“FED cat batters markets again!”
Apparently, that cut of 25 basis points didn’t quite go as planned … it got even
worse when Spicoli started moving his lips at the FED’s presser, thus tipping off
everyone just what a complete moron & liar he is … it wasn’t until he saw how
markets everywhere were reacting to the faculty lounge Twits decision making
prowess, that he turned markets around on a dime with some bullshit about QE
coming in the future … and that right there tells you all you need to know about
the feckless FED … the only indicator they watch and care about is the SP500
… here’s a brief list of the things we learned yesterday: 1) JPM precious metals
division is a ‘CRIMINAL ENTERPRISE”, so says the DOJ, 2) right up there with #1,
water is wet, and most importantly 3) somebody in power is PISSED, cuz they
aren’t getting their cut of the bank looting & stealing of customer funds, and
they’re gonna do something about that.
Meanwhile, you have to wonder how long this Ponzi scheme of government
papering over everything with money is gonna last … the FED is clearly clueless,
the political class is corrupt and immoral, and at some point soon we’re all gonna
wake up one morning and it’s “POOF!” … gone in 60 seconds … but not before
they start throwing money out of helicopters.
With Spicoli’s “stick save” yesterday via his QE comments, gold has found its
legs some, but it’s still stuck in a range … there is support down in that
1483 - 1485 region, but with the “punch bowl” gone now [i.e. MOAR! Interest rate
cuts from the FED, so they say], what’s gonna be the impetus to light the gold fire
again? … from a slightly longer perspective of the daily chart, gold hasn’t gone
anywhere since August 7 … the 2 interest rate cuts fully factored into price … OK,
what’s next?
Meanwhile, over in stock indices land, nothing can be allowed to break stock
indices lower … that doesn’t mean they go racing higher, it simply means the FED
isn’t gonna allow them to go lower … VIX is being crushed like an empty soda can,
and ranges are contracting quickly … fact is, they look and feel directionless as
well … I will also add, it doesn’t help matters when Turnkey allows their LP’s to
“hijack” bid/offer spreads, like in the DOW30, which if I owned the bucket shop I’d
be embarrassed to quote about a third of the MT4 pairs they offer cuz they are NOT
competitive with other houses … I showed yesterday the financial ramifications of
these ripoffs, and it totals thousands of dollars per year for small trading accounts
… it matters! … too bad they are so myopic and gripped by greed to notice.
Which brings me face-to-face with an issue most newer traders refuse to
understand, which is “variable bid/offer spreads” … Turnkey is a house that
utilizes variable spreads, meaning the spread fluctuates constantly during the day
… it’s not a problem when these fluctuations are tiny, like tenths of a PIP when
trading FX pairs … it becomes a problem when you wander into CFD’s, cuz the
fluctuations become more pronounced and exaggerated … so when the DOW30 is
fluctuating between 1 - 2 index points, you should ALWAYS assume you’re never
gonna get that 1 index point spread fill … NEVER … always take the highest
spread number you see over the last few minutes, and that’s gonna be your
spread … factor in possible slippage from that, given how the market is trading,
and you’ll have a reasonable expectation of where you’re at.
People have a psychological reaction to variable spreads, in that they think
they’re gonna get that lower number … you’re not … the variable spread is a
TOTAL SCAM on the part of the scumbag bank LP’s and the brokerage house
… it’s a way to get you to think you’re getting a “deal”, when in reality the only
“deal” you’re getting is to get bent over a railing … when they blow spreads out,
it really puts you behind the 8-ball, cuz with slippage they have effectively made
any profitable trade you might make very difficult … and in that process, since
you vastly overpaid to make the trade, they can hedge your idiocy into
guaranteed profit for themselves in microseconds.
Another factor behind any trade, is how it’s executed by the MT4 system, and
where it goes to be filled … FXCM got thrown out of the U.S. for filling customer
orders with a third party liquidity provider it controlled, thus guaranteeing clients
worse fills, and themselves higher profits, and didn’t think anybody would notice.
If you press Turnkey about which scumbag bank fills your order or how orders
are allocated, you’ll get complete stonewalled silence … SHUT UP & TRADE
SERF! … my belief is, that like many other houses, they have “deals” with certain
banks that give them a higher portion of the spread rebated back to them than
other banks, and can choose which banks to have your order filled … this implies
a worrisome fact … and that fact is, when you’re ripped off on a fill they profit, and
it’s the reason they don’t ever fight too hard in your defense when it comes to
theft of money from your account by the scumbag bank. In other words, they will
never risk the relationship they have with a bank cuz that’s where their bread
comes from … defend you? … NEVER … Welcome to the world of “scumbaggery”.
And so, if you’re wondering why I’m a stickler for detail when it comes to trading
with these asshats, now you know why … they will use and utilize any and all
means available to them to heist money from you!
