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Thursday, July 27, 2017


“Even the nothing burgers are lying!”

An interesting last 24 hours, as here in “island paradise”, last evening around 9:30 P.M. everything went down and has just recently [a short 15 hours later in early afternoon] come back up … and I mean everything; phone, internet, electricity, you name it, and it went “buh bye”.  I have no idea what happened, as there weren’t any bad storms or anything like that, but first internet went down, then the phone system, then the electricity, all within about 5 minutes time. Even my back up internet went down when the phone system went down. Finally about 1:30 this afternoon in New York trading, things returned to normal. So, the DAX30 day got shot before it even started, from a trading standpoint, and I didn’t trade it today obviously. The algorithm version 4 needs the windows MT4 to run at full strength, and all I had was my mobile phone app when the phone system came back on, which gives access to quotes and order tickets, but practically nothing else; it’s good for emergency liquidations if necessary, but that’s about it, as I wouldn’t use it to trade other than that.

We are witnessing 2 big “LIES” in the marketplace at this moment in history; 1) markets aren’t manipulated, and 2) corporate earnings are wonderful. The first needs no comment, simply because so many observers have shown proof of the manipulation, including me, and secondly corporate Amerika is sick, and not at all as healthy as the CNBC cheerleaders would have you believe.

What sense does it make for a company to improve things, when all they have to do is take [or borrow] cash earnings and buy back corporate stock? Revenues and sales go lower, but earnings per share go up cuz the company stock goes from 100 million shares outstanding to 50 million shares outstanding, and the EPS almost doubles setting off panic buying on Wall Street; meanwhile everything sucks in the company, but it doesn’t matter to the directors simply cuz their stock options go way up making them filthy rich. So, whom are the only “net” buyers of stock over the last 2 years? According to BofAML, it’s only been corporate stock buy backs and central banks … that’s it … everybody else have been net sellers of equities. “So yea, tell me again how wonderful McDonald’s is”.

Here again today in the U.S. markets, from what I’ve seen since things are back to normal, it’s “protect & defend” the “wee hours” manipulations; nothing moves during U.S. hours, as prices that were manipulated higher earlier, simply need to be propped up and defended. As I’ve said before, why spend the energy and money to manipulate it higher when you can do it when everybody is asleep or going to their trading desks?

Gee, I get everything back to normal here in command central [internet & phone], and didn’t that escalate quickly on the down side? About time the SP500 got “monkey hammered”; this is what manipulation brings when the manipulators back away from their bids, and the FED has nobody to blame but themselves.  Talking heads are blaming JPM for the drop, specifically their head “Quant” guy.

Down near the low, the quote and order box feeds on the MT4 have gone out and are “dark”; is this the trading day from hell or what? I was thinking of buying the Dow30, and as I’m watching, while the rest of the trading platform is Ok and working fine for everything else, I got “nada” in the Dow30. Market is 20 higher when the feed comes back on 17 minutes later, and I can’t tell if the LP shut the feed off cuz they didn’t want to sell, or if there was an internet problem from the MT4 platform. In any event, I can take a hint from the trading Gods, so I’m doing nothing today trade wise. It’s late afternoon, the market is going down, and I’ve been hit with the kitchen sink in regards access to trading, and besides that, the market is sooooo overdue for a corrective break [especially the SP500], that even if it was a normal day, I’m not sure how strong any of these bounce back rallies can be; one of these days, the break after 2:30 is going to be a killer. Notice, you didn’t get this break in the A.M., cuz if you did it would be bought like crazy; no, it happens in the P.M., and now that means it’s a different story indeed. In any event, tomorrow is another day.

I’ll have more tomorrow, as today has become a “lost day” for me. I followed some of the DAX30 action from my phone very early this morning, so I could see the quotes going by, but I’m going to spend some time tonight before I retire to analyze the day. Tomorrow looks very interesting, and has the potential to be a volatile day … we’ll see … but the daily candlestick in the SP500 from today is going to be a bearish engulfing pattern up at all-time highs, with the action taking out the last 7 days on the downside. “Hey, who’s up for staying long the SP500 over the weekend? … What could possibly go wrong”?

Here near the close, the market has rallied back strongly, and correlations continue to be messed up with the SP500; just a reminder, it was only a couple of days ago when the Dow30 dropped 110 points while the SP500 went down 3.5 index points. Here this afternoon, the SP500 breaks approximately 23 full index points and the Dow30 goes down about 80 points; and, just to show you how messed up things can get on messed up days, the Dow30 is now only about 20 points off its high for the day, while the SP500 is a full 13 index points away from its high. “Sure, explain to me again how correlated things are”.  And, like most days recently, to add insult to injury, the DAX30 CLOSED, is more volatile than the Dow30 OPEN. Seriously, some days I wonder what universe I wandered into to trade? I’ve never seen markets this screwed up, which in the final analysis, is exactly what the manipulators want and desire.

At the close, new highs for the day in the Dow30; thank you "Plunge Protection Team" … things have gone full retard in stocks, and the bubble top just keeps going. Oh,, won’t tomorrow be fun! Onward & Upward!

PAMM spreadsheet directly below.

Time for the beach! … “the ice cream King” and I are outta here … until tomorrow.

Have a great day everybody!



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