I KNOW A GUY WHO KNOWS A GUY

“Good Saul, call him … I need Kim Jong Un’s broker!”

Seriously, I’m so sick and tired of being sick and tired of getting screwed by the LP at Turnkey, I’m about ready to call ‘Saul” and get the “guy who knows a guy” to start breaking legs. What do I want? I want Kim Jong Un’s broker! [You tell him he got a shit fill, Ok?] Something really strange about yesterday’s very late action after New York closed; according to the article on ZH, Yonhap news agency said the missile went over Japan at 21:07 GMT; Ok, how come USDJPY started breaking heavily @ 20:58 GMT [server time also]? Who knew 9 minutes early? And who knew the trajectory was over Japan? Dear Kim: “Just make sure Xi & Vlad get their cut, Ok”?

Now, I know what some of you, and maybe that includes some “Newbies” as well, are gonna say; “-vegas … use limit orders to avoid getting hosed”! Well, that’s a nice thought, but let me show you how every brokerage house in the world handles the following situation. You’re short from 109.00 and you place a limit order to liquidate [buy limit] at 108.97. USDJPY goes down to 108.969 and the very next bid/offer less than a millisecond later is 109.01 / 109.013; where do you get filled? You get filled at 109.013, cuz the brokerage house will explain to you that your order couldn’t be filled, so they filled you at the next best price. And you say, “I had a limit order … it isn’t/wasn’t a market order and it said buy USDJPY @ 108.970, not go get the next best price … and I want my fill at my limit price”! And the brokerage house says, “read the terms and conditions of your account with the LP … it says limit orders are filled at the price specified OR THE NEXT BEST PRICE … you signed the agreement, so now please STFU and go away and trade”! So, for the most part, limit orders are useless, cuz in reality they are market orders.

I’m writing this early in the A.M., so I don’t know what the rest of the day is going to look like; having said that, though, directly below a daily candlestick in spot gold [XAUUSD] that merits attention. After that, the daily candlestick in USDJPY with trend line. 

Often times, Zero Hedge in their daily wrap up of markets will show the direct correlation of spot gold [or sometimes nearest futures] to USDJPY, and the fact that there is a very strong correlation between the two. I don’t know what the future holds, but the Square of Nine makes it pretty clear that today could very well be the high in gold and the low in USDJPY for a while. Food for thought.

Turning to today’s market’s … does New York trade anymore? … cuz I’m seriously wondering what the point is of a session in the U.S. [in anything] where nothing happens except “protect & defend” the shit from overnight … up a PIP, down a PIP; rip some buy fills, rip some sell fills; risk $500 to make $20 … that’s all U.S. trading has become. In short, New York is a nightmare from a trader’s standpoint, cuz nothings happens! And while I’m at it, how is it my 2 lots can move a multiple trillion Dollar market like USDJPY? All we ever hear is “deep liquidity”, and largest, best & brightest, most sophisticated computer networks on the planet with razor-thin spreads and “pure” ECN & STP handling of orders for the fastest executions on earth. Really? What stupendous F-ing planet are you living on, cuz no matter what I do, I “personally” swing the market in USDJPY at least a PIP? To paraphrase Bill S., who a long time ago said, “First thing we do is hang the moneychangers [LP’S]”, or something along those lines, and I for one would buy a bag of popcorn and watch gleefully.

Everything correlates until it doesn’t … and when that happens you got a problem. The only two good correlations we have are USDJPY versus gold [which inverse correlate “Bigly & Yuge”] and to a lesser degree USDJPY versus the SP500, although not “tick-for-tick”, but in a broader trend sense. When the world gets “wacky” [like now with the Norks], the crosses buffet the Yen around like popcorn popping in the kettle, and it makes it damn difficult to trade because USDJPY is the “cross champion” of FX, and quite often the Yen bid/offer is nuts … today being a perfect example. Throw in the “Flying Wedge of Death” [FWD], and the accompanying spikes from hell for the umpteenth hundredth time in these last few months, and it becomes a wonder there are any traders left in the world with any money.

