“Yes grandma, it was nuts … they always buy the top … ALWAYS!”
Yea, I saw it … and my only thought was, “this is gonna end badly” … and sure
enough, a couple of hours later we get the round tripper to a new low for the day,
and all the sell stops get hit off, and “blah blah, yada yada”, and here we sit at
sunrise New York with an almost $40 range, and a whole lotta damage having
been done … now what?
Well, a whole lotta chop shit is about to descend on gold … it being Friday, and a
Quad witching expiration day on Wall Street, a lot of weird stuff will be happening
today … order books in gold have been destroyed, so there isn’t anything to go
after … but as I said yesterday, if this stuff keeps going higher from here without
correcting some, it’s gonna get a whole lot uglier than we’ve seen so far on the
downside when it comes. That doesn’t mean gold can’t go “Palladium”, simply
that people that pile in late are gonna get torched. Don’t get me wrong, I’m not
implying I think gold goes tapioca, just cuz the technicals may look ugly, just that
things need to slow down, or else the risks to the market will become violent.
And when you get violence, it’s very tough to make money, cuz your main
concern has to be to not get “whacked” … not from being wrong, but from the M1
spike nightmare downdraft that goes $2 - $5 lower before you can blink your eyes
… and by its very nature, this violence tends to make market conditions less than
ideal … get caught in one of these, and nobody will need to explain it to you, cuz
you’ll get the message loud and clear.
So, again today we get caught in the frenzy of the “Chuckleheads”, where you
have to wonder just when they figure out they’re the “chumps” at the poker table
… from the looks of it, probably never, cuz they keep repeating the same trading
mistakes over and over again through the years and decades. And it leaves us
with nothing to “hang our hat on” from a statistical perspective, cuz both sides
of the order book got blown out, and who’s left to actually trade this stuff on a
Friday? … looking at the daily candlestick these last couple of weeks, note how
many”tails” are on the upside of these candles … not coincidentally, almost all
of them.
One thing traders can learn from all of this, though, is that during the night the
market trades unhindered, and actually acts like a “give and take” real market
… New York shows up, and it’s nothing but spikes from hell [up & down] and
M1’s that go crickets … quite frankly, it’s crawl, crawl up and then it’s a brick to
the face down … which red candle M1 is the one that keeps going and will hurt
you? … of course, no way of knowing, and it comes so viciously you got no
chance once it starts … I think we simply need to ban New York banks from
trading gold!
Meanwhile, over in stocks land, nothing keeps the Ponzi scheme alive better
than levitating stock prices as economic indicators plummet … don’t worry, the
FED has your back [until they don’t], and bad news is good news cuz STFU and
buy MOAR! And here we are, and stocks are at recorder-er-er highs, and the
FED’s gonna embark on an easing cycle cuz the economy is shit, with world
economic conditions deteriorating faster than snow melting in July … what an
effed up world the manipulators have created.
Mid morning and gold is chopping around in the 1390’s … there needs to be a
“flush of the toilet” in the morning here, not the afternoon … we get this stuff
tanking lower in the P.M., and there’s no time and buyers will back away … in
any event, right now gold needs to back off, or as I said yesterday, it’s gonna be
uber ugly to the downside when it comes … and trust me, when everybody hits
the exit gates at the same time, cuz they think they can liquidate their long
positions and then get back long cheaper, the bullion dealer banks will exact a
huge amount of “womp womp” during the selling, and from there New York can
see a decent rally … until then? … nope!
Gold chopping back & forth in the 1390’s via headlines crossing the tape … longs
mini panic sell … 10 minutes later after another headline … shorts mini panic buy
… the “Flying Wedge of Death” [FWD if it could laugh, would surely be doing so,
as the scumbag bullion dealers jack this stuff around and force people to
“pay up” for being wrong … rinse / repeat … is the circus hiring?
Another trading day ruined by the “Chuckleheads” in Asia … and not only do we
have a $28+ range, we have a large reversal day as well … first up big, then down
big, then back to the middle … again I ask, “what is anybody to do with this after
last night’s action”? … it’s a complete bucket of shit … granted the chop has
better scope & range than normal chop, but that’s a two edged sword … yes, you
may be able to escape with some profit, but when you’re wrong it exacts a far
more terrible loss than whatever gain you expected cuz of the viciousness of the
turns … hopefully, the “Chuckleheads” have run out of money for next week and
action can return to more normal parameters.
Don’t misunderstand, unless there is news to support it, I’m not expecting a huge
drop in gold … but lately, normal trading patterns have been terribly skewed, and
not just cuz of the feckless FED … the fact that in 8 months markets have gone
from pricing 5 rate hikes to now 4 rate cuts, sees expectations resulting in a
difference of 9 rate cuts! … and gold is only up about $200 on that? … the sell
side manipulation here is gigantic, and getting New York to cooperate along with
the “Chuckleheads” not panicking is getting to be a problem. Cuz once they get
everybody long, the history of gold says “goodnight” to your money! … this time
will be no different! … so yea, caution is advised here, simply cuz the spikes
lower come fast and are vicious, and don’t take nearly the time to go down as the
market takes to go up. In any event, a move back down to the former resistance
is warranted, about $20 - $30 below where we’re at now … anything under 1340,
though, and gold looks to be in trouble.
Bottom line, though, today is simply a flip of a coin in New York … you can’t get
out fast enough if you’re long or short, and you can’t win against the bank in the
scalping game cuz of spreads & slippage … sure, it’s a Friday and Fridays are
usually different than other days, but it all goes back to the idiot “Chuckleheads”
and how they are faded by the New York bullion dealers, or at the very least
minimized … it’s why gold has destroyed more traders over the years than all
other markets combined.
Blog update on Sunday … next week should provide us with some excellent
trading opportunities … looking forward to it … until Sunday mi amigos
… Onward & Upward!!
Have a great weekend everybody!
-vegas
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