WELCOME TO AMERICAN ENTROPY!

“Would it be the same people who show up in Charlottesville, VA.?”

Well, no expectations of trouble here, right? Seriously stupid people on the fringe right and ultra tin-foil hat fringe left go at it while the country sits back and watches. Natch, no matter what happens Libtard Nation screams their faux outrage that it’s all Trump’s fault; “Gee, I never thought of that … thanks for the retarded insight … Note to the idiots on the Left: If you want more Trump, this is how you get more Trump, and they wonder why they lose elections”!

Meanwhile, we all wait for WWIII and the end of the world via a nuclear exchange with the Norks that nobody knows how it will end. I’m wondering this morning if Kim has covered his SP500 shorts and/or liquidated his gold longs? Might want to let the money clear first in Switzerland and give the Chi-Coms & the Ruskies their cut before you go spending all that western cash on hookers & blow.

Of course, what would the start to a week be without the “Plunge Protection Team” [PPT] showing up in Asia and ramping stocks higher on … natch, worse than terrible economic stats out of China, cuz nothing says buy MOAR STOCKS like data that shows the world is in a depression … cuz remember, it’s all about “fun-dur-mentals”. So here we are at the start of a Monday and the Dow30 is up about 50 points on “vapors”, simply cuz they can, and they don’t want anybody to think anything is wrong anywhere about anything … simply STFU and buy MOAR!

As for the DAX30, one look at the M1, and it looks like somebody exploded a grenade inside a spaghetti factory; up/down, gaps, spikes up, spikes down, price everywhere and anywhere, the “Kumo Cloud” left hopelessly wondering what the hell is going on. Well, I’ll tell you; big money that has left the stop hunting grounds of the Dow30 & SP500 [cuz the manipulators won’t let them play anymore] to plunder the German market while the regulators drink beer and watch porn on the office computers. In a nutshell, that’s what’s going on, and if you play in this market, you either lose big or win small, all the while handed shit fills via LP slippage as the bank computer [HAL1000] says, “Dave? Dave? We don’t have a problem do we Dave”?

Turning to today’s markets … EURJPY has now retraced its tight range and is now under the 50% mark on the day’s range; this is worth watching, as the U.S. indices really haven’t moved much, especially the Dow30, but the SP500 is down about a point from a few hours ago [big whoop]. Nonetheless, it seems like the entire world is waiting for another “shoe to drop”, whether its stock indices heading lower via the top floor roof, or the Norks situation deteriorating rapidly into actual missiles. While there are corporate flows that keep EURJPY trading up/down in random fashion, nobody really wants to take a position, or has any confidence in one, when at any second things can go “entropy” quickly.

About an hour after the New York open, and stocks in full PPT mode; the story, though, is the break of EURJPY, with both EURUSD weakness & USDJPY weakness [Yen strengthens]. Those of you that have read the new version 4 algorithm can see the 34 minute Cardinal Cross down move from high to low, that started right after stocks opened. Again today, everything putting in either “Flying Wedges of Death” [FWD] or reversal patterns, and making life difficult for practically everybody.

Noon time in New York, and its “biz as usual” for stocks; meaning simply, they have no range and do absolutely nothing the entire day but drift up ever so slightly on manipulated bids or simply sit… pathetic, but what do you expect after the break last week? Did you somehow think they were just going to go away and leave matters to traders? They’re here forever from now on … learn it, love it, deal with it.

What does it say about EURJPY when the Sunday session that is all of 3 hours long, has almost the same range as the next entire 24 hours [so far]? Another reversal, as we start the day off in Europe attempting to expand the day’s range on the upside, but quickly after about 90 minutes, going into the slow “3 steps down, 2 steps up” grind down to new lows some 6 hours later. And while it isn’t part of the algorithm, the 50% rule I often use saved the day for me, simply because I only want to take algorithm long signals when the market is above the 50% price mark, and vice versa for short positions. Today’s low range in EURJPY complicated things, as literally a couple of PIPS at times is the difference in being long or short … 50/50 on random orders isn’t something I want to get involved in … if that is what trading is about, I’ll go to a casino and get comped playing baccarat or something like it.

Of course, once the sell stops have been cleaned out by restless longs, the market goes up and stays there cuz there wasn’t any real selling to begin with, only traders stuck long at higher levels and being forced out by the dealers and hedge funds that can see the order flow and take advantage of it with their size. In other words, it was a plain old “stop hunt”, once successfully completed, it’s now back to the middle where we can waste away the day doing nothing but waiting for tomorrow.

As I said in the manual, when the “Kumo Cloud” is 1) very thin with no size, and 2) the “Cloud” is sloping straight across and is basically zero, meaning no up or down but simply sideways, you have to be really very careful with trades where price is hanging around whatever “Cloud” there is, simply because random orders can take it a PIP or two any which way and it doesn’t mean anything, but it very well could initiate a buy or sell signal. It doesn’t mean up, and it doesn’t mean down; it was simply a trap for the unwary and “entropy” in all its glory.

