UNICORNS, FAIRY TALES, STOCK MARKETS, & GOLD

“Another generation learns the hard way the meaning of RISK!”

Of course I didn’t see markets playing out like this, I’m a “trader”, not a dopey

“guru” … but when your livelihood is the money in your trading account, and

plan “B” is “would you like like to supersize that fries order, or add a hot apple

pie?”, you make it a priority to make risk #1 … and an entire generation of

wannabes have learned that lesson in spades in the last 7 days … “hey, I

warned people this would be ugly when it ended, and it’s nowhere near over

… cuz what can’t be sustained, simply won’t be … sure, the dopes at the FED

can prop the shit out of stocks and bonds, and manipulate markets for a while,

but sooner or later the bills come due, and this one was historic … I’ve been

trading since the start of the “modern era” of trading many decades ago, and

I’ve never seen anything like this either, as the scope and breadth of this “Black

Swan” coronavirus has simply left people’s investment & trading accounts for

dead.

Next on the horizon, is the financial implosion of the U.S. government, as trillions

are wasted every year and it’s piling up … sometime in 2024, every penny the

U.S. government borrows will go towards interest payments on the national

debt … and it’s not just me sayin’ it, it’s in a document produced by the Treasury

department … any guesses what happens then? … you think this stock market

crash is bad? … wait ‘till the EBT cards can’t be loaded cuz there’s no money,

and talk to me about “Snake Pliskin” and what happens in the inner cities when

SHTF.

Stocks today on sale, right along with the fairy tale stories attached to them and

how they can’t go down cuz of the “FED put” … I beg to differ … and right along

side the gold bars from the “goldbugs” who never met a price they didn’t think

had to go higher, stack that unicorn meat right next to your profits in gold this

week from holding onto it … sure, if your time horizon is 10 - 20+ years, who

cares? … but I’m talking about the “Chucklehead” dopes who were “all in”

Sunday night and shoved our favorite pet yellow rock up to 1680-ish … it’s

called a mini “blowoff” top, and any guesses what happens when too many

people get to “giddy” about anything? … today sees gold get absolutely

“monkey hammered”, to the tune of almost $80 per OZ. off the day’s high set in

Asia [of course, where else?], and rumors have it that it’s “Peter Pan” Kuroda at

the BOJ responsible for the intervention this morning that saw gold get spanked

about $60 per Oz. in less than 2 hours … in case you missed it, the link over on

ZH has the details, directly below.

https://www.zerohedge.com/commodities/gold-tumbles-boj-back-market

So, how many people do you think got obliterated in gold today? … my guess is

quite a few, and more than you think … by my recollection, the last time gold got

“gobbed smacked” like this from intervention, was when the FED introduced the

“Rally Protection Team” [RPT] back in February 2012, and gold went down

around $100 per Oz. that day, and the market was literally in a state of shock

… it’s a far different world today then back then, and at that time who knew we

were on a ride down to 1050 in gold in December 2015.

As you might expect, today sees bid/offer spreads in the stock indices blown

apart at the seams … 4 days in a row of unprecedented mega ranges at or over

1,000 index points in the DOW30, right along with slippage conditions I don’t

even want to think about … as I said yesterday, as far as trading is concerned

from a “trading conditions” perspective, the stock indices are going to need a

very long time to recover from this week, cuz what’s gonna happen is liquidity

is going to get worse, not better, and people that traded them will leave cuz they

don’t want the pain from scumbag LP bank bullshit, and it doesn’t matter

whether it’s futures or CFD’s, the volumes will drop … and ditto for the foreign

indices as well, especially the DAX30.

Even with the heightened activity in gold today, and the monster range put in,

trading conditions up to the time gold broke the 1605 level and headed under

1600, spreads were good, holding right at 13 - 17 cents per OZ., and things were

normal … enter “Peter Pan” & crew, and SHTF where all hell breaks loose

… within a few minutes of the blowoff low down around 1571, spreads did widen

some by about 5 - 7 cents, but were soon back to normal … quite frankly, gold is

and always has been my favorite market to trade since that day long, long ago

[yes, it’s been that long but seems like yesterday] when I first walked into the

gold trading pit … but as I have documented before here on the blog, it has

been a torturous task in the electronic age of trading since about 2001 - 2003, to

get adequate trading conditions in gold “EQUAL TO OR BETTER” than the

trading floor of days past … quite frankly, it’s been a B.I. Itch to put it mildly … it

took the offshore brokerage community years [2003 - about 2011 - 2012] to get

XAUUSD with a spread UNDER 50 CENTS … since then, spreads have come

down gradually to where they are at now around 13 - 17 cents, from about 2017

… well, since 2017 up until the start of this year, it’s been a battle to minimize

horrendous slippage on fills, and I’m not talkin’ about trying to get orders filled

on news or reports, I’m talkin’ “normal” trading conditions during the day … “hit

the button and get filled 70 cents off the current high tick showing on a buy, and

literally 1 second later you’re down $1, and it tends to piss you off, knowing you

just donated to the scumbag LP bank Christmas party … “you ain’t invited, but

thanks for the free coin”!

