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Tuesday, June 27, 2017


“Kudos to the Mrs. for taking this pic of me yesterday afternoon!”

Whatever it was you had last night for dinner, you could have saved some bucks by letting the fire off the top of my head cook it well done for you; to say I was pissed yesterday at what transpired in the Dow30 via the Turnkey scumbag Dow30 LP, is a gross understatement. Walking the beach … playing with the dog … nothing worked. By the time I sat down for dinner, the wonderful words of the Mrs. were upon me; ‘just let it go honey … just let it go … there isn’t anything you can do … you know it happens in this biz … you know I’m right … everybody and their brother knows the LP banks are thieves and crooks; no news there … I know you’re upset cuz everything was right and it all turned out wrong … just let it go babe”! And, of course she is right.

I did have a good telephone conversation with management yesterday, not only about yesterday’s ripoff, scam fill, but also about the BS fill from 2 Friday’s ago, which the LP refuses to address with management at Turnkey, and I guess we are all supposed to just forget about. Quite frankly, it’s hard to tell over the phone whether or not they are sincere in recognizing we got royally raped; yes, they confirm the very bad execution, and calls and emails into the LP are not being returned, so I don’t really know whether they are just paying “lip service” to what happened, or are sincere in going to bat for us. Right now, I’m giving them the benefit of the doubt, but I’m waiting [just like they are] to hear what the scumbag LP says in their own defense. I’m not naive, so I’m not sitting here expecting one iota of admission of anything wrong coming out of these dirtbags; all the while they steal from accounts, they will never admit anything … ever … no matter how egregious, they will lie right to your face … while taking the money … and tell you everything checks out and the fills were good. It’s all bat excrement, but I know what they are going to say before they say it. In the end, it will boil down to what Turnkey thinks and how they view the matter and whatever concessions they can get from the LP [without them admitting anything natch, cuz Hell would have to freeze over first]. So, we will see; I’ll let everybody know when I hear something, most likely end of the week sometime.

Last night, without any emotion I might add, I attempted to analyze the various “pros & cons” of either switching to the SP500 or simply staying with the Dow30 … after all is said and done, it still makes more sense to stick with the Dow30, despite what I think of the LP; with the SP500 LP raising the bid/offer spread to 0.4 index points, and keeping it there, it just doesn’t make economic sense to make the switch … it wasn’t the “market” that mauled us yesterday, it was the damn LP, and to be sure it can and will get equally nasty at some point in the SP500, so switching markets isn’t going to remedy anything all the while costing us more to trade … so, I’ll stick with the Dow30.

Here with over 3+ hours to go until the New York open, with the exception of the DAX30 [which is hyper-ventilating up/down while Super Mario speaks Vampire Squid BS and rattles everything European with “Hawkish Shock”], the Dow30 and the SP500 are relatively quiet … after yesterday’s overnight central bank vapors rally and subsequent “Thelma & Louise” very shortly after the open [blamed by the “talking heads” on Bitcoin moving sharply lower … yes, seriously], it was either going to be a downward slaughter or a relatively quiet night and quiet won; there was simply no appetite for more upside vapors. Looking at both stock indices, and especially taking a gander at the weekly candlestick charts, I am immediately struck with a couple of conclusions from both the Dow30 & the SP500; 1) weekly candlesticks that are so tiny in comparison to the past, they almost look like “smudges” instead of candlesticks, and 2) not if but when volatility picks up [like it appears it’s starting to do from 50+ year lows], both indices are “ripe” for a move to the downside in what could easily transpire into some very ugly market conditions, as everybody who has been on the “stock train” these last years since 2008, decides it’s time to sell and temporarily leave the game. If that happens, don’t look for the central banks to come to the rescue immediately; instead, look for the PPT to show up and punish intraday short sellers with “rip your face off rallies” … remember, the biggest gain days in the history of the stock market occur the vast majority of the time in so called “bear markets”. For sure, the central banks and the PPT aren’t going to make it a “slam dunk” for anybody to stay short and pick money up off the floor … that isn’t going to happen.

