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Thursday, July 20, 2017

USEFUL IDIOTS

“Pathological altruism for destroying prosperity!”

We all know some “useful idiots”, as Lenin called them; people living in a delusional state that think they are “part of the solution”, but instead are most of the problem. Of course, we can lump the entire gaggle of Libtards, trolling the country endlessly to tell us what is wrong with everything, when in fact they are the problem. Nothing says “freedom of speech” better than some Brownshirt, college age Fascist, Democrat thug for “Bernie”, shutting down a campus speaker cuz they don’t like his/her opinion, and then backing it up with violence … hypocrisy much?

Which leads me to the sycophantic financial press, which has always been the lapdog of the FED; currently, CNBC takes honors for highest “apple polishing” and general ass licking, with coverage that their “FED watchers” need handkerchiefs to wipe the drool from their faces in excitement at asking inane and generally “softball” questions. Last reporter years ago that asked a FED official “an inconvenient question” during an interview was Kathleen Hayes, who now probably works as a “Greeter” at WalMart in Kansas somewhere; point is, she ain’t anywhere around and CNBC got rid of her at guess who’s insistence? … “that’s right, you win a cookie”!

Well, in case you were wondering why I avoid, like the ebola virus, news events like Super Mario’s … rocket up, he talks, market gets “gob smacked” down … “thanks for coming, play again soon” syndrome in full force. These always have been and always will be “account eaters”, and I pretty much always leave them alone. Super Mario has a “history”, over the years, of saying contradictory things between bouts of bullshit, and it shouldn’t surprise anybody familiar with DAX30 trading, EURUSD, GERMAN 10 YR. Bunds, or anything else in the E.U., that when this Vampire Squid Alum starts his “blah blah, yada yada”, anything can happen.

Once again today, the world’s foremost manipulation machine, the SP500, continues its march ever higher, hitting up into the 2480’s on vapors before “Trump Dump, Part Three” hits the market, just as it’s ripe for some “profit taking” [thank you again, Bob Pisani, CNBC] anyway; talk about perfect coordination for a quick drop, this was it. The Dow30 for its part, getting clubbed like a baby seal during a Japanese whale hunt. Still, even with all the “action”, the Dow30 can’t even hit a 100 point range for the day.

Of course, once the panic is over that President Trump will be impeached in 5 minutes [3rd time in 2 months … can’t you guys come up with better rumors than this? … this is getting old.], the SP500 once again goes on the “manipulation drift”, and steadily bid higher all the way back up to just shy of the open. Because, as we all know … the SP500 cannot be allowed to go lower ever again … evahhhhhhh! Realize, once again, that from the bottom, it simply is “bid up” in timely orderly steps with zero breaks … again, tell me how this happens in the supposed world’s largest and most liquid futures market for stock indices? F-ing joke is what it is, and pretty much everybody that trades knows it.

Which brings me back to the DAX30, cuz today’s 186 point fireworks display … thank you Super Mario for playing your part .., is getting to be “par for the course” and nothing special to see. Granted, it’s a little higher than normal, but the key point here is that it … wait for it … it TRADES! Dozens of times a day it moves 20 - 40+ points or more; compared to the manipulation machines run by the FED [SP500, Dow30, NDX100], which we’re lucky if we see one decent break a day.

It’s about three to four times more volatile during its trading day, isn’t subject to bullshit “vapors” while nobody is watching, and has a much tighter spread that stays consistently around 0.6 index points the whole day [unless there is news like today, where at its most volatile the spread was about 1.6 points]. My point here, is that I think more than a few traders world-wide are switching index trading back to the DAX30, cuz they are tired of getting mauled by either the “Plunge Protection Team” [PPT] or the FED, and simply don’t want to be manipulated any longer. Increasingly, trading action is getting more erratic in the U.S. indices; we are already seeing it in the Dow30, where panic selling one minute leads to panic buying 10 minutes later or vice versa … of course, followed by mind numbing nothingness that can last hours, until it starts all over again like somebody just blew a whistle. Where is the normal trading rhythm of up/down? [Hint: It’s dead.]

Here we are in the early afternoon, where it appears to me like the manipulators blew the whistle for lunch at the “21 Club”, cuz for at least the last hour the Dow30 can barely get outside of the 2 point spread … and if you got caught at all in the earlier downdraft, here is the “death knell” for your trading day, cuz while it sits and the clock ticks down on the trading day, you can’t make anything back, and it becomes impossible to get into profit territory. At least with the DAX30, that isn’t a problem as it trades like U.S. futures markets in stock indices used to trade before February 2016 and they became policy tools for bigger “Tools”.

One element of importance with the DAX30, and again the version 4 manual covers this, is because the DAX30 is “NOT” manipulated like its U.S. cousins, you can make long and short trades … you just have to follow the rules. Unlike the Dow30, which is heavily manipulated to the buy side, and therefore only sees breaks once, maybe twice a day if we get lucky, the DAX30 trades up/down with pretty much no bias; down days can be expected to be “down”, and up days can be expected to rally. You can’t say this in the Dow30, and you sure as hell can’t say that about the SP500, where I’m pretty close to calling it totally untradeable cuz it won’t “trade” … it’s sickening, but that’s the reality.

