“Liberal logic easily explained!”
The country has hit ABSOLUTE peak idiocy; “yes, by all means, ban all history that’s “uncomfortable”, burn books you don’t like and think people shouldn’t read, only allow credentialed elite liberals with the right indoctrination and pedigree to speak, use violence to curb speech you don’t like cuz you disagree with it; make all women wear Cankles “Captain Kangaroo” dress coat and fat pants and/or Mao jackets, only allow the most egregious hypocrites on the planet to mandate social behavior via their utter immorality and debauchery, and by all means ban Christianity cuz Christians mostly have morals while you don’t, and you don’t like that cuz it makes your secular humanism seem wrong”.
In a sane world, you would simply laugh out loud, and demand psychiatric evaluations of “nut jobs” like Nancy Pelosi, who said yesterday with a straight face that all Confederate statues in the Capitol should be removed at once cuz they’re “offensive” … “maybe somebody should remind Ms. Dingbat, that just a couple of short years ago she was “Speaker of the House” and didn’t do a damn thing to eliminate said statues that are sooooooooooooo offensive; why not? And where were the “Congressional Black “milk-the-taxpayer-for-free-money” Caucasians? How come they never complained, or hit the nearest TV camera to explain their pain … hmmmm”? Of course, we all know the answer and it’s simply SJW bullshit … if it weren’t for double standards, liberals wouldn’t have any.
And through all of this planned charade by Libtard Nation, what do we learn? Well, we learn that the guy who organized the march by the Neo-Nazi’s was an Obama supporter and organizer … surprise! … and we learn the girl next door who got arrested for admitting she helped pull down the statue, is a committed communist supporter of Kim Jong Un, a member of the WWP [World Workers Party] that actively promotes the destruction of the U.S. by any means, and is a staunch socialist and anti-capitalist; and you thought this was spontaneous? … surprise! …. And we also learn that no matter what you say or do, condemning the violence and everything else that went on, liberals and the MSM will constantly and forever continue to “shift the goalposts” to a new “outrage dujour” starting with the next news cycle. Nothing is ever enough, and when it is, they simply erase all memory and move on. EXIT QUESTION: “But … but … what about Russia? Oh, that’s so yesterday. And the real crime by Trump in all of this bullshit? It’s calling out ANTIFA as a domestic terrorist organization and the thugs in it … the Left’s newest social darlings, with all the morality of Robespierre of French Revolution fame, who upon closer inspection, was himself guillotined he was such a louse … oh, the horror to be publicly outed”!
Cuz they think [Libtard Nation, that is], that they have all of the superior “moral authority”; they always do, and that makes everything Ok in their book. You can beat innocent people up, stop free speech, burn & loot others private property, all because the end justifies the means. And the most sickening thing in all of this to me? The spineless Republicans who run for cover and shake at the altar of liberals; and that would be the usual band of suspects from the House & Senate, but mostly the publicity hounds in the Senate like Graham, McCain, Corker, Flake, and some other douche bags as well. While I am sickened by the sheer ignorance and stupidity of the Left and Democrats in general, I detest RINO’s for their utter hypocrisy and levels of deceit [repeal ObamaCare anyone?].
Last night, I got an email from an old client/reader from way back, and I haven’t heard from him in a while, but he sent me an interesting email that I read, re-read, and went through all of the charts he attached. Basically, cutting to the chase, he’s telling me that after dissecting the “Kumo Cloud”, and comparing it with my first published algorithm called “Tunnel Trading”, that it’s basically the same thing”! And he wraps it all up by telling me, “welcome to back to the future”!
Now, 1) I’m a lot more proficient with computers, MT4, and coding than I was back then, 2) markets 15 years ago had much higher spreads and trading conditions that were terrible in terms of “net” cost, and 3) for the most part, “pits” still ruled the world. However, he showed me my data that I used back then, modified it to use it in the M1 time period, and then used ‘Square of Nine’ profit points in the trade that coincide with Fibonacci numbers; if you look at the rules I’ve got today, entries/exits would be very close, but that my original work stills stands as better! And he had a spreadsheet to prove it! And while he enjoys and likes my work and research, he still claims “ain’t nothin’ better” than what you gave me 15 years ago!