This presents us with both challenges and opportunity; we’re going to be getting a lot more “yesterdays” in the future, and at the same time trading conditions will worsen. The stop hunts will get worse, the slippage will get worse, and if you don’t “buy it right” they [the LP] will hang you out to dry; there simply is no way you can buy the rally and get away with it. You have to buy the breaks on the turn, and sell it on the way back up, and then not care what happens next. The “key” of course, is central bank behavior and raises 2 crucial questions; 1) will the BOJ & ECB join the FED and stop the asset buying to the tune of trillions per year, and 2) at what levels of intraday moves to the downside, either by way of “waterfalls” or simply steady moves down, is the “Plunge Protection Team” [PPT] going to show up and ramp prices higher quickly? You come anywhere even close to answering these questions and profit will be there for you in abundance.

Turning to today’s market … ChairSatan Yellen speaks at 1 P.M. eastern, at some chicken lunch event; oh fun oh joy … my head hurts from even thinking of her speaking she’s so full of it … of course, the usual gaggle of FED financial sycophants in the MSM will be there to worship … Steve Liesman, call the Mariner Eccles building for your secretly coded prearranged question. So, don’t know if the market stays quiet until then, or rips lower like yesterday first, or even higher … we’ll see.

Here, an hour into this mess, the Dow30 is right where it opened, with general “thieving” on both sides of the market from the LP bank, as it appears the market is in “hurry up & wait” mode for Grandma Yellen at 1 P.M. So far today, all the market is doing is separating money from trader accounts into the arms of the LP bank, with spikes up/down going nowhere as fast as they came.

Noon time in New York, market is dead waiting for Yellen speech somewhere … Scumbag LP’s couldn’t resist the buy stops above 21450, so they went after them to enrich themselves, and of course we go straight down from there, albeit not very far, but nonetheless it shows the BS shenanigans used to separate accounts from money and into their own. Also notice a new phenomenon; as the Dow30 approaches a high or a low, the LP widens the spread to 2 – 3 Dow 30 points. This is to give themselves one more point to set off stops on either end of the spectrum and of course screw customers, all the while their futures arm [who, by the way is a separate legal entity domiciled somewhere else where no questions are allowed to be asked by anyone, including clueless regulators, where of course the LP bank is the beneficial owner but it is shrouded in either trusts or a PIF (private interest foundation) to hide everything] are the ones who set the buy/sell futures stops off to begin the entire charade… and when the LP bank computer system sees that, the entire CFD complex worldwide gets their stops set off a nanosecond or two later, and delivered on a silver platter to guess who? … well, if you said the futures arm of the LP bank [not really legally, but in practice for sure] pretending to be some non-interested third party, then you win a cookie.  This is illegal in the U.S., and by pure dumb luck, former FX powerhouse FXCM got caught doing exactly this, and was subsequently barred from U.S biz and forced to close a few months back. No such rules in London or Europe.

In essence, this is how modern day financial networks work at the institutional level worldwide for trading … it’s a chain letter Ponzi scheme, where money flows from customers to banks, all the while they lie to your face and proclaim their objectivity … and for sure, don’t ever expect the regulators to do anything about it; they’re too busy pocketing part of the skim and aren’t going to upset that apple cart anytime soon. And while the stock indices aren’t anywhere near as corrupt as the FX universe [including gold & silver], where in the last 2 ½ years we’ve seen unprecedented FX moves out of nowhere. All for the express purpose of skimming the retail public trader. What it all boils down to is a hidden tax on trading by the LP banks; without the graft and corruption, they can’t meet profitability expectations, and the purest form of revenue is us.

Which brings me to the email I got from Turnkey very early this morning; well guess what? Seems the LP bank says they checked everything, and wouldn’t you know it … according to them, everything is fine! All systems check out and your fills were 100% totally legitimate and the system worked perfectly, and aren’t we simply fantastic … thank you, come again!

Now, no news here really, but the “chutzpah” of these lying assholes is amazing, cuz while assuring me that [like the FED] “Everything Is F-ing Awesome Baby!”, and touting their own “in-house” detective team to get to the bottom of these bogus bullshit fills, they somehow overlooked my questions to them; to wit, 1) did your bank or any subsidiary you own or have a beneficial interest in [limited partnership, LLC, C corp. trust or group of blind trusts, and/or PIF] offer the Dow30 futures lower at the 21411 – 21403 level to set off stops in the Dow30 futures yesterday, and 2) did your bank or any subsidiary you own or have a beneficial interest in take the other side of my trade for the PAMM? Well, knock me over with a feather, cuz they must have somehow forgotten my questions cuz they didn’t address them or answer them, but simply ignored them! See my shocked face!

