More Good Stuff From Nina on Cannabis
Position: None
Still Adding to Cannabis Holdings
Once again, as you can see from the tweets I have published in my Diary, today’s news is yet another procedural setback.
Fortunately the judge has given the DEA only one week (on ten pages) to respond.
I continue to add to cannabis — with concentration of $MSOS and $GTBIF.
Position: Long MSOS common (VL) and calls (S), GTBIF (S)
Varrell on Cannabis
Position: None
Howling About Sticky Inflation
Wolf Street howls about persistent inflation.
Position: None
Another Delay
Another week delay in the cannabis rescheduling process:
Position: None
Earnings Calendar for Before the Open Thursday
Position: None
What My Gnome Is Hearing
* The Bull Market movie is in reverse today…
“Buyers live higher and sellers live lower.”
– Kass Diary
As I have mentioned market structure has changed meaningfully in the last decade.
Passives (ETFs) control float and the Pods (at multi-strategy Hedge Funds) control the marginal price.
That said, high above the Alps my Gnome is hearing that several large Pods have blown up and have been liquidating today — especially in high-beta and high-yield positions. (That is partly the reason for my covers in private equity, Nvidia ($NVDA) and CoreWeave ($CRWV).)
This, in turn, causes (passive) outflows, which forces passives (at the margin) to sell (their overowned and overweighted names).
Thus, today’s market schmeissing.
We learned from the Leopold (Situational Unawareness) and by past occurrences that forced selling often makes a bottom.
However, today’s selling, by multiple Pods seems less likely to produce a “V” type reaction/recovery.
Position: None
No Broadening
“Investment vision is always 20/20 when viewed from the rear view mirror.”
– Warren Buffett
$IWM is -$5 today at $271.50 and down from a recent high of $305.
So when the panelists talk about a broadening market, turn off your television and do some research.
Position: None
More Short Covers
I am covering my private equity shorts:
* $BX $106.31
* $APO $113.17
* $KKR $84.92
Position: None
