MARKETS HAVE BEEN EUTHANIZED BY GOVERNMENT

“Which financial market are you? … right, ALL of ‘em!”

The pain never stops … and that pain emanates directly from government at all

levels, as they micromanage markets for propaganda purposes … cuz make no

mistake, where we are headed in the financial community is the death camp

known as negative interest rates … sooner or later, no matter the words and piling

up of bullshit higher than the Empire State Building, the U.S. is financially headed

for the euthanasia chamber … a report out today, that in the E.U., banks have paid

out 23 billion Euros to the ECB since 2014 … so you lend the bank money, and

then THEY CHARGE YOU for the experience … OMG!, this is something only a

central banker could dream up.

Not to be outdone today, the ChiComs are at it again spinning propaganda faster

than the FED is printing money via CNTRL-P … all with the stated purpose of

making it look like they’re trying to do a trade deal with the U.S., when all they

are doing is 1) propping up stocks, and 2) playing for time … who knows, if U.S.

Sheeple are dumb enough to elect a Libtard Buffoon in 2020 over Trump, the

ChiComs have ZERO worries … they’ll throw money at ‘em and it’s back to biz as

usual.

So what drug do markets get hit with today … meth? … valium? … what? … cuz

when you get right down to the nitty gritty of what makes markets “tick” these

days, it all depends what the government doctor [the FED] has got planned

… nothing else really matters … in other words, it’s a game of manipulation and

those still spending time with “fun-dur-mentals” and/or popular technical

indicators via platforms such as the MT4, either figure out what’s really going on

or they go broke … Wall Street “group think” has never been more dangerous

than it is NOW!

And the “group think” now is that gold is a “slam dunk” rip higher … first to 1600,

and then new all time recorder-er highs soon … and while it’s a foregone

conclusion what the long term outlook for gold is, simply cuz of government,

between now and then it gets a helluva lot trickier … and while the FED is

probably gonna cut rates by 25 basis points come September 18, I don’t see a

FED in any hurry to carry Wall Street’s water by slashing rates like they want cuz

China’s & Europe got some problems … and if you go back to just one year ago

from today, the FED dot plot from all the smartest people in the room were looking

for 4 to 5 more RATE INCREASES … so, how’d that turn out? … now they’re

looking for massive RATE CUTS into 2020 … even if they get ‘em, gold expects

it … what if they don’t get them? … whoops, now what?

Well, the “now what?” will be a stagnant to lower gold price and very frustrated

gold longs, as the stock indices power forward to higher highs … just what the

FED wants, which is to avoid a baby boomer pension crisis … and if by chance

the FED stands firm, and this is a “mid cycle adjustment”, and rates don’t go

down? … well, you’ve seen the top last week for a while … not predictin’, just

sayin’.

Gold is “dead cat bouncing” today, with little volumes and even less liquidity … I

was hoping for some DOW30 trading today, but Turnkey’s crooks & thieves a/k/a

“liquidity providers”, decided today would be a good day to have 6 & 7 index point

bid/offer spreads, from the usual 1 & 2 … “oh, was I supposed to not notice the

tripling of trading costs for no fucking reason? … how rude of me, my bad”. So,

that market is out the window … Cable, as I write at Noon EST doesn't even have

a 50 PIP range today after 19 hours … that leaves gold, where it’s spike hell for no

discernible reason as well … “how many banker scum on trading desks in New

York do you think uttered the phrase today of, “let’s go get us some stops”! … I’m

thinkin’ more than a few” … more Corona and Vitamin C seems to be the answer,

as we start September off with extremely shitty trading conditions so far.

Today’s core inflation figures a little hot, but hey, the gubermint says there’s no

inflation, so what do I know … I mean outside of food, fuel, housing, and health

expenses, I hear horseshoes and typewriter ribbon prices have fallen, so that’s

probably where the good news lies … FFS.

Gold going nowhere, again today way below its 20 Day Range MA, another market

not doing Mr. Jack Squat [Cable], and the other being manipulated for pure greed

and avarice by the LP’s [DOW30] so it can’t be traded unless you’re an absolute

idiot and pay TRIPLE trading costs for no reason … that doesn’t leave much for

the NY afternoon … in fact, it leaves us with ZERO. Simply no algorithm trades

today.

I’m sorry to say that when markets decide to take the valium pill, or go full retard

idiotic, like what’s happening today, we simply have no choice but to sit on the

sidelines and wait … you feel like giving money away to a group of fucktard bank

scum? … “I’m shocked, me neither”! … and so, here we are sitting, not by choice

but by their actions … pitiful, but that’s how markets operate in the “POLS &

Apparatchiks” paradigm.

