My Frown Has Turned, Upside Down

We are wading through the innumerable bugs inside Stocklabs. Invites for beta will likely go out early next week. Meanwhile the market took the fuck off. I was fortunate enough to be positioned in some of the finest piece of shit stocks out there and have secured the bag, +160bps for the session. I sold everything but one stock, 95% cash. I did this, not because I am scared of bearish, but because I could.

Moving on, we want to see continuity. We want to see the bears laid out made to look like throw rugs.

Things are the way they should be and always have been. Jog on into the foggy maelstrom and take what is rightfully yours, especially when no one is looking.

A day borne out from hell for yours truly. I quite literally fucked myself every which way but loose. I had wonderful stocks in the morning, aside from the FUCKER NCTY, and then I slid down into the sewers and came up with shit on my face. I shed more than 200bps, which normally I’d accept and say “rough day, old sport, go get ’em scooter tomorrow.”

But no. I cannot give myself that comfort, especially with the market ZIPPING the fuck higher today. What were we up, 200 fucking NASDAQs?

For the month I closed up 6.66%, off by 10% from my highs. I am without a doubt in a slump and I feeeeeeel the desperation starting to accumulate in the manner I am trading. I keep selling and buying and selling again, only to fuck myself. Plus my luck seems to be waning.

Also, and this goes without saying, today was move out to Stocklabs, which should’ve been a joyous occasion — but I was instead HARANGUED by fucked face programmers from the 90s who wanted the program written like Geocities. We will soon get thru beta and be fully ready to offer the platform for new users. I expect the beta invites to begin going out later this week or early next week.

We’re going up, but I was ENTREATED to not one but TWO highly dilutive WAY BELOW the fucking market secondaries and find myself on this last day of March, inexorably fucked — off by 140bps. I would attempt to trade back to green, but I am also dealing with our soft SL launch. It is not open to the public yet and I am merely moving over our current subscribers to the platform, which is under beta.

Naturally some look past the Rolls fucking Royce in their face to tell me there is a smudge on the tires. I am working through all of that and I won’t be done working through all of the bugs and small items for at least 2 months.

For now, sit back and enjoy the comforts you are afforded and be grateful, you piece of shits, that I have taken great steps and went thru years of painstaking analysis to produce a product that is not only superior to the one you just had — but has exponential scalability in the methods you might explore to make yourselves money — you piece of shits.

After two years of development, Stocklabs, aka COCKLABS, is scheduled to be released tomorrow — but there’s a catch. None of you grifters will gain entry. As a matter of fact, Exodus will be shut down and replaced with Stocklabs and new users will not be accepted for a period of 3 months.

What does this mean for you?

If you’re a member of Exodus — you automatically port over. If you’re on our list of beta trial sign ups, you will be invited to try the platform while in beta for a period of 5 days, at which point you can subscribe. If you have not signed up for beta, this is your last chance.

When will you get your beta invite?

It could take as long as 3 months. Due to the large demand, we are limiting the beta pool to just 500-1000 per week, so the entire beta trial period will most likely take 14-20 weeks. During the beta period, we will be adding new features, tidying up things and working thru bugs. For your patience, we are extending a 10% discount to only beta users during the trial period.

Pricing is as follows.

Words cannot describe how pleased I am with the platform and the tools we developed. If you’ve used Exodus before, this is 10,000x better. One final note, annual pricing for Exodus is currently $499. That price will be increased to $599, so if you want to lock in that rate and/or gain access to SL immediately, this is quite literally your last chance to do so.

One could never be sure as to what is inside these Chinese publicly traded companies. They are, at times, chocked filled with surprises. Alas, one of the greatest surprises in modern history has been thrust upon us, by none other Mr. Bill Hwang and his Chinese cohorts — who have been zeroed out and margin called into hades. These ramifications, as you readily know, have caused a bit of consternation, if I may be so bold, amongst the investor class — seemingly wiping out whole swaths of retail pleb traders who correlated close to Bill and his cohorts.

In the coming days and perhaps weeks to come, I suspect there might be more shoes to drop. But, just like in a loooong movie, say Seven Samurai, there is always an intermission — whereby the audience is entreated to nice music and perhaps a drink or two, maybe even a cocked tail. I believe one of those intermissions might be here for us now.

As such, I have taken liberties, and it pains me to tell you this, to in fact buy the margin liquidations of the aforementioned plebeian swath who have been wiped out and turned upside down in a negative equity situation, if only for a brief, shall we say, sojourn into depravity.

I have purchased a basket of Chinese centric, or “burritos” as some might call them, in the hopes of a brighter future.

Wish me luck!

Bubble stocks bled out another 4% today and fresh marks were left everywhere, from TOYU to GSX to just about every fucked Chinese burrito publicly traded. The great Ponzi scheme known as the nation of China is unraveling now and all of the Bill Hwangs of the world are being wiped the fuck out — market order to sell out their entire books.

I managed today with sublime harmony, shed less than 100bps and positioned heavily into staples. I bought a little TZA to hedge and FUTU for squeeze action. Other than that, I remain stable and stoically watching the carnage from afar.

Gun to head advice: we CASCADE the fuck lower with a violence that will make you hope commissions never went to zero, luring you into the market — you and all of your dumb money.

The rotation continues. Everything but high beta small capped shit is doing fine. There is some ancillary weakness in some of BILL FUCKING HWANG’s trades, but other than that today is a decent do nothing day.

I have been hiding in old man stocks and just added 1 China name to the portfolio. I have done nothing but enjoy the melt up in ETH and tend to my crops in Decentraland, whilst also enjoying the rise in MANA.

