1/x As we’ve been calling for since Nov, today we finally got our 2 ‘Georgia Peaches’🍑 precisely on schedule, as we’ve called for since Aug, & the underlying rotation has confirmed now for months, this matters. This is a historic turning point. It matters not only https://t.co/BFxKGrI1Oo

1/x Vanna is back & ready to turn back on the charm! Overnight the market hit our weeklong target of **3705 and pulled back... We were able to take profits & play for a bit of morning digestion. It’s been a nice +3.5% in a week w/a few extra scalps along the way...But the best

2/x part has been the gift of Vol compression, which along w/ short Vol profits, has given us significant calendar expansion & dispersion opps, as predicted. I expect this to continue this week as well, as Ivol oversupply should continue to be the dominant force until 12/11.This,

3/x paired w/ the significantly increasing Vanna & Charm flows, will make it hard for any decline until 12/14 to catch meaningful momentum. This said, the narrowing of 20 day RVol as well as the 2 stddev of the 20 day just overhead should cap any rallies, given the dramatically

4/x overextended retail (8-day SMA of P/C equity is the lowest in 20 years) & institutional positioning. This push/pull, should ultimately keep the market fairly pinned this week...Jan 8th call’s on back are incredibly cheap w/ a GA runoff event straddle of only $55, which given

5/x the potential macro-cyclical consequences of the next 2 years of fiscal stimulus seems absurd...& In terms of a more short term trade,Tesla Vol is either too high or 12/18 on back calendar spreads in the SPX are too low, as there’s no premium being priced in for the inclusion

4/x keepers are calling in the Fed(s) (Fed/sec) for some help getting the animals back under control, so they can feed Gary & get the zoo back under control. As they are likely giving guidance to the brokers to get this under control, as every major retail broker seems to be

5/x restricting trading in the short squeeze names to closing only. The Wheel of Fortune has a taping on Fri & w/out Gary at his best the show will be overrun by the animals. If they can make it to the EOM & keep Gary above the 20 day, calm him down & start feeding him,vanna will

6/x be back & should be able to nurse him back to his usual self & save the show. But there’s a lot of time between now & then & holding the animals @ bay until then seems like a colossal task. Given the pop in Ivols & backwardation of the curve, when vanna gets back she will be

7/x refreshed & in preelection form. The only question is will the animals be so out of control so as to not even be managed by Vanna in her best shape.. This decline fits into a narrative that I’ve had brewing for 4 months, that after a monster run since Sep this is a healthy &

8/x reasonable time to expect the animals to be tired of being caged up & want to blow off some steam. All the biggest wall of worry narratives have been solved 1 by 1. Sentiment & bullish positioning was at all time highs. Hedging activity was low. Breadth was deteriorating. W/

1/x The market continues to try & shake out weak hands from overextended positioning by both HF & Retail...After a strong Vanna run up overnight, as expected, retail exuberance exploded on the open in the form of retail call buying, this fragility, paired w/a)Mean reverting flows

2/x from pinned Index Vol b) well documented, risk parity rebalancing flows & c) selling flows tied to bank EOY liquidity constraints. In combination, these flows have together have amounted to substantive selling pressures, strong enough to counteract the positive vanna/ charm

3/x flows, & point to continued likely index RVol an IVol pinning...Historically, the week of quarterly OpEx markets are notoriously volatile intraday, but also mean reverting like we saw today. I think it is fair to expect continued IVol compression & more of the same underlying

4/x chop. Vanna/Charm flows will lose their oomph after Wed 12/16 vixperation morning. There’s a window of weakness which I’ve spoken to for a month that falls 12/16-12/23. That could open a brief window that could lead to revaluation of the real risk & short interest,post 1/6...