The dog needs an ice cream cone [so he says], and I need “hydration therapy”

… ‘till tomorrow mi amigos … Onward & Upward!!

Have a great day everybody!  

-vegas

COLLECTIVE BEHAVIOR & TRADING

“Who says math has to be boring?”

I’m going to be dealing today with 3 critical areas you all need to know and understand; 1) “groupthink”, 2) the algorithm and specifically the exhaustion lines, and 3) “balance”. Search the web, go to the bookstore, shop online, and/or get hustled into a trading seminar; it isn’t going to make any difference because what you read today you will find nowhere else. I’m actually trying to help people “escape to success” and become financially independent via trading versus those who simply want to occupy a place in your wallet right alongside your credit card.

Your potential success does not in any way detract from my trading; if you “make it”, that doesn’t mean I have to trade less volume, make less money, or scramble to find how I’m going to get the “slice” of the market you just took for yourself, and by default in the logic of this, away from me.

I get asked all the time, “Umm, -vegas man … hey, this stuff you got and teach is worth a fortune … how come you give it away … I mean, you could sell it and make millions … you know traders would pay it … so what’s the deal dude?” And my answer to this is always fourfold; 1) I’m not interested in your money, I got my own, 2) I don’t want any barriers between people who truly are sincere about making trading a career and are starting on a “shoestring” budget and would have to struggle just to pay me what I don’t need or want, 3) I don’t have to worry about people trying to “scam me”, by taking my ideas and reselling them somewhere else when everybody knows I have a website and give it away, and last but certainly not least 4) the entire trading universe can see algorithm results at any given moment in time and prevents spammers from trolling me by saying my algorithm or trading ideas are full of shit. Well, if they are, “let’s just check the tape, shall we? Give me the date and time you claim you lost a fortune, and not just me, but thousands of other traders can check the same thing and know in an instant that you 1) didn’t follow the rules, or 2) when it comes to ‘full of shit’, you are king.” In a “nutshell, it’s freedom for me to teach without having money complicate the equation, and by default also strips away the nutjobs whose only purpose in life is to bitch about something.

Now, don’t get me wrong; I’m no “saint” sitting here [although, the dog hasn’t been polled]. Sure, it’s kind of a “karma” thing, but in my life my mentor Bert, back when I was a dumb ass college graduate who knew everything but in reality didn’t know Mr. Jack Shit, took me under his mighty wings when he didn’t have to and spent thousands of hours really teaching me the trading business, that you have to thank. I’m just a “link in a chain”, that both stretches back as well as [I hope] goes forward with others.

The more trading changes, the more it stays the same. In other words, it doesn’t matter what decade or century you look at; of course, technology makes markets more accessible and easier to navigate than in the past, but advances in technology have nothing to do with “groupthink” and how it has affected traders throughout trading history. Over the decades and centuries collective trader behavior has always remained the same; the public still “buys the high”, “sells the low”, tries to “reason with” the market [pick ‘em] to “behave” [please?], and ultimately gives up when the money runs dry; only the names change through the ages.

The first questions I always ask new traders are, “why are you here, what’s the REAL purpose? Does your wife/husband need a babysitter? Are you looking for action? Or are you here for the money?” And most importantly, “seriously, can you follow fucking directions?” Because, right out of the gate, your first “enemy” is “groupthink”. “OMG, it’s going higher, I have to buy it!!” 90 seconds later; “WTF, I think I’M GOING TO BE SICK cuz I think I bought the high of the move; why did I do this?” SHORT ANSWER: “you’re a Newbie and you let your emotions suck you in because you thought it was ‘easy money’.”

We are “traders”, not analysts; we need a battle plan that makes markets our own personal ATM on a daily basis and “brings home the bacon”.

“Go ahead genius, explain to her why there are no trading profits for the month.”

I spent over a year and a half developing my original floor trading algorithms decades ago; today those algos don’t work so well because they are too slow. Back in the Spring, I developed the “volatility” algorithms from those originals and they perform spectacularly in today’s HFT world.

The exhaustion lines are a critical element of success for trading using the algorithm; “I will simply say, they are the very best indicators in REAL TIME you will ever see in capturing ‘tops & bottoms’". And while greed has your emotions running at full throttle when a market is going straight up and you’re long, and part of you says this will last forever why get out, when price hits the exhaustion lines it’s time to put emotions aside and book the trade.

