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Sunday, October 21, 2018

SUNDAY UPDATE: GOLD SHINES BRIGHT!

“Nobody ever … EVAHHH! … said it better!”

First up, a little bookkeeping … directly below the 20 Day Range MA [orange], 
and the 20 Day Range MA in the 8 hour NY trading session from 7AM - 3PM 
[blue] … and if it wasn’t for 5 out of the last 20 trading days having been well 
above New York trading ranges, the blue would be a lot lower than it’s 
showing. This past week saw every single day below the 20 Day 8 hour range 
in New York … the calm before the storm?

click to enlarge

I want to use today’s update and highlight GOLD, our premier trading 
vehicle instrument. First up, the pros & cons of the two [2] gold trading 
instruments at our disposal, namely futures versus XAUUSD [spot]. As I have 
stated before, spot gold can’t be traded via US brokerage houses cuz of 
Dodd/Frank, thank you ex-Preezy Hussein … a payoff to the CME there is no 
doubt. At present, there are a handful of offshore [meaning non US domiciled] 
brokerage houses that have XAUUSD available to trade, with a spread 
comparable to Turnkey during the day [7 - 12 cents per OZ.], and RT 
commissions that are competitive to slightly higher than Turnkey. However, 
EVERY SINGLE ONE of them, in order to get Turnkey’s trading conditions, 
have account minimum opening balances of between USD $25,000 - $50,000, 
and most of them REFUSE to accept US clients. The big advantage of 
XAUUSD, is the flexibility of trading in 1 OZ. increments, with margin 
accounting of 100X …  meaning, you can get institutional & futures price 
trading in any size you prefer, and the current margin needed in the account 
to trade current price of approximately $1230, at $12.30 per OZ. That literally 
means ANYBODY can trade gold via XAUUSD … all you need to do is open 
an account, which takes all of 2 minutes … since there is NO account 
minimum balance to open an account, anybody with a couple of hundred 
bucks to their name can start their trading career … “say whatever you want, 
there just isn’t any excuse that’s valid in my book, if your serious about making 
money … start small and build your account, WTF are you waiting for”?

The big drawback of XAUUSD, is that it’s a terrible instrument to “position” 
trade gold … anybody looking to hold a long/short position over days or 
weeks, instead of day trading it, will find the overnight “vig” comparable to a 
“payday loan” scam. On Friday, there were 39 days to expiration in the 
COMEX DEC. 2018 futures contract [expires November 27th] … institutional 
“cost of carry” is factored into the futures price, and on Friday it was 
approximately $3.20 per OZ. … no matter where price goes from here to 
expiration, that $3.20 will evaporate to 0 on expiration day, and the futures will 
be priced right where XAUUSD is. However, the “cost of carry” PER DAY via 
the scumbag LP’s in gold at Turnkey [and anyplace else for that matter] is 
currently 8.95 cents per Oz. if LONG, and 6.74 cents per OZ, if SHORT. 
Multiplying both times 39 days, you get approximately $3.50 of “vig” if 
you’re LONG, which is slightly higher than the futures, but on the SHORT 
side you get royally screwed … in the futures, you actually RECEIVE $3.20 of 
“vig”, whereas via Turnkey you PAY approximately $2.63 of “vig” … that’s a 
difference of $5.83 per OZ. [per 1 lot = 100 OZ.] to expiration if you’re short! 

My point here in pointing this out, is to make you realize, that the bullion 
dealers want you .... no require you to trade …  unless you want to hand them 
free money … they’re giving you the best in pricing, cuz you have to trade it 
… you try and position it, and they are going to clean your clock!

As I have previously pointed out, C2 is a U.S. domiciled company … they can’t 
have anything to do with XAUUSD [spot gold], only gold futures … therefore, 
our current trading signals service in gold has to be with futures, which at 
present the most liquid and heavily traded contract is the DEC. 2018 contract.

At some point in the future, I was eventually going to go to gold futures cuz of 
the availability of OPTIONS … C2 has now given us the primary impetus to 
make that reality come sooner rather than later. Now, I realize there are 
different venues to achieve gold trading; most notably, there are NYSE 
exchange traded ETF’s like GLD, which have options trading … bottom line 
is, though, IMHO futures give better transparency, pricing, and the RT 
commissions are meaningless to profitability … so, after some internal debate, 
futures and options on futures it’s gonna be. “Cuz, quite frankly, you never 
know when SHTF … early Asia, late Asia, Europe, or will the market cooperate 
and go insane in New York only? … fat chance … futures/options are open 23/5 
each biz trading day, and give the best pricing & transparency. There’s also the 
margin factor … using GLD, which is a “stock”, your leverage is capped at 2X; 
exchange futures are margined at 25X, so there’s a lot more flexibility for 
traders to choose their optimal reward/risk profile”.

After the Christmas & New Years Holiday season are over and done with, and 
we find ourselves in 2019, I’ll be setting up and offering our GOLD 
POSITIONING signal service with futures AND options, that will focus on 
short term to intermediate time frames [1 - 8 weeks], where options will be 
used extensively to 1) hedge against loss, and at the same time 2) provide 
covered premium income opportunities. “This will be more of an “investment” 
in gold EXPOSURE, rather than “trading”, without the need to take possession 
of the metal and deal with those hassles, and giving greater leverage for your 
money than simply holding metal … it also allows for the proper management 
of risk, which is paid for by gladly giving up short term price explosions to the 
upside … these strategies “smooth out” returns, and are extensively used by 
metals dealers, banks, hedge funds, and others looking for above average alpha, 
while minimizing risk”.

The price per month of this service will be “STUPID” low … “less than the 
sales tax you pay per day on your Starbucks coffee & danish! … there isn’t 
anybody who can’t afford this, or tell me it’s too expensive … it’s simply gonna 
be “STUPID” low cuz it’s a position based program … it won’t even be 20 cents 
per month on a 1 lot! …  The programs objective is quite simple: achieve 
30+% per year, in a conservative, hedged, and risk averse environment 
utilizing options strategies I have used for decades. And, I might add, anybody 
then signed up for our signals “trading” service in gold, gets the GOLD 
POSITIONING signals service for free.

I fully realize some of you may not be familiar with options, or the various 
strategies that are popularly used by professional traders … over in  
“Download Links”, in the right hand column, I’ve added two [2] PDF’s that 
will quickly bring anybody “up to speed” … the first is a very short basic 
primer on options for Newbies [10 pages], and the second is a short 
description of the 30 most popular trading strategies [58 pages], brought to 
you by HSBC bank. Everything in these 2 PDF’s will help those who have 
questions about options, and how to use them effectively employing different 
strategies, based on your market outlook … so, whether your bullish, bearish, 
or neutral on the short term or intermediate outlook [1 - 8 weeks], there’s an 
effective strategy that can be utilized for profit, with risk that can be exactly 
defined by the trader. Enjoy! … I’m posting these 2 files for education and 
profit!

In addition, the “Information Tutorial”: “VEGAS GOLD TRADER” pdf 
Algorithm, and the PDF explaining our money management program in the 
PAMM/MAM, have both been updated and reflect our commitment to the 
gold market going forward. All of the PDF’s in “Download Links” are now 
current and up to date! 

Anybody has any comments/questions, simply email me and I’ll get back to 
you with a personal response ASAP … until tomorrow mi amigos 
… Onward & Upward!!

Have a great rest of your 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”!














 


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