WHY SHOULD STOCKS BE THE ONLY MARKET TO PANIC?

 

“Cuz sometimes, only a ‘DO’H’ will do!”

“There’s insane, there’s stupid, and then there’s insanely stupid” … If ever 

there was a trading day to be thankful to be up $0.01 in FX, that day is today 

… my condolences to those that got “monkey hammered” six ways to Sunday 

on both sides of GBPUSD … when that market gets heated up, there simply is 

no way to trade it, it’s so volatile … 20+ PIPS against you in seconds is not a 

market I want to be in. “I distinctly remember saying I was looking for some 

“backing & filling” of price … I didn’t ask for “elevator up” & “Thelma & 

Louise” in EURUSD”.

We came about as close as you can come to seeing an event today in EURUSD, 

that comes only two or three times every 10+ years or so; twice in the last 

approximate 10 years I can remember. It happened once during the financial 

crisis of 2008, and the other time was during the Greek crisis in 2014 - 2015; 

and that event is a “double reversal” with range. It’s one of the smallest 

probability events you will see in FX, and for a second it sure looked like the 

high at 1.22950 was gonna get taken out … missed by 1/10th of a PIP!

Of course, everything was set up perfectly for a move lower in Europe, as the 

Chuckleheads in Asia did what they always do … natch, bid anything and 

everything, including dirt futures, higher into the European open. “You do 

realize, I hope, this “correction” in EURUSD won’t finish until Asia moves lower 

into the European open, and Mrs. Wantanabe & gal pals get short from lower 

levels … the previous day’s low will hold, or maybe breached by a few PIPS but 

nothing serious, and then it’s off to the races on the upside … tomorrow or 

Monday look like good candidates”.

Today’s key risk event was the BOE interest rate meeting in the U.K. … “well, 

that escalated quickly, didn’t it”? What Cable traders seemed to forget as they 

bid price to the moon, was that the BOE has been down this road before and 

promised rate hikes … and then did zip, zilch, nada, & zero at crunch time 

… nothing like an approximate 160 PIP drop off the high in 2 ½ hours to get 

your attention if you BTFD and held on … and that price explosion in Cable 

dragged EURUSD higher off its low, and then they both “Thelma & Louise-ed” 

together off the cliff.

To say today was treacherous is an understatement … more than that … try 

downright dangerous to capital … oh sure, if you caught the right side there 

were PIPS to be had, but factor in slippage and being the wrong way, and it 

was a threat to capital … quite frankly, this is one of the worst “herky-jerky”  

days I’ve seen in a while, with price & fills all over the place. In the final 

analysis, it ends up being a classic “Flying Wedge of Death” [FWD]; new high, 

then three new lows, then back to kiss the high, down almost to the low, and 

now back in the middle via an 83 PIP range. “Oy vey”!

A trio of trades today, and nothing I did allowed me to hang on to anything 

… price either exploding up or down, and not very many really good setups. 

In fact, the low of the day at 1.22121 found price hanging down within a PIP 

or two for a solid 7 minutes … is this the kind of low I want to buy? “Umm 

no, but there it is nonetheless … bizarro world top to bottom … George Costanza 

to the white courtesy phone”!

Given the scope and nature of this complete clusterfark today, I’m not at all 

unhappy about being up marginal profits … PAMM up between 0.05% - 0.1% 

… tomorrow’s another day … I’m outta here … Onward & Upward!!

PAMM spreadsheet directly below.

 

Have a great day everybody!

-vegas

OUR TURNKEY FOREX “PAMM/MAM” IS NOW OPEN AND 

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