Trust me Newbies, it’s not as easy as it sounds. Once you let a few of these “moments” slip through your fingers, and you want to hit yourself for being a dumb ass, you’ll come around and learn to “trust” the exhaustion lines for liquidation. I know because I have walked in your shoes; it took me a full 3 months when I was on the trading floor in Chicago many years ago to “trust” the exhaustion lines and the algorithm. I got so tired of seeing the algo make consistent money while my “thinking” repeatedly got me into trouble and/or made me scramble to eke out a living; I was ready to give up. It literally came down to a day when I said to myself, “if you can’t follow it, get the fuck out … Micky D’s is hiring dumb ass.” On that day I made over $1,000, something that up until then I had never done before; the rest is history.

I will point out absurdity by being absurd; you can’t go out drinking and partying, all night every night days on end, and expect to bring your “A” game to trading; sooner or later this “unbalance” will be your downfall and you’ll be back in the Pudding Business.

Likewise, you can’t be a “computer jockey” sitting in front of a computer screen 20+ hours a day without turning into some kind of Zombie; you have to prioritize your life and get into some kind of balance. That means 1) a life outside of trading, 2) proper rest & sleep, and most importantly 3) when it comes time to trade, telling the rest of the world to “leave me the fuck alone, I’m making money!” I can’t over emphasize #3 enough.

Well, somebody must have emailed the Chuckleheads in Asia last night, because there was no “buying spree” to speak of in gold; maybe Mrs. Wantanabe has to wait for her husband’s check to clear before she [loses] trades again. Now, remembering what I said yesterday about the only way gold can rally, and what do you suppose we see today?

“The dog is nodding his head, that yes, I’m a frickin’ genius. On the other hand, my sample of ‘one’ for this poll is eating a Beggin’ Strip, so maybe he’ll agree to anything? Nahhh, just a coincidence.” No need to recap the highlights; for those of you that need a refresher on yesterday, simply scroll back, take some notes and take a look at action today from the New York open. “Time travel sure makes trading easy doesn’t it?” The ‘nitty gritty’ details directly below.

And just to show you I’m not perfect [“here’s another Beggin’ Strip … now vote again.”], I missed the exhaustion line by about 3-4 minutes and had to settle for a profit of about $3 instead of $4 … “I can deal with it.”

Now, I have no idea where this shit goes from here today after this early move. From where I sit, though, after seeing the damage gold has suffered over the last couple of weeks, it’s going to take one hell of a bond market, stock market, and finally FX rally to get gold to go up and expand the daily range from where it is now around $10 to above $15+ on the upside of things. Quite frankly, I don’t see it for the very simple reason that the $3 trillion in risk-parity funds can’t possibly be finished with their selling to readjust everything from “alpha to gamma” with what has happened over all markets [not just gold] in the last month. So, with that scenario in mind, I don’t see risk/reward as being in my favor going forward today after this profitable first trade; it’s too early for the daily charts to “turn around”, and if you want gold to go higher, the technical damage has to be “worked off” before prior day’s highs can be taken out and the shorts scramble. So far, the serious well funded shorts from higher prices have no reason to get really worried and “pay up” to cover.

For you Newbies out there, you should realize everything that is math related in the algorithm is visual on the MT4; you don’t have to do squat except follow directions and watch your computer screen for signals; “yea, it’s that fucking easy.” And so, going back to what I said earlier in the post, “can you follow easy fucking directions? Yes? Good, then you booked a profit just like me and got no worries. No? Taking a quick look at the charts as I write, you got a problem cuz we sold at or near the high [so far] and now ‘hope’ gets to be installed into your trading strategy $4 - $5 bucks lower and you find yourself in a very compromising situation.”

“Master, I voted 3 fucking times in ‘you are a genius poll’; can we go to the beach now for cryin’ out loud?” It’s hard to argue with his logic; the dog and I are soooooooo out the door even though it’s a little early. I think before we hit the beach, we’ll stop off at the island Pet Smart, cuz the nurfball is getting a little skanky, and he always loves the attention when the girls in the store fawn all over him & stuff him with treats. As for me, I’ll be lucky if somebody there says “hi” to me, cuz when he’s around I’m invisible; he’s got a great life and that’s enough for me to be happy as his BFF. Until tomorrow amigos …

Have a great day everybody!

-vegas

OPEN A DEMO AND/OR LIVE ACCOUNT AT THE LMFX LINK IN THE “DOWNLOAD LINKS” SECTION OF THE WEBSITE TITLED “OPEN TRADING ACCOUNT – DO IT NOW!”