THE DAY BRITAIN STOOD STILL

 

“Long? … short? … here, you take this GBPUSD trade today, OK!?”   

Today’s the day the British public finally gets to see just how spineless, 

feckless, worthless, & useless Pols can be, when it comes to “Brexit” … and 

that’s just the Chumps on their side! … never mind the globalist, elitist 

group representing the 0.001% … “but hey don’t worry, there’s always time 

right up to today’s vote, to delay things some more and kick the can down the 

road some more … a group of retarded kittens could do a better job than the 

assclowns running things in Britannia”.

Of course, that doesn’t mean the U.S. has the “high road”, when it comes to 

assclown Pols … it’s one gigantic “shitshow circus” of potential & perceived 

victims walking around the U.S., and someday ‘Murica will see the same as 

Britain when the debt bomb drops … but hey, that’s in the future so who 

cares?

Here as the sun starts to rise in the Caribbean, I have no idea how gold reacts 

today, to the comedy show a/k/a “Brexit” … more than likely total paralysis, 

and so what else is new, but who knows what the scumbag bullion dealers got 

is store for the market, cuz it all depends on what they know that we don’t 

and how they are positioned to take advantage of the mess.

My gut instincts about gold right now ain’t pretty … from the froth that took 

price up to 1346, the $60+ dollar drop hasn’t exactly shown any real pep to go 

back up with any vengeance … sure we’re a few bucks off the 1280-ish low 

[about $16 - $18], but we dropped quickly over $60 … a classic Fibonacci 

retracement “dead cat bounce” would be 0.382, which caps the rally at 

1305.97 … the high from the NFP fairy tale report was 1300.97 … so, we 

couldn’t even get a decent “dead cat bounce” out of gold after a  

“bigly & yuge” sigma miss from the jobs report … so where’s the “buy fuel” 

gonna come from for the next leg higher?

That doesn’t infer I think gold is headed materially lower … we would need 

to see the idiotic FED restart the interest rate hike mantra again, and I don’t 

think that’s in the cards, simply cuz the global economy sucks. Where does 

that leave gold? … probably stuck in a range of 1310 - 1320 on the upside, 

and somewhere around 1250 - 1270-ish on the downside … with more than a 

single digit probability of a blowout to the upside to the 1500 area, if a global 

depression becomes a reality and world central banks start throwing money 

from helicopters in earnest … a real possibility, simply to keep stock markets 

propped.

The big problem for gold is scumbag bullion dealer manipulation, and the 

unwelcome appearance of the “Flying Wedge of Death” [FWD] … cuz in tight 

range days, it takes very little manipulation to get either longs or shorts to 

panic if they think the high or low looks to be under threat … the day’s high 

and low become “magnetic attractors” in classic Chaos Theory jargon, and 

most times become self fulfilling prophecies as people panic before stops get 

hit off … only to go through by a few cents before turning with a vengeance 

and racing the other way, and now let’s do it to the other side. “Feel 

manipulated yet”? And we see this day after day when dealers keep the range 

tight … when daily ranges in gold are anywhere from $5 - $8, this is the 

highest probability scenario … and if you’re a scumbag bullion dealer, what 

better arrangement could there be for your profitability at public expense? 

… and the answer of course, is NOTHING!

Mid morning, and what day would be complete without a sell stop hunt from 

the dealers, that wipe out longs and at the same time can get them long to rally 

it some and bank some coin? … “this is who they are, and this is what they do 

… they should all be in jail, but when you spread the loot around Capitol Hill to 

Pols & regulators, not to mention corrupt to the core exchange types, this is 

what you get … and what we as traders have to deal with daily”. All of course, 

inside the infamous FWD so nobody outside of traders who got hosed notices.

As we head towards Noon EST, it’s turning into another worthless and 

completely useless trading day … a few stop hunts to the upside, and a few to 

the downside … of course, they all go nowhere fast … volumes and order flow 

non existent, accompanied by the usual assortment of mystery ticks & spikes 

gold is noted for over the years … the dealers love these types of conditions, 

cuz they wear traders out and eventually wear them down, and then get a 

good majority to throw the towel in on a trade at exactly the wrong time 

… hence the mini stop hunts. 

If it wasn’t for the NFP idiocy, we’d be in the 7th straight day of complete shit 

trading conditions … is this the best this stuff can do coming off a $60+ 

drubbing? … cuz if it is, then we got further to go on the downside, simple as 

that. And, like in January & February, March now sees its turn to host a slew 

of crap days that are simply untradeable … you’d have better conditions at 

Binion’s playing slots.

After 1 PM EST, and New York has a $4 range from the tips … more closely 

to about $3 ½ dollars, but I included a spike from hell … adjectives fail me for 

how pitiful this is, but hey, it’s what bullion dealers in New York do.

No trades today, cuz no algorithm signals … even if I had gotten a signal, 
volatility is too low to take the trade, cuz there would be too high a probability 
of a “false positive” with subsequent quick reversal in price. So, onto 
tomorrow, where I’m sure we’ll have more “Brexit” drama cuz that shit 
seems never ending … I’m outta here … until tomorrow mi amigos 
… Onward & Upward!!

Have a great day everybody!

-vegas

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“STRANGE ATTRACTORS” & FX

 

“A Chaos Theory representation of a “strange attractor” in 2D”.

