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Thursday, May 18, 2017

VIX EXPLODES: “GEE, WHO COULDA PREDICTED THIS?”

“Some waves are bigger than others Lance … don’t forget that!”


And then there comes a day, when Newbie traders get “re-educated”; they’re not ready for the explosion in volatility [largest ever percentage increase in the VIX yesterday for 1 day … 110%], they have no concept of “setup”, and they have no idea of the mechanics & logistical patterns of market breaks and/or rallies in the stock indices. Eventually it catches up to them … yesterday was one of those days.


From my perspective, it certainly could have been a hell of a lot more violent than it was … breaks off of rally attempts were, for the most part, rather orderly … there were a couple of 5-7 point downdrafts, but 5-7 Dow30 points ain’t nothing like 20-30 Dow30 points when you start talking gaps in prices.

What bothers me more than anything, though, is that trading has become a “tent sideshow” in the circus known as Western Civilization; increasingly, markets are being held hostage to anything and everything “non trading related" except in the most tangential way possible by corrupt and despicable politicians [most notably Libtards, who won’t be happy until the U.S. is turned into Venezuela … “it’s for the children … you knew that, right”?] who increasingly view power as their “right” and not a privilege bestowed by the governed. All you have to do is ignore the rhetoric and watch their actions, to know they can never be trusted with power of any kind ever again or the country as you know it is over. O.V.E.R. With all we know due to the leaked emails by Seth Rich, who worked for the Democrat National Committee and was murdered … yes liberals, he was murdered … shot twice in the back and left for dead with wallet intact … it has now been confirmed he leaked over 44,000 emails to WikiLeaks [“oh, I was assured by the WaPo and NYT it was the Russians”!] … can you imagine the plundering of the country via Cankles & crew if she was elected?

While politics generally repulses me due to the hypocrisy, arrogance, smug attitudes, smarmy self-superiority complex, and basic delusional mindset of how the world works by people who think they know what’s best for you, when it spills over into markets you can’t totally ignore its manifestations. The problem is you don’t know whom to take seriously; for example, anytime professional Loons like Pelosi and/or Maxine Waters speaks, you can rest assured nobody is paying attention. However, moving up the political food chain, it’s sometimes tough to know what market reaction is going to be from people like Chuck U. Schumer, Ryan, or McConnell.

The other problem comes from the FED, and their near maniacal desire to crush VIX and keep their Over Lords [where they go to retire and make millions for doing absolutely Mr. jack Squat] happy with near dead markets that drift lazily higher. When the cork pops, like today, their efforts exacerbate the problem they say they want to eliminate; again, if you believe this line of bullshit, you probably believed in Obama’s “hope & change” tour and thought sea levels were dropping. Sorry, I can’t live in this dysfunctional delusional world without getting sick.

Turning to today’s market … can anybody see in the pre-market hours leading up to the open an increase in volatility? … Dow30 is all over the place, but as I said yesterday, the worst thing that can happen today if you want to see higher prices at the close and get rid of the downside action, is to have a lower open @ 9:30 that opens and “attempts” to go lower … the sharper & quicker [time] the better, and that “washout” sets the stage for a very good afternoon rally as shorts get caught and have to cover. We’ll see what happens here in an hour.

Well, here in the first half hour, the doofus, assclown institutions do what they do best, which practically every frickin’ day is “buy the New York open”! I swear, I have nothing but contempt for these chumps, cuz they have no clue what they’re doing … “oh wait … these are the ‘smartest people in the room’ Ivy League types, who when on the trading floor lost so much money they became contra indicators … no matter, these brilliant stock buyers have never seen a price they didn’t like and for the effort, equally doofus coastal types place trillions with these clowns to manage … is it any wonder people flock to ETF’s & index funds”?

My day did not start good; first, a mistaken buy fill when moving the order box. Of course, it went straight down from there “no problemo Nemo”; I would whine with my cheese, but “Bones” sums it up best directly below.

 
“I can be a Princess if I want to, OK?”