Which brings me to the $64,000 question I know many will ask; “ok -vegas, I understand what you are sayin’, but which “Cloud” breakouts are legit and which aren’t”? I can’t answer that, cuz it’s all probability waves at work … nothing more, nothing less. I can only say that when the “Cloud” is thin and going sideways, I will most likely stay away cuz what it’s telling me is that around a PIP or two it’s basically a 50/50 bet, and that’s not good enough for me. Sometimes you win and sometimes you will lose, but you’ll need a breakout that goes somewhere to make up for all the ones you take that are small losers when these 2 conditions are present; you’ll win 1 and lose 5, but more likely than not it’s the 5 losers that come up first, and then the question becomes how willing are you to make the 6^th trade? Cuz if you’re going to trade under these 2 conditions, you MUST TAKE THEM ALL!

Where the version 4 algorithm really shines, though, is under adverse trading conditions like small ranges, doji’s, reversals, and the account killer FWD. When everybody and their brother finds out that trading can bring riches, they rush out and will believe anything they find at the bookstore; what they don’t realize is that everything, no matter how stupid, has to work sometime! If it didn’t, you could filter it out and never have a loser, which of course probability theory says is impossible. Problem is, systems/models/algorithms limitations will show up a lot sooner than people realize, thus exposing the weakness of whatever it is they are using to trade … not knowing what to do, the account gets “monkey hammered”. What happened?

What happened is that the system/model/algorithm was being traded under conditions where it had no chance of success because its user did not understand its limitations or conditions, under where it would fail with a greater than 50% fail rate; so, where in the book was the warning? [Yea, right] I can produce total BS, sell it for $99.95, and at some point it will work … and when it does work some month, I can then run infomercials with Grandma’s full of cash in their hands gushing about my system … and when you look at the last 20 years, that’s what you get in many different, yet hilarious forms.

I will be the first to admit, since February 2016 when the FED quietly, and without fanfare took over markets, trading has been a B. I. Itch to make money in and prosper like before. Nobody sends you an email telling you of the change in the rules; trading in the secondary markets like gold, oil, and other FX crosses, the first to feel the brunt of the “new FED rules” for trading. Then slowly, everybody realized the VIX in stocks was getting the life sucked out of it, and wondered why stocks were not reacting to world events, or economic news, all the while daily ranges were collapsing dramatically; nobody wanted to believe the FED, ECB, & BOJ [with some help from the SNB] were manipulating markets … some money managers couldn’t come to grips with the fact. Remember, the “oil king”, Andy Hall … Mr. Perma Bull, multi billion dollar oil trader no more … it hurts when you’re the last one to get the memo and have to shut down your operations.

As I have written before, 2017 is the worst year in the biz for money managers since 1987, whether stocks or commodities doesn’t matter … they’re getting killed; many down 30%+ or more, too late to realize the game has changed dramatically, and how the hell do you make it back? Now, I don’t pretend to be the “smartest guy in the room” … far from it. But when things in trading don’t work, and they’ve been working for years, you have to wake up and smell the coffee pretty damn quick and ask “why not”? The market is very good at letting you know what your weaknesses are, if you’re willing to listen … and I can tell you, I listen more than you know. Nobody comes to trading and is a “perfect trader” … sorry, that person doesn’t exist; we become good because we listen to what its saying to us and we adapt.

Back in my floor trading days, I never, ever envisioned trading like it is today, and especially how acquiescent Wall Street is having the FED manipulate everything. But, here we are, and when faced with problems, you either find the solution or you lose money. That has led my trading algorithm to various versions that fixed one or many problems, but as I have said before, the greatest dangers are the problems you don’t know exist … hell, you don’t even know what questions to ask, let alone have solutions. I simply can’t make the version 4 algorithm more “generalized” than it is for all market conditions we face … it runs the gamut, and when markets like EURJPY trade [or even the Dow30 if it’s ever allowed to trade again … some days I wonder], in its present form, the version 4 algo will 1) keep you on the right side of the market, and 2) make you aware of the short term cycles for tops or bottoms. Of course, it can’t guarantee tops and bottoms … nothing can, only where Gann’s theories on cycles say tops and bottoms “occur here, at this time and place”. Well, that’s good enough for me, cuz it puts me up on a trade while risking little; now I’m in control. The algorithm simply uses Gann’s information and works BACKWARDS in conjunction with my proprietary work in “exhaustions”, and I’m very excited I finally got it released so you know what it is I’m attempting to do.

Today’s trading saw 2 profitable algorithm trades; both were long positions early in the day before the market reversed and went to new lows, while price in EURJPY was above the 50% mark at the time. Both trades directly below.

In both trades, long spikes that went nowhere got me out; this is one of the rules for trading. It doesn’t matter what I think; if I see a large spike up, I’m liquidating on the slightest hint of a turnaround if I’m long. I’ve seen this rodeo before, and waiting for the turn costs you plenty.

On the daily candlestick, if the market closed now after 18 hours, it would be another “doji” … and sure enough, we open, go higher into Europe, go to new lows for the day as the U.S. session opens, and once that’s over with, it’s the slow climb back into the middle, thank you very much FWD. Gets you long up top, short near the bottom, and then traps you into the close for more losses; that’s what the FWD does, and I avoid it like it was the financial ebola virus.

Today’s trade disappointing in many respects, not the least of which is range, but the simple truth is the market caught too many people long EURJPY in Europe, and when higher stocks didn’t produce buying at the U.S. open, the liquidate sell buttons started to get pushed and it was a race to the bottom … all told, it took 34 minutes of the 18 hours, and as I write it’s back into the middle like a good little FWD should. The only real sell signal coming after 4 produced nothing but scratches … the 5^th came and took off and never looked back … since then, it’s been a crawl up, hitting off buy stops of those short earlier in the day.

