“A quick guide summary of FED policy!”
Anybody but me notice, we haven’t had many upside “vapors” nights the last couple of weeks; think it’s a coincidence that at the same time practically every major investment house on Wall Street has “called out” the FED and lambasted them for being “misinformed to downright ignorant & dangerous”? Think there’s much panic over at the Eccles building in D.C. inside the faculty lounge?
Well, I happen to think that yes there is some mode levels of panic going on; for one thing, ChairSatan Yellen retires in a few months come the start of 2018, and the foremost thing on her mind is a smooth last few months with zero problems, and as little criticism as possible. TRANSLATION: FED policy on automatic pilot, just get me the hell outta here to that “gushy” 7 figure gig over at JPM or the Squid, and get the book publishers lined up with their checkbooks open for my memoirs. That’s about all you need to know, but there’s one slight problem.
It’s called September & October, historically the worst 2 months of the year for stocks, stock indices, and bond markets the world over; and this year, we have not only the most “nuclear toxic” political environment since Reagan, we have a budget battle & debt ceiling battle that has the potential to be “epic” … grab the popcorn, cuz my gut feeling is President Trump is going to call the bluff of Libtards & Rino’s, and shut the government down for maybe a good long time … which is a good thing, cuz it will at least show Sheeple life goes on without the “Nanny State”, and that … yes, your life can survive and prosper without Apparatchiks micro-managing everything. Of course, the political theatre will be LOL, as Libtard’s heads will explode and provide more comedy than a string of Nancy Pelosi & Maxine Waters speeches combined.
But the other problem I mentioned the other day; and that is, what is the FED & the “Plunge Protection Team” [PPT] afraid of, that they can’t let the SP500 break or close lower [more than a fraction of a point] for more than one day in a row? Why do you protect and defend a market that is so far over extended to the upside it borders on ridiculous? Cuz if it doesn’t “correct” soon and take away some of the sell pressure, by the time the budget battle and debt ceiling become “front page” news, you are going to see a group of markets that “blow up” and get the living snot beat out of them; and the very thing the FED says they don’t want to see, which is investor panic to the downside, is exactly what they get. “Now Grandma Yellen, you got a problem, and it threatens your legacy and “gushy” retirement … cuz there ain’t gonna be no 7 digit consulting job if you let markets go into the shitter right before you leave … and you know it”!
Turning to today’s market’s … the Dow30 & the SP500 continue to be downright dead, while the DAX30 is trading all over the place … there is no question, that at least for right now, the DAX30 has better intraday volatility and better trading opportunities; even with the auto industry news from Germany, the fact that it isn’t nearly as manipulated [despite what the babe over on ZH says, who was in the PPT for years, and CLAIMS they don’t do much … yea, right] as the U.S. indices, makes for better trading. If you took a look at the DAX30 M1 from today, what you would see is what the Dow30 looked like prior to February 2016.
Yes, please tell me how correlated these markets are … since the open the SP500 is down about 3 ½ index points, the Dow30 is down 70 points, and the DAX30 is up 30 points … in a world filled with manipulators, anything/everything happens. But, I’m not buying the Dow30 until the SP500 breaks … and 1 point isn’t a break … I don’t want to get caught in an SP500 downdraft and be long the Dow30 when it happens, especially when the range in the SP500 is a paltry 6 points … I’m supposed to think this is going to be it for the day? I’m not looking for some kind of crash, but simply for some kind of movement from the SP500 that can give me an idea of where support/resistance and stops are at. Right now, we got “nada”, and a Dow30 market that is simply either panic buy or panic sell … take your pick … and all it pretty much takes is the SP500 to move ½ of an index point to set things off in either direction. Simply put, this isn’t trading, it’s gambling.
Here in the early afternoon, the DAX30, which the cash market in Frankfurt, Germany closed 2 hours ago … it has a bigger trading range closed than the Dow30 has open. There have been many outright pitiful trading days lately, but this one takes the cake … day is half over from the New York open, and the SP500 has less than a 3 index point range, with no indication from anywhere it can move even the smallest amount it is soooooooooo manipulated by central banks. It’s no wonder nobody is trading it … why? But, don’t take my word for it; directly below, the world’s most manipulated & corrupt stock index futures market, which supposedly has the highest volume and deepest liquidity, the SP500.
Oh yea, take look at this beauty above and tell me there isn’t outright manipulation going on … no buying, no selling, no trading, it’s simply a frickin’ joke … just central bank bids that get adjusted. And from this we get the Dow30 panic attacks, where all it takes, is literally a 0.3 index point move and the Dow30 can rally or drop 20 points.
Trading the Dow30 without some kind of guidance [meaning correlation] from the SP500 market, is like flying an airplane at night with no instrument rating … only bad things are gonna happen. Earlier today, the Dow30 broke from the open almost 90 points … meanwhile the SP500 went down grudgingly about 2.8 index points … as if somebody hit a light switch and changed everything, the Dow30 then has climbed about 40 points while … wait for it … the SP500 has gone back up the 2.8 points it lost earlier and is sitting [literally] right where it was at the open. The first series of lows on the Dow30 all got taken out in quick order, despite the bullish engulfing patterns as it went down … all-in-all, the first 4 legs down would have produced losses in the area of about 10-12 points if you acted quickly … the fifth low, again if you acted quickly, would have gained you about 40 points low to high [and has been sitting here for the last hour] … somebody tell me what is gained by breaking even on a series of trades when the SP500 by comparison is doing “zip, zero, zilch, nada”? Simply put, without the SP500 moving somewhere [up/down I don’t care], it makes all the Dow30 quotes and prices suspect, and it’s the reason I didn’t trade the Dow30 this morning.
Earlier in the day, the version 4 algorithm gave a buy signal in the DAX30, which I took, but after 3 minutes of attempting to go higher it couldn’t and failed … so, I treated it as a profitable scalp. In retrospect, I should have stayed in the DAX30 its entire cash trading day [3 AM – 11:30 AM EST], but left it alone to watch paint dry in the U.S. markets. Whatever it is you want to call today in the U.S. equity indices markets, “trading” isn’t a term I would use. It’s about an hour until the close, and I simply can’t take this crap anymore today … pathetic would be a compliment it’s so bad. Onward & Upward!
PAMM spreadsheet directly below.
Time for the beach … dog and I are outta here … until tomorrow.
Have a great day everybody!
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