SmallGains (@small_gains) header
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Joined April 2021
SmallGains retweeted
Pokemon in the hood Made with @higgsfield
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SmallGains retweeted
New episode recorded yesterday with @WarrenPies ! His base case was a blue tsunami so this conversation aged very well. Enjoy youtu.be/5aqAPkNvslg?si=r93i…
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SmallGains retweeted
Ignore the consensus opinion on midterm seasonality for now. “Bluenami” is not an immediate buy. Excerpt from 10/26 @3F_Research report…
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SmallGains retweeted
In case you haven’t put it together yet the plan that was “insane” we now know thanks to Tucker- is to use a nuke in a war of aggression, entirely unprovoked. But he had a stroke so…
BREAKING: US Senator Chris Murphy hospitalized following a stroke, per his office. This comes just days after being briefed on highly classified military planning on Iran to restart the war after the midterms, where he called Trump's plan "insane." "I will just say this: their plan is insane. It will lead to devastating escalation and the likely destruction of our commitment to the rule of law," he said four days ago.
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Under pressure from Israeli prime minister Benjamin Netanyahu, the Trump administration may be within days of launching a nuclear strike on Iran. The target would be Pickax Mountain in central Iran, where Israeli intelligence claims the Iranian government has restarted its nuclear enrichment program. No conventional weapon in the American arsenal can penetrate 300 feet of solid granite to destroy the tunnels where enrichment is supposedly taking place. The only military option is a nuclear strike. Netanyahu has been pushing hard for one. “Bibi calls Trump about it every day,” says an informed observer. Netanyahu is cornered and desperate. After last week’s election results, he can’t form a government unless Trump intervenes directly in Israeli politics and brokers a deal with other parties that gives Netanyahu 61 seats in the Knesset. Otherwise, he is out as prime minister and on his way to ignominy, investigations and possibly jail. Netanyahu must stay close to Trump. He needs this war. To that end, he’s applied maximum pressure to his closest allies in the administration, including Secretary of Defense Pete Hegseth and CENTCOM commander Brad Cooper. Both oppose a negotiated settlement to the war they’ve so grievously mismanaged; both are pushing to restart major combat operations. Secretary of State Marco Rubio and CIA director John Ratcliffe are also following Netanyahu’s lead, as are leaders of the Democratic Party. In a recent meeting on the subject, former president Barack Obama said he opposes the current Iran peace deal being drafted in Doha. The rest of America’s longtime allies in the Middle East are terrified by the prospect of more war. On September 27th, Netanyahu flew secretly to Abu Dhabi to enlist the UAE in his lobbying effort for a final attack on Iran. The Emiratis refused. After eight months of conflict, Gulf economies are teetering. So are global energy and fertilizer markets. They won’t recover soon. Globally, there are a total of about 850 supertankers used to transport oil from producers to the rest of the world. In October alone, 11 of them were badly damaged in Hormuz. At this pace, a global depression is imminent. A nuclear strike would radically accelerate the destruction. Fallout from a ground explosion at Pickax Mountain would contaminate the Persian Gulf, poisoning the water supply for 100 million people. And those are just some of the immediate consequences for the region. The rest of the world is every bit as exposed. No country other than the United States has ever used a nuclear weapon in war. Some would like to. An American nuclear attack on Iran would set a new precedent. The Russians have already told at least two other governments that an American nuclear strike on Iran would free them to use nuclear weapons against Ukraine. Pakistan and India would be tempted to do the same against each other, as would North Korea against Seoul. After the first nuclear strike, World War Three is inevitable. That war would be short and final. We’ve been sleepwalking toward this moment for months. Since February, the administration has quietly rewritten America’s nuclear doctrine to make first use of so-called “battlefield nukes” easier and therefore more likely. No one in Washington in either party seems bothered by this. Now we’re on the brink of it. Close observers say Trump is likely to decide by next weekend whether or not to use nuclear weapons. That would be November 7, six days from now. To his credit, he’s hesitating. At the moment, Trump is listening to his vice president, JD Vance, and to his envoy and friend Steve Witkoff, both of whom argue a deal with Iran can be made. They’re right, though it won’t be simple. The Iranians are famously frustrating to negotiate with under any circumstances, and elements of that government have become more radical since Ayatollah Ali Khamenei and his family were killed in February. After decades of isolation, even relatively moderate Iranian leaders seem confused by how decisions are made in the West. (There is a widespread belief in Tehran, for example, that the United States government controls Israel.) But overall, people who have spoken to decision-makers in Iran say there is consensus there that more war is bad for everyone and a deal is worth making. One group that hasn’t been consulted so far is the global population — the hundreds of millions of people who will be killed along with their children if Trump is pushed by Netanyahu into launching a nuclear strike next week. Now would be the time for them to speak up.
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SmallGains retweeted
NO CRYING IN THE CASINO
Germany's Chancellor Merz on Iran War: We now have costs exceeding €100 billion for Europe alone over the last eight months, solely because of the increase in energy prices caused by this conflict. More than €100 billion extra has been paid by businesses and consumers in Europe because energy has become more expensive as a result of this conflict. We have an economic interest in bringing this conflict to an end as quickly as possible.
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SmallGains retweeted
have a good weekend
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New report out to 3FR clients. Examining: -Why we reduced equity exposure this week. -How to resolve bearish technicals and bullish fundamentals. -Why tech's relationship with the inflation story has become a macro risk.
