Fed JUST got Rugged

Holy smokes. The Federal Reserve just

got rugpulled by Donald Trump, likely by

Donald Trump. Don't sue me, bro. Uh,

we've got to talk about it. It's a big

deal. In addition to obviously markets

selling off today. Now, I personally was

not expecting a market selloff today. In

fact, on the alpha report this morning,

I said that I was leaning slightly

bearish, at least until we get CPI,

mostly because of the reaction we saw to

Netflix yesterday, which Netflix would

have beat had it not been for a

Brazilian money export tax fee that they

had to pay for basically the last three

and a half years in retrospect or like,

you know, after the fact. So now if you

know if you didn't have that charge

Netflix would have actually be and the

fact that you've got multiple Wall

Street banks downgrading Netflix after

that is who knows maybe an opportunity

to buy it but frankly uh an example that

institutional investors are like no man

take profits everything's too high

everything's too high and they're

looking for every reason to sell and

that's sort of what drove me to be like

all right well that could be a little

bit of a slightly bearish omen so far

that obviously comes in addition to

Trump's uh tariff software released this

morning which we'll talk about. But I

will I will say I'm surprised to see the

Q's now off 1.8%. It's probably because

of the China news which I'll touch on as

well which came out a little bit more

suddenly. Uh but I really want to talk

about Powell and uh briefly I want to

shout out the trade I talked about this

morning in our course member live stream

this morning. I'm like, "Guys, once

Beyond Meat," which we mentioned back

when it was a $60 million market cap

company, penny stock, like 50 cent

stock, we're like, "Oh, man. This has

mean potential. Freaking thing

skyrockets to like $7." This morning in

the course member live stream, you know,

in the Me Kevin membership, you get

lifetime access to. I'm like, "Guys,

it's on the homepage of CNBC. You know

what that means, right?" Like, you know,

$6 to 8 is probably the top for this

sucker. It's at $7. It's on the homepage

of CNBC. I'm getting Market Watch

notifications on it. is probably at the

top. And even if it's not at the top,

everybody's going to leave Open Door and

flock to it. Uh but be careful because

it's probably at the top. That was in

our alpha report this morning. And dude,

the thing tanks at the open. Absolutely

tanks. The thing was up at like $7. Now

it's down at $3.90 as we're recording

this. And Open Door sells off 8%. Uh and

you've still got another 8.7% sell off

on MP material. Now, all of those are

momentum examples. And so, you have to

remember that yes, there is a

fundamental argument for MP material,

but is a five-year argument. Somebody in

the course member live stream this

morning, you know, they use coupon code

Schumer Siesta and they join, they got

their lifetime access before the price

goes up. They're like, Kevin, when do I

fundamentally buy MP material? I go,

when all the traders are gone. when all

the short-termers because Trump took an

equity stake are gone and people are

trading MP material on its fundamentals

which are basically nothing. They only

just stopped exporting their minerals to

China to gain revenues. So now they lost

all of their sources of revenue. Now of

course they made a deal with Apple and

they're getting pre-commitment revenues,

but those aren't actual revenues yet.

They're going to be pre-earned revenues.

So you you basically have this liability

of deferred revenues. You don't actually

have revenues yet because you can't

fulfill the service yet. Anyway, you got

to get the traders out. That's that's

the whole point of that. But anyway,

what the heck with the Powell rug this

morning? Dude, listen to this. Nick T

had a whole piece this morning. He's

like, "Hey, remember at the end of

August how Mr. Waller over at the

Federal Reserve is like, "Yeah, don't

worry guys. We have a lot of data.

Nobody has I don't know why he sounds

like Trump now. We have a lot of data

and nobody has more data than we do. Uh,

in fact, we use this this private

release of weekly employment data. And I

remember making a video. I'M LIKE, DAMN,

DUDE. I WISH WE had that. We only get

the ADP data report once a month. The

Fed gets it once a week. Damn, bro.

That's nice, man. I wish I had that kind

of data. That's not really fair. BUT ALL

RIGHT. ALL RIGHT. YOU GUYS GOT THE DATA.

