“The DOW30, the propaganda index of the 21st century!”
Many years ago when I was getting my finance degree, the old joke that always
circulated in investment classes was, “the stock market has predicted 10 out of
the last 5 recessions” … fast forward decades to today, where the government
feels its moral imperative to manipulate anything and everything that used to
trade freely in what was called a “market”, and the new joke is, “the stock
market reflects Comrade Leaders faith in the system, and he/she gives ZERO
fucks what anybody thinks about that” … you got a problem with this Skippy?
So on we go towards the biggest asset bubble the world has ever seen, with
unsustainable national debt, a putrid political system run by elites for elites, and
an apathetic public that cares little about it all, except who’s playing who on
Sunday in the NFL … this is a recipe for disaster on a scale that few can imagine.
They might as well rename it the “Dow Jones 30 Propaganda Index” … cuz people
all across the fruited plain ask themselves, “well, if the stock averages are going
up, isn’t everything OK and getting better? … should I bitch and moan over the
fact that my 401(k) is higher? … meanwhile, Rome is burning and the crowd only
cares about “bread & circus” … when’s the next gladiator battle? Don’t worry, the
“Plunge Protection Team” [PPT] and the corporate buyback pirates will stay
hidden from view, so that the masses can indulge their fantasies that everything
is indeed OK … until that day comes when the curtain is ripped away, and it all
ends … yes Dorothy, you’re not in Kansas anymore.
Which brings me face to face with the biggest rigged game going, gold … if you
think supply & demand is what’s in play here, I can only laugh at your delusion
… the thievery & general “scumbaggery” that goes on in this market on a daily
basis by “liquidity providers” [an oxymoron if there ever was one] is staggering
… it isn’t stopped for the same reason big inner city violence never ends … too
many people in power have a vested interest in seeing it continue, and so it does
… who do you think pays all the bills for graft and corruption worldwide? … of
course, TBTJ scumbag Wall Street banks … at worst, if they get caught, it’s only
a fine of a few hundred million … chump change to what they’re stealing … and
besides, nobody at the top goes to jail, so who’s worried?
Today again sees miraculous “China trade deal” news send the DOW30 up
another 300 points overnight … when I see this for the umpteenth time, all I can
think of is Charlie Brown & Lucy with the football … how many times are you
gonna fall for this shit? … there really isn’t any news, only that talks next month
look promising, and that everybody wants to see things work out … somebody
enlighten me, WTF does that mean? … it means stocks need to rally is what it
means … nothing more, nothing less … propaganda at its finest … if only
Goebbels were alive to see this, he’d shit his pants at the bluster, lies,
manipulation, & ease of duping the public.
Well that escalated quickly to the downside, didn’t it? … whoops! … seems ADP
employment was a good “sigma” miss to the upside … does this portend better
ISM numbers ahead?? … does this mean tomorrow’s Dept. of Unicorns & Fairy
Tales NFP number will beat as well? … gold felt like it had a mini “blow off”
yesterday to the upside, now a scant 20 hours later, $20 bucks lower and
counting … some light buying & support off yesterday’s low at 1534, but a
shipload of important economic numbers coming at 9:45 & 10:00 AM EST, yet to
be reported … quite frankly, stepping in front of this data barrage if an algorithm
buy signal comes doesn’t make a helluva lot of sense … it’s called “situational
awareness” … if they are good as well, somebody enlighten me how the Twits at
the FED lower rates at the September meeting and justify it without looking like
fools? … as of yesterday’s close, markets looking for 120 basis points of easing
to DEC. 2020 … that’s a lot of ease baked into the gold cake, and with everybody
long, it sets up some sizable risk going forward positioned long without some
kind of decent correction … one that is long, long overdue IMHO … we’ll see.
Gulp! … amazing what some upbeat economic numbers can do to gold, when
the entire universe of traders is long … especially after hitting a 7 year high
yesterday on vapors … and you think the banks are gonna let specs off the hook
with anything besides a “dead cat bounce” going into the NFP numbers tomorrow
morning? … I’d say most definitely not … cuz right now, there’s a whole shipload
of longs who are under water in gold, feeling smug after yesterday’s move, but
who now have a severe case of indigestion … any break below 1517 and then
1500 in the hours or days ahead, and let the fun on the downside begin … if only
somebody could have warned traders beforehand … Oy!
Well now, who can say “melt down” fast enough? … over in stocks, who can say
melt up? … and once again, across the board, specs of all kinds get positioned
the wrong way and get literally crucified in seconds … “who among you still
believes sell stops protect you? … mental stops fine, but physical stops get
guaranteed fills at the bottom of each and every spike down, especially in gold
and silver … been that way forever.
