I just finished attending my friend Adam Brodsky's funeral and, frankly, I don't have the strength or inclination to write this afternoon.

I will see you all bright and early tomorrow morning.

Enjoy the evening.

Hug your loved ones.

Be safe.

I am continuing to eliminate longs in a market that I view as materially overvalued.

I have sold the balance of my Amazon  (AMZN)  at $220.14 and Meta  (META)  at $740.09 just now.

I spent most of the morning expanding my short exposure.

I will be unavailable (funeral) between noon and 2 PM today.

Here are today's things:

* Reestablished index shorts:

(SPY)  $667.40

(QQQ)  $608.23

* Sold (in the money) Index calls for November and December

* Added back to  (GRNY)  shorts at $25.22. (I covered some yesterday at $24.82 Doug's Daily Diary - TheStreet Pro)

With S&P cash +27 handles I am establishing a short Index call position (November and December monthlies, in the money).

With S&P cash +30 handles I am reestablishing my short Index trading rentals:

*  (SPY)  $670.40

*  (QQQ)  $608.22

I am also thinking about buying Index puts.

Upside:

-VTYX +94% (Phase 2 Study of VTX3232 in Participants with Obesity and Cardiovascular achieved ~80% reduction in hsCRP within the first week)

-QBTS +18% (Trump Administration reportedly in discussion for stakes in US quantum computing companies)

-QUBT +11% (Trump Administration reportedly in discussion for stakes in US quantum computing companies)

-RGTI +11% (Trump Administration reportedly in discussion for stakes in US quantum computing companies)

-LC +10% (earnings, guidance)

-IONQ +9.0% (Trump Administration reportedly in discussion for stakes in US quantum computing companies)

-LVS +6.3% (earnings; announces share buyback)

-AAL +6.0% (earnings, guidance)

-TRU +4.8% (earnings, guidance; announces share buyback)

-CBRE +3.8% (earnings, guidance)

-HON +3.7% (earnings, guidance)

-TPH +3.7% (earnings, guidance)

-AA +3.4% (earnings, guidance)

-FCX +3.1% (earnings, guidance)

-PLUG +3.0% (signs strategic partnership with Edgewood Renewables to support the development and construction of its advanced renewable fuel facility in North Las Vegas, Nevada)

-TMDX +2.9% (Needham Raised TMDX to Buy from Hold, price target: $148)

Downside:

-BYND -20% (SEC Chair Atkins: Suspended trading on 8 NASDAQ securities on suspected ramp and dump schemes; we continue to monitor markets closely when asked specifically about Beyond Meat volatility)

-ITGR -19% (earnings, guidance)

-MOH -19% (earnings, guidance)

-RBBN -14% (earnings, guidance)

-SMCI -8.7% (provides quarterly update; affirms FY26 revenue)

-SMPL -8.3% (earnings, guidance)

-IBM -8.1% (earnings, guidance)

-EGBN -7.1% (earnings)

-PKG -5.3% (earnings, guidance)

-TSCO -4.0% (earnings, guidance)

-TSLA -3.7% (earnings)

-LNN -3.4% (earnings)

-UNH -2.0% (lower in sympathy with MOH)

Talking about the existence of a cockroach is no different than talking about a loss in a stock. 

As a reminder, Ken Griffin has lost more money at Citadel than nearly all other Hedge Funds combined.

He just so happens to have made far more than he lost. 

Credit Returns = Income – Losses (Defaults x Severity).

You can’t just talk about defaults.

"When you see one cockroach, there are probably more."

- Jamie Dimon

The Dimon quote above came in response to private-credit problems that have hit some lenders recently.

I have contended that the problem (far more isolated to non-depositary financials than big money center banks) is a reflection of the "K"-shaped economy.

The schism between the "haves" and the "have nots" and the financial problems than can emerge in less regulated and leveraged non-banking lenders (who serve lower/middle income cohorts) - and rely on wholesale funding (versus deposits) should not be readily dismissed.

When you add relaxed underwriting standards and too much money chasing deals with tariffs and other inconsistent policy changes - credit problems invariably arise.

From my pal Peter Boockvar's The Boock Report this morning: 

First it was Tricolor, then First Brands at the same time CarMax told us of rising auto delinquencies at its financial unit and yesterday we have PrimaLend Capital Partners that filed for bankruptcy. On their website it says “For 15 years, PrimaLend has been helping dealerships break through into the ‘big leagues’ by providing strategic lending solutions tailored for revenue growth, and profits.” They do (or did) this via receivables financing, floor plan financing, real estate financing and M&A financing for the dealer community. They are another exposed lender to the subprime auto dealer/lending space. So, these are not now one off, idosyncratic situations but instead further evidence of the stress that lower income consumers are under, especially those that financed their vehicle.

Bonus — Here are some great links:

Is the S&P 500 Due for a Breather?

Just a Bit Outside

The Global Bull That Won’t Break 

Time for a Pause in Gold 

Defying Gravity 

The S&P Short Range Oscillator stands at 0.33% vs. 1.16%.