Well, what can I say … stayed up late last night anyway to see if stocks tanked [they didn’t … yawn], and while watching USDJPY & SP500 out of the corner of my eye, took a good look at what he sent me. So, over the weekend, I’m gonna reintroduce all of you to my original “Tunnel Trading Method” on Sunday night, for viewing online and/or download in PDF. 15 years ago for example, USDJPY had the low, low spread of 4 full PIPS, EURUSD was 4 PIPS, & GBPUSD was 5 full PIPS; you simply had to trade over longer time periods to defeat the spread, so I originally developed and modified it for use with the HR1 [one hour] candlestick. We don’t need to do that any longer, cuz of course we now have the lowest “net” cost in the Biz at about 0.004 PIPS for a round turn trade via Turnkey.
I can tell you, there are some subtle differences and there are similarities; some will like the “Kumo Cloud” better, and some will gravitate to “The Tunnel Method”. The “Cloud” & the “Tunnel” act basically as the same thing, but in the “Tunnel Method”, there are bands for taking profits as the market rallies or drops … it’s super easy to follow, and it got so popular back on Forex Factory back then, it had over 200,000 followers before I had to scale back answering questions about it cuz I was getting hundreds of emails a day; I simply had to stop going there cuz people would get mad at me for not spending my entire day and night answering questions. So, what I’ll be doing is modifying it for the M1 for use in USDJPY & EURJPY, although it can be used in any FX pair with either 5 digit or 3 digit pricing, and it will be available Sunday night sometime.
Turning to today’s trading … we’re all SP500 traders today … overnight action very light and choppy after a quick selloff of USDJPY on the European open that saw the pair go to the 109 area for a test and a run of some sell stops … mission accomplished, and now time to chop and wait and see if the other “shoe” can drop and take the selloff lower still at or near the open in New York. Doesn’t look like it, as no doubt the “Plunge Protection Team” [PPT] is out in full force today [like last Friday] to make sure the weekend papers aren’t filled with sell panic.
But, as I have said before, a rally at the open is the worst thing that can happen to this stuff, meaning that every professional trader in the world knows the selling isn’t over until you get capitulation on the open or during the early part of the trading day. And on que, right before the European close on a Friday, here comes political news that blows the living hell out of every short position for the last 8 hours, and fills stops at God knows where, and leaves some very ugly marks on traders who got caught.
I started the European day wondering when this was going to happen, but we got a 30 PIP slide right at the opening European bell; even after some lousy rally attempts, the tone was negative and traders were out for blood … only blood that got spilt was their own; not only was there no sell signal to go on, but the move down was a struggle like yesterday. At what point, does the tsunami of dealer buying wipe some shorts away … well, didn’t have long to wait for that “well placed” Bannon rumor to hit the market … gosh, what a coincidence it comes right as Europe closes … probably nothing [WTF].
But as usually is the case, the problem here for traders is logistics … there simply is no way you can safeguard this kind of action we are seeing on a regular basis … yes, I passed on some short trades earlier cuz I didn’t want to get caught in this nightmare of getting filled on a buy order in a mini melt up … there simply isn’t enough volatility to make this kind of “hit” back anytime soon. There isn’t anything “normal” about trading anymore … these spikes come out of nowhere and catch either long or shorts over extended, and the stops get run and filled at the extreme. And now, after yesterday’s very rare double reversal, today we get a reversal from almost 100 PIPS … and you wonder why I’m cautious about putting on large numbers with stops? Pluhleeze! This is nuts, is what it is; and of course, as you’d expect, once the high of the day is taken out at 55, it’s a straight drop of 15+ PIPS before you can say, “Wha”? Simply put, “mission accomplished” from whoever it was with more money than I’ll ever see, shoving USDJPY into buy stops to take the other side, and not only cover longs but get short, which is more than likely the reason for the stop hunt. What’s next now for today, new lows?
And now the market finds itself hostage to not only the SP500, but politics as well … before, you couldn’t get an uptick to save your life; a little bottoming action, a change in short term momentum, and BAM!! … oh, so sorry, you short? … what looked like gold now turns into bat guano in less than a second, and you can attribute it all to “The Golden Rule”; he who has the gold makes the rules … now, you can’t get a down tick to save your life. This is why lately, aside from the slippage we’ve experienced the last 2 days which pisses me off greatly, I’ve been extremely careful about trades, especially with any kind of size that can see sizeable losses … you simply have to realize who’s long, who’s short, and when do the stops get set off to get the dealers out … just when you think you got the trade of a lifetime on, it changes in less than a second on news … sometimes bullshit news [like today] … and you think the rumor was coincidental to the European close? Ha, what a joke … well placed, well timed, and pre-planned in advance to catch shorts off guard and make them pay. Thanks, come again!