Another trick they use is bringing spreads back in line to where they should be,
thereby sucking you into the belief that they are back for good, and then after you
get in a trade, they blow them out … this is particularly a big problem in crude oil
and the DOW30 … I have seen crude oil go from a 2-3 cent spread to 7-8 in a
heartbeat, and then immediately back down to 4-5, all within about 2 to 3 seconds
with no news or anything affecting the market, and you’re left wondering what
client of Turnkey somewhere just got royally fucked? … nothing, & I mean
nothing pisses me off more than to see this, and it has happened to us frequently
… question Turnkey about this, and again it’s utter silence, or the usual refrain
“duh, market conditions, duh!” bullshit they give for practically everything. So
when the DOW30 should be at 1 - 2 index point spread, and I’m looking at 3 - 4
with an occasional 5, if I hit the button to trade I’m gonna get a 5 spread fill, as
sure as the sun comes up in the East … throw in whatever slippage they feel they
can get away with without getting indicted, AND route my order to a “bag
company” LP they either control or have a “deal” with, and don’t sit there and
wonder why I’m annoyed as hell as I fully understand and comprehend what just
happened … oh yea I get it, and the burn is hot!
For a good portion of the day, so far, the spread in DOW30 has been quoted at 1 -2
index points, but the problem is that within every minute of trading it jumps to
3 - 4 and then comes back … quite frankly, I don’t trust Turnkey or their scumbag
LP’s to make an honest market in DOW30 [OR crude oil, for that matter], and I
know if I “take the bait”, I’m gonna get screwed, and here we go again … and just
like that, as I write, the WTI crude oil spread jumps to 9 - 10 cents per barrel for a
minute or two @ approximately 10:15 - 10:19 AM EST, and then goes back to 3
cents … if you’re trading this, WTF are you to think of these scumbags when there
isn’t anything happening during the busiest time of day and they pull this shit?
… what I need to see from these piranhas is a STEADY 1 - 2 index point spread in
DOW30 and a solid 3 cent spread in crude oil with both exhibiting ZERO bumps up
before I get interested in the algorithm signals … “sure, the algorithm signals work
beautifully, but what does that mean if I get royally screwed on bullshit fills, both
getting in & out, and it digs deeply into the profitable trade? … are we here to
make them rich”?
The good news, is that there are markets even Turnkey can’t fuck up, cuz if they
do they’re outta business … they are, in no particular order of importance,
1) XAUUSD [spot gold], 2) spot USD major FX pairs, and 3) DAX30 stock index
… these markets rarely get out of line with other houses scattered around the
world, and they are as competitive for business as it gets … bottom line is, if they
fuck up any of these market spreads via greed, they will face guaranteed loss of
business and commissions, which are the majority of their business … right now,
though, just like last September, the month isn’t exactly setting the world on fire
with volatility … the DAX30, for example, is starting to scrape the bottom of its 20
Day Range MA over the last 2 years, and the daily ranges seen this week so far,
are going to make this Sunday’s MA figures even worse.
Gold, for its part, is back to late Winter, Spring, trading conditions, and that isn’t
good news going forward … outside of the occasional rip roaring day due to
news, gold is back to it’s $5 - $7 range in New York in listless trading with all of
the spikes from hell we’ve grown accustomed to, and makes the reward / risk
ratio stink … hopefully it can change, but yesterday’s removal of the interest rate
cut “punch bowl” by the FED, is gonna leave a hangover that makes it tough to
sustain gains other than short covering blasts with no legs.
GBPUSD today back to a shit range [so far] … and this has been this market’s
problem for a while … one day the range is 150 PIPS, the next it’s 60 PIPS or less
… that isn’t gonna cut it for me, and it simply has to get more consistent at a
higher level, otherwise algorithm signals collapse and give off too many “false
positives”.
With Europe closed now, in the PM of New York, trading activity in everything
has dwindled to near ZERO … and why not, considering who’s in charge of the
asylum? … why would anybody want to deal with criminal banks if they don’t have
to, and quite frankly that’s all New York is … “New York is a money laundering pit,
run by criminal banks, with Communist POLS & Apparatchiks with their hands
constantly digging for your wallet … if you live there, you have my condolences”
… oh, and your football teams stink to holy hell.
Today sees the DAX30 finally looking like it’s not in a coma … hopefully
tomorrow’s action is better than today, where for the most part it was
“deadsville” until late in the European session. Gold today is back to the
complete scam idiocy that got me to walk away from it in the Spring … i.e., going
nowhere in small ranges with spikes from hell, the only difference being the price,
cuz the trading action is EXACTLY THE SAME!
I can’t take another minute of this horseshit … as I get ready to post, along comes
a “BREXIT” headline that rockets Cable higher … so what else is new? … however,
come tomorrow’s European open, I’m going to give Cable an algorithm “look
see”, and determine if this is worth trading tomorrow … looks like it might just be
a good candidate while everything else is “deadsville” … we’ll see … until
tomorrow mi amigos … Onward & Upward!!
Have a great day everybody!
-vegas
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