FREIGHT TRAIN DOWN THE MOUNTAIN

 

“The country sorely needs more Jed’s than ever before!”

“... well, the first thing ya know ‘ol Jed’s a millionaire … kinfolk said, Jed move 

away from there … said Californy is the place ya ought to be … so they loaded up 

the truck and moved to Beverly … Hills that is, swimmin’ pools, movie stars 

… que up the banjo Skippy”!

As obvious a “slap in the face” to the protest movements of the 60’s as the 

"Beverly Hillbillies" was to a then Libtard Intelligentsia by a conservative 

Hollywood , fast forward 50+ years into the present, and the Elite Twits deserve 

it even more … and wouldn’t you know it, the premise of Jed’s ongoing 

transformation from “country hick” to “progressive gentlemen” , that by the way 

failed miserably, was based on crude oil. 

Which brings me to present day trading … “when the crude oil freight train 

starts coming down the mountain, look the hell out … anybody that attempts to try 

and sell highs and/or buy lows is in for a rude awakening, cuz the freight train 

pays no attention to your donkey on the tracks, with your hand up shouting stop 

… yea, good luck with that”.

And so, in today’s world of central bank dominance in practically everything 

labeled “financial trading”, the world’s big money, hot money, and of course 

criminal money, finds its way to the only market in town with no rules & no 

intervention … you got the Arabs of course, the Ruskies, the Chicoms, every 

tinpot dictator in the world that pumps a barrel out of the ground, the 

Japanese Yakuza, and the European underworld in all its glory trading this 

stuff cuz they understand all the other markets are manipulated against them 

… it’s the old pit traded gold, pit traded Swiss Franc, and pit traded SP500, all 

wrapped into one, where the entire world is the trading pit, and each and every 

day it’s a new experiment in terror if you’re on the wrong side of these freight 

train moves … cuz day in, day out, it’s the only thing moving the banks don’t 

have their sticky fingers in … and literally, the data bears this out statistically, 

“you’re only hope is to map statistical momentum and be there at the shifts, 

and/or be there for the expected retracements … everything else is a loser, where 

even in the best case scenario you’re looking at a coin flip”.

Turning to today’s crude oil market … “round up the usual suspects for a 

headline that not only is meaningless, it was reported weeks ago and was a major 

determinant in the WTI market breaking from the low 70’s to the current $65 per 

barrel area … that was almost $7 ago … and was reported by Bloomberg this 

morning as “real news” and gapped the WTI market 30+ cents per barrel lower in 

less than a second … and that tripped the algorithm to sell mode, and away we go 

… and the headline was, the U.S. asked the Saudi’s to pump an extra million 

barrels per day to increase supply and offset anything being held up by Iran”.

Only one trade today … PAMM up slightly, $20 before RT commissions.

I’m up this morning, and like I said in an earlier blog, I’m at the ready by 

5 A.M EST for the crude market … there was a change in slope on the M5 

from positive to negative after a small down M5 and then that was followed by 

a string of 5 very small M5 candlesticks to the upside … once we got to the 5th 

candle close, price is literally sitting on top of the trade signal to get short at 

65.01 … and I’m thinking, “well, action is still very slow and lethargic, but if 

price breaks 64.97 - 96, I’m entering a short position via the algorithm” … and 

literally a few seconds later, price goes from 65.01 to 64.70 in a waterfall  

“Thelma & Louise” style and it leaves me in the “WTF was that!” mode … cuz 

I’m not selling a 30 cent break in the hole to get short … and in the process, it 

isn’t until much later I finally get a “strong” sell signal from the algorithm to 

get short … problem here though, is that the Brent market is hitting a new low 

for the day, and it’s range is almost $2 per barrel, and WTI isn’t anywhere close 

to the low at 64.17 … a couple of days ago this spread is at $11.50+ Brent over 

WTI; now it’s at $9.70-ish and I can see the unwind of longs in the spread and 

that means support for WTI, which I’m short.

So, Brent is breaking much harder than WTI, and I’m currently up just a few 

cents in my short, which is having a helluva time going lower … EXIT 

QUESTION: “When this ends, how likely is it gonna be for me to be happy with 

my exit price”? To ask the question is to answer it! So, not much in this trade as 

I liquidated on a down tick.

Now, the market turns, and for most of the turn, it’s an ugly trade for the longs 

cuz shorts as of late control the agenda … and when we get some “strong” buy 

signals, they for sure don’t go very far … that takes us into the New York 

afternoon, where the scumbag LP banks have “jacked” the WTI spread to 5 - 6 

cents for no reason as buy stops are hit off as shorts are trapped and paying up 

… “well, ain’t gonna trade it with a 5 - 6 cent spread, cuz if you do you are 

begging to lose money” … and for some reason, while WTI gets “jacked”, Brent 

stays at 4 cents, so I switch my focus over to that complex … a few pennies to be 

made just before 2 P.M. EST on a buy signal, but it’s late in the day, and 

additionally at 4:30 P.M. EST today we get API crude oil inventories, which will 

unleash holy hell on anybody hanging around at this time wanting to play 

“crude oil roulette”.

A good bit of spotty bad luck today via the Bloomberg headline, which messed 

up a potentially great move lower … still made something, but there will be days 

like this; not every day can be $2 range straight up or down, we have to handle 

the “chop” as well … “hey, it is what it is … welcome to volatility mi amigo 

… now fugetaboutit and move on, cuz it’s what you have to do in this complex, or 

it literally will drive you insane and into the nearest rubber room”. And again, the 

oil algo is dead spot on with the calls. And for those wondering, I’m working on 

publishing the algorithm “soon”, meaning in the next couple of weeks … it’s not 

“rocket science”, it simply takes time to explain well and do right … trust me, 

it’s worth the wait. 

And now, it’s time to take the “Ice Cream King” to the DQ for some soft serve 

vanilla with whipped cream, his favorite … and then, time for a cold one before 

dinner, as I bang out a few more words before bed into the crude oil manual 

… I’m outta here … until tomorrow mi amigos … Onward & Upward!!

PAMM spreadsheet directly below.

 

Have a great day everybody!

-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”!