“The end result of financial markets & POLS … see what the cat did!?”
Worldwide “Plunge Protection Team” [PPT], iteration # 2,985,301 … “can Pols
just shut the hell up and leave markets alone? … to ask the question is to answer
it, of course, and we’re way past the point of no return, cuz they all use financial
markets now as “policy tools” to venerate their idiotic policies … and I’m not
just talkin’ about President Trump tweets either, cuz the whole world is in on it,
and they all do it, all day every day”.
“What’s a little “haircut” on the Hang Seng open”? … sure, it’s a 750 point
mugging, where the positioned specs get dutifully stopped out, and/or sell the
first rally, and then watch as the PPT steps in for the kill … specs sell, banks
buy, and 2 hours later and 400+ points higher, and it’s the same painful lesson
traders get to learn all over again about trading, which is, “trading is all about
big money getting small money to give them their money willingly, without ever
knowing or thinking they’ve been manipulated worse than Pavlov’s dog”! And
there’s no shortage of willing participants who show up, year after year, and
somehow think “fun-der-mentals” is the key to profitable success, and get
shown “the door” back to the “Pudding Business” rather quickly.
We are in our second week of trading the Hang Seng, and there is no question
in my mind the “Hang Seng Explosion Algorithm” is on the proper track for
consistent, non stop, daily profits. In the last couple of blog posts, I’ve tried to
lay out some of the intricacies involving the math behind everything … it’s the
“tip of the iceberg” folks, and as I’ve said, “it all depends on what questions you
ask, cuz literally nothing can be assumed … an exact answer for an exact
question”.
As I get more and more answers, and the questions then become more market
specific, we ultimately end up in an “optimal” trading environment, that’s
backed up with the math and lends itself to larger volumes and better trades.
From where we started a couple of weeks ago, we’re about twentyfold farther
along than where we started. And what’s becoming increasingly clear as each
day goes into the next, is that the “10 & 5” levels of the red line RSI indicator
are too small and need to be slightly adjusted upward … we’re simply missing
way too many trading opportunities that lend themselves to a better initial red
line threshold. Therefore, I’m altering the parameters to red lines at
“13.3 & 8”, as the new trade threshold … which by the way increases our
trading signals by approximately 77.84%! … and while I don’t have the exact
number at my fingertips today [I’ll have it by the end of the weekend], it
doesn’t appear our “risk profile” goes up significantly; maybe around 2% - 3%
at first glance, but I haven’t taken into consideration the three [3]
“false positive” scenarios I wrote about yesterday, that negate more highly
probable potential losing trades and keep us out of trouble … that’s gonna take
a few days to calculate with any precision … but, I know it will be a
“net positive” for us, it just depends on by what degree.
I want to reiterate, and try and make clear to everyone, just how important it is
to pay attention to the three [3] major types of “false positive” trade signals
[which I highlighted yesterday] you’re gonna get when the aqua RSI line goes
under 13.3, and then back out the top for a potential long trade … while they
will never be 100% of these specific three [3] types, you’re gonna be hard
pressed to find another scenario that doesn’t fall into one of these categories
… bottom line is this: “if in doubt, pass on the trade and wait for the next signal
… Lord knows, we’re gonna get plenty of signals, and it’s not like it’s gonna be
the only one today”. They’re pretty easy to remember, but to summarize, they
are 1) not much of a decline in terms of scope of the move down, meaning very
gradual and not steep, 2) the bottom red M1 having too large of a “tail” at the
close, followed by a new M1 that attempts to go higher first, and not lower, and
3) the “one hit wonder” M1’s, where a majority of the decline in price comes
from the current M1.
Turning to today’s Hang Seng market … “well, nothing like a coordinated PPT
operation worldwide at the same time … gee, if I wasn’t such a skeptic of
scumbag LP banks & central bankers, I’d say they set the markets up pretty good,
for a good old fashioned “shake down” at traders expense … nahhhh, they
wouldn’t do that, would they”!? File this under “knock me over with a feather”,
not a single VALID buy signal the entire day in the Hang Seng … from a few
minutes after the open, to the close of the night session … after opening 750+
points lower on tariffs news … in other words, after the ass kicking at the open,
no real sell pressure the entire day … “tell me again about market
“fun-der-mentals” and how all that works out”. [The three [3] buy signals about
an hour from the close, all “false positives”, cuz either the decline is only about
30 - 40 points respectively for the first two, and the third is in the last 15
minutes of the day, where we never make any trades … and sure enough, both
of the first two [2] trades would have been losers if taken … “THE SETUP
MATTERS!” … otherwise, it’s nothing but a big whoop. Don’t let your appetite
for a trade, lead you to a loser … all that matters is winning!]
Specifically, for those “false positive” potential trades that fall under
“not enough of a decline”, I’m looking for at LEAST a 70 point move lower
from the most recent top … the bigger the decline the better, and the more
“buy fuel” unleashed when it recovers and moves higher … anything less than
70 points, and you take the very real risk of 1) not much of a bounce, and
2) a further meltdown in price to its interim bottom.
No trades today in the PAMM, simply cuz we got no signals until the last hour
of trading, and all three [3] were “false positives” under the algo criteria for
trades. “Whaddaya gonna do”?
With tomorrow’s open, the PAMM will be trading the new parameter levels in
the algo … and if by chance going forward, we have days with no trades, it’ll
only be cuz intraday volatility has collapsed and there isn’t anything to do
anyway. But overall, we will see increased trading volumes, along with better
profits.
Staff & I are diligently working on new algo signal history, starting
April 1, 2018 … I’m hoping we can get it done and catalogued by the end of the
weekend, cuz I think it will be an invaluable resource for everybody, that you’ll
continually check with over time. Each month is going to be broken down into 3
sub-sections: 1) profitable trades given the algo guidelines, 2) losing trades
given the algo guidelines, and 3) “false positive” trade signals. Depending on
what you want to look at, you can go right to the section and find what you
need without having to search the whole month filled with other criteria … and
as we go along, accompanying the historical charts, a spreadsheet to keep track
of the results.
A disappointing day on many levels, not the least of which is massive
government PPT buying on every major world stock index at exactly the same
time … “we simply can’t have significantly lower stock prices on any kind of
trade or tariffs panic that might upset investors and cause a lack of confidence in
central bankers ability to smooth things over”. In a sane world, we’d all be
laughing ourselves silly at the hubris of these Twits, but when you got the
“CNTRL-P” button at your disposal, and you can “muscle” anybody and
everybody into submission, at the end of the day it ends up working, simply cuz
the brave pioneers who’ve taken on the central bankers in the past are all dead!
… “Money talks, bullshit walks … what else do you need to know”?
And with that, I’m outta here … until tomorrow mi amigos … “I need bigger &
darker shades, the future’s so damn bright”! … we’ll be there again tomorrow
when it opens … opportunity awaits! Onward & Upward!!
PAMM Spreadsheet directly below.
Have a great day everybody!!
-vegas
OUR TURNKEY FOREX “PAMM/MAM” IS NOW OPEN AND
OPERATIONAL; SEE “PAMM/MAM 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”!
