Boat Drinks: RIP DMFRacer

I didn’t know him in real life — but I knew him here and inside the Pelican Room, where we had great times — swashbuckling thru these markets like pirates on a ship with a motor engine and Gatling gun. Regrettably, I was informed today he succumbed to cancer yesterday, a battle that he informed us about when he was diagnosed in February of 2018. First it was lung cancer, then brain — never did he utter a word of negativity or complain about his situation. God knows, had it been me, I’d be miserable and paralyzed from fear of the future.

But DMF was a different type of man and I liked him immediately. He emailed me a few times, excited about his trading success — hoping to do it full time. For most people, trading full time is a recipe for disaster — but I really think he could’ve pulled it off. Anyone who saw him trade in Exodus knows how good he was.

This post is the very least that I can do for a man who gave so much to our little community here. For whatever reason, he gravitated to me and the site and was a distinguished gentleman since 2016 — crushing trades the whole time. He was definitely one of the best traders in there and his contributions and positive demeanor will be sorely missed.

He contributed nearly 2,000 comments inside Exodus (sorry about the hyper links, it’s hard coded into the site whenever I write the word) — all of them professional, serious, and sometimes with a little well timed humor. If his children ever google their Dad’s name, David M. Flaherty, I want them to know he was a joy to have around and was a really good man. Everyone liked him.

Here are some comments I lifted from The Pelican Room from DMF that I thought you’d enjoy. RiP David.

His last comments inside The Pelican Room.

TGIR’s tribute to DMFracer hits the nail on the head.

Last but not least, and this is what I’ll remember him by from his time with us: HE FUCKING ESCAPED THE WRATH OF XIV and was able to avoid disaster, unlike myself and many others here.

See you on the other side brother. I hope you’re enjoying some boat drinks right now.

No one went to jail for the financial crisis. Barely anyone committed suicide. Rules were put in place to prevent it from happening again. Now those rules are being raped.

Welcome to Planet Goldman.

The Federal Reserve and other U.S. regulatory agencies proposed Wednesday to revise the Volcker Rule to apply to financial firms based on their trading activity.

“This proposed rule will tailor the Volcker rule’s requirements by focusing the most comprehensive compliance regime on the firms that do the most trading,” Fed Chair Jerome Powell said in a statement. “Firms that do more modest amounts of trading will face fewer requirements.”

The Volcker Rule was proposed during the financial crisis in an effort to prevent banks from speculating in markets. The rule went into effect four years ago and generally prevents banks from trading for their own profit or having stakes in a hedge fund or private equity fund.

Wednesday’s proposal allows banks to have stakes in those funds in order to hedge risks for customers that aren’t banks. The financial firms would also be able to trade for themselves on a limited basis, under the proposal.

To determine the level of necessary compliance, the proposal divides banks into three categories. Those with trading assets and liabilities of at least $10 billion would need to comply with the strictest rules. Banking entities with trading assets and liabilities of between $1 billion and $10 billion would be subject to “reduced compliance requirements and a more tailored approach.”

Firms with less than $1 billion in worldwide trading assets and liabilities would be presumed compliant with parts of the rule and not have to demonstrate compliance.

The proposal also said trading desks reporting an absolute daily net gain and loss for the past 90 days not exceeding $25 million would be presumed compliant with the prohibition on proprietary trading. “The banking entity would have no obligation to demonstrate that such trading desk’s activity complies with the rule on an ongoing basis.”

“All of that is to say, I view this proposal as an important milestone in comprehensive Volcker rule reform, but not the completion of our work,” the Fed’s vice chairman for supervision, Randal K. Quarles, said in a statement.

This is not a total revocation of the Volcker rule — because that would be scandalous and hard to explain to financial reporters. It is a backdoor to looser regulations, a precedent that will eventually pave the way for no regulations and Goldman Ballsachs trading like demons in an effort to self-aggrandize themselves — lavished with exorbitant bonuses.

Last week I doubled up on BILI because I knew it was trading higher. I knew it like a marksman knows he shot you in the ear, or how an ace pitcher knew he hit you in the helmet with his fastball on purpose.

