“That moment when even the cat sees “Black Swans” everywhere!”
Well now, that escalated quickly to the downside didn’t it? … and the Asian open
was about the ugliest I think I’ve ever seen … bid/offer spreads blown to shit,
markets gapping everywhere down, and record drops in crude oil … and through
it all, just remember central bankers started it all.
When SHTF like this, most markets will be untradeable, simply cuz the scumbag
LP banks will jack spreads to the upper stratosphere cuz they can … “duh,
market conditions, duh!” is the bullshit you’ll hear, but in reality it’s mostly
simple greed cuz they can get away with it … gold opened Asia with $3+ spreads
… “sure, sign me up”! … stock indices, simply “fugetaboutit!” … and oil?
… 10 - 50 cent spreads even now as Gotham wakes up … the DAX30 a basket
case of bullshit, and really there are only 2 tradeable markets as I write
… FTSE100 & USDJPY.
It’s been awhile since I’ve looked at USDJPY, but when the world goes full retard
basket of kittens, and markets get extremely messy, flows into and/or out of
USDJPY will pick up mightily, but the bid/offer spread stays relatively the same,
with only a slight pick up of maybe ½ - 1 PIP at the edges … given the nature of
the beast, though, and the dramatic pickup in VIX, it’s about as good as it’s gonna
get in a market environment where everything is cashew nuts … the JPY crosses
will get obliterated, and usually aren’t an option, cuz the spreads here will blow
out, e.g. GBPJPY upwards of 3+ PIPS, and who knows what the slippage meter is
set at … bottom line is that USDJPY becomes one of only a handful of markets
that will offer any opportunity without getting scalped by the scumbag banks
“bigly & yuge” … “just trade the algorithm via the “Trade For A Living!” e-book
[12 pages PDF … bare bones “HOW to trade & make money”!] … you can follow
directions, right? And, as you might have guessed, it goes back on my
“tradeable” list as of “right F-ing now, like yesterday & into the VIX MATRIX
TABLE”! … I’m not paying multiples of index points to trade stock indices, and
I’m not gonna pay upwards of 50 - 90 cents per OZ. to trade gold … screw that
… all you’re doing is handing free money to scumbag banks.
And, thanks to the faculty lounge Twits at the FED who created this fucking mess,
you can pretty much count on them to fuck it up when it comes to solving their
handiwork ...I see this morning they’re upping their “repo market” bailout facility
to upwards of $150 billion per day … “yea, that’ll fix it! … bail out some more
Japanese life insurers & large hedge funds who are short treasuries and/or are
facing increasing margin pressure from dumb ass “arb” opportunities the
“Quants” told them “can’t miss” … only they missed”!
The NYSE open sees “LIMIT DOWN” for indices … as I have written for weeks /
months / years, the speed at which it goes down, when it goes, will trap about
99.99% of all investors, who having their money trapped inside of illiquid ETF’s,
ETN’s, & various mutual funds, will find out first hand what “illiquid & ugly”
really means … well, that didn’t take long, as it looks like the BOJ has come in
and “spiked” USDJPY 150 PIPS higher in seconds … good times … meanwhile,
all the high fliers over on the NDX100 are down about 20% in 2 weeks, and IMHO
it’s only gonna get worse … the dominoes haven’t even started to fall yet for
these companies, and there are shiploads of people long from higher, who I bet
right now are saying to anybody who will listen, “yea, when it rallies back up
near the old high I’ll get out … no worries … I’m an investor”! … good luck with
that.
Since the USDJPY spike higher at around 16:46 server time, stocks have given
it the old college try, and “dead cat bounced” off of limit down, but now what?
… things are quieting down quickly, except of course bid/offer spreads are still
ridiculously blown apart, except in the FTSE100 & USDJPY … quite frankly, I
don’t trust the stock indices today, given the ability of the scumbag LP banks to
jack spreads to the moon in a microsecond … they will both act the same, so it
makes sense to trade a market that has relatively better liquidity and a smaller
spread … I’ll return back to the DAX30, FTSE100, & gold, once they settle the
hell down and act “normal” … conditions right now are quiet, so why pay a
much higher spread just cuz they want you to? … GFY banks!
Quite frankly, the U.S. stock indices may see a tremendous loss of business &
volume … dunno yet, we’ll see, but it’s not looking good at the moment, as too
many people have gotten destroyed in the last 2 weeks, and the reverberations
of the decline are going to take a while … I’m hoping the FTSE100 & DAX30 get
back to normal, but here again we’ll just have to wait and see … in gold, once
the NYSE opened not much has happened, but the spread is still acting like it
should be … screw that, as the scumbag bullion banks see an opportunity to
jack the spread outwards towards 50 - 90 cents per OZ. and that’s pure bullshit
… and if you click the button, guess what happens next?
Tomorrow on the blog, I’m gonna be highlighting USDJPY … I’ve been trading
this puppy before most of you were born, some years straight up, and others in
the Yen crosses going back multiple decades … for many years, it was one of
the great trading FX pairs, and of course became the poster boy of the
“carry trade” when the financial crisis of 2008 hit, and Yen cratered as the Mrs.
Wantanabe’s of the world got annihilated, as everybody bought Yen and sold
everything else to get out of trillions in carry trades … since Japan cratered
after the 1987 crash, and took their interest rates to ZERO [30 years now!
… how’s that workin’ out?], the BOJ has become more involved in USDJPY with
each passing year, trying their damnedest to make it weaker, and in the process
made it a “safe haven” flow … right, figure that one out!
Once the U.S. Indices went “limit down” last night, I was very hesitant to trade
anything … earlier this morning, once the NYSE opened and they came off the
second tier of “limit down”, AND once the spike shot to kill shorts took place in
USDJPY @16:46 server time, not coincidentally the exact time the SP500 came
off limit down, I was ready to follow algo signals in USDJPY.
One great algo buy signal in USDJPY today … TURNKEY PAMM / MAM UP
BETWEEN 0.1% - 0.2%.
My volumes today were light for obvious reasons … today is not one of those
“let’s MAX shit out and get rich” kind of days … none of this panic bullshit has
played itself fully out yet, and there are other shoes to drop going forward
… the battlefield landscape has changed dramatically in the last 2 weeks, and
you have to be cognizant of that … and with complete & utter turmoil in the U.S.,
it brings back from the dead both EURUSD & USDJPY, although I would say Yen
has better trading opportunities, but that’s simply my opinion … and it doesn’t
look like things will be settling down anytime soon … way too much money
caught the wrong way in too many markets, and that means volatility … however,
VIX alone isn’t the only factor, we also need markets that aren’t gonna screw us
with ripoff bid/offer spreads and slippage … so far today both USDJPY &
FTSE100 stayed for the most part, calm & collected … we’ll see what tomorrow
brings, and hopefully the scumbag bullion banks get their shit together and
make an honest market, and ditch this high spread shit I’m looking at now … but
no matter, it’ll eventually settle down.
Can this shit get any crazier? … until tomorrow mi amigos
… Onward & Upward!!
Have a great day everybody!
-vegas
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