Today’s action is simply one more in a long list of heavily manipulated days, where the central banks pull the bids when the “Trump Dump, Part Three” news broke … the market tanks quickly and violently … and then when the news is “out” and the selling dries up cuz they get “word” from their criminal partner TBTF banks … then here comes the bids to drive it straight up the wall with zero breaks, and right back to where it was before the whole circus show started… level it off … call it another successful day of moving prices upward. And once again, I remind you that the PPT is not there to sop up your “sells” or long liquidation orders … that’s your problem of selling into a falling market, and you already know where your fill is gonna be … there job is to make you look and feel like an idiot for selling 2 hours later when they drive the price right back up. Today is just another example of “mission accomplished”.

Two hours and 15 minutes to the close, and the SP500 is only a couple of index points away from setting another new record high; and why not? Who’s gonna stop the assclowns with the CNTRL-P machine? Who cares if the stuff never, ever breaks again? I don’t see any protesters against higher stock prices, outright fraud & manipulation or not. The problem, of course, is that the more manipulated it gets, the worse it’s gonna be when it breaks down and outright panic sets in … cuz that is where we are headed believe me. Right now, traders are being “conditioned” to buy breaks, but one of these days … I’m here to tell you, it’s going to break, rally back some, and then the next break will be a “killer” … most likely this all happens after 2 P.M., but whenever it happens it will be the start of a very painful correction taking prices much, much lower.

Again today, and it’s been like this for a while now, correlation between the Dow30 and the SP500 are totally messed up; there pretty much isn’t any correlation on the upside, but the downside is a different story. Get the SP500 lurching lower, and the Dow30 goes on “avalanche alert”, going down far faster than the SP500 … today was no exception. I didn’t buy the first or second leg lower under the New York open today … the setup and subsequent rallies off of those temporary lows was not good enough to indicate the bottom … besides, the day’s range was still very paltry, and probability expectations still pointed to a wider range. The third low, though, saw a sharp snapback, and that’s when I made the first trade. But again, it would have been much better from a trading standpoint if this low produced a wider range than the pitiful 99 points we have for the day so far. If the low had seen 130 – 150 point range, I probably would have held onto the position somewhat longer, knowing this would be the likely and most probable low … at 99 points, I don’t think you can make this determination relatively early in the day. It’s why I treated it as a profitable scalp. From a broader market perspective, it’s simply time for both the SP500 and the Dow30 to “take a dump” for a day or two … close on the low or near the low, and take away some of this idiotic euphoria the SP500 currently enjoys … cuz if the market doesn’t? … look out below real soon on some truly bad news; top candidates being, no health care reform, no tax cuts, no budget deal, and no debt ceiling increase coming right up in a few weeks. Throw in North Korea & China, and who the hell knows what’s on the horizon; is this a recipe for a stock market that only goes up day-after-day? Well, we know the answer to that don’t we?

What keeps me “occupied” in the Dow30 are the breaks out of nowhere; it simply doesn’t take a corresponding move in the SP500 to go down to produce a break of 20-40 points down in the Dow30; hell, just in the last week or two, the Dow30 has gone down 20-30 points at the same time the SP500 rallies 3 index points. How the hell does this happen in a market that isn’t being manipulated like crazy? If you’re long the Dow30 during this, you end up staring at your screen and mumbling to yourself how this is possible. So, you just can’t go “willy-nilly” long into the Dow30 just cuz the SP500 is being manipulated higher … and even if it starts going up, all it takes is the SP500 to move off a tenth or two of an index point, and the scumbag LP will start lowering the bid in anticipation of a break that may or may not come … start a little panic liquidation, and in 30 seconds the Dow30 can be off 25 points while the SP500 has down-ticked by 0.2 index points. In a nutshell, this is where the U.S. stock indices are at in 2017 … welcome to the party.

And while it may not be today, tomorrow, next week, or whenever … there’s gonna come a day, most likely a lot sooner than many believe, when markets call the FED’s bluff, and the total “bat guano storm” to be unleashed on stock prices goes “full retard” … the warning signs I’m already seeing in the way downside action is behaving in a heavily manipulated market when the central bankers “back away” even for a second; what happens when they back away and say, “good luck”?

Played the break this morning almost perfectly, but unfortunately after that, it was a nothing burger as the market went into its “manipulative drift” mode, not allowing anything but very shallow breaks right up to the end of the day. Had one trade for profit, and tomorrow brings the DAX30 early in the day, so we’ll see what happens. With a half hour to go in this crap, I can’t take another manipulative minute of watching the SP500 get dragged up by central banks. Onward & Upward!


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

Have a great day everybody!

-vegas

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