COMMAND DECISION TIME

 

“Oh, I just did!”   

Well, it’s “command decision time” about markets … for the record, I’m not 

giving up on gold [silver probably], but there’s no reason to trade it now, 

when 1) it’s so corrupt and manipulated, 2) rallies are pathetic, and 3) price is 

below 1340 … so, when it comes back, like we know it will at some point, we’ll 

be here to take advantage of the action … hopefully by that time, a few 

scumbag bullion dealer banks can find their way to bankruptcy.

The real decision, has to do with the traditional major FX pairs … simply put, 
central bank HQ has squelched volatility to the point, where today’s action in 
Cable at 80 something PIPS looks like a wild day … it isn’t, not even close. 
And Cable is the most volatile of the major FX pairs … what a joke it’s 
become … and the others? EURUSD, USDJPY, etc.? … they’re even worse, 
and they’ve become almost impossible to trade.

This entire last month, after a whole lot of research, algorithm study, and 

looking at consistent volatility patterns over the last few years, while we still 

maintain focus on gold, for FX I’m switching gears and going to focus on 

two [2] pairs in particular; 1) first and foremost USDMXN [Mexican Peso], 

and 2) secondarily, USDCNH [offshore Chinese Yuan a/k/a “Reminbi”].

The way trends are going in major FX pairs, volatility is likely to be subdued 
for a very long time … sure, Cable moves nicely when there’s “Brexit” news 
… other than that, it’s a complete wasteland, with nothing but chop and few 
trends that develop … truth be revealed, it’s nothing but a scumbag LP bank 
meat grinder … “oh, and we’re the meat”!

Doing the math on the Mexican Peso, sure, the spread looks wide at about 

25 PIPS … but consider this: 1) it easily puts in daily ranges of over 

1,000 PIPS per day, with many days well in excess of that, 2) it’s a North 

American market in tune with the U.S. day, 3) it’s inverted, meaning it trades 

as USDMXN, which right now @ approximately 19, translates into about 

$5,200 notional per 1 lot … that’s about 50 cents per 1 lot per PIP, and most 

importantly 4) the “Hoover Dam” thing moves and moves well, meaning it 

has plenty of intraday volatility, which the major FX pairs distinctly aren’t 

exhibiting except on rare occasions when the POLS and/or Apparatchiks 

open their Pie Holes … other than that, they’re literally dead.

By comparison with Cable, today sees Cable over 8 or 9 hours with 2 moves 
lower in about 10 minutes each, totaling about 30 - 40 PIPS … miss those 2 
time frames and you got nothing to show for it but chop … USDMXN during 
the same time had the following algorithm moves …  two 600+ PIP moves, 
three 300+ PIP moves, one 200 PIP move, and one 100 PIP move … I rest my 
case.

Tomorrow, I’ll crank it up for some Peso action, and as we make money via 

1 lots, I’ll increase volumes … this continual bulshit in GBPUSD is not only 

frustrating cuz of the “Brexit shitshow circus”, it robs us of trading other 

markets due to its inexplicable inconsistent trading action … one day a 

40 PIP range, the next 120 PIPS, and then it’s right back to 50, followed by 

“Brexit” news that shoots the range to 150 PIPS … this kind of action drives 

me nuts due to its inconsistency … this simply doesn’t happen in USDMXN, 

and as I’ve stated many times in the past, “I’ll trade dirt futures if the volatility 

and action are right”, and quite frankly I’ve reached my limit of patience with 

the other FX pairs that are even worse than Cable.

I also mentioned the Reminbi … lately, it’s been rather quiet, but when it 

heats up, it trends well intraday … the key here is the spread, and that’s why 

it’s my second choice going forward.

So, while gold diddles and we wait for it to come back, I’ll be in USDMXN 
cuz it’s volatile and puts in ranges that matter almost every day, and the 
algorithm is excellent at the turns … and no, I haven’t lost my mind, but I 
might if I continue to stick with pairs that don’t move and/or spend 90%+ of 
their time doing nothing but going up one tick and then going back down 
1 tick hour after hour and then explode … it’s impossible to trade that 
effectively without taking huge risks … we need volatility, and trading the 
Peso will give us that. This upcoming weekend, I’ll be adding it to the 20 Day 
Range MA list on the Sunday update blog post.

I didn’t trade Cable today, instead focusing on USDMXN … it had a 

1,700 PIP range today I outlined above … no FX major pair came anywhere 

close to that in terms of the intraday moves it displayed, or the concerted 

“smoothness” of the trading action, which incidentally is exactly what we’re 

looking for, but definitely not getting anywhere else in the majors, either 

dollar pairs or crosses … just look at the sad state of Yen action and the 

crosses GBPJPY & especially EURJPY … they’re pathetic, as central bank 

HQ has stripped all the volatility out of them, and they are simply a shell of 

their former selves.

So, onto the Peso & goodbye to the majors … cya wouldn’t wanna be ya 
… until tomorrow mi amigos … Onward & Upward!!
 

Have a great day everybody!

-vegas

 

THIS IS SIMPLY PATHETIC

 

“Yes, it’s sadly come to this!”  

Throw all the economic indicators you want at Cable … nothing matters now. 

It’s the “Brexit shitshow circus” and the rumors swirling around it that matter, 

to the exclusion of all else … and so the sorry saga continues today, cuz after 

18+ hours of “trading” [cough bullshit cough], Cable doesn’t even have a 40 

PIP range for the day … seriously, what is it you want me to do here? A 

number of times, there have been some sell stop hunts to the downside, 

resulting in quick, vicious, 2 M1 - 5M1 drops of 10 - 20 PIPS … that then go 

nowhere, and minutes later [pick a number] rally quickly as shorts fold 

… rinse, repeat, and the scumbag LP banks got your number.

Gold is literally dead in the low 1270’s, and if you think it’s bad in gold now, 
just wait, cuz IMHO it’s going to get much worse … look for smaller ranges, 
much lower volumes, and nobody cares. We’re entering a period of the year, 
April - August, that seasonally is the worst time of year for price appreciation, 
and with all the technicals having been destroyed on the charts from the last 
installment of the “Comex Con Game”, good luck to the scumbag bullion 
dealers getting anybody to bite on small rallies … it’s gonna be a while folks.

Back to Cable … all you get with these extremely tight ranges are 1) stop 

hunts on both sides, 2) the “Flying Wedge of Death” [FWD], and 3) every 

technical indicator on the MT4 giving “false positive” buy signals at the top, 

and sell signals near the bottom … then, you get to scramble like hell to cover 

said positions before they get out of hand … in other words, there is zero 

trend, and nothing but a bag of instant trouble … when does it end? … it ends 

when it wants to end and not before. And so, like all of this week basically and 

the week before, there isn’t a “Hoover Dam” thing to do but wait.

Afternoon in New York, and oh joy, oh fun … GBPUSD has a 39 PIP range, 

about a 30 PIP range over the last 9 hours, and quite frankly tomorrow will 

probably be worse, and simply forget Friday. The 20 Day Range MA will take 

a beating come the end of the week … ditto with gold, but the range in gold is 

the least of its problems … that market has been “silverized”.

So, we’ll see what tomorrow brings, but my guess is trading won’t possibly 
return to normal ‘till Tuesday of next week, cuz Europe & the U.K. take 
Monday off for Easter Monday … like the Brits need another Holiday … in 
any event most traders looking at an early exit tomorrow to make it a 4 ½ day 
weekend. Until tomorrow mi amigos … Onward & Upward!!
 

Have a great day everybody!

-vegas