"Yes, let the butthurt flow through markets!"
Another NFP Friday ... oh joy, oh fun ... as the world awaits numbers from the math whiz kids at the Department of Unicorns & Fairy Tales, where having been taught 0 + 0 = 5, will now set about to convince the world that "Everything Is F-ing Awesome Baby!", just one more time. The money question is, of course, will today's numbers reflect the ADP numbers from Wednesday showing a profound weakness in private sector jobs? ... the answer of course, is who cares? ... buy MOAR!
All of this could be avoided if they released ALL stats over the weekend when markets are closed, but that would rob the scumbag banks the opportunity to rape & pillage trading accounts in the minutes following said reports, so it's simply not possible to deny the banks their money.
For gold, though, the question today is simply, "can the inevitable break in price be gentle, or do we get slaughtered again to the downside"? ... one way or another, this resistance up at 1340 - 1350, and all the way up to 1375, is gonna get broken, and along with it my hopes for a scumbag bullion bank or two, to go belly up. "I can dream can't I"?
"Well, that escalated quickly to the upside, didn't it"? ... enough to drag in MOAR! longs on a crowded gold trade ... and sure enough, while the NFP numbers didn't paint a very good picture, since when do "fun-dur-mentals" matter anymore? ... all that matters is that, once again, bank selling at the 1340 - 1350 zone has commenced ... you'd have better odds of picking up a rock and hitting the moon's surface ... and over in stock land, the worse the news is, the better for stocks, cuz STFU and buy MOAR!, don'tchaknow? ... what better landscape for delusion than stocks ... and to help the cause, as ZH points out, somebody dropped a "China trade deal" news bulletin to help the PPT & algos manipulate, steer, & bludgeon move stocks sharply higher ... even though the entire world knows there ain't ever gonna be a "China trade deal" worth anything ... it's all a scam. The bottom line? ... whatever it takes to levitate stocks is all that matters, until they can't and all hell breaks loose ... this is how fucked up markets have become, if you can still call them markets with a straight face ... and once stocks magically levitate, here comes the "Rally Protection Team" [RPT] to slam gold lower ... it's all for your own good they say ... what utter bullshit, as we continue to live & trade in the Twilight Zone.
And as I expected, without the help from the RPT, gold is having a very tough time moving higher from here ... weekend coming up, and we've been higher now 8 days in a row ... dunno, but wouldn't be surprised to see a softer tone once Europe closes. Historically, gold does run like this, but lately since 2012, these mini runs get faded quickly once the hoopla is over and done, leaving longs hitting the exit gate like lemmings over a cliff ... not real excited about buying a market after it's rallied hard ... but hey, who knows, maybe there's enough power to take out the banks.
Two gold markets today ... pre NFP, where if you trade it you're nuts, and post NFP, where if you trade it you're insane ... some choice, huh? ... and while I haven't a clue what the weekend news cycle will bring, and/or how it will affect Monday, I don't think banks are going to "give up the ghost" and allow resistance to be breached on a Friday afternoon ... not sayin' it has to go down, just that it needs to consolidate before further gains can be sustained ... if not, and we just continue to plow higher, the end will be ugly ... very ugly.
And while everybody gets excited about gold's prospects, let me remind you that the object is to make money, not become an analyst ... and while I thought gold would have a quite Summer cuz traditionally it does, all those cards are off the table ... hello slightly higher volatility, which is totally welcome.
Here in the blog post, I've mentioned before how the financial markets materially changed after the FED bailout of the oil industry in February 2016 ... since that time, we've seen massive sell manipulation in gold, and overt "Plunge Protection Team" [PPT] buying in the stock indices. In essence, it makes everything pre February 2016 worthless for analysis ... so, what I've done is throw out old algorithms, and ran the numbers from Feb. 2016 to present ... viola! ... a new gold algo that is very different from older versions, and gives a totally new perspective on trading gold ... I'll be using it come Monday, and the results should be ... should be ... amazing. Much faster in scope, and much faster in getting to the trade.
I've never been a fan of NFP Friday's ... historically, either it's feast or it's famine, and very little in between, today being no different. With that in mind, and not wanting to get into something I'll regret, I've passed on the 2 new algo buy signals today in gold, instead watching and figuring how I would have traded them once in the long position ... I love the difference from previous algos, cuz the data is different cuz the paradigm is different. Come Monday, I'll be hitting this in spades.
I'm outta here early today, but if I make a trade later, I'll post in an update ... blog update on Sunday ... until then mi amigos ... Onward & Upward!!
Have a great weekend everybody!
-vegas
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