With markets up 300 and the Italian people in EU prison, I like my chances pushing the envelope here with these SOY BOY stocks.

With BITA breaking resistance at $24, I gracefully and violently stepped in and bought MOAR.

I cannot be stopped. Fuck the Stock Gods. I’m in charge now.

NOTE: My $IQ is fucking soaring, as well as my SHAK.

This is the easiest trade in the world — even a dumb baby can do it.

Buy BITA here for the break above $24. If it fails, sell. If it breaks out above it, BUY MORE WITH COCK IN HAND AND EXTREME VIGOR.

BITA has been a straight up piece of shit for a long time; but no one cares anymore. Plus, look at my BILI and HUYA and IQ now. I cannot and will not be denied.

Salesforce dot com blew away numbers again — because the SAAS model cannot be stopped. Technologists and data analysts have hacked the human psyche and are using tech to buoy growth in a repeatable business approach that increases vertically with every dollar invested into it. These companies do not give a shit about the economy, for they have salesmen pounding the phones — making sure Mr. Jones buys.

This is the new boiler room and it’s very profitable and it’s very easy.

Ergo, I added to my SAAS portfolio, which right now only has ZEN, buying HUBS at these levels. Granted, Exodus flagged it oversold a short while ago, with haunting accuracy, I am buying here higher nonetheless because nothing can beat this business model. It cannot be stopped.

Other SAAS plays on the radar include NEWR, VEEV, TWOU, and SMAR.

The EU’s Budget Commissioner, Günther H. Oettinger, has drawn the ire of Italians after his comments depicting markets ‘teaching’ Italians who they should vote for, plainly stating they shouldn’t be voting for populist candidates.

EU’s Budget Commissioner, Günther H. Oettinger, Says Markets Will Teach Italians Who to Vote For pic.twitter.com/CQhbkMUI2J

— The_Real_Fly (@The_Real_Fly) May 30, 2018

EU Budget Commissioner Günther Oettinger’s comments to DW that market pressures could “play a role” in voting habits in Italy have landed him in hot water. https://t.co/EMcjLlBAR4 pic.twitter.com/h9aoVEuauc

— dwnews (@dwnews) May 29, 2018

This statement by the German EU commissioner #Oettinger will probably go down as one of the most infamous in European history. It caused an enormous media firestorm and was mentioned by both Salvini and Di Maio in their plea to fight German control over Italy. pic.twitter.com/YHstq9wkGL

— Alessandra Bocchi (@alessabocchi) May 30, 2018

As one would expect, these comments served as a dog whistle for anti-establishment Italian activists and politicians to take to twitter to voice their dismay.

Dear Commissioner #Oettinger repeat with us, with Italian people “The sovereignty belongs to the people”, not to European Commission, not to financial markets. #Italy is not a colony of Germany, no more!
We #M5SEuropa will defend italian democracy!#ilmiovotoconta

— Rosa D’Amato (@rosadamato634) May 29, 2018

There are only two viable options for @JunckerEU after #Oettinger ‘s outrageous words on Italy.
Either he asks for his resignation or rather he kicks him out of the @EU_Commission. Right away.

— Ignazio Corrao (@ignaziocorrao) May 29, 2018

Mr. Oettinger has since apologized.

I did not mean to be disrespectful and I apologize for this. Read my full statement on my remarks on #Italy in the @dwnews interview: https://t.co/oCDeGkK1gu @RiegertBernd #oettinger

— Günther H. Oettinger (@GOettingerEU) May 29, 2018

This might have something to do with his apology. Juncker distanced himself from the now rogue Oettinger.

The Commission has now put out an official statement by President Juncker disowning his budget chief Günther Oettinger’s comments about Italy. A highly unusual move that shows how seriously they’re taking this. pic.twitter.com/1jj2ZTnp7i

— Nick Gutteridge (@nick_gutteridge) May 29, 2018

There isn’t any cause for alarm. Foreign investors are going to be protected in Italy — because that’s the way things are and the Italians are too weak to do anything about it.