Here in early afternoon, it’s tough to tell if the market “used up” all the buying power for the day, or whether there is anything left … the problem is compounded cuz it’s Friday, and people need to adjust positions for the weekend, and if stocks start to slide again, who the hell knows what happens next. You certainly can’t just sit there and say, “oh well, it’ll come back”!, and then it doesn’t. And if you happened to get caught in that clusterfark, there isn’t any way to get the PIPS back … not a chance in hell … lose 40+ PIPS in a second on multiple lots, and it’s a B.I. Itch making it back … yea, there’s a reason I’m wary of this stuff lately, cuz it isn’t acting “normal”; all we get are FWD’s, massive reversals with huge spikes from hell, and yesterday’s double reversal, which I hope is not a precursor of things to come. Start injecting Pols into this, along with rumors, and it’s a volatile mix of wampum explosives ready to be set off. It would certainly help, if markets could regain some semblance of normal activity, but it’s something you have to deal with if you want to keep trading for a living.
Late afternoon, and as I thought highly likely earlier, the SP500 doesn’t have enough “buy power” off the Bannon rumor to keep it higher … certainly, it’s nice to see stock indices have higher volatility, and that keeps things interesting in USDJPY [our stock indices proxy], but does every damn day have to be a FWD or some combination of crazy reversals on vicious spikes? All told, only one trade today, a profitable small gain … a very small range to start the day, things picked up around 90 minutes before the NY open … I assumed today would see stock indices “take the lead” in terms of trading, and didn’t think it was likely USDJPY would see much of a range and/or trading opportunity unless stocks suddenly got slaughtered starting in Asia … that didn’t happen, so nothing to do until New York stocks were set to open … that said, USDJPY shaved 30 PIPS out of the box, and it was rather dead until the New York open … early action had me very nervous to be short, and the reason was the price action in the market; the snap back retracements up were a hell of a lot faster than the drops down, with only the spikes down providing any comfort if you were short, and of these, pretty much all of them came back in a 3 steps down, 2 up fashion … unless stocks were going to go “Thelma & Louise” on a break of 2420 to the downside, I thought all along both markets were getting “set up” … I’m not some kind of hero looking to pick a bottom, so I waited until conditions improved and also wanted an algorithm signal before I got long … I did get that, and the market immediately went up for us … when it started to come back quickly, I liquidated, figuring there are more of these if we can just not see stocks get creamed any more today. We were coming up off a correction down, and I’m debating whether to get long, wondering what the Europeans were gonna do with about 10 minutes to their close; would they be buying or selling USDJPY and/or the SP500? And BOOM!, the Bannon news, and we take off like a rocket straight up catching shorts in a complete “death liquidity trap”; if you have to buy into this, you want to talk about slippage? Anyway, one trade … cuz after that both the stock market and USDJPY had pretty much used up all the oxygen necessary to lift prices even higher … now, all that’s left is trouble. Of course, it’s better than losing money, and no slippage today from the scumbag LP, so that’s helpful, but the chance for a good gain out the door with the Bannon rumor cuz we weren’t long at that point; still, would have liked to make more in profit, but when the “setup” for any trade [until the one I took] is rotten, you just have to wait. So, I’ll take the small gain and be back on Monday.
We got about an hour to the close, and if you look at a chart, once the panic spent itself with a new high [which was a stop hunt for sure, nothing more], it’s been nothing but down, to where we simply sit doing nothing … the market can’t even manage a 3 PIP rally, and now the pressure is on down to the most recent break in the 109.200 area, and nobody knows just how low it can go if stocks decide to break again. First the shorts get crucified, now it’s time for the longs to suffer … all of these markets have been a B. I. Itch to hang onto anything longer than a few minutes, with changes in sentiment and direction fast and extremely wicked, and today is no different.
I had planned on getting the PAMM spreadsheet back up today, but I spent all my time last night looking over my friend’s email with “The Tunnel Method” results and charts he sent me … I’ll post it Sunday night when I upload “The Tunnel Method” into the “Download Links” section of the website.
Beach time! … the dog and I are outta here … until Sunday night.
Have a great weekend everybody!
OUR TURNKEY FOREX “PAMM/MAM” IS NOW OPEN AND OPERATIONAL; SEE “PAMM/MAM MANAGED MONEY PROGRAM” IN “DOWNLOAD LINKS” SECTION IN RIGHT HAND COLUMN FOR DETAILS [VIEW ONLINE AND/OR DOWNLOAD] AND START YOUR JOURNEY FROM WHERE YOU ARE AT TO “ESCAPE TO SUCCESS”!