SHORTS GET ACQUAINTED AGAIN WITH HISTORY

 

“I was assured the DOW30 was heading lower … umm, help!”

History doesn’t lie … granted, it’s written by the “winners”, but when it comes 

to the stock indices, there’s only one truth … and that’s the truth I lay out in 

the “DOW30 Aggressive Scalper Tutorial” [PDF] over in the “Download Links” 

section of the blog in the right-hand column. And one of the many truths in 

there, is that it’s a “B. I. Itch” making a living trading either the DOW30 or the 

SP500 from the short side … yes, there is a time and a place to do it, but it’s few 

and far between.

One of the big problems is that the scumbag LP banks blow out the spread to 

screw the buy stops; directly below from today, are 2 examples of this from my 

order box … take a look at the “tick chart” on the left; bid in blue, offer in red 

… anybody but me notice the sudden widening of the spreads? It’s simply a 

function of filling shorts with bigger losses than they anticipated, and lining the 

pockets of the scumbag LP banks … “The HAL9000 computer system, though, 

says everything is fine. I’m sorry you lost money Dave … Dave, we don’t have a problem do we”?

 

 

“Nothing like a little 7-11 robbery to make your 3 day weekend enjoyable”!

Only one trade today … PAMM up slightly, about $22.

As far as I’m concerned, this day had trouble written all over it before it 

began … end of week, end of month, end of Q1 2018, inflation numbers, and 

a 3 day weekend to contemplate any “stupid shit” that will wreck your  

“emotional capital” … add to that, a market that is psychotic in the manner in 

which it is trading, especially intraday, where as I said yesterday, everything is 

a millisecond blimp on your screen, just waiting to trap you into doing 

something you don’t want to do … “no way do I want any part of the bullshit 

shenanigans going into a 3 day weekend in the afternoon of a New York session 

… I’ve been around too long, and seen too many “Thelma & Louise” disasters in

 my career to get excited about any market … it’s there to serve a function as my 

ATM, that’s it … it’ll be there on Monday, and it will be every bit the “nuthouse” it 

is today and has been all week … without all the position squaring “bat guano” 

going on that has the very real potential to end badly”.

It is becoming increasingly harder for “The Teacup Handle Turns” [THT] to 

give us a good entry point … some will, but many others are so fast on the 

second leg up off the bottom, waiting for the neckline leads to fills that are way 

off the market, sometime leading to 20+ point fills away from where you 

thought it should be. Today saw 3 good THT’s, but two of them were 

impossible to trade; price simply exploded off the right leg of the THT and 

made any market buy order make you want to cry … you simply have to pass 

and move on.

I learned a very long time ago, not to care about where any of these markets 

are priced at; quite frankly, I don’t care if the DOW30 is at 2,000 or 40,000, 

or anyplace in between … the only thing that matters is the “setup” for the 

trade, and booking money … in other words, whatever market you trade, you 

have to view it as your personal ATM … nothing more, nothing less.

A somewhat short blog post today, cuz nobody wants to sit and read for more 

than 90 seconds with a 3 day weekend about to start. No blog post tomorrow, 

cuz markets are closed, but on Sunday, I’ll have a bunch of stats updated for 

the website. Back at it on Sunday night … I’m outta here … until Sunday mi 

amigos … Onward & Upward!!

PAMM spreadsheet directly below.

 

Have a great 3 day weekend everybody!

-vegas

OUR TURNKEY FOREX “PAMM/MAM” IS NOW OPEN AND

OPERATIONAL; SEE “PAMM/MAM 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”!

  

 

  

 

AN HISTORIC DAY [I THINK]

 

“How did that work out for you General Custer?”

For the first time ever, and I won’t lay book it’s a 100% certain slam dunk 

… but since I’ve been around since they opened the doors for stock indices 

trading, I don’t ever remember a “triple reversal day with range” in the 

DOW30, but we got one today. And since there still are about 90 minutes to 

go, who’s to say it can’t be a “quadruple reversal day with range”?

Here’s what I do know, though … this shit is “off the charts” when it comes to 

intraday volatility … my M1 candlestick chart has a 20 point grid, and almost 

every single M1 in the day has a range of at least 20 PIPS … literally one 

millisecond late to the buy/sell button, and the slippage will make your eyes 

water.

With approximately 90 minutes to go in this total FUBAR, I want no part of 

any of the shenanigans the scumbag bank LP’s got in store for the last hour 

and a half … don’t count out new highs and new lows … “why not, every other 

measure of “tail risk” has been seen”? 

Seriously, I don’t even know where to start with this crap, other than to say 

the “second to second” price action is the most violent I’ve ever seen … “hell, 

even during the October ‘87 crash, pit conditions weren’t this bad … now, 

though, we got scumbag LP banks, and they’re taking full advantage of the 

market chaos to fatten their wallets by handing out slippage like Halloween 

candy … I sit here and wonder how much more this market can take in 

disjointed trading conditions before it simply breaks … How bad is it? … in the 

last 1 hour and 20 minutes we’ve had 6 … yes, count ‘em SIX … moves 

up/down of at least 100+ points each”!

A bunch of trades today … Pamm down very slightly, about $40.

