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Tuesday, May 30, 2017

VISUALIZING THE IMPOSSIBLE

“Sheeple can’t handle the truth!”

In what seems like an impossible event, stocks will actually open lower today; all of the financial MSM mouth organs are in sync with 1) Greek default risk, 2) Italy collapse, 3) OPEC worries they can’t keep production cuts in place [“yes, believe anything a member of OPEC says, and I got some Haitian swamp land to sell you cheap”!], and 4) FED June rate hike on impending Friday NFP numbers. Amazing how they can all come to the same conclusion on the same day at the same time; “why hell, if I didn’t know better, I’d think there was some kind of collusion amongst the “powers that be” to put the line out for today’s talking points, almost as if they wanted prices to go lower today, especially at the open and soon after that.”

Cuz what I’m suggesting would have been unthinkable a few short years ago; back when sanity ruled both finance and politics. Thanks to a string of disaster Presidents starting with Clinton right through President Empty Suit, the political well has been poisoned, and the country’s finances turned basically into a third world banana republic. In 25 short years, what would have been totally impossible is now the norm; “and that norm is the manipulation by central banks of every single market that is traded and that matters. It’s all coordinated, dictated by, and led by the FED, SNB, BOJ, BOE, & the ECB, and there isn’t a whimper anywhere in the MSM that it is wrong, immoral, or extremely short sighted. And all of us in the minority pointing this out are somehow marginalized into the tinfoil crowd”.

You think it’s a coincidence that when crude oil bottoms on the M1, that the Dow30 & SP500 bottom also? And if this lower opening today sees a strong rally after the European close today [11:30 ish in New York] in the Dow30, will it be a coincidence that everybody has forgotten and no longer talks about what is being talked about now? How is it the “mantra” changed and who changed it?

Markets, like our personal freedoms, are being gradually eroded over time so that nobody notices what they have lost and how little they have gained in return for “more government”; nobody complains because they don’t want to be the next victim of the Clinton Crime Family, the Obama IRS hit squad on conservative organizations for audits, or ChairSatan Yellen’s  decision to freeze you out of the next FED briefing cuz you asked the “inconvenient questions” and wouldn’t STFU and go away like the rest of the MSM sycophants who eat up the slop she serves and now you’ve lost your news reporting job because of it. So, who stands up and complains about market manipulation? JPM & Squid? Hell, they’re part of the problem; joined at the hip with the FED and feeding at the Pig trough of Government.

And so, it starts in 2012 with gold, and now 5 years later after various debacles in other markets and with other central banks paving the way, most notably the SNB & BOJ, it now doesn’t even raise an eyebrow [except on CNBC cuz nobody likes to be reminded about unpleasant facts] when central banks openly smash gold & silver or buy crude oil; “it’s just the way markets work now is all”. “And some day, when they come for you for just about anything, who will be there to stand up for you”?

“Oh yea, it’s impossible, cuz we live in the “land of the free & the home of the brave”, only we don’t anymore. The U.S. is a “soft” police state, run by petulant elitist children of both parties, who want nothing more than 2 things; 1) more power over your life, and 2) all of your money. Liberal Democrats are communist thugs, and Republicans simply Democrat “Lite”; nothing gets solved, nothing gets fixed, and all the while class warfare is perpetuated by a self-anointed, elitist [all the “proper” schools don’tchaknow] ruling class that is neither educated nor enlightened but simply indoctrinated & credentialed that aren’t “up to the task” to do anything about it until there is another civil war. Ignore all of this at your peril”!

Turning to today’s market … how long can the lower open be allowed? What FED Pie Hole will be “trotted out” like a show pony mid-maybe late to mid-afternoon to change the narrative? Don’t be surprised if it happens. Here at the open in New York, the same “Chipmunk” institutional activity that infects almost every open very much in force; I guess they all got together over Memorial Day weekend and convinced themselves that stocks are cheap so “let’s buy on the open”.

First trade of the day directly below, looking for momentum off the short-term correction low.


Basically, riding it higher until it loses momentum and then liquidating before the turn; it’s the only way to insure not getting completely screwed by the LP with an off-market fill.

And once again, with everything on the MT4 board seemingly dead, why should the stock indices be any different? Here around Noon time in New York, the SP500 with an effective range of about 4 index points; better than most days last week, but in the scheme of things very pathetic. Remember 10-15 years ago with the SP500 @ 900 – 1100, it had consistent daily ranges of 15-22 points. Now @2400 we’re lucky to see anything over 10 points in the New York session, and most likely it will be 4 – 8  points. This is what manipulative markets look like folks, cuz the central planners don’t want under any circumstances volatility that might upset their imaginary, fairy tale policy objectives; as a result, we get BS like today, where for the better half of the morning we’ve been stuck within a few points of the New York open around the 21044  level … and when I say “stuck”, I mean stuck cuz we haven’t seen ±5 points in over an hour … i.e. until somebody simply can’t take the SNB bids any longer and “pays up” with a nice 10 point spike in 2 seconds, of which I’m not the only one who looks around and says quite literally, “WTF was that”?... well, that lasted all of 20 minutes to unwind and come back from where it started.

File this under, “I simply can’t make shit like this up without it becoming reality”; seems talking head Steve Liesman over at CNBC, who by the way is so in love with everything the FED does and says, had an interview with some FED Pie Hole, and the guy actually said a market correction, “might be a good thing”. Now, for everybody who needs translation, this is exactly what I was writing about above earlier; here comes “Mr. Government”, telling all market Snowflakes, “don’t worry about these little corrections … it’s really “healthy”, and we’ll have your favorite FANG stock higher in no time … nothing to worry about, don’t panic and sell your shares, all is well … we got everything under control … nothing to see here Sheeple, move along Ok”? Remember the Titanic, when the band kept playing in first class?