MAYBE THAT'S WHY YOU'RE pivoting to

become dovish. Maybe that's why the

10-year Treasury yield is falling and

why mortgage rates are going down

because you own goldish. OKAY, GUESS

WHAT HAPPENED? APPARENTLY, this is my

guess, the Trump administration heard

about it. And when they heard about it,

they're like, "Oh, hell no. We shut down

the government to keep this jobs data

away from the Fed. ADP's giving the data

to the Fed on a weekly basis. Oh, hell

no." And all of a sudden, poof, the ADP

is no longer reporting weekly jobs data

to the Fed. We're not talking about

weekly claims data. We're talking about

that private weekly data that nobody got

with the Fed. Poof, gone. And so people

are like, "Oh, is it A MISTAKE? JEROME

POW, COME ON OVER HERE, JACK. Jerome

Powell can't hit some ADP." THEY'RE

LIKE, "YO, UH, WILL THE GOVERNMENT SHUT

DOWN ESPECIALLY? Pretty please could we

pretty please please have that weekly

ADP data back?" And AP's like, "Nah,

bro. We ain't doing that anymore." And

so that's leading a lot of people to go,

"Why? Why wouldn't they do that, folks?

It's obvious the whole private sector is

rigged right now to get on the knees.

You got to get on the knees and you got

to do your business for Donnie T because

guess what happens if all of a sudden,

you know, some company like Fizer, you

know, whom Donald Trump is doing

everything to uh rub elbows with right

now? How many employees does Fizer have?

Well, I don't know. We could do a quick

Google on it. Fiser has 81,000

employees. Guess what payroll processor

they have? ADP. Guess what happens if

ADP or Fizer goes, you know, we like

Trump so much, we're going to go to a

different payroll processor. Dude, ADP

starts losing lots of money. [laughter]

So, not saying definitely that's what's

happening, but it's likely that's what's

going on. Donald Trump wants the Fed rug

because he doesn't want the actual bad

data out. And it should be scary for

you. Now, [snorts] it's weird because

before this market started selling off,

I actually sent a uh buy and sell alert

to my course members this morning. And

again, this is not only where I issue

sell alerts on my top or buy alerts on

my top 10 stocks to buy for the next,

you know, 10 years, but I also issue

some when if there's like cash raise or,

you know, a cash raise that I'm doing or

whatever. I'm like, hey, this is what

I'm selling for whatever reason. And

this morning I sold two particular

stocks uh and sold net a lot more like

20x more of a sell than I bought of my

our number seven top 10 stock to buy

over the next 10 years which we just

announced today.

>> So that's kind of exciting. What's up

buddy?

>> You tell me what a song that is.

>> No sun.

So anyway um the look this ADP rugpool

is kind of crazy. Uh what's wild though

is in addition to this ADP rugpole, in

addition to uh this this you know what's

it called? This Chinese uh software

export rules regulation uh where

basically Reuters is leaking that we now

have information on what the export

controls are going to look like and

people are like why is this happening?

It's leverage. It's people trying to get

leverage for for you know negotiating

with Xiinping which Donald Trump thinks

he's going to get a great trade deal. I

don't know that he actually will. Uh did

I finish saying what I was going to say?

Anyway, join the Mev membership and you

can get all those alerts too. I think

that's all I wanted to say and then uh

then uh Jack Pop spawned in. But anyway,

the other thing that was wild this

morning was, and this was sort of a

small note, but there's literally a

company called Athleon Capital Partners

who had a quote unusually concentrated

position in loans of first brands. And

they used an AIdriven platform, aka Chat

GPT, like LLMs, to identify risks. And

what they identified was, yeah, we're

going to buy more first brands loans.

And they had an unusually high position

of 1.29%, 29% which is still relatively

small but I guess amongst CLLOs's was

the highest position in first brands and

they were bragging about how they use

LLMs. Crazy. So there's that. Uh and

then obviously uh you know the China

news is probably just what has people

nervous this week of course because

remember that's our big catalyst coming

up. We've been talking about that coming

up to October 31st to November 1st.

Probably going to be seeing some clown

catalyst too. But, uh, that's when we're

going to be getting, hey, are we going

to get a deal with China? So far, my

guess is no. On top of THE FED RUN, MAN,

I DON'T KNOW. I DON'T KNOW WHAT'S GOING

ON, MAN. BUT, I'LL tell you, dude, the

alpha report freaking killed it this

morning. Bearish on beyond me, it tanks.

Bearish on open, it tanks. Buy, sell,

alarm with like a 20x sell compared to

buy this morning. And then all of a

sudden, the market walks off a cliff and

MP sells off another 8%. And coreweave,

which I went bearish on when it lost

137, also falls off a cliff by 7%.