday, I’d expect nothing less than a cathartic day to be granted to me from the Gods.

Over the past two weeks I’ve been experimenting with an account of mine which was idle. It was in cash because I didn’t like the former stratagem — long term cap growth. Literally a waste of time in this tape. So I put the Stocklabs Intelligence algorithms to work via purchase of one ETF per day. I go all in and more, up to 200% leveraged, into one single ETF and sell it win, lose or draw the next morning.

If I buy towards end of session, it’s a lot less risker than you’d imagine. After all, it’s an ETF and also the holding period if literally less than an hour in most cases. Thus far, I am pleased with the results, hitting on 10 of the past 12 trades (that’s all of the trades). Today, for example, I just went all in on ARKW — Cathie and her band of religious zealots marauding through Wall Street buying up everyone’s sloppy seconds.

I have three principle investment stratagems now.

1. Quant (monthly rebalanced strategy based around SL algos, using both fundies and tech)
2. Trading (mostly day trade rippers)
3. YOLO

My results

My returns are higher than yours, not because of luck or happenstance — but because I am better. Perhaps there are better traders than me out there. I certainly haven’t met them yet. This goes without saying, obviously, that you’re wasting your time attempting to fish on your own. It’s best to leave it to the professionals, men of stature who’ve been through the crucible and fought the fires and have the burn markets to show for it.