“There used to be markets with rules … they’re gone now”!
In 2019 the FED got their bluff called out … for months insisting there would be
no cuts, they cut rates … and the dirty little secret is, they can never be allowed to
go higher … ever … cuz even if they don’t, U.S. total borrowing will go towards
paying interest on the national debt sometime in 2024 according to the Treasury,
so imagine if rates actually went higher? … along with other central banks, about
$2.5 trillion dollars of “QE funny money” is being injected, like heroin, into the
world economy to keep it afloat … it’s never worked before, and it won’t work
now, and the unintended consequence of it all is that it keeps “zombie
companies”, who have no business staying in business, around and soaking up
capital and disrupting the world economy.
The world’s central banks know this only too well, and that’s why Russia, China,
India, and some others are buying gold in record amounts … the handwriting is
on the wall and they see it … they aren’t the ones buying bubble stocks and
vastly overpriced corporate debt.
The other consequence of the massive helicopter giveaway is the stock market
… as I’ve said previously, when Wall Street banks get free money from their
pre-arranged Treasury debt trades with the FED, what do they do with the billions
in profits? … EASY PEEZEE: it goes right into the stock market, especially those
stocks who buy the largest amount of stock buybacks, thus ensuring growing
EPS and a higher stock price, even if the company is shit and can’t grow earnings
on its own … how long can this last? … who knows, but however long it does, it
can’t be sustained indefinitely, and when the reckoning comes, OMG!
This is the “LIE” of financial markets today, right along with the overt attempt by
central banks to eliminate volatility … I see today, that EURUSD VIX is at an all
time low, and last week I saw an article in the “Financial Times” of London, that if
you combine all the major FX pairs, their combined VIX has never been lower, and
that dates back to 1971, when Nixon took the U.S. off the gold standard, about 50
years … why? … cuz all of a sudden there’s no uncertainty in the world anymore?
… no, it’s cuz they all coordinate interest rate policy and overtly manipulate FX
rates, thus killing VIX right along with specs who trade them … GBPUSD being the
lone standout, and thus the “bad boy” of FX, simply cuz the BOE is broke and
can’t afford to manipulate anything.
NFP comes and goes … with the FED & their buds pumping trillions into the
system via the CNTRL-P machine, WTF does an NFP number mean anyway?
… all that matters is the FED money pumping … everything else is simply
bullshit … Stocks. Can. Never. Be. Allowed. To.Go. Lower! … effing Period!
And so, the lemmings have to be made to believe that economic data matters, so
stocks open lower off the disappointing NFP numbers … then the “Plunge
Protection Team” [PPT] shows up, and the “Tulip Bulb 30” goes north quickly,
cuz what else is there to do but go higher? … go ahead, fade the PPT and see
where that gets you … I know people who do, and that’s why they are now back
in the Pudding Business cuz they’re so smart and everything … can’t read the
trading paradigm successfully, can’t bring themselves to being on the right side
of the market, and then can’t figure out why their account is now gone … this is
what’s known as “financial natural selection”.
Gold popping a little, and BTC making a little run over $8K again, but outside of
that markets are D.E.A.D. … Cable at 18 hours into the day just got a 50 PIP range,
and the other majors look even worse, the “Flying Wedge of Death” [FWD] making
its appearance all over FX … oil can’t even get a $1 range … stocks, even though
the DOW30 hits 29K, seem tired … how tired we’ll find out, but next week starts
earnings season, so that may be the reluctance to move anything of significance
today … dunno … what I do know is that trading action sucks, here at Noon EST
in Gotham.
Well now, here’s something we haven’t seen in a while, which is stocks hitting a
new low for the day into the New York P.M. … as I said, they appear to be tired
… not the pop off the lows on corrections with any conviction we’ve seen lately,
and then they roll over and start going down again … who knows how serious
this could get on a Friday, but I suspect it has the potential to force some sell
stops getting hit off, and from there who knows … Lord knows, this stuff is
soooooooooo overextended to the upside, it could go down 500 points and not
do much technical damage on the charts … it all depends on the FED.
Cable [GBPUSD] a bucket of slop today …. Barely got to a 50 PIP daily range, but
the trading action was all FWD … then stop & reverse, go the other way … rinse,
repeat the entire day … very bad IVIX today in Cable … PAMM / MAM at Turnkey
did nothing today … if Cable stays like this as we enter early Monday morning, I’ll
be switching trading to the DOW30 CFD at Turnkey … haven’t trade this since they
got new LP’s, but I don’t see how it can be any worse than the mugging we took in
slippage in Cable this last week … we’ll see how it goes.
Two good algorithm buy signals today in the DOW30 … FX CHOICE PAMM / MAM
UP SLIGHTLY MORE THAN 0.4% … it was a good week for the PAMM / MAM,
details on the Sunday blog update.
Two good trades I took no heat on … both up immediately from my entry point,
using both “Traders Course” [TC], chapter 6 AND “Traders Course II” scalpers
algorithm to make trades … happy with both signals.
Outta here early today, cuz I don't want to have to put up with the criminal element
in New York on a Friday afternoon, especially an NFP Friday afternoon … blog
update on Sunday … until then mi amigos … Onward & Upward!!
Have a great weekend everybody!
-vegas
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