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Sunday, September 15, 2019

SUNDAY UPDATE: BACK TO AN OLD FAVORITE

“Even Turnkey can’t fuck up the DAX30!”

Today sees us return to an old favorite, that I’ve been trading since electronic
MT4 platforms became the norm from about 2003 … that would be the DAX30
CFD … Germany [and by default, Europe’s] Dow30 … if Turnkey is gonna fuck
up their U.S. stock index CFD’s, and jack us around with exorbitant spreads, and
allow their LP’s to strong arm us day-to-day, then it’s time to go back to the one
stock index that is tried and true, and that even they can’t screw up … why?
… located in London, both Turnkey & Coinexx [Scotland] have too many
accounts in both the U.K. & the E.U. that trade this CFD regularly … it is likely
their most heavily traded CFD, and they absolutely must remain competitive with
their European brokerage house counterparts, via “net trading cost” in Gibraltar,
Switzerland, & Cyprus … remember, and this is important … in the U.K. & E.U.
CFD’s are considered for legal purposes “bets”, or gambling … therefore, gains
are not taxable like futures contracts would be … that means, unless you’re nuts,
you’ll be trading CFD’s, not futures contracts.

Even brokerage houses that DO NOT accept U.S. clients, and that’s about 95% of
all brokerage houses in the world, thank you very much idiotic Nanny State U.S.
Government, and ex Preezy Empty Suit specifically, have a CFD in the DAX30 of
between 0.6 - 1.0 index points … the best that we have seen scanning hundreds
of brokerage houses is a 0.6 index point bid/offer spread with no commissions
… the vast majority are between 0.7 - 1.0 index points, with the commission
structure the “wild card” here … currently, both Turnkey and Coinexx have the
lowest round turn [RT] commission rates for ECN MT4 trading, and factors into
the “net cost” of trading by adding anywhere from 0.1 - 0.2 index points … and
quite frankly, with the way stock indices move [even on slow days], this isn’t
gonna be the reason you make or lose money.

So, both Coinexx & Turnkey come in right around 1.0 index points for a “net cost”
to trade, which I don’t have a problem with … the important matter, though, is that
unless hell freezes over, this bid/offer spread plus RT isn’t going to change much,
if any going forward … sure, like other markets if there’s news pending things can
get dicey and spreads widen … that happens with everything when there’s news,
so it isn’t an issue … unless they want to go out of business, the DAX30 will be the
very last CFD they screw up and allow the scumbag LP’s to manipulate for pure
greed … that’s good news for us, and we might as well take advantage of it.

Directly below, the 20 Day Range MA for the DAX30 from 2018 & 2019 … as you
can see, presently we’re hanging around the lows seen over approximately the
last 2 years … given that our proprietary DAX30 algorithm performs quite well
NOW, and we’re near the bottom in terms of VIX, when things liven up some it will
perform even better.

click on ANY chart to enlarge


Directly below, our current 20 Day Range MA’s for selected markets.






As I’ve mentioned before, at present central banker scum is wringing VIX out of
markets … they don’t like volatility for a number of reasons … and from the looks
of the stock indices, that drop has been precipitous lately. Gold, for its part, is
finally getting its bell rung, and my guess is that this week’s idiot meeting [a/k/a
FED interest rate decision] on Wednesday will see Spicoli uttering the “Everything
Is F-ing Awesome, Baby!” mantra in spades, and doubling down on his “no
recession” on the horizon prediction … bottom line is I’m having a hard time
seeing how this meeting is gonna be good for gold in the immediate future
… remember, this is the gang of morons that in one short year has seen markets
price 5 interest rate tightenings into 4 easings and nobody still knows what the
hell they are doing … given gold’s gains AND the fact the whole spec universe is
still long futures, where does the immediate “buy fuel” in the weeks ahead come
from in order to get us higher … outside of unpredictable geopolitical events that
are always out there, what gets gold higher past 1530?

As I said on Friday, when I come to the trading screen early Monday, if the DOW30
is mispriced like it was most of Thursday and ALL of Friday, with bullshit bid/offer
spreads only a lunatic would accept from the scumbag LP’s, I’ll transition right to
the DAX30 … I don’t see any way Turnkey can fuck this up for us, cuz if they do,
their entire house is toast. So Hooray!, the DAX30 is back into our fold of
tradeable markets going forward.

FED meeting on Wednesday of course … markets tip toeing on eggshells until
then, except maybe crude oil, which given the weekend news from Saudi Arabia
could be “eye watering” when markets open tonight at 6 PM EST … we’ll see
what happens this week … until tomorrow mi amigos … Onward & Upward!!

Have a great rest of your weekend everybody!  

-vegas









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