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Thursday, January 31, 2019

GOLD FACES THE GAMMA PROBLEM

“Well, she does have a point!”

Gold suffers from the same problem as stock indices, and that is the options 
market is “bigly & yuge” compared to the underlying financial derivatives like 
futures and CFD’s. So, to review, 𝚫 (delta) is the rate of change of a call/put as 
the underlying [futures] trades higher/lower. By definition an ATM [At the 
Money] call is priced at 0.50, meaning if gold futures and/or spot rallies $3, the 
ATM call most likely rises about $1.50, given stable volatility … 𝜸 (gamma) is 
simply the rate of change of the delta.

Here’s the problem … as markets move to the upside, and especially to the 
downside rather quickly, those hedge funds & other large traders who are 
short calls/puts that are OTM [Out of the Money], suddenly become ATM or 
ITM [In the Money] … as such, their deltas rapidly charge higher, and since 
it is usually accompanied by a boost in volatility, the OTM options very 
quickly start skyrocketing in price … and of course, the large short positions 
got some serious losses to now cut … so how do you correctly do that without 
creating a bigger problem? … EASY PEEZEE; “if on the upside, you are 
forced to buy the underlying no matter what … if on the downside, you are 
forced to sell the underlying no matter what … delaying, or waiting for some kind 
of correction, can lead to even bigger losses and maybe even a funds liquidation”.

And right now, having seen gold not do Mr. Jack Squat for years on the 
upside, outside of little rallies here and there, now suddenly within 5 - 8 
weeks, there is a “sea change” in market sentiment thanks to the FED, not 
only stopping the rate hikes, but looking very much like the “CNTRL-P” is 
getting ready for QE∞ … add to that the fact that China is “buying” and 
adding to physical, and you’ve basically got a market with its pants on fire 
short calls up to their eyeballs … and that simply means no deep corrections 
until they are collectively finished … at that point, the banks [read the 
ChiComs] hand them their asses on a plate.

What we really need to see is an expansion of gold’s range, not only in New 
York, but daily as well … this less than $6 - $7 range coming into the U.S. day 
stinks, and the action lately in New York, although it has picked up slightly, 
has been dismal to say the least. Add to that, the market is getting way ahead 
of itself, especially with the Mrs. Wantanabe & Gal Pals and other Asian 
traders, who for the first time in years, their buying in Asia sees further buying 
in Europe, and then very little happens in New York … rinse, repeat, and 
they’re absolutely giddy with profits instead of the usual losses … “well, how 
long is this gonna be allowed to continue before the inevitable BOOM! lower in 
price that you know is coming”?

Another “Flying Wedge of Death” [FWD] day, inside a relatively tight range, 
with trading conditions less than ideal [understatement of all time], which 
isn’t helped by Turnkey’s spreads which are starting to become onerous 
… anybody but me remember 7 - 11 cent spreads all day long? 

No trades in the PAMM today, simply cuz of the very tight range with nothing 
happening … this market needs to see some downside action. Onto tomorrow 
… until then mi amigos … Onward & Upward!!

Have a great day everybody!

-vegas

OUR TURNKEY FOREX “PAMM/MAM” IS OPEN AND
OPERATIONAL, AS WELL AS OUR C2 OPTIONS ADVISORY 
SERVICE.  DETAILS IN “DOWNLOAD LINKS” SECTION IN 
RIGHT HAND COLUMN. START YOUR JOURNEY FROM 
WHERE YOU ARE AT TO “ESCAPE TO SUCCESS”!





 

Wednesday, January 30, 2019

GOLD GRINDS TO A HALT

“Especially on days like today!”

It’s FED day … gold is dead, and later today, fur is gonna fly … I’ll have more 
tomorrow … today is a complete waste. “Well, that escalated quickly didn’t it”? 
… at least it’s starting to move some, even if today is almost over. NO trades 
today in the PAMM, there just isn’t any time left in the day to make anything 
work effectively for us.
  
Onto tomorrow … until then mi amigos … Onward & Upward!!
 
Have a great day everybody!

-vegas

OUR TURNKEY FOREX “PAMM/MAM” IS OPEN AND
OPERATIONAL, AS WELL AS OUR C2 OPTIONS ADVISORY 
SERVICE.  DETAILS IN “DOWNLOAD LINKS” SECTION IN 
RIGHT HAND COLUMN. START YOUR JOURNEY FROM 
WHERE YOU ARE AT TO “ESCAPE TO SUCCESS”!

 

Tuesday, January 29, 2019

CAN YOU FEEL THE MARKET PARALYSIS?

“What markets look like right before news hits … aaaand we’ve drowned!”

All markets, not just gold, have been slowly brought to the point of “news 
exhaustion” … it’s taken some time, but the central bank manipulators over 
the last 7 years have accomplished their ultimate goal, which is to strip away 
financial “fun-der-mentals” and replace it with “approved news” [a/k/a Pols 
& Apparatchiks letting markets know where they want them to go, after of 
course the mistress funds have positioned themselves correctly] for policy 
purposes … and with more money than brains thanks to the “CNTRL-P”  
button, any and all who have challenged them are bankrupt … “there’s the 
official narrative, and that’s it … challenge or fade it, and you’re asking to lose 
money … up and until they change their minds so they can position the 
mistress funds again the next time around, nobody really has a clue what’s 
going on or ever will … news is what they say it is, pure & simple”.

