“Cricket trading got you down? No
problem, take a nap!”
I’m trying to conjure up in my mind the last time
trading conditions have been this bad; spring & summer of 1992 comes to
mind immediately, as that was even worse than what we see now. I noticed this
morning that 2 Vampire Squid [aka Goldman] hedge funds, one with $7 billion and
the other with $2 billion AUM [assets under management] have decided to close
the doors after losing money in 2016, and being down about 6% so far this year;
their rational? As the “whiz kid” who founded the largest one said, “nothing makes any sense anymore and we have
no idea how to generate alpha [yield] going forward, and with conditions not
looking like they will be changing anytime soon, we decided to be ‘proactive’
and simply close the fund”.
In other words, everything is happening at the “speed
of light … then crickets”, and they
have no way of capturing anything that lasts with the kind of money they have,
and so they have given up!
Today’s action in gold perfectly underscores his
sentiments, cuz no matter what you do, if you hang on to it longer than about 5
minutes you’re under water on the trade, and left wondering why you are
bothering with this slop that can go against you in a heartbeat and then have
no chance of making it back the rest of the day if it spikes against you. Some
choice, huh?
With only Tuesday showing anything regarding a
heartbeat for this market [and today, pretty much everything is dead], we had
“one” HR4 candlestick that made up basically the entire week’s range. And so
with today, 4 out of 5 if you’re keeping score at home, it’s about 1 P.M. New York time and again
the HVALUE for the day is $4.81 & the LVALUE = $4.70. I told you all a
while back these kinds of events “cluster”, and that you can’t just brush them
aside as a nuisance once the first one shows up, cuz there just might be some
more following in that first one’s footsteps. And quite frankly, if you’re
trading this stuff outside the thinnest spreads & RT commissions, good luck
cuz if it’s anything like what I’m starin’ at as I write this, you’re gonna be
in a trade where you will be lucky to get the bid and/or offer past your entry
price, and at some point that spells trouble.
It’s 20 minutes to the Comex gold close, and outside
of about 15 minutes today when I thought there was maybe a slight glimmer of
hope for some kind of action, the crickets
have swarmed the battlefield and devoured everything! Yea, Friday’s have a
well deserved reputation for being slow and non-eventful, what with position
squaring & other factors going into any weekend, but this takes the cake; I simply can’t remember the
last Friday this bad that wasn’t something like Christmas Eve. Oh well, it
is what it is, and all we can do is keep “powder” dry and wait until gold
[along with most everything else] decides to wake up from its nap and move.
PAMM/MAM Spreadsheet directly below.
Beach beckons … I’m outta here … until Monday.
Have a great weekend everybody!
-vegas
OUR ‘TURNKEY FOREX’
PAMM/MAM IS NOW OPEN AND
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