One of my trades today had a 30 point slippage fill … and it still was a 

profitable trade! … “you want FUBAR? This shit is FUBAR … one of the 

most difficult days ever in keeping “risk” under control … an almost impossible 

task given the second-to-second action, with many M1’s with 50+ point ranges 

… get caught the wrong way in that, and you’ll soon know what was going 

through Custer’s mind at Little Bighorn”. Still, given the nature of the day, 

going forward I’ve got a decent handle on how to trade this shit when 

volatility goes exponential. 

Another day, where I feel like losing $40 is a complete victory … never mind 

the shit fill that cost us $150, that’s the nature of the DOW30 beast during 

times of extremely high volatility … complain to anybody, and they’ll laugh 

at you while showing you the door. 

Again today, I’ll have the PAMM spreadsheet posted around 6 P.M. EST and 

treat it as an update … I simply haven’t had time, here in the late afternoon, 

to do the spreadsheet.

No worries going into tomorrow, which should be a ”barn burner” … inflation 

data, end of month, end of Q1 2018, and a 3 day weekend to boot … from a 

volatility perspective, what could possibly go wrong? In any event, I’ll be here 

to tame the fire breathing DOW30 dragon. Until tomorrow mi amigos … I’m 

outta here … Onward & Upward!!

UPDATE 5 P.M. EST: PAMM spreadsheet directly below.

Have a great day everybody!

-vegas

OUR TURNKEY FOREX “PAMM/MAM” IS NOW OPEN AND

OPERATIONAL; SEE “PAMM/MAM 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”!

  

 

GO AHEAD … EXPLAIN THIS DAY IN TORTURE

 

“Long, Wrong, & Gone ... should have read the DOW30 Tutorial Skippy!”

Just when you think trading conditions can’t possibly get any worse in the 

stock indices, specifically the DOW30, along comes today, to prove once again 

the words “can’t, never, not possible” do not belong in a traders vocabulary. 

What we got here folks, is a classic “Flying Wedge of Death” [FWD] with an 

approximate 300 index point range … “what could possibly go wrong with a 

200 point rally, then a 250 point break, followed by a blistering 290 point rally to 

new highs for the day, and then the nail in the coffin of a fast, vicious 240 point 

break? … and there’s still 90 minutes to go”? [Next 16 minutes sees a 100+ 

point rally, then immediately turns around and breaks 100 points straight 

… and you maybe think if you’re caught on the wrongs side of this 

clusterfark, the scumbag LP is gonna show you any love? … haha, good one!]

And while Friday & Monday saw bigger daily ranges, the day’s trading action 

internals were far better than today, where half to two thirds of all the M1 

candlesticks for the day were greater than 20 points! Great you think, perfect 

for scalping … right? [“Umm, no Skippy”.]

Only one trade today … PAMM up a couple bucks, nothing significant.

The one decent “Teacup Handle Turn” [THT] that I got long on, immediately 

upon filling my order, the scumbag LP blew the spread out to 10 points 

… “oh wonderful, just what I need … when it got up on the trade, I got the hell 

out … seriously, who needs shit like this”? 

To be perfectly blunt: “this is a capital preservation trading day … it doesn’t do 

me any good, to lose thousands, then make thousands, rinse & repeat while I’m 

getting taken out back and shot in the head with slippage from the scumbag LP 

… and trust me, if you were 1 millisecond late to the turn, you were toast … all 

the while the DOW30 is putting in a “doji” spindle daily candlestick with a large 

range. I took the one THT that was available, and leaving the other 3 alone cuz 

it does no good to buy 40 points away from the THT neckline … it’s a good thing 

I did in retrospect … this is simply a kind of day, whether you were long or short 

doesn’t matter, where the gaps in price on the M1 were simply atrocious … you’re 

up 10 points in the trade and go to hit the liquidate button and get filled 25 points 

lower; 3 seconds after that it’s 40 higher … now what? … in other words, risk 

control today is/was impossible, cuz you have no idea where the next 50+ point 

swing in 100 seconds is gonna come from or what direction it’s going in … and 

if you happen to put a string of these losers together, how do you get the money 

back in a market that overall isn’t going anywhere”?

So, view today as one big lesson in risk control, cuz when it ain’t there, you put 

your hands in your pocket and walk away … anything you do is going to be 
trouble, and the slippage from the scumbag LP’s is guaranteed. “Yup, it’s 
official now … with the next 100 point break just occurring, the DOW30 has just 

put in a “double reversal with range” to the downside… something you almost 

never, ever see, especially with a 300+ [now 600 & counting] point range 

… maybe during the 2008 bear market there was one I seem to remember, but 

these are as rare as Unicorn meat”.

Good grief, a 700+ point range day, with no volume and worsening liquidity. 

This most recent serious break started in the New York afternoon, and 

although in the DOW30 tutorial I state don’t even think about getting long in 

a “high volatile” DOW30 market, if after 2:30 P.M. in New York the market 

starts to move lower, personally I feel more comfortable with “anything” in the 

P.M. to avoid if price starts to weaken … leave the buy side alone and walk 

away or you get hurt. So, we’ll see what tomorrow brings … I’m outta here 

… until tomorrow mi amigos … Onward & Upward!!

PAMM spreadsheet directly below.

 

Have a great day everybody!

-vegas

OUR TURNKEY FOREX “PAMM/MAM” IS NOW OPEN AND

OPERATIONAL; SEE “PAMM/MAM 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”!