Today, not seeing much correlation with the stock indices, although they both have turned around to the upside, the Dow30 much stronger though … I guess everybody figured out shooting a missile 800 miles from a coast isn’t the start of WWIII … in any event, USDJPY today at the mercy of gold and EURUSD and the EURJPY cross; those money flows really the movers behind the Yen today. And because of this, what you are witnessing is a very, very erratic trade where USDJPY goes in one direction slowly over the course of 10 – 30 minutes, and then BOOM! … all the gain up or down are gone in 10 seconds, as money flow from some FX Yen cross sets off stops requiring a corresponding position or a liquidation in USDJPY, and therefore the jump or drop in price.

As I have stated before, when you start throwing Pols & geo-political events into these markets, it gets very dicey because there is no accurate way to judge pure panic or euphoria [think the election aftermath] from how it is impacting a particular market. Trading off of Nork news is close to impossible, cuz there is no way of knowing what is 1) real, 2) a false flag), and/or 3) pure propaganda hitting the news wires. Quite frankly, markets don’t either!

Just after Noon in NY, and we’ve just had another USDJPY upside spike explosion … they just come out of nowhere; no warning … and as quickly as they come, as quickly as they often go … almost 90 minutes now plum over yellow, and for a “5 & 9” indicator, that is a long time. I said it yesterday, and I’ll say it again today; “what is the purpose of New York trading OR trading in the U.S. in general, cuz THERE IS NO TRADING … it’s “protect and defend” or sit and do nothing. Case in point the Dow30; scroll back on your M1 candlestick chart and discover the ranges of the M1 are bigger @ 4 A.M. in the morning than they are during the New York day … wait … what? … yes, unbelievable but simply true. And USDJPY the same circumstance … so, how has this country squandered its financial industry? HINT: Start with Obama regs for 8 years and connect the dots; it’s a wonder we aren’t Venezuela already”.

A number of trades today, and you’ll notice in the PAMM results a mistake trade for a piddly amount; volume field changed after I brought up the order box, and even though I checked it first, when I went back to it after my fill I saw the changed volume amount … just wanted to bring your attention to it so you didn’t wonder why I did a trade of this small size. Other than that, again today we are the victim of the scumbag LP, whose daughter I guess needs a new pony or something cuz, except for one fill, all were off the market by at least 1 PIP … despite that, still made money, but this market is as treacherous as they come [not that any of them are easy], and it doesn’t help when Pols and/or geo-politics stick their ugly pugs into the market to mix things up dramatically. Still, “The Tunnel Method” is performing very well, and the special indicator is remarkable. Even if the entire algorithm was simply the “special indicator”, if you simply were never short when plum is over yellow and never long when plum is under yellow you’d make a fortune and risk very little.

And again, cuz many of you may not know that FWD’s and massive reversals in price are most definitely not the norm, today has seen its share; most notably in everything! Some of the reversals are staggering, and some of the FWD’s are as well, most notably the most disjointed stock index currently active the DAX30, where a chart looks like a hand grenade was thrown into a spaghetti factory. What we are looking at, simply put, is confusion on parade as the world figures out where the U.S. is headed in the next 30 days, and it is creating some very wild swings.

I’m really not very happy with any market right now; of the three, USDJPY trading the best, but that’s not saying much. Just when you think you have a trade that starts going in your profit direction, here comes a spike to take it away if you’re not quick to the draw, and it is making it very difficult to hold onto anything so we can ride a profit. Add to the equation the FWD, reversals, small ranges, and spikes from hell, and welcome to my world. As always, my first priority is preservation of capital, and that automatically means making those trades that have good reward/risk profiles; then never letting a profitable trade turn bad. What we haven’t been getting are “running trades” within a short term trend; that’s what the “special indicator” is all about. So, if USDJPY can simply slightly resume a normal trading behavior, and leave the FWD’s and  “doji days” behind, the PAMM can prosper; now, if we can just get the scumbag LP to make an honest market and not clip us on every trade… I can dream can’t I?

Here towards the end of the day in New York, it’s starting to look on the USDJPY candlestick like a very bullish engulfing pattern reversal from a new low for the move down, and also what I said earlier about gold putting in a short term top from Gann’s ‘Square of Nine’ calculations. I’m just wondering what Asia is going to have to say about this later tonight; we’ll see. Tomorrow has the potential to be a very good day. Onward & Upward!

The PAMM spreadsheet directly below.

Time for the beach … the dog & I are outta here … until tomorrow.

Have a great day everybody!

-vegas

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