“Wait …. What? … How did I get to be FED Chairman?”
Even a cursory glance at the ranges and intraday action in the DOW30, and
you have to admit, we’re at “DEFCON 1” when it comes to volatility. If
today’s action going forward simply keeps 20% of the craziness exhibited
today, this market is back baby! “Welcome to back to the future”!
From the late Asian session, all the way into Europe’s opening, I kept
wondering when the “Plunge Protection Team” [PPT] would show up … after
all, after yesterday’s “donkey mauling” of the indices, you think they’re gonna
let this stuff sink into oblivion going into the weekend, where every talk show
would be screaming panic? Not a chance, unless there's political news of some
kind, which certainly can change the dynamic.
Some things never change … and today’s version of “make the Chipmunk’s pay
up at the NYSE open” came to the fore … nothing like a little buy panic on the
open after falling almost 1,000 points yesterday … and for newer readers, the
“Chipmunks” are our lovable friends in the “investment” business; you know,
the bluebloods who run large hedge funds and/or mutual funds, who by edict
have to do their buying of stock for the day within 5 minutes of the opening
bell … “nothing like a little 150 point ramp preceding the open to get them to buy
the days high … like I said, some things never change”.
Right now, the DOW30 makes EURUSD look like oat spreads … of course, this
level of intraday volatility is about as high as it can get … and if you think
“setups” were important in EURUSD, let me give you a hint about proper
"setups" in DOW30; “without them your account is gone … as in “buh bye”
… cuz this stuff moves so fast … think EURUSD 10 seconds after the NFP report
or after Super Mario speaks at an interest rate presser with news … now think
that all day long, where 100+ point moves come and go by the dozens during the
NYSE trading day … you snooze, you lose, simple as that”.
Sometime Sunday night, over this weekend, I’ll be posting in the “Download
Links” section of the website, in the right-hand column, the “DOW30
Aggressive Scalper Tutorial” … it’s not the same as for EURUSD … things are
much different in the stock indices, and you need the proper information to
trade this animal correctly for profit … so, don’t think it will be the same as
EURUSD, cuz it definitely is its own “dragon trade” all by itself.
Turning to today’s DOW30 market … “well, things have escalated quickly here,
haven’t they”? After yesterday’s 1,000 point high/low range for the day, the
only question on my mind today, “will the PPT let the market go significantly
lower into the weekend”? … and the answer so far, is no they won’t. The trade is
about as psychotic as I’ve ever seen it, and that’s saying something since I’ve
been around stock indices since the inception in april 1982 … outside of a few
total crashes, like 1987, 2003, 2008, and of course the latest one, the trade can’t
get any more nuts … “you better know what the hell you’re doing, or else they
carry you out on a stretcher”.
In addition to the tutorial which I’ll release Sunday night, there is one
additional item traders should know and have tattooed on the inside of their
eyelids; “you absolutely CANNOT buy rallies or sell breaks on the spikes … if
you do, you’re toast … no matter how much you may want to, you can’t do it
… spikes in your profit direction are for liquidation, not entry … and after that,
you simply don’t care what happens next … hang around this animal a
millisecond too late, and there is the real possibility of a nasty spike against you,
and a fill you most definitely aren’t going to like one damn bit”.
Two DOW30 trades today … PAMM up between 0.1% - 0.2%.
I came into the trading day in a very cautious trading mode, for 3 big reasons;
1) we had a 1,000 point range the day before … the goblins aren’t in the bottle
anymore, 2) you got the PPT, along with the politics of China tariffs very much
in the news and have the potential to create havoc in the market instantly, and
3) it’s Friday, my least favorite trading day of all time … position squaring and
other “inside baseball” bullshit very much a factor in the trade. Simply put, this
is a day for making money on the best setups ONLY, and everything else you
skip … if you don’t, one of these 30 - 70+ point “in your face” group of spikes
will catch you off guard and ruin your day quickly.
And while it isn’t a factor in the trade per se, simply cuz the market doesn’t
know or care what I do, I don’t need to be starting a losing streak by getting
aggressive on a Friday … I’ll take the best “setups”, cuz they have a very high
probability of success for profit, and take it from there, and today saw 2 of
them for profit.
As I write here in late afternoon New York time, after rocketing up to a new
high and blistering shorts, from that high please welcome “Thelma & Louise”,
who have found the nearest cliff and are airborne as I write … “well, just like I
said about the bullshit that accompanies Friday’s … kill the shorts and now the
longs are trapped and the countdown to the close has started … meh, only a 290
point drop AND COUNTING, practically straight down with only a couple of
green M1’s to show any mercy … now, good luck getting any of that disaster back
before the close”. And, if this stuff keeps going down, here in the last hour of
trading, how ugly could this get on a Friday, and then Sunday night, early
Monday in Asia? [Hint: “Plenty”!]
Ok, back in the winning column today, and if these stock indices can keep both
long and shorts in the game, and have the central bankers take a frickin’ hike
with their manipulations, than these markets are back and present us with very
high reward trading going forward. Personally, I’m glad they’ve found their
“mojo” again, and are trading like they were pre February 2016. Let’s hope
this continues … and with that, I’m outta here … until my post on Sunday
night mi amigos … Onward & Upward!!
PAMM spreadsheet directly below.
Have a great weekend everybody!
UPDATE on the close: “Ooof, that’s gonna leave a mark”! Seems further
China tariffs against the U.S. are in the works, and as the headline breaks,
remember what I said earlier about news events today. And if the weekend
provides further political chaos, Monday could get very ugly indeed. Here at
the close, DOW30 off about 360 points, and that was a nice 600 point break in 2
hours from the day's high, wasn’t it? “Oy is an element best avoided”!
-vegas
OUR TURNKEY FOREX “PAMM/MAM” IS NOW OPEN AND
OPERATIONAL; SEE “PAMM/MAM 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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