For their part, the stock indices today a complete waste … “vapors” overnight, open higher, “protect & defend” what you stole overnight, rinse and repeat … how many times have we seen this the last 3 -4 months? New York simply a disaster trading arena … what’s the point of it even being open? Somebody please give me one, cuz from where I’m sittin’ I’ll simply quote Art Cashin of UBS, who once said, “today is a waste of a clean shirt and a tank of gas”.

Trading today not as profitable as I would have liked to see it, even with increased volume cuz conditions are excellent at Turnkey, but it is for all practical purposes a “doji” day on the daily candlestick with small tails on either end; this remains the “form of my [our] destruction”, as there isn’t anything else that has a lower probability of occurring day-to-day. So, on days like today, I have to be content to walk out the door with anything to the plus side cuz it’s a “doji” day. Still, I’m happy with how the algorithm performed on its first day available to the public … I hope you can see its power, its logic, how it keeps you out of trouble and on the right side, and how both Gann’s cycle theory utilizing the “Square of Nine”, along with my “exhaustion work [not needed today] comes together to produce consistent profits. If anybody has any questions/comments, please pass them along to me at traderzoogold@gmail.com and I’ll get back with you ASAP. Onward & Upward!

PAMM spreadsheet directly below.

Beach time! … the dog and I are outta here … until tomorrow.

Have a great day everybody!

-vegas

OUR TURNKEY FOREX “PAMM/MAM” IS NOW OPEN AND OPERATIONAL; SEE “PAMM/MAM MANAGED MONEY PROGRAM” IN “DOWNLOAD LINKS” SECTION IN RIGHT HAND COLUMN FOR DETAILS [VIEW ONLINE AND/OR DOWNLOAD] AND START YOUR JOURNEY FROM WHERE YOU ARE AT TO “ESCAPE TO SUCCESS”!

THE NEW TRADING BATTLEFIELD

“Oh … I see you’ve discovered trading on the MT4!”

I’ve got bad news and I’ve got great news; first the bad news. Trading the stock indices today, whether futures or CFD’s makes very little difference if any, the markets have become totally dominated by central bankers and their “Plunge Protection Teams” [PPT]; perceived “fun-dur-mentals” concerning the economy, corporate earnings, etc., are so “like yesterday”, and if you base your trading off of anything other than the “whims & wishes” of central bankers, you are essentially spitting into the wind and hoping it doesn’t hit you in the face. And what are these “whims & wishes”? Simply put, keep financial asset prices, at a bare minimum, stable, and with the needed appropriate actions of the PPT, crush short sellers into dust and in the process, increase stock prices. Everything else is dust in the wind.

Yesterday was as clear an indication of central banker “intent & purpose” as you will ever see in modern day trading; 1) comments the night before from ChairSatan Yellen in Londonistan reassuring the elites of the world they have “nothing to worry about” regarding the future, meaning of course the FED has “their backs” in stocks, 2) followed immediately the next morning within about an hour before the New York market opens with a “walk back” from the ECB regarding Super Mario’s speech the day before that the “talking heads labeled “hawkish shock”, 3) sent the PPT into action at the same time as shorts scrambled to save themselves, and most importantly 4) sent a clear message to those looking at taking asset prices down a notch, that their efforts [to put it mildly] will not work and cause them severe economic harm. “I’m guessing the 7 times the PPT came into the market yesterday drove that point home quite well wouldn’t you say”?

The bad news for traders is that it’s getting damn near impossible to compete with those who have invested millions of dollars and trade in nanoseconds [billionths of a second] versus all of us who trade in milliseconds [thousandths of a second]. Simply take a look at the complete “screw job” 2 Friday’s ago when the Dow30 on my MT4 screen rallies and I am long already; market goes 59 bid, then 60 bid, then 61 bid, and finally 63 bid … I had the liquidation “close position” order box up on my screen alongside my chart and the mouse directly on the close button, with my finger on the mouse … as long as it took my eyes to see the 63 bid and my brain tells my finger to “hit” the mouse to close, what are we talking about in terms of time? It’s about 3 – 4 tenths of a second for normal hand/eye coordination; OK, well that’s 300 -400 milliseconds. Even if I take the thieving, lying, scumbag LP at their word [which I don’t and you know it], 300-400 milliseconds is a lifetime to those trading in nanoseconds [like the HAL1000 super-duper computer system the LP uses to screw people … “Dave? … We don’t have a problem, do we Dave”?]. Add to that the normal approximate 150 ± 5 or so milliseconds to submit the order and send it via my ISP and then half way around the world into the LP’s computer system, and now the advantage is clearly in the LP’s favor; he’s dealing in nanoseconds, I’m trading in hundreds of milliseconds, and good ‘ole HAL can do the “shaving” [a/k/a slippage] and fill me with whatever doesn’t get the bankers indicted. As all of you know, I get filled at 56, 7 index points of slippage on a market that went straight up … so, taking the LP at their word [trust me, I can’t get there], the real market changed before I could even see it on my screen, and so it’s “fair”, and we did our job cuz the HAL1000 says so. Without the HAL1000, it’s impossible for humans to even comprehend nanoseconds … hell, regular TV images are streamed at approximately 30-35 still frames per second, and your eyes see nothing but continuity; in reality, the process is discontinuous, but our brains can’t decipher the difference. What chance do any of us have with the nanosecond banks?