Which, of course says volumes about these scumbags that we must do business with cuz we got no choice. And, I’ve been assured by Turnkey, that they in no way profited by our misfortune by somehow getting or receiving a “kickback” from the LP; something I have a very hard time believing, but life is too short so we move on. What’s the point of pressing them, nobody is going to part with a penny they stole from us?

The rest of their long email to me is embarrassing in its effort to try and show nobody was trying to “screw us”; more than likely the email is for regulator consumption at some future date if/when they ever get pressed about it. It certainly didn’t “fly” with me. But again, there isn’t anything we [I] can do but bitch, not in the hopes of ever seeing somebody say “whoops, we screwed up … sorry for the shit fill … here’s $X to compensate the account”, but in the hopes of bringing it to light, they maybe won’t go after us next time; I doubt it, but it’s our only avenue available to us from the robbery.

Early P.M., and Grandma is speaking in England somewhere; I tried listening to the live feed, but my eyes started bleeding from the bullshit, so I had to stop. I can’t listen to this tripe. Dow30 isn’t doing anything; a very tight range today, with multiple small trips up and down, with every point ± the open price of 21420 convincing you of either a new low or new high coming shortly, until the reversal back up/down, right back where it started. This is frustrating to say the least, but it is what it is, and we simply wait for some kind of move here.

Here in the mid-afternoon around 1:30-ish, welcome to the stop hunt, where once again you can see with your own eyes, the blatant filling of sell stops below the market by the LP, and more than likely a fill you aren’t going to like. And, in like fashion, after cleaning out the SP500 sell stops below 2434 … all the way down to 2426.9 … you too can watch the “Plunge Protection Team” come in and totally ram the market up anybody’s donkey who is short, and watch the fireworks cuz in 3 very long minutes [if you are short] the Dow30 blasts up 40 points, the SP500 6 index points… remember, this is a market that for approximately 17 hours can’t put in a 70 point range in the Dow30, but in 3 minutes can go up 40 points cuz the PPT comes in and literally “steamrolls” shorts. For some of you, now you know why, unless there is a specific news event or theme taking place in the market that is going to cause “uncertainty” going forward, I’m not interested in being short; whereas in years gone by the PPT used their power selectively, now we live and trade in a paradigm where they come in daily multiple times and wreck havoc … and if you’re short, they will force you to cover. This is why it is almost impossible to trade consistently from the short side and make money over time.

For the day, 2 winning algorithm trades that helps win back partial losses from the LP highway robbery yesterday. Really, literally nothing to do in the market except for some very small windows of opportunity; one earlier in the day and the other this afternoon after the debacle to the downside. I didn’t take the trades on the lows at the turnaround for one simple reason; with such a very small range up to late in the trading day combined with the time of day, I didn’t want to get “trapped” long in a falling market after 2 P.M., which could be ugly. If the range for the day hadn’t been in the 60’s, but was instead anywhere in the 120 – 140 point range as the market fell on sell stops, I would have been there. You have to keep in mind the potential for disaster and what your risk/reward ratio looks like going in, and with the potential for lower prices on a small range looming, it wasn’t prudent. I simply waited, bid my time, and “cherry picked” the PPT when they entered, and more importantly, liquidated slightly before they finished their ramps; the result, a hell of a lot better fills than I’ve been getting. If I had waited, they would have screwed me royally with slippage.

One last point for today; the version 4 volatility algorithm is a “stone cold” killer in pinpointing initiating buys in the Dow30, and if it hadn’t been for the LP thieves … well, you know the rest. I’ve started writing the manual, and it should be available for you here shortly over in the “Download Links” section of the website. In hindsight, my decision to stay with the Dow30 was a good one … the SP500 has its own problems, which I would have to deal with anyway, so what am I really gaining? [HINT: Nothing.]

When I called Microsoft last night, they scheduled me for tech support tonight, so by the end of trading tomorrow the PAMM spreadsheet should be updated and back up. Right near the close, and the SP500 has hit a new low for the day; Dow30 not yet. Hopefully some overnight downside vapors can appear and we can get a lower open tomorrow; if we do, it sets the stage for a potential good rally later. Onward & Upward.

Time for the beach … dog & I are soooo outta here … until tomorrow.

Have a great day everybody!



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