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Thursday, April 13, 2017


“Lassie shows us how babes handle Easter week trading!”

Posting a little early today; the Mrs. [pretending to be Lassie!] draining my ATM card to go the spa and God only knows what else, and me playing golf in the early P.M. And when I eventually get back home and turn on the computer screen to the MT4, I’m betting another “dojiville” day gets put into the books, this being the 17th day in a row of a “cramped” Dow30 index that can’t wait for this week to be over.

And while the women traders back-in-the-day, from what they told me at the time, generally booked the most luxurious spa setting they could find as far away from Chicago as they could get, guys … well … not so much; Hello South Beach Miami or hello Las VegasTOGA PARTY TIME!!

“Your general floor trader R & R recipe for Easter week!”

And speaking of “can’t wait to be over”, scouring the financial pages today, I see over on ZH the following article with link; “One Trader Can’t Wait For This Week To Be Over”. [Link: ]. Well, it’s nice to know I got plenty of company on the Bloomberg desk. Far be it for me to give Richard Breslow some advice, but Rich, “it’s Easter week … it’s like trying to find meaning from that chick in high school who dumped you all those years ago; it’s meaningless … nobody is here … trading desks are manned by recent B School MBA’s working the graveyard shift while the “A & B” teams are here in the Caribbean with me partying and could care less if the Dow30 goes to 1,000 or 30,000 by Tuesday; all they want to do is golf, drink, eat out, sleep in, do it again the next day until that sad day they gotta get back on the plane back to either kitty litter box known as Chicago or New York. Lessons from Easter Week? Rich, you got to check yourself in to a toga party and stop thinking for a minute”.

Now that we are past the first 15-20 minutes of the open … where with the close all the action of the day will be [most likely unless major new breaks], things have slowed to a crawl as whatever traders are left [the poor ones who can’t vacation this week] will be taking the commuter trains the hell out of the city. Yesterday, today, only the “coin flippers” are looking to trade … anybody with an ounce of brains left after Tuesday. It is what it is, and I don’t make the rules [wish I did], but you buck trading liquidity and try to scalp your way to a point here and there, and most of the time for most of the years it simply just doesn’t turn out well for anyone. So, leave it alone and do something productive during this market break.

Even today, from the opening minutes, with generally speaking today isn’t even really a trading day … more of a “get it the hell out of the way” day for those that just have to buy or sell for some financial reason, the version 3.1 volatility algorithm still performed well during that time stretch when activity was taking place [I’d say first half hour, no more]. Directly below, the M1 chart with commentary on the signals.

Remember, the version 3.1 algorithm works with all types of markets; very fast, fast, regular, slow, and very slow [like today]; what the algorithm doesn’t know is that today is the start of a 4 day market Holiday and that “action” isn’t going to be there. As the market slows down, M1 buy/sell signals tend to deteriorate and lose “significance” in terms of their probability of success in generating profits. However, today in that first half hour, where trading action was somewhat normal, the signals operated perfectly. Going forward into next week, while uncertainty over the European elections will have some effect on U.S. stock prices, volatility and trading desks returning to normal are the biggest factors in returning to trading action.

I can’t emphasize the following points enough, because they are collectively really, really important; 1) having spreads on the Dow30 CFD only fractionally of a Dow30 point away from the futures market, 2) having the CFD be 1* the index, instead of the futures market 5 * the index, giving us better flexibility in handling risk exposure now and in the future, 3) having a round turn [RT] commission structure of $2 per $100,000 notional traded, that is far better [cheaper] than even the largest FCM’s give their futures customers that trade in excess of 10,000 contracts per month, and 4) so far [we’ll see what happens when SHTF and things get a little crazy some day], every trade I have made with the LP’s in the Dow30 have been on the bid or offer on my screen; so, no slippage.

Back-in-the-day when I “trail blazed” new territory in the money managed biz by managing funds from the trading floor … EVEN THEN MY COSTS WERE HIGHER FOR MY CLIENTS THAN THEY ARE NOW. My trading conditions in all 3 U.S. indices are better now! The problem I had back then were my costs; I had over 50 people working for me and they cost me a fortune to employ and keep; today, Turnkey does everything for free, and technology has emphatically changed the biz for the better.

My point is, I have finally … FINALLY! … found a place to trade managed funds in the stock indices that allows me to trade like a “mutual fund”, meaning super low costs and more importantly very easy entry requirements for people who wish to participate & accepts U.S. clients. For many of you reading this, you have no idea how hard it has been these last 5 years in getting to this point; truth be told, it’s been a B. I. Itch. All those years ago in the trading pit, I thought I had finally gotten to the end point … in retrospect of course, I wasn’t even close.

I’ll have much more on this in tomorrow’s blog post, but for those of you new to the website, my managed PAMM/MAM is a “quasi Dow 30 mutual fund”, with all of the advantages but none of the high costs, high fees, or barriers to entry you will find anywhere else, especially in the U.S.! By the end of the calendar quarter, and the end of the year, the PAMM/MAM will outperform the Dow30 by margins few of you will believe possible. More in tomorrow’s post.

I’ll be posting tomorrow some time; probably early to mid afternoon. I live in the Caribbean … no need for me to travel here and party for Easter week … I get to watch them come all “happy”, and then leave all “sad” [cuz they got a plane to catch] … hilarious. Last year, I did tell one oil trader I met playing golf, “Umm, ya know, we got everything here like high speed internet, etc. that you need to trade … why the hell live in Boston and put up with all the Lib crap, pay sky high taxes, and put up with crummy weather 99% of the time? Live here dude! … and so today, we’re playing golf later so he can join in on the laughter of those visiting cuz he now lives here”!

PAMM/MAM spreadsheet directly below.

No beach today … golf beckons [dog is saaaaaaaaad!] … I’m outta here … until tomorrow mi amigos!

Have a great day everybody!


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