Ok, I think you get the point that in the very short term, which I will define as under a second in time, none of us retail and/or small institutional traders stand a chance against the banks making the markets via their hedging in the futures markets … hit the market execution button and close your eyes for the fill … some days you’re the pigeon, and some days the statute.

The great news? Well, first accept the theorems of my premise; 1) central banks control the stock indices and are the new paradigm in financial trading, and up & until a complete revolution in western democracies takes place … both political & financial … this is the last paradigm shift you will ever see in trading, 2) the PPT is in the Dow30 and SP500 almost every day, bidding prices off of corrections, ramping prices up quickly on spikes, and slamming VIX non-stop, and 3) the G3 [ECB, BOJ, & the FED] will not let assets prices go down significantly without their permission and approval, and even with that it’s going to be one hell of a “4 step down, 3 quick steps up” type of scenario that is impossible to stay short in and make money, even if the indices go down some. As yesterday proves in “spades”; just when the momentum seems to be shifting, ever so slightly into the “bear camp”, and people are starting to whisper out loud that maybe … just maybe … the Dow30 or the SP500 looks set to “roll over” and go down some, what happens? The coordinated G3 action, followed by the PPT 7 times yesterday, and within a handful of hours, all that talk of “lower prices” is wiped away like it never existed. Their clear message to you? Get that thought out of your trader head of “lower prices”, unless you like the Pudding Business!

Which brings me to the “great news”; it’s the version 4 volatility algorithm in the stock indices. I said this yesterday, and I will repeat it again now cuz it’s important; this doesn’t mean the trades you initiate are 100% guaranteed wins and the algo is the “Holy Grail”; only an idiot or fool would ever make such a claim, and you’d be a bigger idiot and fool if you believed it. The only certainty in life is physical death; after that, everything is a probability wave function. Having said that, though, the only market event [not LP event like I’ve experienced the last week or so, where we get literally raped by the LP … “I’m sorry HAL, did I hurt your feelings”?] that has the “potential” [not certainty] to defeat the algorithm over a series of daily trades, is a market that plummets lower, rallies ever so slightly [few points MAX], and then continues to plummet repeating the whole process over the entire day. In other words, a market that crashes and never comes back. And realize, this is “potential”, not certainty, cuz if the market gets into this mode, there is a very strong probability there is significant news on the economic and/or geo-political stage, that puts the market into this ‘selling zone”. What’s even more probable if your brain is working properly, is that more than likely if the Dow30 goes down more than 300 – 350 points, and continues to keep going down, you’ll have enough common sense to back away until the dust settles, realizing at once the market is in “tail risk” territory, and a “6 sigma” event can easily become a “10 sigma” event and steamroll you in seconds. Ok, you might miss something … granted … but on the other hand, how many days in the last years, outside of Brexit & U.S. election in 2016, has the Dow30 gone down more than 300-350 points on the day? Whatever it is [likely zero], it’s less than a handful out of the thousands of days the market has traded. OK, there’s the version 4 volatility algorithms risk profile in “living color” explained in simple English.

As I have written before, my mentor Bert bludgeoned into my head, “choose the form of your destruction!”, and in the process, choose the least likely probabilistic event that can hurt you. Probability doesn’t mean guarantee, no matter how low it is on a daily basis; you always have to be “on guard” for things that can hurt you [LP thieving is a whole other kettle of stinking fish, but it has nothing to do with the actual market].

Now, I don’t want people to misunderstand me; I’m not “hyping” my algorithm, I’m simply stating some facts about it, along with the premise [foundation] upon which it is constructed … hell, I give it away for free for cryin’ out loud, so what would be my point? When I’m finished writing it, which I’m doing now, I’ll release it for viewing online or download in PDF. I’m simply laying out the criteria for successful trading in the PAMM, and giving traders who trade their own accounts [futures and/or CFD’s] the same roadmap.

Turning to today’s market … same old bat guano, different day … once we get to within a couple hours of the New York open, the central bank bids start appearing and the indices, no matter where they are, start to ramp up in anticipation of the institutional Chipmunks who show up in the first 5 minutes of every day and do their buying … granted, everybody else wants to sell to them at inflated prices, so we get to play this game every day thanks to the idiotic rules implemented [for the children … natch] so the people who buy for the institutional funds don’t team up with the people at the brokerage houses on their institutional trading desks and front run orders, and then later get bags full of cash under the table for the profitable scam. [Note: when trading pits ruled the world, nobody but nobody was better at front running and general scamming than the CME … it was called “paper bag Monday’s”, where “coincidentally” all of the brokers on the floor who filled orders for large brokerage houses would show up carrying paper bags with their ostensible “peanut butter & jelly sandwich with an apple” lunch, but from which I could see on the elevators looked very much like cash in a bag; imagine, what a coincidence all you guys decide to brownbag it every Monday.] Of course, the dirty little secret is that it doesn’t really make any difference, cuz now they simply pay “the tax” by buying higher prices cuz everybody knows they gotta do their ‘stuff” in the first 5 minutes; all they’ve done is cut out the middleman working for the bank, which the bank loves, and that’s why the rules are there … not for the clients, but for the bank.

