Wednesday, October 12, 2022

THE WORLD’S ASSETS ARE MELTING AWAY

 

“Poster child for world financial assets!!”

Unless you’re holding dollars, your assets are melting down faster than Biden’s

brain … nothing is safe, nothing is “hedging” the fallout … “Stock Bellies” look

like they are stuck in mud, and if Spicoli and the other Lounge Lizards keep rates

higher for longer, the tech sector is gonna be a train wreck for a while to come

… crude today as lifeless on the upside as I’ve ever seen it … simply no tradeable

rallies on the upside worth pursuing, as VIX has fallen sharply since last week

… and it’s been nothing short of walking down the stairs, with the same scenario

each day this week … slight rally in Asia, gets creamed coming out of the

European open, and then New York is a nothingburger but constant selling, with

half-assed rallies if there are any … and given the downgrades in world oil

demand, oil could be rough going in terms of trading action, with both buy/sell

sides muted … and while supplies are very tight, getting a handle on demand is

a B.I. Itch, and it might make for a very muddled market if the weather stays OK.


Remember, we got a spread + low commission to pay + slippage in crude … we

need movement up/ down, and rallies of 10 cents on an algorithm signal ain’t

gonna cut it, cuz if it’s a loser, it’s gonna run at a minimum 25+ cents to the

downside … and as I’ve said before, the short side of this animal isn’t handing

out any favors, cuz you got the same problems there as well … and lately, the

market does literally NADA during the meat of the New York session, and then

moves with less than 90 minutes to the New York close … very disappointing,

as today is no different, only a little sooner is all.


Meanwhile, Cable over in FX-land is trading like its pants are on fire … and with

good reason given the news flow out of the U.K. … the issue with GBPUSD always

is the spread + any slippage given market conditions … is it worth it to trade, or is

it a nightmare? … a few weeks ago it was a complete shitshow circus, but

conditions have improved considerably over the last couple of weeks, and

conditions have basically returned to “normal”, given a large dosage of salt over

the shoulder … given crude’s reluctance to “trade” this week, I’m looking at

Cable tomorrow for starters … the YEN has basically died on the vine, and isn’t

on my RADAR screen at the moment … crude when it decides to “play” is great,

but when it goes to chop mode, or goes into the slow meltdown mode, is nothing

short of trading Hell … that leaves Cable right now with the consistent action

over the day … and of course, over time, things change so we change with ‘em

… out of the 3 markets, one will be moving at a minimum.


All we need is CONSISTENT VIX … not bat shit crazy [BSC], then death by chop

… with oil’s moves last week I thought VIX was picking up … it isn’t … like I said,

the Yen is dead right now cuz of threatened BOJ intervention … Cable has picked

up and remained consistent this week, and the drama over the new government

and the BOE will continue, so I’d be surprised if VIX fell appreciably … no trades

today for the PAMM, as oil was the “walking dead” again lower most of the day,

well into the New York afternoon … I don’t like sitting, but I like losing money

even less … the algo works excellently in Cable [or any FX pair] when conditions

are favorable, and right now conditions are ideal … not playing “Whack-A-Mole”,

just shifting to more consistent VIX among our 3 trading pairs … onto tomorrow.


… OUTTA HERE … “The future’s so bright I need 2 pairs of  sunglasses 😎😎,

and my own Brinks armored truck” 💓!! … Onward & Upward!!


-vegas



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