And anybody surprised by the performance of stocks, quite frankly shouldn’t be
… of course it’s a government sponsored Ponzi scheme … how the hell else do
you expect the trillions in underfunded pensions to the baby boomers to be paid
out without a rising stock market? … have you learned nothing from the February
2016 bailout of the oil industry, when the FED came in and bought tens of
thousands of oil futures contracts to kill the shorts and save oil prices from
oblivion? … we already know it’s an “80/10/10” market … as I said the other day,
“THEY” find a way, don’t they? … well, might as well profit by it!!
Right now, I got a $3 grid on my M1 trading screen for gold … can’t make it any
looser than this cuz it fills the chart window … with spreads blown out, the range
now off the charts, and insanity ruling the day, I want to trade gold like I want a
hernia … fugetaboutit! … shit needs a rest and a reset, and in a very short time
Europe will close and leave the action to the New York scumbag, criminal banks
JPM, Squid, Citibank, & others of ill repute, which I want no part of in any way,
shape or form … I don’t care what it does the rest of today, and I don’t care what
signals the algorithm gives off, cuz quite frankly we’re in George Costanza’s
“Bizzaro world” today when it comes to gold … it could go back up and hit a new
high today and not surprise me, or it could break $50 bucks … point is, the risk
in here right now today after what’s happened is enormous, given what any
reward you can think of, and on the turns you can expect those “liquidity
providers” to do anything but … sure, I want to make money, but I’m not here to
play craps or roulette.
Last night was instructive … while I was watching gold in Asia drift into the
sunset, I should have had my eyes on the DOW30 … that’s where the real action
was occurring, right underneath my nose … starting tonight, and I realize
tomorrow is NFP Friday [oh joy, oh fun!], regardless if the spread can be
reasonable [0 - 3, with absolutely no more than 3 index points] I’ll be watching
the DOW30, and taking the algorithm buy signals in this market … if they don’t
want to play and they blow the spread out, then screw ‘em, I’ll wait for Europe to
open … if they still don’t want to play, I’ll wait to the NYSE open where I know the
spread is 0 - 2 index points, unless there’s news pending. While gold needs to
rest and reset with some horseshit trading days ahead of us, the DOW30 looks
primed … it’s trading well, the algorithm “nails” this market to an F-ing T, and the
20 Day Range MA is in solid “highly volatile” territory … what if
September & October aren’t the “Doomsday” months everyone is looking for,
and instead the DOW30 [along with the SP500 & NDX100] melt up a few thousand
points? [I can already hear the “pain & gnashing of teeth” on ZH, after the market
closes in the daily recap.]
Midday, and stocks holding their gains while gold got mauled … quite frankly, I’m
hoping gold can stay relatively quiet into the FED meeting on September 18
… these massive ranges of $35+ do gold no favors at these price levels … if gold
is to go higher still, it needs to consolidate and “back & fill”, meaning it needs to
test the lows of the day several times, and bring the market back into some kind
of equilibrium … since June 1, we haven’t had that … maybe with today’s total
clusterfark to the downside, buyers will be a little more discriminating … with all
the easing priced in, I don’t think with the numbers we got today, along with a
possible miss to the upside tomorrow with NFP, is going to give the FED any
leeway to do anything but cut 25 basis points MAX, and maybe even do nothing
… throw in the possibility of a bullshit “China trade deal” in the weeks ahead,
and who knows … what I do know, is how markets operate [even the pretend
ones], and if gold doesn’t settle the fuck down, at some point the FED is gonna
step in and MAKE IT SETTLE DOWN … they’ve done it before EVERY TIME in the
past, why should now be any different?
No algorithm buy signals that I cared to take today after the slaughter in price
… just not worth the risk, especially with widened spreads, and bid/offers that
were jumping upwards of $2 per tick … I can only imagine what the slippage
would have been had I punched a button to buy … and then I have to go in and
sell it … yea, no worries here, except getting taken to the cleaners … no thanks
… settle the hell down and we’ll be back to trade … stay insane, and we’ll talk
later.
In the DOW30, post ISM numbers, one algorithm buy signal that went nowhere,
most likely due to the fact that we had a mini panic buying spree that brought in
every buyer imaginable … when that “buy fuel” ran dry, what’s next? … usually it
means price drifts, and that’s exactly what has happened since this morning’s
explosion up, with a very slight downward bias in price … that’s why I didn’t take
the signal … again, nothing special here, just “situational awareness” … if I had
taken the signal, I could have liquidated and made it a scratch trade … so either
way, the result is the same.
Onto Friday’s NFP report … more shit for markets to digest, and after today’s
surprises, I have no clue what the math whiz kids have in store for us tomorrow.
Gold continues to act like it’s on meth, with spikes from hell both up/down, and
making life miserable for anyone caught on the wrong side of any trade … and
now that we’re into the PM of New York, good luck getting any break [other than
your legs] from the scumbag banks … they are there to take your money, not
provide liquidity … trade at your peril in the New York P.M. on any trading day
ending in “Y”.
So, onto tomorrow … until then mi amigos … Onward & Upward!!
Have a great day everybody!
-vegas
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