Ok … wow … “who wants to be long stocks today?” … it’s good to see volatility return to the stock indices. Action today is the exact reverse from yesterday. EXIT QUESTION: “Where the hell is the PPT today”? Cuz, after yesterday you would expect them to be there … funny thing happened, though, after the NY open, and that’s the DAX30 getting absolutely “monkey hammered”, down 350 points from the day’s earlier high. And when the PPT didn’t show up at 21400 to protect yesterday’s blast off from that level in the Dow30, the sharks circled and the “feeding frenzy” to the downside commenced and hasn’t let up one damn bit. Directly below, conditions at the low of the day [so far], where you can see our lovely, fair, and gracious scumbag LP in the Dow30 jacked the spread way out to between 5 and 7 Dow30 points from 2. I wanted to show you this so you know it’s true what they do.

“Oh yea, the HAL1000 says nothing to see here; HAL, notice the spread please… everything is normal … I’ve checked my systems and all is well!” Crooks and thieves at work.

This is such an instructive day, but basically version 4 algorithm rules state that after the 4^th or 5^th leg down in prices [absolutely no more than the 5^th leg], when the market is under the New York opening bid price represented by the aqua horizontal line, you have to stop BTFD [Buy The F-ing Dip] and “let it go”; only if the market rallies back above the 4^th leg low can you even think about getting long again. And what does this do? It lets you “buy the bottom” on about 98% of down days, and keeps your donkey out of trouble on those ‘tail risk” days like today, where 300+ point moves down can really ruin your day. It’s not perfect, but it’s as close as I can get to “having your cake and eating it to”. I know from experience, this rule will save your donkey big time, and today is as “instructive” as it gets; especially, since yesterday the PPT was in here jacking this stuff up 7 times in 2 ½ hours. You think they’ve killed a few traders the last 48 hours; first the shorts and today the longs?

Early on, in the market’s initial weakness, I attempted several times to get long, and efforts to hang on for the “pony ride” off the bottom led nowhere. The 4^th bottom led to gains that covered small early losses, and from that point on, it’s been straight down … once the 5^th bottom came and went, I simply backed away and put my hands in my pocket, and quickly realized that after yesterday’s PPT clusterfark to the upside, today was seeing that manipulation being completely unwound and the potential for real damage to the downside has a much higher probability than I wanted to see or think about if long.

As I have stated many times, and if today doesn’t drive the point home nothing ever will … nobody has a crystal ball, and nobody knows what this stuff will do … analysts don’t know, traders [for the most part] don’t know, and the “talking heads” on CNBC sure as hell don’t know … what matters is the “setup” and nothing else … coming into today after the open, there was a strong probability breaks in price could be bought, simply from any carryover from yesterday’s straight up action all day long … however, it’s a probability, not a guarantee … so when the first few breaks rally off the low and don’t hold, you have to start to become really careful about buying this stuff … the key today was when the 21402 low was taken out after it rallied all the way back up to 21450 … from there, it was straight down almost 250 points. Remember, the “setup” is all that matters! And when the market goes into “tail risk” territory, you leave it the hell alone cuz I don’t trade in “tail risk” cuz you have no idea how bad it can hurt you, all the while your gains are minimal at best swimming against the current on the wrong side of the ‘tail risk” bell curve. “Thanks, I have no desire to lose big wampum money on market risk, LP shenanigans, and reversal daily candlesticks that look now like death, by being long on a down day, that outside the “Trump Dump”, the election last November, and Brexit a year ago, we haven’t seen in about a year and a half on any market trading day”.

Whoops, just checked the “trade history” part of the MT4 cuz Turnkey has just gotten it fixed from yesterday and emailed me, and instead of making money, I lost $10 today in multiple trades added up… OK, whatever, I thought from earlier I was up, but it doesn’t matter … I tried to hang on as long as I could and not make those long fills a scalp … if I had made them a scalp, we’d be up some, but I’m not upset looking at what the market did today and coming away with basically an unchanged day.

And while it is very tempting to go back in to the market and throw some numbers around, I’m not here to trade, I’m here to make money from trading … there’s a big difference between the two. I know everything in the version 4 algo is “gold” … soon, you’ll know it to … the problem, of course, is encapsulated perfectly by the old pit joke, “what’s the problem with buying a “6 sigma” down move in the Dow30”? ANSWER: “It’s on its way to being a “12 sigma” and it has wiped you out first before it turns from the bottom”. So, when you get into “tail risk” territory, and prices are gapping lower with impunity for the umpteenth time in the day, and like the chart above shows, the LP has widened the spread to ridiculous levels cuz of greed, and you wander in and buy a ‘green M1”, you find yourself up 2 Dow30 points and 45 seconds later you’re down 50 … now what … where does it stop? … why doesn’t it stop? … and the losses mount from bad to worse to “worser-er” too fast for you to be anything other than a “deer in headlights”. Well, guess what? It ain’t happening here. Market will be there tomorrow, we’ll get our chances again then, what’s the big deal? That’s how you have to approach days like today.

EXIT QUESTIONS OF THE WEEK: “Where did the PPT disappear to today, after yesterday’s brute show of force? Why do this to the market”? ANSWER: “They had no choice … faced with large volume selling, they aren’t going to step in and soak up institutional selling, so they simply back away. It’s one day … big whoop … trust me, they’ll be back.