EU's Budget Commissioner, Günther H. Oettinger, Says Markets Will Teach Italians Who to Vote For pic.twitter.com/CQhbkMUI2J

— The_Real_Fly (@The_Real_Fly) May 30, 2018

EU Budget Commissioner Günther Oettinger's comments to DW that market pressures could "play a role" in voting habits in Italy have landed him in hot water. https://t.co/EMcjLlBAR4 pic.twitter.com/h9aoVEuauc

— dwnews (@dwnews) May 29, 2018

This statement by the German EU commissioner #Oettinger will probably go down as one of the most infamous in European history. It caused an enormous media firestorm and was mentioned by both Salvini and Di Maio in their plea to fight German control over Italy. pic.twitter.com/YHstq9wkGL

— Alessandra Bocchi (@alessabocchi) May 30, 2018

There are only two viable options for @JunckerEU after #Oettinger ‘s outrageous words on Italy.
Either he asks for his resignation or rather he kicks him out of the @EU_Commission. Right away.

— Ignazio Corrao (@ignaziocorrao) May 29, 2018

Italian markets are +1.7%, as their ‘caretaker’ Prime Minister eases tensions and subjugates Italians to the establishment yoke. The Italians will likely head back to the polls in July, in order to be ignored again and they’ll continue to head back to the polls until they get it right.

On Tuesday Five Star leader Luigi Di Maio called for a return to the polls “as soon as possible”. Italian media said the elections could be scheduled for as early as July. Mr Salvini and Mr Di Maio furiously denounced the presidential veto, blasting what they called meddling by Germany, debt ratings agencies, financial lobbies and even alleging lies from Mr Mattarella’s staff.

“Paolo Savona would not have taken us out of the euro. It’s a lie invented by Mattarella’s advisors,” Mr Di Maio said in a live video on Facebook. “The truth is that they don’t want us in government.”

Markets like this technocratic approach to rule. Dow futures are +160, WTI is +0.8%, and the Euro, of course the Euro, is +0.8%.

German markets have rejoiced as well, higher by 0.7%.

All is well.

Because the Italians can’t decide on what to do with their pathetic lives, the rest of the world suffers. When things get tough around the world and risk is decidedly off, no one suffers more than the Asians.

Men from the orient are accustomed to hard times, having grown up in the rice patties in very hot and horrible conditions. Some of these people sustain themselves off plastic rice — because the real stuff is too expensive. For protein, they make meals out of maggots and scorpions, devouring anything with moving legs.

In recent years, a great bull market has coerced many of these half naked savages out from the bush and into the big cities — to become stockbrokers or perhaps lawyers. The entire ecosystem is predicated on the world remaining solvent, western markets buying their wares, and people fat enough to avoid wanting to cut off the heads of their leaders.

This Italian business threatens all of that and if I was the leader of China, I’d tell Italy in no uncertain terms that I would send armies to attack them, should they dare mess up the status quo. Since Italians are stubborn and think very passionately with their guns, I doubt this conversation would end well. Whilst we believe the Italian business will rectify itself and the people of Italy will be told the STFU and continue sucking on Merkel’s great big German dick, there is an off chance it might not happen that way.

As such, Asian markets are sharply low, vagabond style. The Shanghai is off by 1.6%, Hang Seng -0.8%, and the NIKKEI -1.3%.

The only other notable occurrence is cryptos — they’re rallying hard and no one gives a shit.

Whilst some were out and about ruining their lives on twitter, losing teevee shows, or vast amounts of money — Le Fly was out escaping the pangs of a horrible market session. Like a magician weaving thru raindrops wrought with poison, I ended the session higher, in some cases, appreciable so — led by gains in BILI, FIZZ, ENPH, IQ and XLU.

Over in quant world, I fucking crushed the SPY — producing a flat return, even though I am long CVI.

Hear this now and hear it with a clear head and clean ears: THE FLY CAN NEVER BE DEFEATED. HIS GAINS WILL CONTINUE UNINTERRUPTED, ACCOMPANIED BY WANTON SPLENDOR AND ALL OF THE TRIMMINGS OF DECADENCE THE HEDONISM GODS HAVE TO OFFER.

I’m now heading out to the gym to lift some heavy items. Go ahead and try to stop me.

Pro-tip: you can’t.