I have numerous ideas about how to play this market, but I am not eager to pull the trigger now. As a point in fact, I see little to no advantage to being out in front early in a market that is obviously sick and in the process of ruining some hedge funds. The selling might intensify into the close, so keep an eye out for that. When the market bottoms, you’ll know it and have plenty of time to get back in.

I am not interested in catching the whole move, just enough to afford me the many luxuries that I do enjoy, such as JARRED mayonnaise and/or copious amounts of lemon rosemary roasted potatoes.

I sold out from VIAC, DISCA and a slew of high risk stocks this morning, mostly for profit, because the selling isn’t over. It seems the Kill Bill narrative might’ve spread, so I’m opting to spectate. My life is too stressful as it is. The last thing I need is to be inter- tangled with some else’s margin liquidation.

I am left with most old man stocks and a few others to juice it. I see bubble stocks heading back down again and my spidey senses tell me to be careful.

37% cash, down 50bps, watching.

David Faber is reporting a massive 45m share block of Viacom is being offered, as part and parcel of the new paradigm of heavily leveraged hedge funds blowing the fuck up and investment banks simply dropping market orders worth billions. The net result is HAVOC for retail plebs, toiling away inside the fields of Wall, attempting to extricate themselves from being poor.

Carnage in $VIAC may not be done. Hearing another $2b block of shares being shopped tonight as liquidation of one or more hedge funds continues.These were the buyers sending $VIAC and $DISCA up over these last 2 months. Buying on swap, using enormous leverage and somehow unknown.

— David Faber (@davidfaber) March 29, 2021

For weeks as $VIAC and $DISCA went parabolic and seemingly outpaced all fundamentals I struggled to find out who the buyer was. Even the companies did not know. Now it seems possible more than 10% of $VIAC stock was owned by one fund on swap and not reported.

— David Faber (@davidfaber) March 29, 2021

45m $VIAC for sale tonight as liquidation of one or more hedge funds continues. How this enormous position could have been amassed without any disclosure is a mystery. But one mystery solved: now we know where all the buying was coming from.

— David Faber (@davidfaber) March 29, 2021

Also and possibly related, Japan’s heavy weight bank Nomura is down 14% tonight on news of a SURPRISE $2b loss, due to one of its fucking clients. I wonder if said client looks like this?

Fucked

Nomura Holdings Inc. said it may have incurred a “significant” loss arising from transactions with a U.S. client, sending its stock tumbling the most in more than nine years.

The estimated amount of the claim against the client is about $2 billion based on market prices as of March 26, the Japanese brokerage said in a statement on Monday. It didn’t name the customer.

Nomura is evaluating the extent of the possible loss and the impact it could have on the group’s results. The Tokyo-based firm also canceled plans to sell dollar-denominated bonds.

Shares of Nomura fell as much as 15% on Monday morning in Tokyo, the biggest intraday decline since November 2011.
The potential loss would blemish a bumper year for Japan’s biggest securities firm, which has benefited from a boom in trading and investment banking during the pandemic. Nomura’s profit jumped to the highest in 19 years in the nine months ended December.

Chatter on the street says there’s another $20-30b of Archegos yet to unwind. But one can never be sure and I would be very skeptical about trusting any rumors, since they are designed to enable profit for the one’s spreading them. One thing is for sure, both VIAC and DISCA are fucking cheap and any decline due to highly leveraged funds being forced to sell should be bought, in my opinion. The boogie man is the amount of CONTAGION out there, meaning who the fuck else followed Bill into these stratagems? Are those funds to be liquidated in kind too? Is this the shock to the system to cause a massive resentment amongst the retail investor class and cause them to sell? My hunch says no, since most retail traders are idiots and will pile right the fuck into whatever Bill Hwang sells. As a point in fact, I am sure the morons at Reddit WSB are scheming to eat his lunch right now, as we speak.

But one must be mindful of Hunger Games mentality and how killing Bill might spread to Killing Cathie and then we have a problem. For now, NASDAQ futs are tepidly down 85 and I am long both VIAC and DISCA and will never sell for a loss. I will fucking buy those cock suckers with every last cent that I have until I realize a profit.

Bill Hwang had a nice life, on top of the world. As a former Tiger Management alumni, Bill earned the respect of his industry peers. He even had a sojourn into the SEC files for being guilty of a little insider trading.

Naturally he escaped jail time and re-started a new fund — this time bigger and badder than ever. Bill ran a firm called Archegos and now it’s over. Poof!

Mr. Hwang’s fund is known employing leverage, meaning it borrows to invest in more securities than it could own with its own capital. One person familiar with the matter said Mr. Hwang’s fund received a margin call from one of the investment banks – not necessarily Morgan Stanley or Goldman Sachs – and was unable to meet it. As a result, that bank and others began to liquidate stocks owned by Archegos.

If you’re curious as to why VIAC, DISCA, TME and other China centric names were LIT UP on Friday, look no further from Bill. He was heavily leveraged into those names to a degree that borders on the comical. Some reports indicated the notional exposure was $80b on $15-30b in equity. At any rate, it appears to be over now; but this saga might be far from finished.

The damage has been done and the losses Bill endured are also shared amongst other gamma seeking retards and that might lie the market down soon and shoot it in its head.

Whispers of LTCM ruminate around this blog as I type this and I hope to see Bill off doing well now, some place he isn’t banned from trading. And perhaps VIAC and DISCA rally hard on Monday, helping yours truly profit from Bill’s demise. But the question is — how many other Bills are there now?

Have a look at the China-stock pin action the past month.

Blood is in the streets and if there’s one thing Wall Street is good at is exacting damage to those caught on the hook, purposely and viciously causing others to go out of business — not because those people had blood revenge odes, but only because it’s fun and could do it.