ASIA GOES FULL RETARD

“The same could easily be said of gold!”

“Well, that escalated quickly to the upside, didn’t it?” … I do an update

yesterday after Wall Street closes, I go take a nap for a few hours, get up about

20 minutes before China opens, and what do I see? … somebody got really hurt

during the “dark hours” from the Wall Street close to the China opening, to the

tune of about $40 per Oz., and those buy stops above 1370 all got filled above

1390, in one of the greatest sandbag thefts of all time … of course, nobody is

gonna do anything about it, simply cuz all the connected parties to power get a

piece of the theft … welcome to the $7 trillion dollar a day casino, where almost

everything of significance comes in the dark, on non-existent liquidity, and stops

get brutally pillaged and raped, and have a nice day!

So I see this carnage, and all I can do is laugh, simply cuz crying is for losers,

and besides it’s part of the great game … sure, I had it pegged, but they find a way

to not have company for the trip! … in any event, here we are as the sun rises in

New York, and with an overnight range of almost $40, what good can possibly

come from the U.S. session, other than a horror show for traders?

Most definitely, this is a “good news, bad news” type of situation for gold … the

bad news is that almost all of the gains over the last $100 rise in price have come

from Asia & early Europe … at the start, New York joined the buy club, but since

then it’s been a different game … this makes trading extremely treacherous

during U.S. hours … the good news? … gold ain’t gonna stay quiet this Summer

and go “sleepytime”, meaning ranges should be expanding and quite good for

trading … if this shit can behave, which right now is a very big “IF”.

I will remind everyone, especially newer traders, to remember history when it

comes to gold … we are now up for 5 straight weeks in a row, that started down

around 1270 … almost $130 straight … go take a historical look on the weekly

candlesticks at what happens when this current rally stalls … not pretty is it?

… and it won’t be gentle on the way down either … in fact, it’s likely to be more

vicious, with sell stops getting hit harder than the buy stops last night … yes,

gold has finally “broken” resistance that’s been in place for over 6 years … now

what? … it’s not time to get sloppy or wild eyed bullish and throw common sense

out the window … in other words, you can’t go full retard “FOMO” [Fear Of

Missing Out] and expect to win.

Given last night’s complete clusterfark, I have no idea how today shakes out in

gold in New York … a lot of “buy fuel” got spent overnight, and today’s

candlestick has all the earmarks of a “‘blow off” top in the short term … from

these levels, any sustained climb from here that goes full retard, only means

when it corrects it’s gonna be ugly … the higher we go, the uglier it will get,

without some kind of “backing and filling” at a minimum. Now that we’ve seen

the mini melt up, that has 1) blown out shorts, and 2) sucked in those getting long

on the break of resistance, this market is ripe for a pullback … probably only back

down to around 1365 - 1370, but with sell stops who knows the extent of the

damage on an M1 or two?

Meanwhile, the political drama surrounding the FED, continued tariff backlash to

economies everywhere, and watching the rest of the world literally implode [hello

China, Europe, & EM (emerging markets)], simply means gold will be very active

for the foreseeable future.

A rather disturbing development at Coinexx, as not only have they ruined their oil

market, but starting yesterday they have blown the bid/offer spread out in the

Hang Seng [H33HKD], from a 1 - 2 index point spread to 33 … I’ve got discussions

lined up this afternoon with management to address both of these markets, but I

feel like I’ve been the recipient of the classic “bait & switch” … I’ll write more on

this tomorrow after I talk with them … needless to say, I’m more than a little

“miffed”.

New York starts rather quiet around 1382 … who knows how long this lasts?

… we’re kind of in “uncharted territory” here, not having seen this since the

manipulators started manipulating in earnest in the Spring of 2012 via the “Rally

Protection Team” [RPT] … in fact, this is the first “easing cycle” gold is entering

with the manipulators around … so, how does gold react and behave during this

cycle? … quite frankly, nobody knows, cuz we’ve never been here before!

File this under “Let me get this straight!” … stocks within a stone’s throw from

recorder-er new all time highs, and the FED is gonna aggressively ease? … yea,

no manipulation here, as the FED grows the asset bubble ever further … gimme

an effing break here … have we ever seen this before? … simply put, NOPE!

