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Wednesday, June 1, 2022

FOLLOW THE YELLOW BRICK ROAD

 

“When you realize what trading is about and how to get rich doing it!”

WTF is this? … I hit my screens today around 5:15 AM EST, and it’s clear to me I

got to be here earlier … late Asian session into the European open offers the best

movement … tomorrow and going forward, I’ll be up and ready to go BEFORE the

European open … today’s penny slots financial markets very sloppy … key PMI

data outta Europe largely expected and was consensus, and “Stock Bellies” after

scorching shorts, are waffling around and looking a little weaker … U.S. data a

little stronger but suggesting major league stagflation dead ahead … 4 ½ + hours

of a 20 PIP range, now sees some movement lower, but only by about 10 - 15 PIPS

… USDJPY getting blistered up to the 130 level, and if the Dopes at the BOJ want

to see “normalized” Yen rates, then STFU about the super easy monetary policy

and let Spicoli save your asses … otherwise, anything above the 131 - 131.50 level

and not only is Japan in trouble, it’ll set off a major “Stonks” rout to boot

… all-in-all another sick Monday in EURJPY, as both EUR & JPY get

slapped lower.


And as we see EURJPY waffling around the HULL EMA, and the VIDYA & TEMA

playing yo-yo, one thing to notice is that when it gets this tight with price

basically going nowhere since I got up, is that at crossovers in the VIDYA &

TEMA, the MFI has had a lot of levels that are too strong [well above 50],

indicating to me an overwhelming bullishness in the trading public to get long

… longer time frames setting off a lot of bullish buy signals, and like night follows

day, most of these “Johnny come lately” position types will get burned when

their sell stops get torched in a day or two … IMHO, EURJPY is a tad ahead of

itself on ECB PIE HOLE bullshit about rate hikes, getting talked about every

single day by at least 3 - 5 Apparatchiks looking for 15 minutes of fame.


I would recommend that on your M1 chart, for the MFI, change it to 2 levels

… one 57 the other 43 … use inside this band for EURJPY or other JPY cross

pairs … for the DAX30/40, or other stock indices, [see below] use 2 levels of

40 & 60, and trade acceptability is inside this band … “Stock Bellies” need just

a hair more flexibility than FX. 


I did some work last night looking at the DAX30/40 via the algorithm … “Cedar Fx”

has a great spread in this market, and the Mrs. loves it … likes it better than

anything FX has to offer and likes it better than the SP500 … it’s a solid 2 index

point spread [or LOWER] over at SIMPLE FX, and lo & behold over the last few

days even Turnkey has gotten in the act and powered the spread back down to

about where Cedar FX has theirs … this prompted me to call “the boss” at

Turnkey and have a talk … supposedly, and you have to understand who I’m

talking with, they are reiterating their desire to be “a player” in the DAX30/40 and

want to be competitive, and the server we’re on now would / should do that

… uh huh, we’ll see … one thing you can’t argue with, is the fact that the

DAX30/40 is modeled very well by the algorithm and gives off some great buy/sell

signals that are “purer” in nature than anything the U.S. has to offer … now, don’t

be mistaken, this index can get plenty “squirrelly” at times, but the issue with it

over time has always been the bid / offer spread and where can you trade it

without getting ripped off … it was the first stock index to trade electronically

back around 2001 - 2002, when it was around 2,000 on the index, and off & on over

the last 2 decades I’ve traded it … sometimes heavily, sometimes lightly,

sometimes ignoring it when it goes dead … it’s probably one of the very best

“trading indices”, much better than the DOW30 simply cuz of slippage in the

DOW30 can be horrendous at times … so, we need a “Plan B” anyway, might

as well see if Turnkey is full of shit on this one or not … at worst, it’ll cost us

a couple of Happy Meals, but if by chance he’s right, more often than not it’s

better than EURJPY … AND SINCE UP I'M GONNA BE UP EARLIER ANYWAY,

tomorrow I’ll see what the DAX30/40 can do for us trade wise via algo signals

… today sees the index so far about 40% under its 20 Day Range MA, but still

gave some great signals.


The 2 big differences between SIMPLE FX & Cedar FX, are 1) leverage, and

2) trade size for a “1 lot” … Simple FX is 100X leverage for margin purposes

and the CFD is “1 * the index” … Cedar FX on the other hand offers 200X leverage

for margin purposes and the CFD is a whopping “100 * the index”, for a notional

value per 1 lot = approximately 1,440,000 Euros … you want action, well here ya go!


It’s now afternoon in New York, and I have no desire to trade EURJPY via the

“Spoos” and get led by the nose by the likes of virus scum JPM & Vampire Squid,

as they play yo-yo with price and hand out shit fills … fact is, it’s been a crap day

for the cross cuz both EUR & JPY are both getting monkey hammered lower, and

that has put somewhat of a damper on the cross … doesn’t matter if I’m here ready,

willing, and able since before dawn, when it doesn’t wanna play it ain’t gonna play

… as I said, we need a “Plan B” anyway, and quite frankly another JPY cross like

AUDJPY or NZDJPY ain’t the answer … well OK, Turnkey can’t lie 100% of the time

can they? … but for others not at Turnkey, if you’re looking for someplace to trade

the DAX30/40, give SIMPLE FX or Cedar FX a shot … EASY PEEZEE account

opening at both, NO KYC, deposit with crypto … BOOM!, 3 minutes later you’re live

ready to go … do you want fractional lots of “1 * the index” for less than 1 Euro

per lot volume [Simple FX] or do you want fractional lots where the minimum

[0.01 lot volume] is 1 EUR per trade? … either way, you can’t go wrong IMHO

… the upside to Cedar FX, is that EURJPY there is good, whereas at SIMPLE FX

anything in the FX space is overpriced [higher spreads] and sub par.


So we’ll see what happens, and if they stuff us for a Happy Meal, he’ll be getting

a phone call pronto and afterwards I’ll go back to EURJPY … but it seems to me

to be worth the risk for us in the PAMM, simply cuz the DAX30/40 is “purer” than

the other indices overall … and that should mean back the Brinks truck up!

… given the economic uncertainty in the E.U., the Russia / Ukraine clusterfark

proxy war, interest rate indecision and hikes, “will they or won’t they?”, and not

to forget China, I don’t see any of the major “Stock Bellies” slowing down

significantly into the summer for a dramatic pullback in their respective 20 Day

Range MA’s … maybe a little, but so what? … you look at what EURJPY is doing

today and it’s frustrating, and even with a sub par day range wise, the DAX30/40

still gave us some excellent buy signals … the key is whether or not Turnkey is

lying or not … if fills are good and decent I’ll trade it heavily … if not we’re no

worse off than today, sitting here watching EURJPY go “sleepytime” … so, we’ll

see via tomorrow’s trading what goes down … no trades today, cuz EURJPY

didn’t do Mr. Jack Squat, and algorithm parameters just couldn’t sync on all

levels for a trade … welcome to Monday … bye! … onto tomorrow. 


… outta here … “The future’s so bright I need 2 pairs of sunglasses”!! 😎😎

… Onward & Upward!!


-vegas



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