It’s getting to the point where we almost have no markets anymore, in the very real sense that everything is being manipulated by Pols with pie holes. Very few moves are coming from what we would traditionally call economic reports or releases; those are so yesterday. What we now have instead are “projections” of what manipulations the Pols will effect; in other words, in the new world order of complete fascism [in the strict sense], who wins, who loses, and how can we benefit from the carnage?
The manifestation of this is, of course, “speed of light” trading followed by … crickets; rinse, repeat until every trader in just about every market is dead in the water. Nowhere is this more prevalent and on display than in the stock indices … seriously, I feel for those [dumb ass nitwits] traders that haven’t moved on to greener pastures … it’s like watching 6 cows go for the same blade of grass. “Ummm, excuse me … do you not see there is ‘nothing’ here but you, banks, & HFT’s”? I don’t know when, if ever, the FED is going to retire the “Plunge Protection Teams” scattered throughout the world’s time zones, or if they will ever stop trying to manage outcomes. One thing I do know; “the only guy happy about the state of trading today is the funeral director”.
And in case you’re wondering what affect this has on other markets, I direct your attention to last night’s close of USDJPY, where 28 minutes before rollover at 23:32 LMFX server time, prepared remarks from the incoming Treasury Sec. created a 30 PIP gap lower, reportedly because he stated a “strong Dollar” can be “problematic” for the U.S.; this according to the “talking heads”. In reality, he was answering a hypothetical question from some idiot Senator [who believe me was “fed” the question because there isn’t a snowball’s chance in hell he came up with it on his own] who asked what happens to the economy if the Dollar goes up 25%. Oh, you didn’t know that? The talking heads didn’t tell you this?
Ok, so what’s really at “play” here? Realize of course, can you just imagine the “truth” being put out over CNBC? “Sell stops in USDJPY were just run viciously Bill, on bullshit comments from Mnuchin when answering a question; my sources tell me that with no liquidity in the market 28 minutes from rollover, a large U.S. bank took the opportunity to run the stops of their own customers who were long from earlier in the day trying to ‘pick the bottom’. Volume totals are ‘sketchy’, but my sources tell me it was right around $2 billion notional value that changed hands quickly; roughly $6 million in profits and losses realized in a matter of seconds. Bill, they just keep doing it again and again; back to you in the studio.”
Gold is starting to act better, now that the Holiday BS is over and the world is back at it; ranges are still disappointing, but the new gold algorithm is acting well and helping to reduce “chop”. You have to remain cautious in this market while prepared to sit out large chunks of overnight action when price action slows down; even with the “Chuckleheads” in Asia most nights wanting to bid it higher, most of the volume & liquidity in this market is still in the New York session where I would most definitely prefer to trade.
Turning to markets today … still looks and feels like a stop hunt in gold & USDJPY … back and forth between new highs and then new lows … all the while the order books get cleaned on both sides. Again, political action is driving everything; when the next “Tweet” comes, you won’t need to be watching Twitter to know it, just watch the “one minute wonder” M1 go bat excrement crazy and that will be the reason. Markets are on such tender moorings, it doesn’t take much to get either longs or shorts to panic and send gold ± $3 or USDJPY ± 30 PIPS.
Here at lunch hour, munching on chips and my favorite PB&J, action looks like USDJPY wants to make new highs, as gold sinks in a much needed correction; we’ll see, but for now the 1210 – 1211 area is holding, with a shipload of stops under 1209. If gold can sell off later, look for the Chuckleheads in Asia to continue the sell off; it could get really interesting. Of course, it all depends on the Pols and what they say.
Some good scalper algo trades in USDJPY today, USDJPY just hit a new high for the day … I’m gonna give the market another hour or two with the scalper algorithm, but I’m not seeing any big trends here playing out … until tomorrow.
Have a great day everybody!
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