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Friday, October 19, 2018

THE SLOW CON

“Just a reminder … elections are coming up!”

It’s not easy staying sane these days … every minute you are awake, somebody 
is attempting to mold, shape, and tell you what to think. Personally, I’ve “cut 
the cord” on cable, don’t pay attention to phone calls or texts where I don’t 
know who is on the other end, refuse to listen to anybody in the MSM cuz 99% 
are nothing but political hacks, refuse to buy into “fake polling”, pay no 
attention to anybody in the financial press cuz they talk their positions, don’t 
follow or care about any professional sports cuz I don’t support grown babies 
making $100 million a year and then bitching how they’re “slaves”, and 
absolutely refuse to allow any SJW the time of day … in other words, a happy 
life.

On the financial end, the biggest joke running are the “financial markets”
which sadly, have become nothing more than “opinion polls” for central 
bankers … all day every day, it’s nothing more than this guy said “this”, and 
that guy said “that”, where every word is choreographed by spinsters for said 
Apparatchik’s “mistress fund” … if you trade currency FX, and get 
whacked cuz of any of this, it should make you wanna puke knowing you 
helped pay for Bambi’s new Mercedes … if you trade stock indices, thank 
your “CNTRL-P” government for ruining a perfectly run financial structure 
for the benefit of the 0.001%, and manipulating prices and causing more 
volatility when SHTF than ever before. “Cuz when the manipulators back away 
from the DOW30, the SP500, and the NDX100, people panic at the thought of no 
support of prices from the government, and the selling intensifies much more 
than if they just left the markets to their own devices … oh wait … I forgot 
… they’re the smartest people in the room and they know best [snark] … what 
a fucking joke”!

The biggest “con job”, though, is the FED and there continued insistence that 
inflation is good for you and the economy, and markets react disappointed 
when inflation numbers each month come in “soft” “somebody explain to me 
how this is “good” for anybody? … Seriously, WTF is wrong with people? 
… inflation destroys wealth, debases the currency, and destroys the middle class 
… it enriches the 0.001% cuz it inflates asset bubbles, and that’s all you really 
need to know when you follow the money”. Directly below, the harsh reality of a 
“conned” public, and the destructive power of the FED.

click to enlarge

Ever since 1913, the U.S. government’s war on gold has picked up steam 
… Progressives, Libtards, and most totalitarians hate gold, cuz gold has one 
thing that nothing else has … it has no third party counter risk of default. Gold 
is rare, and always has been … it’s been money since man crawled out of the 
swamp and started walking … governments hate gold cuz it can’t be cheated 
or “fractionally reserved” like fiat and then inflated away … there is no  
“CNTRL-P” with gold, and it is impervious to politicians desire to debase it. 

That brings us to gold “trading”, which as everybody knows, for years most 
notably from 2012 - 2016, was overtly manipulated lower by the FED & BIS 
through their BFF’s, the scumbag LP banks … hello Vampire Squid, JPM, 
HSBC. & Deutsche Bank, to name just a few of the usual suspects in 
fraudulent activity. It’s so well documented by GATA, and other gold 
industry organizations, as well as court proceedings via lawsuits, it’s not even 
debatable anymore.

But, when you know how the manipulation works, how gold reacts to it, as well 
as the bullion dealer shenanigans on a daily basis, “you can out manipulate the 
manipulators” and flip the tables on them rather spectacularly. Make no 
mistake, gold trading isn’t gold investment … you want to own gold? … buy 
coins or small bars and take physical delivery. Trading, though, is a never 
ending battle with the bullion dealers, and at the same time taking advantage 
of all the retail specs that “chase gold price”. On more than one occasion, I’ve 
outlined the basic premise for success in gold trading, but briefly it 
encompasses, 1) don’t chase price higher, 2) liquidate on spikes in your profit 
direction, and 3) don’t give a crap what happens next.