5/x but the overwhelming 10k 🦍 of index Vol compression should still hold any correction in time & price in check in the shortterm and it’ll be hard to have anything blow up too bad in SPX land given how cheap & abundant Xmas Vol is 12/23-12/24. NTM, a stim deal & potential Fed

1/x ‘Twas the night before Christmas & all through the market not an order was stirring not even for $TGT.
The bonuses were entered into payroll with care,
In hopes that next year would bring a similar fare;
The Bulls were nestled all snug in their beds;

2/x While visions of $TSLA danced in their heads;
& Biden in his Covid mask, & Powell with his still flowing money tap,
Had just settled their brains for a long winter's nap,
When out on the screen there arose such a clatter,
All sprang from their beds to see what was the matter.

3/x Away to their monitors they flew like a flash,
Tore open their Bloombergs & threw up the dash(board).
The S. Claus rally in markets, that all of us know,
Paired w/vaccine reopening, Gave a bid to the market, leaving old prices below,
When what to their wondering👀 did appear?

4/x But a Georgia runoff rushing up to them with complacency, not fear...
With once reliable Vanna flows no longer lively & quick,
They knew in a moment the markets might get quite sick...
Unexpected, 2 Georgia Dem peaches into Congress they came,

5/x Whistling & shouting they called for more fiscal, ‘CARES Too’ its new name:
"Now, Healthcare! Now, Infrastructure! Now Green Energy & Protectionism!
On, Labor rights! on, Minimum Wage! on, Basic Income & Populism!
To middle class households, To the poorest of them all!

@cain_nate My friend Nate Cain and I have worked hundreds of hours with various politicians and legal groups trying to explain the election laws and how they fit together. There are many misperceptions of what happened during this election and what it means.

Simply put, our election laws are an intricate tapestry designed to ensure accuracy and prevent fraud. They work together like parts of a car. But when certain parts fail, the car is just a hunk of scrap iron and plastic. In this case critical parts failed.
2/

You do not have to prove fraud or intent, you just have to show that the election officials were unable to conduct an election that met the law and relevant certification requirements. In this case, the election does not come close to meeting accuracy requirements.
3/

These specifications are found deep in laws like FISMA, HAVA, and state adoptions of EAC guidance. 1 ballot error out of 125,000 or 1 position read error out of 500,000. Just look at the discrepancies between incoming ballot counts and total votes, the system fails.
4/

It is worse in the the swing states in Democrat strongholds but it is bad in many places. You add the apparent losses of ballots through the Mail and error rates in the ‘system’ are staggering. Why do we have these rules? Sure it is to prevent fraud, but......
5/

Thread Pt 3 Who is Prometheus?

1. In Greek mythology, Prometheus, is a Titan of fire. Prometheus is a culture hero & trickster figure who is credited with the creation of humanity from clay, and who defies the gods by stealing fire and giving it to humanity as civilization.

There's a particular kind of romantic partnership, with a certain sort of person, that I've wanted since I became a self-aware, directed agent at around age 15.

Empirically, this kind of relationship has been hard to achieve. It hasn't worked out yet, at least.

And this sometimes leaves me wondering if my standards are unreasonable.

In years past that desire was often very alive.

These days, I'm rarely directly or viscerally in contact with it.

I sometimes contemplate aiming for some other kind of romantic and/or sexual relationship instead. In part because I might be more effective if I...I don't know, got laid more? But that's not really the thing. More like, if I had someone around whom I could regularly relax.

But mostly, I don't pursue those alternative relationship-setups out of a sense of something like loyalty to myself + a vague sense of wrongness and/or sadness about it. It often feels like giving up or giving in.

[I might elaborate on the wrongness sometime.]

My view on lent:

My biggest problem with lent is the public display of fasting which is contrary to scripture: Matthew 6:16-18

Just as well, overhearing discussions of humble brags, “oh man, this is so hard fasting from x” while displaying ashes on one’s forehead seems overtly contrary to scripture. Again, Matthew 6:16-18 is clear.

Additionally it has been my experience that repentance and fasting lose much of their substance for those practicing the tradition.

However....

We cannot oversimplify and call lent a “Roman Catholic invention” or a “pagan” practice given its presence, minimally the term, in the early church with people like Athanasius.

In the modern conception: Advent is to Christmas what lent is to Easter. While asceticism is removed and shallow tradition enters into the practice, this can happen in most everything.