Simply put folks, understand and realize that everything you thought you knew and understood about markets pre-2016, doesn’t mean Mr. Jack Squat anymore; “traders especially had better come to grips with the new reality that the only thing that matters is what central banks say anything means. The new paradigm of “Speed of Light trading … Crickets” comes not from confusion in the market among traders who suddenly decide price needs to be adjusted; it comes from central bank “Plunge Protection Teams” via the TBTF banks and ripples into markets in a nanosecond. In the stock indices we got various central banks who adjust their block bids for key stocks, thus sending “in-the-know’ traders scurrying to buy SP500 & Dow30 futures. So, if the news is bad it’s “Transitory” [Yellen’s favorite word]; point is, it doesn’t matter what the news is, cuz all that matters is what they tell you to think about the news and how to trade it”. Keep this in mind next time you listen to one of these Fed Pie Holes on the propaganda channel a/k/a CNBC; they are there for a reason, and it’s not to enlighten your ass, it’s to let “big money” know they got their back covered and not to worry. TRANSLATION: Higher stock prices ahead, don’t worry about it. And for this reason alone, you got hedge funds closing all over the place, cuz they can’t make any sense of this at all and don’t want to be a part of the great manipulation. Of course, someday when it all blows up, they’ll deny everything and find somebody to blame.

And so we sit here caught in intraday ranges, which truly as little as a couple of years ago I would have said is “impossible” given the dynamics of the marketplace and the money “sloshing” around; impossible? Not any more it isn’t, cuz the stock indices markets I used to know have been killed … murdered by central planners … it’s dead, and unless and until central banks are defeated and western civilization changes for the better, why should anybody in their right mind think they are going to allow markets to return to the condition they were in pre-2016? They have unlimited political power and the CNTRL-P button; what the hell do we have?

The only headline they want you reading, via newspaper or online is, “Stocks hit new record”! Everything else is moot, which is why I said before that FX is dead … gold is dead … and oil has a floor underneath it to protect the energy industry. The very last thing they want is volatility, cuz volatility is uncertainty, and uncertainty may lead you to sell your ETF’s and Index funds or change your 401(k) [which they plan on looting some day real soon, cuz it’s not fair you got one while others don’t], none of which is “good” for policy objectives. I’ve said this before, and some listen while others won’t cuz they don’t want to believe, but get your money out of the U.S. before Trump’s Presidency is over; the next DEM to gain power and the country is O.V.E.R.

I’d love to trade the Dow30 more, but there isn’t any prudent thing I can do when it won’t move. So many traders have been burned the last couple of years selling markets, looking at phantom fundamentals that they thought mattered, but didn’t in the eyes of the central planners. Take your pick, from gold to EURUSD, to crude oil, and now the stock indices; nothing is acting and trading like it used to, and once you’ve taken a few arrows in the chest or got 3rd degree burns on your financial body, you tend to back away from this stuff and let others be first in line. And that’s what’s happening in the stock indices right now; nobody wants to “hit” the SNB bids cuz there is no limit to them. They soak up your sell order like a group of hungry locusts. Ditto in the SP500 futures and Dow30; “go ahead brave soul, you be first to sell … I’m right behind you [kinda … maybe … I dunno … good luck comrade!].”  And so we sit here and there is no trading activity. In all seriousness, I don’t even know why we need to have the NYSE anymore; just have the central banks have a stock “fix” twice a day and fix prices where they want them. They’re gonna control all companies within 30 years anyway [well, at least the SNB plans to], they can dictate price and allocation of shares to the public for “policy” purposes. Congrats, you’ve glimpsed into the future … as for me, I hope I’m dead by then.

I thought at the beginning of trading we had a chance to see a relatively active day; what started out as promising, though, turned to bat guano almost exactly as the FED Pie Hole hit CNBC; “Message received sir, no need to fear the future … will only buy moar & moar and await your further instructions … over and out”. And from the moment he stopped talking the Dow30 has gone totally comatose; no movement as there are only bids under the market with nobody to sell and nobody willing to buy unless the central banks raise their bids, which they don’t often do during the day. And there you have it.

Patience & discipline are the keys to thriving in this new trading paradigm. In some ways it makes making money easier cuz you know their “game plan”; in other ways it makes it tougher cuz you’re not going to get the number of trading opportunities that past markets offered. In the final analysis, it really doesn’t matter, cuz over time the only way for the stock indices markets to beat me is to go lower, lower, and lower some more … constantly and consistently without any rallies … you and I know that given the current environment we find ourselves in, that’s a really tall order to fill right now. Granted, the more “back & forth” action we get day-to-day will see trading activity for the PAMM increase, and on some days when the market actually gets 2nd and 3rd legs lower in price, most often trades will have higher volumes; right now, we’re lucky to get one, maybe 2 chances to trade before the market goes ‘sleepytime” … that most likely will change for the better at some point, if only marginally but it will be helpful.
One trade today was all we got … really nothing off the low on that move from the high that didn’t see prices go back down for any kind of test or even a 2nd leg down; this has been commonplace lately, but I can assure you this is by no means common, especially when the daily range is so constricted in historical terms. In any event, it is what it is, and all I can do is capture what the market gives me. Onward & upward.

PAMM spreadsheet directly below.



The dog is driving me nuts … the beach beckons … I’m so outta here … until tomorrow when we do it again!

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”!

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