Weak Week…

I like this from Seth Godin heading into the long weekend.

Doom is inevitable.

Gloom is optional.

Gloom has no positive effects on ameliorating doom.

Doom happens. Gloom is a choice.

My elastic instincts from yesterday were right. The stock opened at $70 . Another big win for Amsterdam. Another big win for Benchmark and venture capital.

The wins were few this week.

The markets really got weak at the end of the week. I blame it all on people being too busy making podcasts.

Many of my stocks took a beating. Anything emerging markets have been slaughtered. It is why I consider my exposure to them through $MMYT, $SCIF, $NOAH and Tencent as VENTURE capital. I position size them accordingly because they can drop 50-70 percent.

I was surprised to see Elon Musk tweeting away at the SEC this week. Technically it is a horrible sign that Tesla stock closed below last Friday’s close.

I talked with a lot of smart investors and traders about the Musk settlement this week. My takeaway is the SEC did an ok job basically calling Elon Musk a stock promoter and settling with a fine. The SEC has now seriously warned the public. Based on the close Friday, the public got the message.

I don’t think much about short selling and shortsellers. It goes with my overall view of markets…they are rigged.

Most of my time and money is invested in early stage companies.

As Musk complains about shortsellers, Josh Brown had the tweet of the week:

You know who loves short-sellers? Companies that beat expectations.

Short-sellers are guaranteed, forced buyers in the future.

Josh also reminded me of Reed Hastings (Netflix CEO) now famous blog post from 2010, respectfully explaining to his short-selling detractors why they’re about to get murdered.

The stock is up 1,300% since then.

Charts that stood out at the end of the week?

The first is from my friend Charlie showing the huge divergence between Chinese and US Internet company stock prices. I think that gap narrows in the next 6 months> The question is do US internet stocks implode and play catch up to the downside or do Chinese stocks close the gap and recover a bit.

US Small cap stocks gave back all their gains going back to May and hit the 200 day moving average.

Emerging Markets have entered bear territory.

US rates are breaking out to the upside…again.

Should be an interesting short trading week starting Tuesday.

Have a great long weekend.


Also published on Medium.