FU Friday – Team Trump Gives Themselves Billions in Tax Cuts, Gives You $1,182

Related imageF**k the poor.  

F**k the middle class.  After failing to take away your health care, Team Trump has unveiled its latest scheme to destroy the bottom 90% of Americans by rolling out a tax plan that is so ridiculously unfair that they are trying to get it voted on before it can be scored – like they did with their health care bill – because this monstrosity would never stand up to scrutiny over time

Corporate tax rates are dropping from 35% to 20% but, on top of that companies can now deduct ALL the costs of purchasing new equipment and money made overseas is now taxed at just 12%.  By the way, PSW is officially moving to the Bahamas, which have no Corporate Taxes and we'll be bringing the money back to the US at the 12% rate so screw you 20% – that's too much for us!  Gosh that was hard to avoid, wasn't it.  Because we're moving to the Bahamas, I will need a private jet to fly back and forth – good thing that's fully deductible too – guess I won't start paying that 8% until the Government is done paying for my plane and, by "the Government" – I mean you suckers who think Trump is trying to help you – GOD you people are dumb!  

Image result for trump cabinet billionairesTrump's cabinet includes Billionaires Betsy DeVos and, of course, Jared Kushner, who is currently curing cancer on his way to broker a peace treaty in the Middle East and Wilbur Ross and Gary Cohn are also Billionaires while Cordish, Mnuchin, Tillerson and Liddle are all in the $100-300M range.  Even Keelyane Conway, for some reason, has $45M and James Mattis has $10.5M, Jeff Sessions $10M…  General John Kelly is the poorest guy in the room with only half a million to his name – no wonder he is so angry!

The President and his cabinet have $17Bn, which is more money than the bottom 100M Americans have, combined.  They earn roughly $1.3Bn a year, mostly through corporate entities and partnerships and these tax cuts will save them over $200M a year but the real bonus is eliminating the Estate Tax, which will save them about $7Bn and,
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Thursday Thoughts – Powell to Head Fed, Tesla Crashes and Burns $1.4Bn

$1,400,000,000. 

That's a lot of money to burn through in a single quarter – especially in a quarter where not only were just 260 Model 3s actually delivered by Tesal (TSLA) but they have now pushed back full-scale production targets through March, so 2 more lost quarters ahead, with Q4 losses now estimated at an even $1Bn. 

This can only mean one thing – Morgan Stanley will be ugrading TSLA any moment!  That's what usually happens when one of their leading underwriters has to defend the company's poor ACTUAL earnings.  Just a month ago, Nomura gave them a $500 price target – these analysts truly have no shame (or common sense!).  Our take on Tesla has been somewhat more negative (see February's "Tesla’s Emperor Musk Has No Clothes!" or May's "Tesla’s Earnings Miss – Emperor Musk has no Clothes!" or "Tuesday Turmoil – Tesla Valuation Reaches Peak Insanity") and, though we were often early, our Tesla shorts have all wound up being successful, so far.

On Tuesday, right here in the Morning Report (which you'd be foolish not to subscribe to HERE), our Trade Idea for this earnings period was:

  • Sell 6 TSLA April $350 calls for $23 ($13,800)
  • Buy 6 TSLA April $370 puts for $65 ($39,000)
  • Sell 6 TSLA April $320 puts for $34 ($20,400) 

That nets you into the $30,000 short position for $4,800 with a $25,200 (525%) upside potential if TSLA is below the current price of $320 in April.  It's a lot of margin ($15,465 ordinary margin) and a lot of risk – if TSLA gets back to $380, you will have to pay the short caller $18,000 but we'd roll them along to higher, longer months.  Of course, if TSLA does well then maybe our oil play does well (more electric cars) and that one we can make $2Bn on!  

With TSLA tumbling to test the $300 line this morning, we'll probably be good for 200% gains ($10,000) in just 48 hours – not bad for a free pick, right?  In yesterday's morning Report, we called…
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Wednesday Run-Up, Will This Rally Never End?

Image result for superman stock marketUp, up and away!  

It’s Super Market!  Strange index from another reality, who ignores bad news and achieves p/e multiples far beyond those of rational markets. Super Market, who can break resistance on low volume, move higher without consolidation and who – disguised as a genuine Price Discovery Mechanism, an actual indicator of the true-value of listed companies – Instead fights a never-ending battle with rational thinking and negative data because, in America, the market is only allowed to go one way!  

Ths morning, global markets are following the Nikkei higher as Abe was re-elected and the Nikkei popped 1.6% – as if it were some kind of surprise – even though Abe's party just clinched a 2/3 majority in Parliament 2 weeks ago so who didn't know he'd be re-elected too?  Apparently 1.6% of the Nikkei's worth of people is the correct answer.  Any excuse, of course, is a good excuse to rally the markets these days.  There was a terrorist attack in NYC yesterday with 8 people killed and 16 wounded and the markets still rallied into the close – just before Wall Street traders had to step over the bodies on the way home from work.  

Silver and gold blasted higher, allowing us to close out our long Silver (/SI) Trade Idea from last week's Live Trading Webinar with a lovely $6,490 gain and it's a good thing we weren't greedy as my call this morning (6:26) in our Live Member Chat Room was:

Good pop on /SI, $17.03 – taking profits there as it partly makes up for /RB losses.

Silver has since dropped back a bit, to $16.96 but Gasoline (/RB) is persistantly annoying at $1.755 and we're in at an average of $1.729 on our shorts so a loss of $1,092 per contract at the momnent ($420 per penny).  We'll have to see how the EIA report goes at 10:30 but the API Report last night showed a huge 7.69Mb draw in Gasoline, which is ridiculous as it would indicate a 15% jump in gasoline demand in a week –…
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