Turning to today’s gold market … “yawn, Mrs. Wantanabe & Gal pals again 
get ripped in the last hour of the Asian session … so what else is new”? … pretty 
tight $6 range as we head into NY trading … nothing on the board has moved 
all night, so we’ll see what bullshit floats to the top today and dominate 
trading … so far, it hasn’t been anything. It’s worth noting, though, that this is 
the 9th day in a row, where so far, NY metals dealers have not attempted to 
take the market lower and challenge the lows of the day … it’s still very early 
yet, but unless the entire psychology of gold is changing from utter bearishness 
to the bull scenario, I’d expect sometime soon a shot lower. Yes, the COT 
bearishness of retail specs continues unabated, which prompts the question of 
maybe a market change of heart … quite frankly, I can’t see significant lower 
prices on the horizon, but I also know it’s not going to be easy to stay long 
given recent history … get gold over $1400, and watch how quickly the world 
wants to be long, but until then “dealers will be dealers”, and it’s gonna be a 
very bumpy ride.

“Well, this de-escalated quickly into a bucket of bat guano, didn’t it”? My 
reaction? … see the pic below … pretty much sums things up on one of the 
deadest Friday’s I’ve seen in a while.


The entire week, in the NY session, has been a 1225 - 1230 “shitshow circus”
with brief trips above that running into the “Great Bullion Wall of Selling” at 
1230 - 1233 … Mrs. Wantanabe & Gal Pals doing their very best “Thelma & 
Louise” imitation, trying to gobsmack it lower during the Asian session and 
getting it shoved back in their faces attached to a gigantic brick within hours. 
That has left New York with very little to work with from the order books, 
and given the slaughter of shorts two Thursdays ago, is it any wonder nobody 
is really that interested in shoving it lower with abandon? … in other words, 
things are changing in the gold world, and what we are witnessing right now is 
the transition of gold from its 8 year bear market move of 40% losses from the 
September 2011 highs, to one where people are waking up to this vastly 
underpriced asset class … “get price over $1400 per OZ., and watch billions of 
Chinese suddenly gobbling up physical bullion, in amounts the world has never 
seen before … we aren’t there yet, but given the depreciation of fiat currency 
worldwide, the world debt bubble, stock bubbles in tech, and political troubles 
everywhere, the next super bull cycle in gold is on the horizon”. I’m not some 
“pollyanna perma gold bull” … the shine of the metal does not affect my 
trading … what I am, though, is a trader, and any increase in volatility over 
current levels, lends itself to trade gold.

It’s the P.M. afternoon here in New York, and this entire week has seen more 
trading action in New Zealand than in the U.S. … “I’d label this pathetic, but 
that would be an insult to pathetic”. Market just can’t break through to the 
downside or the upside with any conviction, and that “conviction” has been 
extremely constrained in a $5 -$7 range all week in New York … All I can say, 
is that we sit patiently, exercise discipline, and wait, cuz I’m not doing “stupid 
shit” just to do something. Granted, it’s no fun sittin’ here, literally watching 
grass grow, but it’s no fun losing money for no reason either … intraday 
volatility so low at the moment, no algorithm trade is even close to being 
triggered and taken. It is what it is, and we just have to deal with it.

No trades today in the C2 signals or the PAMM.

Whaddaya supposed to do in an approximate $4 “Flying Wedge of Death” 
[FWD]? It grinds, grinds, grinds for 40+ minutes, and then … BOOM! … it’s 
all gone in less than 100 seconds … rinse, repeat, what’s wrong with this 
picture? Get on the wrong side of any of these, and good luck making any of it 
back without doing really “stupid shit”! … simply put, a wasted day if there 
ever was one.  

Next week sees the ECB meeting, and with that all the shit involving Italy, 
Spain, and the other PIGS … we’ll be there when it moves, and await 
algorithm signals to buy … the gold trading algorithm not only keeps us out of 
trouble, but as volatility hopefully picks up some, the signals are terrific 
… nothing we can do about shit days, or shit weeks for that matter, but 
outside the idiocy in the stock indices, nothing is really moving anywhere 
anyway.

So, onto next week … Sunday night sees an important blog post on gold, that I 
think is important … I’m about halfway through it, and I’ll finish it on Sunday 
and post it … in addition to that, the “Download Links” files will be updated as 
well. It’s 1:30 PM in NY … nothing is going on … unless stocks crater, there’s 
nothing to be done in gold except get stuck is some position where the dealers 
won’t let you out … I’m outta here … until Sunday night mi amigos 
… Onward & Upward!!

PAMM Spreadsheet directly below.

click to enlarge
 Have a great day everybody!!

-vegas

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