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SmallGains retweeted
this is frying me dude. guy got turned into a nugget at 20 by a flying toy & theyre gonna let him use his chin to turn other teenagers into nuggets and ABC is running it as a feel good story. right when u think its done boom pan to his nazi patch collection. satire genius. dying
Ukrainian veteran Ruslan Knysh is just 20 years old. Still, he continues to defend his country after losing both arms and legs in a Russian drone attack. Today, he is training to become a drone pilot by using a customized chin controller to operate unmanned ground vehicles. abcnews.link/H2WKOYt
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SmallGains retweeted
Three things I don't love about the current market set up: 1) Hyperscaler credit spreads have broken above their July (Leopold Liquidation) wides (chart below). 2) Index momentum has stalled and entered a consolidation. 3) Financials/Staples ratio falling apart.
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SmallGains retweeted
I'm shocked that The Economist was willing to publish this!
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Ukrainian MP confirms that 2023 peace plan, which was reported by @FT & accepted by Putin but rejected by Zelensky & Biden administration, envisioned: "- Russia withdraws its troops from most of the four oblasts it had just declared “annexed.” - The new line of demarcation runs roughly along the line as of February 24, 2022: Crimea and the part of Donbas that Russia controlled before the full-scale invasion. - Ukraine recognizes Russian control over Crimea. - Ukraine grants Russia an unobstructed land corridor to Crimea. - The ceasefire regime is guaranteed by NATO countries that provide protection for Ukraine. - Russia begins negotiations with the US on its own security guarantees. -Moreover, Russia was ready to give up the Zaporizhzhia Nuclear Power Plant as well. -And the 300 billion in frozen assets was to go toward rebuilding all of Ukraine, that is, together with the occupied territories. -As for Crimea: we were not required to recognize it as Russian, only to recognize Russia’s control over it. In other words, we acknowledge that right now it is under Russian control (which is how it is). We were also required to adopt a law banning the return of Crimea by military means. -The land corridor to Crimea, a highway and a railway, was to be built at Russia’s expense. The hardest question was how to guard it. That is why the Russians were ready to give up Melitopol, but not Tokmak: they feared we would cut the corridor with artillery. -Zelensky rejected this proposal at the time."
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The attempt to stop the war in Ukraine described here corresponds to what is known as Milley’s window of opportunity, after the former chairman of the joint chiefs of staff who said it existed at the end of 2022. In this episode, Putin agrees to withdraw to the 2022 line of separation, which once again proves that he was ready to do so at the time of Istanbul talks. It is Biden’s advisor Jack Sullivan who terminates the effort, which gives an idea as to who in the administration may have helped derail Istanbul talks and who was whispering into Zelensky’s/Yermak’s ear about Russia being collosus on the legs of clay that could be feasibly defeated militarily. These opportunities, squandered at the cost of Ukraine’s suffering extended for another four years, explain the reluctance by many to end the war now. People and governments that were overly invested in illusionary goals will eventually face Ukrainians asking them: What have we been dying for?
At one of the tensest points in Russia's invasion of Ukraine, two Americans teamed up with a former GDR spy to stop nuclear war. They just needed to tell Putin. On the cover of @FTMag this week, one of the most extraordinary stories I've ever reported: ft.com/content/dcb57f30-bbfe…
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I confirm the 2023 peace-treaty plan that was leaked to the FT. What the draft envisaged: - Russia withdraws its troops from most of the four oblasts it had just declared “annexed.” - The new line of demarcation runs roughly along the line as of February 24, 2022: Crimea and the part of Donbas that Russia controlled before the full-scale invasion. - Ukraine recognizes Russian control over Crimea. - Ukraine grants Russia an unobstructed land corridor to Crimea. - The ceasefire regime is guaranteed by NATO countries that provide protection for Ukraine. - Russia begins negotiations with the US on its own security guarantees. From my side, I’ll add a few insider details that few people know about. The plan was discussed NOT ONLY by Rodnyansky: the key figure was ABRAMOVICH. Moreover, Russia was ready to give up the Zaporizhzhia Nuclear Power Plant as well. And the 300 billion in frozen assets was to go toward rebuilding all of Ukraine, that is, together with the occupied territories. As for Crimea: we were not required to recognize it as Russian, only to recognize Russia’s control over it. In other words, we acknowledge that right now it is under Russian control (which is how it is). We were also required to adopt a law banning the return of Crimea by military means. The land corridor to Crimea, a highway and a railway, was to be built at Russia’s expense. The hardest question was how to guard it. That is why the Russians were ready to give up Melitopol, but not Tokmak: they feared we would cut the corridor with artillery. Zelensky rejected this proposal at the time.
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This paragraph from $META's inside 10-q filling may mark the official announcement that the funding environment for the AI buildout has turned the corner. (HT: Barclays' Alexander Altmann)
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Last month, we demonstrated high-rate alchemy: turning mercury into real, stable gold, beating CERN’s record by a factor of 10. Last week, we enriched isotopes in the world’s most powerful plasma centrifuge, beating the Soviet record that stood for 40 years. Now, we’re building a fusion reactor in San Francisco to achieve record power density.
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The macro repricing of energy is now underway. Check out today's move in long dated oil - that's calendar 2027 WTI. When long dated oil moves this strongly in tandem with energy equities making new ATHs, financial markets need to listen. This is not a transient spike in prompt oil. It's far more structural. Get long, buckle your seat belt, and hang on for the ride.
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