I have more than a few trades to put into the PAMM spreadsheet, and since it’s late in the day and tomorrow is Friday, I’ll have it all updated for tomorrow’s blog post. Wow, what a day. Onward & Upward!

Time for the beach … I need a drink, the dog says ice cream & we are soooo outta here … until tomorrow.

Have a great day everybody!

 -vegas

OUR TURNKEY FOREX  “PAMM/MAM”  IS NOW OPEN AND OPERATIONAL; SEE “PAMM/MAM MANAGED MONEY PROGRAM” IN “DOWNLOAD LINKS” SECTION IN RIGHT HAND COLUMN FOR DETAILS [VIEW ONLINE AND/OR DOWNLOAD] AND START YOUR JOURNEY FROM WHERE YOU ARE AT TO “ESCAPE TO SUCCESS”!

SOME TRUTHS ARE MORE EQUAL THAN OTHERS

“Next to George Washington, the best President evaaaahhhh!”

Libtards, of course, cringe at the sound of Reagan’s name; why? Easy Peezee: Cuz he told the truth about big government and the destructive forces emanating from it. Libtards essentially have replaced religion with government, so when you question it and point out the graft, bribery, corruption, hypocrisy, influence peddling, double dealing low lifes who inhabit government and pretend to want to “help the poor” while lining their own pockets, you are in fact questioning the existence and purpose of those who hand out the “benefits” [a/k/a “the cash”], and that provokes a discernible reflexive and negative reaction from the faithful. However, whereas Christ is always with us no matter what, whatever government giveth, government can taketh away at their whim … Reagan hit this point “out of the park”.

It’s amazing what people will do, and the lengths they go to, to rationalize their behavior towards things. It really shouldn’t be all that surprising, cuz from the time we grow up, and go through the maze of corrupt cottage industries catering to our “growing up”, we get to see up close and personal just how hypocritical and corrupt damn near everything is. We get to see as kids, the rotten teachers, the evil school administrators, the feckless counselors, and before you know it you got the system figured out as to how best to manipulate it for your own benefit.

So, with this in mind, I’m LMAO reading the email I got from Turnkey yesterday about our 2 fills recently and the lengths they [brokerage house & LP] go to in justifying the robbery; it’s just another indication of the double dealing “life under the big tent” of government we’ve all come to know and love [not]. Cuz make no mistake, they get away with it cuz everybody in the food chain is feeding off of customer accounts. You seriously gonna sit there and tell me the regulators care, especially when they get tons of graft “under the table” from the industry? Back when the first of modern day institutional & retail, large scale hit job came in January 2015 with the Swiss Franc, I said at the time that if you wanted to know who was responsible and guilty of insider trading, simply check the Mercedes Benz dealerships in Zurich in the coming couple of weeks for blonde bimbos in their 20’s buying 380SL’s with cash, and you’d have your answer pretty damn fast. Of course, it’s all still a mystery to the regulators.

And so, what impressions do I walk away with when I’m told [apparently with straight faces and they’re serious] two incredibly logic riddled pieces of information; 1) “Our computer system checked our computer system and our computer system says your fills were 100% accurate and on the market, and 2) other brokerage houses that we checked with have the same fills at the same time, proving there was nothing “nefarious” on behalf of the LP”.

OK, my response to each: 1) “Oh, I didn’t know you had the HAL1000 computer system from “2001: A Space Odyssey” as your failsafe corporate “know it all”; maybe you should re-watch the movie and get back to me, and also, did you never hear of the phrase, “the fox guarding the hen house”?, and 2) the LP has hundreds of brokerage houses getting the same treatment; telling me there can’t be anything wrong cuz the LP gave the same quotes and fills to others at different brokerage house clients proves absolutely NOTHING AND SAYS NOTHING”! And, like government, this passes for critical analysis; meanwhile the head of the LP scumbag bank just financed his daughter’s fall ballet lessons. “Nothing to see here Sheeple … move along now … just a little hiccup in the system … we’re here to help you, remember”?

And last night, fresh from her gig in Londonistan somewhere, ChairSatan Yellen goes to great lengths to assure us all, another stock market stock indices crash will not happen again in our lifetimes; cuz, 1) “Everything Is F-ing Awesome Baby!” and don’t you forget it, and most importantly 2) cuz she says so. Well, I don’t know about you, but maybe you should lay in some fresh water and beef jerky in the basement on this “chutzpah” … Oh wait … I forgot … she’s from the government and she’s here to help. And of course … remember …  these are the same types of people who regulate the trading industry. I know I sure feel better. Over on ZH is another take on Grandma Yellen’s idiotic & delusional thoughts; seems I’m not the only one who thinks we are being led down the “primrose path” by a bunch of faculty lounge types who are clueless. The link directly below in case you missed it today … it’s a good read.

http://www.zerohedge.com/news/2017-06-28/steve-keen-rages-there-no-excuse-janet-yellens-complacency

Turning to today’s trading … late sell off on the close took stock indices lower yesterday … however, as is so typical lately, better trading in the “wee hours” than anything we are likely to get once New York opens … c’mon, who doesn’t like manipulation when we’re all asleep? … no important economic releases today, so it’s shaping up as another “Plunge Protection Team” [PPT] every rally is a “ramp up” on vapors kind of day; we’ll see, but rest assured, it’s highly probable today, the central banks put a lid on market declines and we will most likely see higher prices later … of course, I could be wrong about this. Here about 3 hours from the open, it looks like a slightly higher open come 9:30; early rallies are going to be sold.

