THE “LAB RATS” IN ASIA GET MAULED [AGAIN]!

 

“An Asian FX trader shares his life!”

“Well, that escalated quickly didn’t it”? Oh, the setup was perfect; 1) most of 

the Pacific Rim on Chinese New Year’s Holiday, 2) trading liquidity thin at 

best with most shops manned by the “C team”, and 3) the rest of the world 

asleep at the switch. A “perfect storm” if you will for some opportunistic 

scumbag LP’s & large hedge funds who want to be short at or near the top, 

to jam EURUSD higher along with the Chuckleheads, taking out client buy 

stops above the old multi-year high … then along comes Europe and ruins 

the party.

This was the 10th day in a row, that the Chuckleheads bid EURUSD higher 

from the open into the Asian session; and like the vast majority of the other 

times in the last 9 days, the “lab rats” in Asia opened a bag of cats and all hell 

broke loose … and as I have said before, “where the hell do they get all the 

money they consistently lose to the Europe & U.S. sessions”? After today's 

action, they may want to rethink this strategy of taking everything in sight 

higher out of the gate.

To be perfectly candid, I’m a little surprised EURUSD got mauled like it did 

today … sure, it was over-bought … so what? … nothing really on the news 

front to account for an approximate 130 PIP move to the downside from the 

European open … and there was nothing “stealthy” about the decline; it took 

off and never looked back with more than a couple of “Thelma & Louise” 

moments facing longs. As I write here in the early NY afternoon, it’s still 

hugging near the lows of the day after repeated attempts to get above 

yesterday’s low … it looks very much to me like some “big money” longs are 

still trapped from higher levels, thus capping any rallies. The decline all the 

more impressive considering the world’s most corrupt and manipulated 

market, the SP500 futures market, is ramping higher yet again on “Plunge 

Protection Team” [PPT] buying.

What a week … nothing from Monday & Tuesday, and then on Wednesday the 

CPI “bloodbath reversal” to the upside, and now 2 days later, the “bloodbath 

reversal” to the downside … as Zero Hedge says, no wonder the trading world 

is confused.

We are still very much in a bull market in EURUSD, so I don’t want to be short 

… in order to make money, your timing has to be absolutely perfect, both in 

entry & then in liquidation … if you're off just a fraction, you’re toast, and it 

makes life extremely difficult, cuz in addition to having to be perfect, you got 

the trend against you, and that can make your day a living hell [see 

Wednesday’s melt up for details]. Today’s melt down offered only one “setup”  

for a decent long trade, but it didn’t work out for very much profit at all … the 

rest of the moves, including the low of the day [so far] offered no good “setups” 

in my book … the patterns I look for, including “The Teacup Handle Turn”, just 

not there today, and once the ball got rolling lower, being long carried with it a 

reward/risk ratio very much against you.

The other day in a blog post, I mentioned retracement “fingerprints” for 

EURUSD; since today was a large down day, I mapped some of the up 

retracements from the interim lows … directly below, 3 examples, in succession 

from earlier today, with commentary.

 

 

 

Now, I need to mention, cuz if I don’t people will go nuts thinking I’ve found 

the “Holy Grail” of trading, that the ‘Square of Nine’ is great at showing what 

happened, but utterly worthless as a predictive power … the reason should be 

obvious; “you can always go out another level, and that could be the retracement 

high. In other words, just because the current retracement is on the 19th minute 

and hitting a high, doesn’t mean it can’t go to 31 rst minute and be higher still 

… or the 40th minute and be still higher … so you can’t trade off of it … the 

algorithm plum/yellow crossover after these minutes is the key, not the numbers 

by themselves”. I point these out to you, so you know the market is “cyclical” in 

nature and not random … I didn’t just pull these numbers out of my donkey, 

they are today’s interim lows to the retracement high … shouldn’t they be  
“random” in scope and nature? … “yea well, guess what, they ain’t”!

Only one trade today … PAMM up fractionally … being long today not the best 

or easiest strategy in a market that very much wants to “Thelma & Louise” any 

long position. 

For the last 2 weeks, “setups” have been completely compromised by the 

assclown Chuckleheads in Asia … every frickin’ day they take EURUSD 

higher and it makes for a difficult European and/or U.S. trading session, for 

the very simple reason that their early buying robs the market of fuel later in 

the day … and that is fuel we could potentially use when we are long and they 

need to scramble to cover short positions … when they are always buying out 

of the gate, it means later on we are on the same team getting out in a bull 

market, AND I DON’T WANT COMPANY! “I swear, if they take this stuff 

higher on Sunday night into Monday’s morning session in Europe, the blood 

vessels in my head are gonna explode”! [Note: the Mrs. has put out a mop and 

pail in the study so I can clean up after myself … “thanks baby, you’re the 

best”!]

So, while I’m disappointed in the number of setups we are getting, not to 

mention the measly profit from today, we are up on the day, and that is all 

that matters on a day like this … really a Slim Pickens kind of day from the 

long side in this bull market. Monday is President’s Day, so the U.S. session 

will be dead to non-existent … trading will die out around Noon New York 

time … most of Asia is celebrating Chinese New Year, but I expect somebody 

will shove EURUSD into the European open and give us a decent session 

… we’ll see … I’m outta here … until Monday mi amigos! 

… Onward & Upward!!

PAMM spreadsheet directly below. 

 -vegas

UPDATE: EURUSD has gotten “monkey hammered” below 1.24000 on sell 
stops that got crucified unmercifully … this is a teachable moment, in that 
never get long or short cuz you think the range can’t grow larger … this is FX, 
“never” or “can’t happen” should not be in your vocabulary.

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