“Where are you without faith!?”
Last night I called up some traders I’ve known for decades, in fact I taught
them how to trade many decades & moons ago … and I said to them [2 on a
conference call], “something isn’t right, I’m missing something, what is it? … I
need some input from people I trust & know they know what they’re doing”
… and paraphrasing of course, they both said they read my blogs, and if I
hadn’t called them, they were gonna call me … in essence, I got it completely
backwards!
I will add, simply for perspective, they are both active professional traders and
somewhat big hitters in crude, gold, & stock indices … their advice, like mine,
was stay away from crude & stock indices, they are “death”, but both told me I
had it all wrong in gold … their points were that gold has finally broken the spell
of the “Rally Protection Team” [RPT], and that the volatility that’s been unleashed
these last couple of weeks is ONLY THE BEGINNING of what we’re gonna see
going forward … up/down, all over then place in ranges nobody is used to … yet
… cuz going forward, the next “bomb” to go off is gold … when all this virus shit
is finally over, then comes the hangover of the trillions spent by all the central
banks & the monetization & inflation that will hit worse than the coronavirus
… what we see now, is “the new normal”, and that Genie ain’t going back into the
bottle anytime soon! … and people in the gold biz are telling them, adapt or die
dinosaur, it’s the new paradigm for gold, and gone are the days [consistently] of
the $7 range inching along like death on a stick … so, lower your volumes for
adjusted risk, stretch your trading range, and follow that beautiful algorithm!
The more I thought about this last night into today, the more sense it makes
… granted, everything right now is bat shit crazy, but as today’s trading points
out, when FX dies down and goes into “chop” mode, it turns the algorithm into a
pile of shit … for sake of comparison, if Cable had today’s range that gold had, it
would have a 900 PIP range in the last 7 - 8 hours, not the 70 - 80 PIPS seen for
most of that time, and quite frankly it makes a big difference.
Multiple trades today, TURNKEY PAMM / MAM DOWN FRACTIONALLY.
The algorithm trades in Cable for brief seconds were profitable … then WAP!, in
literally 1 second I’m liquidating for a tiny loss … the fractured nature of this
market, along with a higher bid/offer spread, makes it very difficult to trade … the
gold algorithm trades all profitable … I’ll have more thoughts on gold in
tomorrow’s blog post … here in the Gottham mid afternoon, conditions have
quieted down significantly, and I want no part of the Squid & JPM bullshit they
are infamous for in gold, e.g.. the M1 @ 21:07 in XAUUSD that saw gold dip over
$4+ in less than a second before snapping back sharply … this is the bullshit I’m
talking about, and nobody does it better than these crooks, and why the vast
majority of days I don’t want any part of this shit in the criminal hours of a New
York afternoon, cuz this is what you get.
Just another $90 range day in gold, ho hum … until tomorrow mi amigos
… Onward & Upward!!
Have a great day everybody!
-vegas
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