As I said yesterday, “thieving LP’s got to be thieving”, and as I write in the early A.M., the Dow 30 is right on its high of the day, so of course the LP goes from a 2 point spread to 2 – 3 point spread; the purpose here is simple enough. They expand the spread to get an extra point to set off stops and pad their pockets … it’s who they are and it’s what they do … it’s got nothing to do with anything else, and when the market falls back from whatever range we have today, the spread goes back to 2. “I dunno, maybe the HAL1000 computer system can run a diagnostic and assure us all everything is completely 100% A-OK … no worries Dave … Dave? … Dave, you’re not worried are you”?

Well, that escalated quickly didn’t it? … welcome to the bullshit of the PPT, where you to can get short and get killed quickly when they stampede the market … oh, like they just did for 50 points straight up in the Dow30 in 2 minutes, the chart directly below.

And now, this presents somewhat of a problem this morning, cuz they just “burnt through” buying power that they would potentially want and need later from the “crash & burn” crowd … until later when they do it again … and then again.

Now comes the ‘talking heads” with the “official” central bank explanation of the sharp rise in the Dow30 … “ECB spokesman says Draghi’s comments misinterpreted” … oh, very nice … and did this spokesman just decide on his own to trot out and give his opinion, or were there others that saw what the Dow30, DAX30, & SP500 did yesterday and weren’t happy about it … and now, after some “arm twisting”, in order to change the theme for the trading day just before New York opens [I’m sure it’s just a coincidence], he comes out and “bombs” the markets … and of course, the PPT is at the ready to inflict as much pain as possible on shorts, as sure as the sun rises in the east, they knew beforehand what was coming and were prepared to act aggressively … Welcome to the new world order of central bank trading.

And, since it’s a new day, I’m sure our glorious and wonderful HAL1000 LP has filled all the buy stops set off by the PPT and filled them fairly … not that I want to know, cuz you already know every damn one of them is filled up at the high of about 21420 in seconds from much, much lower prices… cuz, you know, it’s where the market really is … our HAL1000 says so … Dave? … Dave, you’re not worried are you?

So, what comes after the forced North Korean confession from the ECB Apparatchik? … try nuttin’ honey … business as usual on Wall Street … cuz you know, these Apparatchik sycophants for the ECB, BOJ, SNB, & the FED of course, all work hand-in-hand for us … right? It has nothing to do with outright theft … OMG, only a tin foiled cynic would think that … “yup, and proud of it”!

Market opens, and of course, the institutional Chipmunks buy the day’s high for the umpteenth millionth time … same bat excrement, different day is all … the blatant and outright manipulation and crucifixion of shorts on full display … so, from an hour ago, the Dow30 is 80 higher and it’s “mission accomplished” … if you are confused by all this, it can only make sense if you subscribe to my premise of central bank manipulation.

Fun & games after the first hour or so, with the PPT having more fun than any quasi-government manipulator should possibly have the right to; already, and we’ve only been open an hour, I’m sure the HAL1000 computer running the show at the LP in the Dow30 is generating floods of happy emails, as these guys have discovered Christmas in June, and the machine is smoking hot from all the action. Already, the PPT manipulators have been in the market about 5 times punishing shorts out of nowhere with the message, in not so understated terms, “you will not be allowed to take the market lower … PERIOD”! Problem, though, is it’s all manipulative central bank buying, and once they’re done prices fall quickly back … market starts to drift lower and then … BOOM! … here they come again … so, am I [or anybody else for that matter] supposed to know they’re coming in half a dozen times in the first 90 minutes and blow both the Dow30 & SP500 to smithereens up the wall with no signals or any kind of market action that is predictive? And as I have said before, these asshats in government don’t understand markets or trader psychology, cuz if they did, what they have done today so far would be done in the LAST 90 minutes of trading, not the first [who knows, maybe they do it in a few hours but I doubt it]. The most powerful rallies always occur in the last 90 minutes of trading when the shorts get trapped with no time left.

In the process today, in 2 ½ hours the entire “the market is gonna crash bigtime!” meme is blown sky-high out of the water, and anybody buying into the theme today, and stayed at the “short party” a little too long, got literally crushed in seconds not once, but about 5 or 6 times in succession. “By all means, be short consistently and tell me how it works out”. And here in the late morning, cuz as we all know the LP’s do such a wonderful job of making “fair & unbiased” market quotes and fills, the Dow30 just hit a new high while at the same time the SP500 went lower … buy stops filled, market goes lower immediately, and thanks, come again soon! … “Dave … Dave? … We don’t have a problem do we Dave”?

I must admit, I didn’t see this coming in the A.M. today … thought there was a chance in the P.M. we could see something like this, but this … I can only imagine the complaints the HAL1000 is going to receive after today … government market manipulation on steroids. Over the last 24 hours, now that order books have gotten cleaned out on both sides … first the sell stop side, and now the buy stop side, I’m sure in central planner HQ the champagne corks will be popped this evening on a job well done. But, hang on … PPT #7 right here before Noon takes the Dow30 up to 21490 area on more buy stops … and we haven’t even gotten to the half way point of the day yet.

