THE “PUDDING BUSINESS” IS STARTING TO
LOOK GOOD
I think the markets greatest fear is
that the BOJ [11 PM New York time for actual decisions on rates, 2:30 AM New
York time for the presser with Kuroda & Crew if you’re interested] will
“sit tight” and while they do nothing will “jawbone” the market to try and take
the Yen lower [good luck]. And if that happens, it leaves the door open for the
FED, which I think has a very good chance of raising rates, to knock the shit
out of everything.
But what if they both do nothin’? Would
that mean markets are on hold until December? [Better dust off that resume to
the bearded lady at the circus.]
I don’t know folks, but I can tell you
this about gold; it very much feels like it’s going lower no matter what the
asshats do or say. In the last 2 days, have you seen any short covering of
significance after the recent move down from the 1350’s? Well, I haven’t, and
that gives me a sense most commercial shorts are comfortable in their
positions, and aren’t worried about what the BOJ & FED might do or say. Sub
1300 here we come.
Now, I could be all wrong about this;
they both could be dovish and we get a massive move higher in short order and
catch the entire crowd on the wrong side of the trade. Boy, would I love to see
this!
And much to the delight of the entire
financial elite community, volatility in pretty much all markets has collapsed
today ahead of these 2 meetings; there aren’t any trades to be made anywhere
that justify a position in this slop.
And speaking of slop, no comments from
Black Pearl to Yours Truly on the blistering emails I sent them yesterday about
the crude oil CFD’s at ASSETS FX, where you too can get screwed by a liquidity provider
that sees you as solely an income source to be “milked” like a cow. “Hey, if we do it slow enough you won’t even
feel it!”
No comments from LMFX either about their
PAMM’s; silence all around as they take their sweet ass time getting things
done. I mean, God forbid, let a customer know when shit will be done; it’s like
they do this intentionally, almost like the airlines, they alienate and piss
all over their client base and then are shocked to find out people hate them
and wish there were alternatives to using them.
In essence, the financial trading
business is a complete and utter mess. As retail customers, we face 2 big
problems; 1) all, and I do mean ALL, brokerage house management types are lying
sacks of shit, that will say anything, promise anything, and then deliver
nothing like what was agreed upon, then look you in face and say, “what, what’s the problem?”, 2) the
entire industry views your account as a source of revenue that is theirs, not
yours; that money you put in, that’s theirs not yours; your money is just “borrowed”
from them for a short while, as management in cahoots with the LP’s figure out
how to separate more money from you every time you click the button.
As I have stated numerous times, the
PAMM concept is in its infancy; it’s only been around for a couple of years,
and the early years were a total disaster in terms of 1) fees, 2) outrageous
spreads, 3) outrageous round turn commissions, and 4) slippage on fills. On top
of this, pretty much everybody in the trading business from the brokerage house
& LP side viewed “managed money” as “chump money”; money we can screw and
at the least take advantage of with fees.
Sadly, not a whole lot has changed much;
in the last 5 years I’ve hosted 6 PAMM’s that had to be shut down, either
because the brokerage house no longer wanted U.S. clients or money managers
[3], or because when I started trading spreads ballooned, slippage increased,
round turn commissions increased, volume quotas were instituted, or a combination
of all four and I simply said, “this is
bullshit, and I’m not screwing my clients, so shut this thing down. This isn’t
what I agreed to!”
To be sure, some brokerage houses &
LP’s are clearly better than others; that doesn’t mean they aren’t lying sacks
of shit, it only means they don’t stink as much. I’m trying very hard to show
patience and remember what it is that is at stake in this business; I know “Rome wasn’t built in a
day”, and I fully realize from the annals of business history these things take
time. But for Christ’s sake, you would think one of these outfits would get
their act together and dominate the business; sadly, so far, it’s amateur hour
on a massive scale. Until tomorrow when “stupid shit” happens … I’m so outta
here.
Have a great day everybody!
-vegas
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