“Somebody please post this at the Eccles Building in D.C.!”
Over the weekend, I found some interesting chart porn detailing liquidity
conditions in the SP500 futures market from Deutsche Bank. Directly below,
the chart measures futures orders within ± 4 ticks [0.25 index points] of the
current futures price.
click on chart to enlarge
Well, isn’t that interesting … and while the bankers bemoan loss of volume &
liquidity, they fail to address the underlying cause, which in my book is clear
government manipulation of markets through the “Plunge Protection Team”
[PPT], and other various methods … for your protection of course, cuz you’re
too stupid to understand the ramifications of stock prices on societal control,
and besides we’re the smartest people in the room and we know best.
And isn’t it interesting that if you extrapolate then SP500 liquidity figures
shown above, it’s nothing more than a straight line DOWN since 2012 … and
what happened in 2012? … well, for one, Preezy Soetero started the
suppression of the gold price through the “Rally Protection Team”, which is
the FED & BIS [Bank of International Settlements], and since that time gold
is either going down or is basically dead, with intermittent periods of short
rallies so the banks can sell it higher again. Then in February 2016, the FED
steps in and “saves” the crude oil industry from collapse, by furiously buying
oil futures off the bottom … and since that time, stock indices have been
overtly manipulated almost every “Hoover Dam” day.
Well, IMHO, this overt manipulation is the main reason why liquidity in the
SP500 futures has dried up … from about 7,000 - 8,000 contracts in 2013 to
today’s 1,000 … why? … simple: “who wants to get caught when the
manipulators push the button to buy all offers, and then you’re stuck
… wouldn’t it make far more sense to wait, let them do their magic … AND
THEN place your offers. Same way on the downside when the “short gamma”
crowd gets stuck … why get picked off"?
What’s interesting to note, is that the exact opposite of what the manipulators
want, is what they eventually get, cuz when you suppress normal volatility,
usually sooner than you expect, it explodes with a violence that is far greater
than it would have been if you had just left it the hell alone … but then, that
means the reason for their existence is bogus, and try telling that to
Apparatchiks filled with hubris. “It’s all about feelings & ideals, with ZERO
thought to the consequences … results don’t matter to Libtards, cuz they
don’t suffer any of the consequences of them being totally wrong when SHTF
… and so here we are, constantly dealing with the laws of unintended
consequences.
Directly below, this weeks 20 Day Range MA’s.
click on any chart to enlarge
As you can see, there’s been a sharp upturn in SP500 ranges, and therefore
VIX … collapse of the China trade deal among other things, but what remains
unsaid in the financial MSM is the unwelcome role of government into the
equation making and thus making things [volatility] worse … a lot worse
… and you wonder why bid/offer resting orders have literally collapsed over
the years in the SP500 futures?
As we move into the week, E.U. elections should be fun to watch … what effect
that has on the S&P’s remains to be seen, but a strong populist showing will
ruffle the “big girl panties” of the elite globalists. As always, what concerns me
the most is not what any market does day to day, or week to week, when I’m
trading it … what concerns me is how it trades during the day, and what we
are seeing more and more of are straight shots, and then it dies … this is what
is known as the “loser formation”, cuz if you’re on the wrong side of this move,
you got no chance of making anything back cuz VIX literally dies after the
move is over … and this has been happening with greater frequency since the
FED started their overt stock manipulation schemes in February 2016 … we
used to almost never see this phenomenon, and now we see it quite often, and
it’s sole purpose is to punish specs.
Onto the week at hand .... until tomorrow mi amigos … Onward & Upward!!
Have a great rest of your weekend everybody!
-vegas
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