We no longer live in a financial environment that is open and honest; one based on market forces independent of manipulation from government and their crony fascist corporate sycophants. Is their one among you who doesn’t think that Vampire Squid [aka Goldman Sachs], JP Morgan, Deutsche Bank, Credit Suisse, and a whole host of others equally egregious, which doesn’t receive or benefit from special government inside information? All of them get caught manipulating markets and then fined billions [“Let’s see; we got LIBOR, FX, gold & silver, crude oil, mortgage backed securities, ‘spoofing’ the emini SP500, Fed Fund futures… hell, I’m getting tired listing them all!!] , and not only are their no consequences [“Ummm, is anybody in jail? Of course not; jail is for the little people who follow the rules.], nobody asks the guilty CEO’s who put them up to the task why they would risk their firms to engage in this practice.
As a result, we see the kind of markets we have today, where everything is “speed of light” and then … nothing but crickets … there are no major macro fundamentals anymore that mean anything; the only thing that matters is that the SP500 & the DAX30 be kept “green”, and the price of gold be kept under wraps [the lower the better]; and if the stock indices do go “red”, it won’t be for very long and it sure as hell won’t be deep. How do I know? Just ask the countless [“I see many hands in the air.”] bankrupt or “we decided to close the doors” [meaning, of course, they were going to go bankrupt very soon] hedge funds who have left the biz in record numbers the last 2 years. The list “runs the gamut” from equities, gold funds, FX funds, and everything in between; this year has been especially cruel to the “risk parity” funds, which the “smartest guys in the room” Ivy League types put together because they actually believed the financial bullshit taught them by professors who couldn’t run a hot dog stand if their life depended on it. “Oh, but they sure as hell know how to lose billions trading don’t they? Must be the markets fault, cuz sitting in the faculty lounge with other doofus types bestows wisdom and intelligence don’tchaknow? Any floor trader could/would school these guys all day long and take their money like 6th graders would take lunch money from 3rd graders on an elementary school playground. “If you are playing poker with strangers, and you don’t know who the ‘Chump’ at the table is, assume it’s you!”
Which brings me, conveniently enough, back to gold and USDJPY; while the manipulators at the FED & BIS [Bank of International Settlements] use their minions on Wall Street [through offshore accounts they set up & fund via CNTRL-P, and are therefore “customers”] to keep a lid on gold prices, they don’t do it every day, and when they are absent gold rises; easiest thing in the world is to capture this with the gold volatility algorithm. [“Meanwhile, in India, spot gold is going for over $1700 per Oz, as the government there is trying its hardest to go ‘cashless’; any word of this from the mainstream financial press? Of course not; you must be kept stupid and told everything is ‘F-ING AWESOME BABY’!”]
And then we have the world’s largest market; USDJPY. Try as they might, it’s just too big to control, and as the pic headlining today’s post shows, it’s a perfect metaphor for this market. The USDJPY volatility algorithm doesn’t try and predict the fat guy hitting the pool; the algorithm attempts to “ride the wave” the fat guy causes when he hits the water. History gives us ample statistical evidence of what the “waves” [read buying/selling] should not only look like, but the amplitude and duration of the ride, so we can “get off” at close to maximum profit without risking a whole lot for the experience.
Right now, excepting the occasional outbursts from crude oil, the only 2 markets even worth considering are gold & USDJPY; mainly due to the fact that “in the land of the blind, he who has one eye is King”. By default, they catapult to the top of the list, because everything else has either died, or given way to an egotistical financial elite “desired outcome” scenario, where your money is constantly at risk from “stop hunts” that are intentionally driven by dealers to hurt you and benefit them; all with the “wink-wink” blessing of government and central bankers.
Trading paradigms change folks; these aren’t your Grandpa’s corn markets, or the hog reports from Iowa. While our society crumbles under globalism, the middle class shrinks, jobs are outsourced, PC stupidity is rampant, colleges & universities have become indoctrination centers for “Snowflakes” majoring in Transgender Climate Change [while in your “safespace”, do you know what day December 7th is? I’m betting 90%+ of you have no clue.], attacks on the first and second amendments to the U.S. Constitution rampant, we are all supposed to not worry about these things because your 401(k) is OK; gold is for “gold bugs”, “preppers”, “conspiracy theorists”, and general “crackpots” who just don’t know any better. Yes my friends, trust government, bankers, & U.S. brokerage houses with your digital money, cuz what could possibly go wrong?
And so, here we are with $7 trillion Dollars a day “sloshing” around world markets; what do we do? Well, first thing is to open an offshore account outside U.S. jurisdiction and prevent confiscation of your money [“Hey, somebody grab me my tinfoil hat and pass it over, OK?”]. Just because we dodged a bullet with Cankles defeat, doesn’t mean it still won’t happen; not as likely under Trump, a near certainty if it had been “The Wicked Witch of the West”. It’s easy to open an LMFX account … takes 2 minutes … fund it anyway you want, and get the ball rolling before someday you wake up [“yes, like people did when ASSETS FX announced last year at this time they were no longer accepting U.S. clients.”] and find you have no choice but to use a U.S. broker.
Second is to become familiar with the algorithms and understand how markets actually work; forget the crap you were taught. That is simply “mush for the masses” … they view your money as their money; you’re only borrowing it for a while. Understand how the trading process works, and how you are going to take advantage of it, instead of being “fleeced” by brokerage houses, banks, and financial institutions who claim they are your “trusted source” of information & guidance. What a crock. When you finally understand that to survive and prosper you don’t need to know when the “fat guy” hits the pool, but that it’s the waves he causes which is of prime importance, you are on your way to “escape to success”!
And here’s the kicker: If I’m all wrong [despite the overwhelming evidence to the contrary that the U.S. government is becoming more “Stalinist” every day, Trump’s win notwithstanding], and everything stays rosy, you having an offshore account with money outside the U.S. has absolutely no effect on your finances and/or wealth; however, if I’m right, and you are one day late, YOU’RE SCREWED. Just ask all the people who wanted to open ASSETS FX accounts from the U.S. who didn’t because in 2015 there was no “overriding” need or emergency to do anything; and then they email me after they get the news, and the “boo hoos” practically give me hearing loss.
Turning to gold today … OMG, gold was lower in Asia … Congrats Chuckleheads, you sold the day’s low … well, you know what that means … and sure as the Sun rises in the East, taking a look at the New York open … why surprise, surprise! … gold is near its high for the day! … Gee, who could have ever predicted this?
Ok, I’m taking this first algorithm trade, but things look and feel slow. And sure enough, I eeked out a few pennies, but big whoop. First trade directly below.
Ok, second trade below.
I’m just sayin’; did this set up perfect or what? I mean, you had Asia sell lower, and then New York is up near the small range high for the day … and guess where the market goes on buy stops? “Thank you $4 profit on the exhaustion line hit; I’m outta here!” Beach beckons!
Have a great day everybody!
OPEN A DEMO AND/OR LIVE ACCOUNT AT THE LMFX LINK IN THE “DOWNLOAD LINKS” SECTION OF THE WEBSITE TITLED “OPEN TRADING ACCOUNT – DO IT NOW!”