In dynamic mathematical systems, for example Chaos Theory, represented 

by non-linear differential equations, there exist a set of numerical values 

towards which a system tends to evolve … and here’s the “Twilight Zone” 

part of it … no matter the infinite number of possible initial variable values 

put into the system, the system finds a way to still come to those values 

… these values are known as “strange attractors”. Is not trading a dynamical 

system?

And as we flip from the fractal world of Chaos Theory to trading, what I 

have often viewed as trading “strange attractors”, especially coming out of 

the Asian session into the European and U.S. sessions, are the days high and 

low, and the relationship that has on trading behavior going forward into the 

day, when you know there’s no way the range is going to hold a small PIP 

number. “As such, no matter what technical condition the market is in, or how 

it got there, the market finds its way to either the old high, old low, or both”! 

Somebody tell me … how is this possible given the supposed “random” nature 

of markets every academic Prof tells us “has to be”?

Well, here’s a little hint: 1) markets aren’t random, 2) we can trade at our 

leisure and don’t have to accept all market values for profit or loss, and 3) 

academic Profs couldn’t trade their way out of a wet paper bag, and have no 

clue how markets operate or function outside their controlled “stat labs”. 

“If they could trade, trust me, they wouldn’t be teaching 8 A.M. classes to 20 

year old “skulls full of mush” at State U.”.

Whereas fluid dynamics & solid state dynamics have no emotion, trading 

markets have human interaction, and thus add another variable to the mix 

that makes and creates volatility … something physics lacks. And it’s this 

variable that gets people to panic as markets move toward the old high or the 

old low, “cuz they know they don’t want to get caught in the scumbag LP bank 

stop parade and get a horrible fill that makes their loss more pronounced 

… they don’t want to liquidate, but they do cuz they know the pain of a larger loss 

… and so, there cumulative liquidations, whether institutional or spec doesn’t 

matter … what matters is that their behavior drives the market in one direction 

… and at the end of that dark rainbow, waiting like a cop behind a billboard on 

the highway for speeders, are the large hedge funds and scumbag LP banks 

waiting to take the other side of your stop … these are the trading “strange 

attractors”, and where behavior starts to change and influence price is the 50% 

retracement area of the earlier moves out of Asia”.

And despite all your efforts … despite all of your common technical indicators 

that may suggest oversold or overbought, the market continues its drumbeat 

up/down and leaves you either in the dust or with large losses … and it is the 

 “setup”, which I have been screaming in your collective faces forever, that is 

the proper way to see and react to markets … everything else is condensed 

bullshit.

I will admit, it is very hard to train yourself to liquidate on the spike up if long, 

or liquidate on the spike down if short … your emotions and indicators tell you 

there is more “low hanging” fruit on the tree, and that more money is an easy 

few minutes away … but a funny thing happens on the way to the Porsche 

dealership to pick up your shiny red new car … and that’s called the reversal, 

and it’s painful  when experienced. Remember, “OY” is an element best 

avoided.

Turning to today’s market … good grief, what a bucket of slop this is from 

Europe open to close [8:00 - 16:00 server time] … classic “Flying Wedge of 

Death” [FWD] inside an approximate 35 - 40 PIP range at the extremes, with 

most of the time spent inside 20 PIPS or so between 1.24750 - 1.24950. How 

many bad trips on the yo-yo does it take to ruin a day?

“Is there some kind of law that they passed that I missed? … 9th day in a row 

Asia opens and goes higher into the European open in EURUSD… I mean 

seriously, can you Chuckleheads give the buy side a break for a while and 

discover selling”? … Where does the money come from that they consistently 

lose?

OK, 10 hours into this clusterfark, and it feels like I’m in a bad dream … how 

do I get out of this thing? Considering yesterday saw about a 200 PIP range 

with a double reversal, today sees a 62 PIP range? “Wut”? … I want no part of 

the rest of this New York afternoon; whatever they want to do, they can do it 

without me … good grief what a pitiful trading day of action. And here in the 

last hour, after 16 hours into the day, EURUSD basically goes from near the 

low to near the high straight … another yo-yo swing in the FWD.

Only one trade today … PAMM up a few bucks, but nothing more, so a 

negligible profit, but a profit nonetheless.

And you can add me to the list of people that are confused by yesterday’s 

trading action; let’s see, higher inflation, lower real wages & productivity, 

higher 10 YR. rates, a higher stock market & lower dollar. “Huh”? And that 

probably is more the reason today literally sucks … there are a lot of 

confused traders out there, and after yesterday’s gigantic moves, traders are 

totally unsure where to place trades next. In any event, though, exiting 

today’s action up anything is a complete victory … I’ll take it and exit stage 

left … I’m outta here … we’ll see what tomorrow brings 

 … Onward & Upward!!

PAMM spreadsheet directly below. 

Once again today, upon clearing everything out and closing the trading app, 

I end up with a EURUSD 0.07 lot trade; I have no idea why this is happening, 

and I’ll have a talk tomorrow with IT support at Turnkey. I have treated it 

as a “Trade Adjustment” in the PAMM Spreadsheet … it was $0.17 in our 

favor, but the important point is, why is it happening. Last time it was a 0.05 

lot in GBPUSD, today a 0.07 lot in EURUSD. In any event, I’ll get it figured 

out tomorrow.

 

 Have a great day everybody!

-vegas

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