And so today, we sit and wait again for approved news … news on “Brexit”,  
the continuing “shitshow circus” thank you very much Pols … news on China 
tariff talks, the on again, off again, let’s manipulate the stock market yet 
again … news from the FED tomorrow, as if these clueless faculty Twits have 
a fucking clue about anything [Hint: they don’t] … and then of course NFP 
on Friday from the Department of Unicorns & Fairy Tales, and we all know 
what that entails. And so we wait.

Meanwhile. in what has become the biggest trading joke of a market of all 
time, gold is starting to appear on the radar screens of analysts & pundits, 
with the intent of getting the public long the yellow stuff as “smart money”  
sells it to them … “what amazes me, is that with everything we’ve seen and 
heard over these last months, gold has reacted far less to the upside, than it 
would have in the pre central bank manipulation era … they can’t let it trade 
freely or the gig is up”! And yes, if it did freely trade, OMG! would we have 
ranges … far in excess of what we see today. If only.

Today’s New York range seeing some extension, but not anything like Friday 
… basically all we are seeing is some momentum buying for positions 
… positions, I might add, that got stops underneath them and for sure are 
being targeted as I speak, in hushed tones at manipulation HQ.

Given the new paradigm in trading I wrote about a few blogs ago, I’ve spent 
some time adjusting the gold trading algorithm … it’s now split into two 
parts; 1) XAUUSD 20 Day Range MA > $17, and 2) XAUUSD 20 Day Range 
MA < $17. And currently we’re well below $17, so we’re currently in 
category #2. The changes are small but important, and take into account the 
different nature of golds trading action around historically normal ranges [#1], 
and when gold has tight ranges [#2]. I’ve been working on this since the 
Holidays, and I’ve implemented it this week. Look for a lot more trading in 
the PAMM as we move forward.

One algorithm trade today, PAMM up 0.1%.

Trading action off the low today very fast, and took us back to near the old 
high, where we were positioned long, and then liquidated on new highs for the 
day via the spike. Let’s hope we get a lot more of these in the days to come, as 
trading action is getting better than it has been in the first three weeks of 
January. However, that bar is so low I’m hoping we don’t go back, but instead 
see expanded ranges going forward … if government would ever GTFO of the 
way and let gold freely trade, we’d have ideal trading conditions and more 
than likely ranges would easily be over $17 per day on an average basis … I 
can dream can’t I?

Tomorrow sees the FED at 2 PM EST., and I’m not looking for much in the 
way of range until then … it all depends on faculty lounge language, and the  
“foot in the mouth” presser afterwards … at some point here, gold is gonna 
correct hard, and that day has the potential to be tomorrow after 2 PM 
EST. … we’ll see what happens.

Onto tomorrow … I’m outta here … until then mi amigos 
… Onward & Upward!!

Have a great day everybody!

-vegas

OUR TURNKEY FOREX “PAMM/MAM” IS OPEN AND
OPERATIONAL, AS WELL AS OUR C2 OPTIONS ADVISORY 
SERVICE.  DETAILS IN “DOWNLOAD LINKS” SECTION IN 
RIGHT HAND COLUMN. START YOUR JOURNEY FROM 
WHERE YOU ARE AT TO “ESCAPE TO SUCCESS”!



 




 

Monday, January 28, 2019

TIGHT RANGES AS TOOLS OF MANIPULATION

“For your own good, of course!”

It’s like watching a bunch of caged dogs, when the bell goes off and they all 
expect a treat … I’m referencing “Pavlov’s Dog”, and watching traders react 
to when gold has 1) a very tight range, and 2) as the market starts to move 
closer to one of the day’s extremes, either the high or low from earlier, you can 
see the market start to move and setting off stops … in other words, these  
“Flying Wedge of Death” [FWD] moves are manipulation tools the scumbag 
LP banks use to get you to do what you don’t want to do … which is liquidate, 
cuz you don’t want to get caught long on new lows that have the potential for 
gaps lower on sell stops, or get caught short on new highs that have the 
potential for gaps higher on buy stops … so, you jump the gun thinking 
you’re saving money and doing the right thing … “now, who put that thought 
in your head? Was it a book, CNBC, or was it from experience thinking no way 
can this tight range stick and hold”? … for sure, it’s a manipulative tool.

Gold’s action today simply pathetic … can’t even get a $7 range, after 
Friday’s $24+ range … it’s back to the same shit conditions we’ve seen for a 
very long time.

One trade today, PAMM up a few bucks.

Simply nothing here, and the daily candlestick looking like it wants to put in a 
small “doji” … no follow through from Friday, just a bunch of chop. It’s as 
simple as that.

Can’t take anymore of this crap today … it’s like watching paint dry. I’m 
outta here … until tomorrow mi amigos … Onward & Upward!!
  
Have a great day everybody!

-vegas

OUR TURNKEY FOREX “PAMM/MAM” IS OPEN AND
OPERATIONAL, AS WELL AS OUR C2 OPTIONS ADVISORY 
SERVICE.  DETAILS IN “DOWNLOAD LINKS” SECTION IN 
RIGHT HAND COLUMN. START YOUR JOURNEY FROM 
WHERE YOU ARE AT TO “ESCAPE TO SUCCESS”!