… one look at the SP500 daily candlestick, and if you don’t see manipulation

here, then you’re blind! … sorry, the question has to be asked, “how long before

this stupidity of never ending stock gains sees the house of Ponzi scheme cards

come crashing down”? … here comes MOAR! QE, and negative interest rates … I

said it yesterday, and I’ll repeat it again, “are you ready to pay the bank to keep

cash in your checking account”? … any idea where gold is if that happens? … or

Bitcoin [BTC]? … “hi, we’re from the government and we’re here to help”! [snark]

I haven’t seen “stupidity levels” this high since 2012, across the MT4 trading

platform in just about every market … FX refuses to move much, thanks to

manipulation … stocks near recorder-er highs so the bubble can go even further

… and everybody in the same lifeboat when the Titanic sinks and wonders “what

happened?” … truly a sight to see, and we’ve only begun down the path to

negative interest rates, which is where we are surely headed in the U.S.

Which brings me to the quote of the day, directly below. I think Sven nails the

present environment about as well as can be said in so few words.

Here at mid morning in New York, somebody explain to me how you have an

almost $40 range overnight, and now we’re dead? … it’s early yet of course, but

the longer we go and nothing happens, the more pressure builds on new found

shorts to panic yet again … and if we go break to a new high, and then bust 1400,

this could get real nasty on the upside … can you say Palladium? The flip side of

this, though, is that when they sucker in every last nickel of spec money to the

long side, the scumbag LP’s offer it lower so fast, it makes “Thelma & Louise”

look like a gentle walk down the steps to the bottom … and if you’re not

historically aware of the sell stop history of gold over the years & decades, then

you got no idea how nasty it can get … this time will be no different.

NOON in New York, and gold simply will not correct … I have no idea where this

tops out, but I can tell you right now how it ends … it ends with gold getting

clubbed like a baby seal at a Japanese whale hunt after Europe closes, and in

the P.M. of New York … early breaks are simply being bought with abandon and

have no follow through … so be careful in the NY afternoon as JPM, Squid, & the

other thieves don’t catch you long on a drop that could get ugly for a few minutes

… how ugly? … don’t ask, you can’t afford it! … one thing for sure, though, do

NOT chase this shit higher and get a case of FOMO, especially in the NY

afternoon.

Well now, that was a quick $5 drop wasn’t it? … what did I just say, and what time

is it? … some things never change … going forward into tomorrow and next week,

unless there is some reason to warrant it, I’d expect gold to find solid support in

the 1365 - 1370 area on a sell stop induced break … maybe a hair lower if the

stops are sufficiently large enough, but that’s about it. Gold always finds a way to

screw spec longs, so those that think it’s nothing but up, up, and away, I’d have

you look at a weekly candlestick chart first, and then tell me how trees grow to the

sky.

One algorithm buy signal today … PAMM up a few bucks.

I’m in this thing, and it just won’t rally … tries 5 times in 10 minutes to go higher

but can’t … on the 6th attempt it does go marginally higher, and I’m not gonna

hang around and hope for the best … for about 10 minutes after that, it was a

good decision … and then Bingo, Bango, BOOM! … up we go about $5 in

minutes. Wasn’t particularly thrilled with the level of the buy signal anyway, so

anything positive is OK by me … for its part, Turnkey actually doing a good job

on my fill prices and the latency time to fill them … very good … now, try and

remember that this is your job and not meant to be a “one off” … would be nice to

think they’ve gotten their act together, but one trade does not a trend make.

How many “sine waves” have we seen today in this latest rendition of the “Flying

Wedge of Death” [FWD]? … as I stated previously, it crawls up, and then gets a

brick to the face going down … rinse, repeat about 20 times and you have today’s

strained $10+ buck range in New York. From where I sit right now, Asia looks set

to run wild again tonight … this time I’ll be there earlier, meaning of course it

won’t do Mr. Jack Squat … we’ll see what happens, but trading conditions there

are far better than in New York. Just remember, the higher this crap goes, the

better the trading conditions!

So, up a few bucks today … onto tomorrow’s excursion into manipulation … until

then mi amigos … Onward & Upward!!

Have a great day everybody!

-vegas