Early afternoon in NY, and the central banks are giving a lesson to the stock indices; “you will go down only when we want you to, not before … got it”? And those who refuse to learn the lesson get to go home with lighter wallets. Since the final PPT ramp up in the Dow30 at right before Noon, it’s been a nothing burger of sharp bursts up, then down … rinse … repeat … having fun yet? I’m thinkin’ at least half the traders on the street are suicidal from today’s action, it’s been that vicious and fast, and the upside action has gone much further than I think anybody imagined was possible today. Of course, when you got the PPT coming in every 45 minutes of the day jacking prices up on “vapors”, anything is not only possible but probable as well; with 2 P.M. only a few minutes away, who knows what they got planned for the last 2 hours. Since Noon, when the high in the Dow30 was made, the SP500 is up approximately 2.5 index points and the Dow30 is down 10 points … sure, talk to me about correlation.

The first 2 PPT explosions to the upside occurred before the market open; the second one was almost finished on the NY open, and it was after this correction to the downside that I made the days only trade; the algo got us long a hair early, which didn’t cause any problems, but the third move higher via the PPT saw the Dow30 rally only slightly, while the SP500 rallied 4 full index points. I can take a hint, and liquidated; and for a while it was a good idea, until the PPT came back in for rounds #4 - #7 during the next hour. And while we made money on the trade, and the algo called it, after that the market never did Mr. Jack Squat until expanding the day’s range up to 170 points. And if you think I’m getting long up anywhere near the high of 21493, you’re simply nuts … I do not buy rallies … the probability of expanding this range even higher is not good. If we can get some kind of real correction of 30 – 40+ points from the high and then a good reversal off of that correction low … sure, I’ll make the algo trade … but since I got out of my trade today, the market hasn’t corrected much more than about 15 points … not enough at these levels to justify the risk; so, a small profit today.

On another matter, the PAMM spreadsheet can’t be done today, not because I don’t have the Microsoft Excel via Office 365 working … I do; got it corrected last night and they hopefully fixed the bug permanently. No, the reason no PAMM spreadsheet today is our wonderful, fair, account loving LP via Turnkey has messed up the trade history for the master pool account on the MT4 trading platform. Since last night, I have no “trade history” from which to get trade prices nor times from June 20^th forward; I’ve made Turnkey aware of the problem since early this morning, and was told “we’re working on it”. Maybe the HAL1000 ought to have a talking to, but I’m sure between days off, champagne corks popping, counting all the money, and filling out complaint forms for the LP cuz of bat guano fills, that they will eventually get around to it. So, PAMM spreadsheet is ready once I can get prices and exact times from the MT4 when they get it fixed. By the way, this MT4 “glitch” in “trade history” doesn’t affect the money balance or anything else traded related in the master pool account; everything is good there, it only affects “trade history”.

Near the close, and another frustrating trading day, not because the PPT came in 7 times, but the simple fact that once this freight train gets rolling up, it never corrects back … and no, 2 or 3 M1’s down 7 points is not a correction or break … about the time it does come back, we then get the “Flying Wedge of Death” [FWD] coming into the mix and saying hello, and the propensity of the Dow30 these last months to go from high to low back to a high and then back to the middle is about 20X times higher than we have ever seen it historically … for that you can directly blame the central planners and the PPT for their manipulative efforts. Another very annoying factor today is the breakdown and lack of strong correlation between SP500 and the Dow30 … the vast majority of the time when I’m long the Dow30 and it goes up 5 points while the SP500 goes up 3 – 4 full index points, I know I’m in trouble and living on “borrowed time”. To then see me liquidate and the Dow30 start climbing rapidly while the SP500 then breaks a point … well, I’m left in “la la land” wondering what universe I just wandered in to and how do I get out of it? … cuz stay too late in a trade in this stuff, and the LP will burn your donkey with slippage like you can’t believe.

Whatever the situation, though, the version 4 volatility algorithm is “gold”. I’m not saying it’s “foolproof” or will never have a losing trade; only an idiot or fool would ever make such a claim. What I am saying, though, is that a series of trades taken during any given trading day will give us profits the vast majority of the time, and put us into an excellent probabilistic scenario to make money … obviously, some days are better than others, and we can’t control market behavior; whether it’s dead or bat guano crazy, it is what it is. Right now we are sitting at 50+ year lows in Dow30 intraday volatility based on percentage moves … as I’ve stated before, I don’t think this can last very much longer. So, we take what the market gives us and move forward; I’ll have more on the version 4 algo tomorrow. Onward & Upward!

Time for the beach … the dog says it’s DQ ice cream time first & we are soooo outta here … until tomorrow.

Have a great day everybody!

 -vegas

OUR TURNKEY FOREX  “PAMM/MAM”  IS NOW OPEN AND OPERATIONAL; SEE “PAMM/MAM MANAGED MONEY PROGRAM” IN “DOWNLOAD LINKS” SECTION IN RIGHT HAND COLUMN FOR DETAILS [VIEW ONLINE AND/OR DOWNLOAD] AND START YOUR JOURNEY FROM WHERE YOU ARE AT TO “ESCAPE TO SUCCESS”!