But, the problems are only beginning cuz now I have to deal with the scumbag LP’s in the Dow30, who now see a reason to screw every order cuz volatility has increased. To wit, 2 examples from today; the first directly below just seconds before a 50 point explosion to the upside, where the LP decides [cuz he knows what is about to happen] to “jack” the spread out to 4-5 index points from the normal 2.



So why do you suppose the dealer thinks he needs this extra protection via an increased spread right before a 23 point move in 1 second to the upside at 14:25 with no news pending? [EASY PEEZEE: “He knows something I don’t, and if I want to ‘play’, I got to pay”!]

And just when I’m dealing with this crap comes my market fill on a buy liquidation, where with the market at 68 bid and I hit “close position”, I get filled at 62. WTF is this? And because I thought we were all on the same team here, I suddenly feel betrayed like the kid below when he finds out the truth.

 
“Next thing you know somebody is gonna tell me markets are rigged!”

And through all of this, I’m even on the day, and here comes news that Comey testified to Congress under oath on May 3 [over 2 frickin’ weeks ago!], where video shows him saying nobody impeded anything at any time with regards Flynn. Ok, why isn’t the Dow30 and SP500 moving on this news? This was made public at 1:20 P.M.; it wasn’t until 33 minutes later the market started to jump … no signals of any kind, just a straight move up the “talking heads” assure us is from this news … am I living in some kind of alternate universe where it takes traders 33 minutes to figure out stuff like this? Seriously, I’m sitting here thinkin’, “why isn’t this stuff moving up on this”? And it’s got me spooked.


But here’s my questions: 1) why now in the early afternoon is this released, and 2) where the hell are the DEMS on this committee listening to this not telling the moronic idiots calling for Trump’s impeachment yesterday, “umm guys, I was at the hearing where he said under oath there was no pressure to impede the FBI, so maybe instead of putting your foot up your ass, you might want to “tone it down” a little cuz you are gonna embarrass yourself”. WHERE THE HELL ARE THESE PEOPLE?

“In my minds eye, this only proves the obvious; 1) this release was planned and coordinated from the get go to get people to sell into the rumor; then, when selling dried up, here comes the release of this video, otherwise why not release it when the rumor driven NYT had the “fake news” story of the month and it could have been used to drive it up their idiotic socialist asses, and markets would not have gone bat excrement crazy … but no no, don’t want to do that, and 2) I DON’T WANNA HEAR ONE DAMNED WORD FROM LIBERALS ABOUT MORALS, INTEGRITY, TRUTH, or what’s good for the country; all of you are scum. It’s a never ending shifting shit storm of false narratives, one day to the next, driven by the Soros sycophants in the MSM to distract & deflect away from the business of the country … all that matters is your socialist agenda and tearing the country down as it was intentionally founded… cuz if there’s one thing Libtards will and cannot tolerate, it’s a growing economy, reasonable and affordable health care, and less dependence on government. OTHERWISE, WHO NEEDS GOVERNMENT AND LIBERALS AT ALL? You simply cannot ever be trusted again with power.”

This day has been a total “clusterfark”, start to finish; problems everywhere I turned, but mostly from the “setup” of an opening in New York that immediately goes higher, then meanders to the afternoon until the “Comey News” drops, and then we get a “vapor rally” out of nowhere. Once the final shorts are cleaned out from this morning, time to take it lower until tomorrow, which has conveniently been happening since the high @ 2:32 P.M. in New York, all the way to the close.

Considering everything that happened today from stupidity [me, with the order box], outright theft by the LP on a market fill that was 6 points off the bid [“but don’t worry, we have the tightest spreads and deepest liquidity in the world! (what a bunch of bullshit)”], and the manipulative effects of the Comey news dropping this afternoon, that I’m sure “key people” knew of and positioned correctly for the rally, to be down 80 cents for the day is a major victory in my book, and I'll take it and go home. Tomorrow's another day.

PAMM/MAMM Spreadsheet directly below.



Time for the beach … the dog and I are outta here … until tomorrow.
Have a great day everybody!

-vegas

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