THE CHECKS HAVE CLEARED

 

“Hi! … let me show you my secrets of how I buy high & sell low!”

“Honey, I’m gonna need more money! … yea, I know you just gave me some 

more, but it’s gone … well, I dunno how it happened … it was up there 

threatening the old high, and the next thing you know I’m getting stopped out on 

a “Thelma & Louise”, and shit happens I guess … so yea, I’m gonna need 

MOAR”! We certainly didn’t have to wait long for Mrs. Wantanabe & Gal Pals 

to blow through just cleared funds, while buying the high last night in gold 

… cuz they panic puked all over themselves getting out last hour of Asian 

trading … “let’s see … I think you’re doing this wrong”!

Predictable enough, that if you were a metals dealer, all you have to do is wait 

and see what they’re gonna do, and then do the opposite … I’m not sure you 

need anything more than them to guide you. Last night being the #47, 845,231 

installment of buying high and/or selling low, and getting immediately  

“flushed” down the toilet. “FFS ladies, try a new approach”!

And of course, what that means for us most likely, is another bullshit day of 

“chop”, cuz we got a $9+ range already thanks to the “Chuckleheads”, so what 

happens when the SP500 decides to consolidate here at lower levels, or do you 

somehow think another 100 handles lower is in the cards? If the SP500 goes to 

“0” today, can gold rally in New York? … given yesterday’s bullshit reaction to 

being down 100 handles and seeing gold up 80 frickin’ cents, I’m left 

wondering.

And like most markets these days, in the off hours of New Zealand 

& Aussieland, or when nobody is around trading & conditions are “thin” to 

say the least, somebody comes in and muscles the market to where it couldn’t 

go when all of us were trading … and then later, Mrs. Wantanabe sees this and 

thinks a “trend” is developing and gleefully piles in … and when all of them are 

“in”, dealers pull the plug and panic ensues … some days you can set your 

watch to this shit. So, today no different, as the wealth transfer continues 

unabated from Asian retail spec to dealers hands, where dealers believe it 

rightfully belongs anyway.

MY ADVICE: “Try spending days in the casino playing Pai Gow and/or 

pochinko, and then “pajama trade” gold during the New York session … of 

course, actually making money from trading is gonna be a severe psychological 

blow to many of you, cuz you have no experience whatsoever of the effect 

winning has … but give it a shot, and if you feel like you just have to write checks 

to somebody, you got my address”!

Turning to today’s gold market … “Oy is an element best avoided”! … all you 

can do is shake your head in amazement, at the never ending “fleecing” of 

Asian traders by the dealer community … I mean seriously, WTF is it gonna 

take for them to wake the fuck up and smell the coffee?

Here we sit at the New York open [7AM EST.], wondering if we can get a $2 

range before Noon … order books wiped clean thanks to the clueless 

overnight … and I’m left wondering, besides whether or not the circus is 

hiring, “when does the “Plunge Protection Team” [PPT] show up and rip new 

donkeys in the SP500 and blister shorts into submission for the unforgivable sin 

of selling U.S. equities? … when they sense a pause in the selling, and their 

BFF’s the scumbag LP banks let them know if retail is caught short, they will 

come in and bid the shit out of futures to set off buy stops … and the $64,000 

question is, WTF does gold do when it happens”? Cuz right now, all eyes are on 

stocks … USDCNH correlation is in the rear view mirror … and soon enough 

the bullshit correlation with the SP500 will vanish and leave gold traders 

poorer for the experience.

ECB presser up here in a few minutes … won’t this be enlightening [snark]. 

Other than that, nothing happening anywhere, except some mystery ticks 

from the usual gaggle of scumbag metals dealers and LP banks … same shit, 

different day.

And as is typical in tight ranges in financial markets, but especially gold, 

anybody with an idea or a buy/sell signal gets royally fucked by dealers who 

spike the shit out of price, both up & down, and then bring it back to the 

middle … the result? … everybody gets mugged and price is where it was 

5 - 10 minutes ago. So much for trend following … and the “Great Bullion Wall 

of Selling” still stands … you’d have better luck with the Mongol hordes 

attempting to breach the “Great Wall of China” … they weren’t very 

successful either. So, with stocks in New York not even open yet, we’ve had 

longs get blown out, then shorts get blown out, then longs again, and now 

shorts again … all with vicious spikes, and price goes nowhere. “Well, can’t 

wait to see how stocks add to this clusterfark”!

Did Gartman call that sell off & “Thelma & Louise” quarry bottom yesterday, 

by posting earlier that a rally was “at hand” … then after the close, says it was 

wrong, and look for lower prices … which only means today is rally “dead cat 

bounce” day … and lest ya think I’m picking on dear old Dennis, I’m not 

… just that, like ex Vampire Squid “guru” Tom Stolper, he’s almost always 

wrong. So, rallying stocks have got gold under some light pressure.

Here at Noon in New York, gold has seen some new lows for the day … still 

pretty pathetic action given the activity in the stock indices … new lows made 

ever so slightly before bouncing sharply ... “now, if stocks continue rallying in 

the New York PM, then I would expect gold to hit some more serious sell stops on 

the downside, where tomorrow could see 1220 come under threat on the 

downside, or the “Chuckleheads” get the idea to sell overnight… longs have 

thrown the proverbial “kitchen sink” at gold, having taken it over 1230, including 

today, for 9 days in a row … I’d be surprised if not later today, then tomorrow 

[Friday], or by the latest Monday, bullion dealers are gonna take the bear by the 

balls and give longs some sell stops to remember … none of this 30 -  50 cents 

shit we’ve been seeing lately”.

Bulls still trying to keep the 1230 handle … I know what they’re thinkin’, but 

bullion dealers got more zeros on their equity runs then retail specs, and can 

for sure “wait them out” … unless stocks do a complete 180 today and 

completely collapse, I’d expect rallies to be capped in the 1231-1233 range. 

This market needs to get some longs cleaned out.

It’s 1 PM in New York, and gold has hit the “quiet zone” … no reason to buy it 

or sell it here … it’s just random noise at the moment … again, another shit 

day of trading action, where the “Flying Wedge of Death” [FWD] is present and 

accounted for, and both position longs and shorts get fucked in due course, 

wondering I’m sure “why did I do that”? 

Only 1 algorithm buy signal today … PAMM up a couple bucks shy of 0.2%.

The algorithm “nailed” the buy signal to the second … it was right on, but 

given the nature of the down day, you take what they give you and bolt 

… hanging around for the “what ifs” is for fools … granted, on up days the 

algo gives more latitude, but on down days, the spike up if long gets you out if 

it stalls at all for even a second … it’s the only way to get the very best fills and 

prices … more often than not, if you wait for the turn, the dealers will club you 

good.

Again, this is another day where the 8 hour 20 day MA range in New York, is 

falling below average … the numbers on Sunday should get smacked lower 

… we’ve had 9 days in a row of sub par 8 hour ranges, and today doesn’t give 

any indication of being any different going into the mid to late afternoon of 

trading. Of course, any indigestion in stocks could cause a bump, but it feels 

like a consolidation day all around.

Onto tomorrow, where I’ll be here to capture algorithm buy signals … gold is 

a great market when it moves … and outside of October 11th, it’s been 

nothing but shit in the New York 8 hour session … well, when it does, the 

algorithm will kick it into high gear, and more trades will follow. Outta here a 

little early today … until tomorrow mi amigos … Onward & Upward!!

PAMM Spreadsheet directly below.

 

click to enlarge

Have a great day everybody!!

-vegas

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