Today sees gold have an approximate $28 range when Europe came in, and

when I watched it last night near the Asian open, it was rather dead … I stayed

with it for a couple of hours, and then went to bed and got up about 4:30 AM, just

a little after the European open … and even though I missed some great algo

signals while I was asleep [the Mrs.: “hey big shot, sleep when you’re dead”!], the

market sure didn’t disappoint moving forward.

One good algo buy signal in gold today … TURNKEY PAMM / MAM UP right in the

middle between 0.1% - 0.2%.

Very good trading conditions today, and couldn’t be happier with the fills and

latency in gold … when I liquidated on a “spike up”, got filled 2 cents off the high

bid for the M1 … so, can’t say enough good things about the gold LP’s at Turnkey

so far … keep it up fellas!!

More than likely, this Sunday sees me finish my new e-book … wanna make a 6

digit dollar income from trading? … get it, read it, understand it, then FOLLOW

IT! … it’s been streamlined, easy to understand, easy to implement, and very

easy to follow cuz it’s all VISUAL inside the MT4 … OR, sign up for the Turnkey

PAMM / MAM and I’ll do it for you for 17% of the profits … whatevs, it’s your call

… I’ll have more on the e-book on the Sunday blog update.

Outta here early today … until Sunday mi amigos … Onward & Upward!!

Have a great weekend everybody!

-vegas

BACK TO THE FUTURE

“When you live in a “Humpty Dumpty” world, you are here!”

“Humpty Dumpty”, a great metaphor for the clueless Twits at the FED, ECB, &

BOJ … and after Humpty had fallen off his perch, “all of the kings”s horses & all

of the king’s men, couldn’t put Humpty together again” … and so shall it be with

the present day financial system … I used the graphic from an article today over

on ZH, the link directly below.

https://www.zerohedge.com/markets/economic-cataclysm-ahead

All of which brings me back to trading … and while I’m not going to give away the

specifics of my new e-book, there are underlying concepts that cannot be ignored

if you want to be successful trading, and/or if you want to make a career out of it

… these should be obvious to most of my readers, but clarifying them gets you to

focus on them … they are, in no particular order of importance cuz they’re ALL

important, 1) trading is a “game” of probability wave functions … there is no

“Holy Grail” or 100% guaranteed winners … in short, you’re the “casino” to a

bunch of wannabes, and you MUST be one step ahead of them. 2) You cannot

buy rallies and/or sell breaks and expect to survive … your account will get

ground down into dust if you do. 3) You absolutely must have the LOWEST COST

TO TRADE available to anybody on the planet, so that your “cost of doing

business” is inconsequential to your trading success, no matter how small or

large your account is. 4) Your market of choice MUST HAVE ADEQUATE IVIX

[intraday volatility] … without IVIX, everything else is meaningless. 5) You

absolutely must liquidate “spikes” in your profit direction when they occur, and

not get overly greedy. 6) Whatever your trading model is, whether you adopt my

theories and methods or develop your own, you must adopt your “thinking”

about the market in terms of the algorithm or trading model, and nothing else

… in other words, wrap your head around the algorithm and what it is saying

about the market, and leave bias and opinion to those who lose on a regular

basis. And finally 7) find the best brokerage house there is to get you ALL OF

THE ABOVE, including the lowest margins, deposit / withdrawal in BTC or other

crypto if you desire, minimum or NO KYC, and most importantly LP’s that treat

you fairly.

And this brings me “back to the future” … and while the coronavirus is shining a

very bright light on the systemic failures of the FED, and government in general,

don’t think for a minute that these Twits aren’t getting ready to literally throw

money from helicopters … not to you & me of course, but to scumbag banks and

Wall Street in general … and that leaves the gold market as one of the only

markets going forward that makes any sense from a “trading” perspective.

This last week, nothing has made me happier than to see Turnkey and their LP’s

finally … and hopefully it is “finally” … finally make a tight and fair market in

XAUUSD, and abandon the ridiculous slippage nightmare that has bedeviled this

market for a long time … I’m fairly sure, new LP’s helped immensely … as little

as 4 years ago, the very best XAUUSD bid/offer spread was about 35 cents, and

most houses were at 50 cents, and even then slippage was a nightmare  … now

we’re consistently at 10 - 16 cents at more than a few houses, and RT

commissions at Turnkey are about 3 cents per OZ. … nobody expects the 10

cents per OZ. spread in the futures market, but if you think futures are tight at

that spread consistently, I got news for you, cuz they ain’t … fact is LBMA

XAUUSD is far bigger than the COMEX futures contract, and pricing there drives

futures.

Bottom line though, is that this market has matured to the point where it’s

1) widely available in the offshore brokerage world at excellent spreads

[commissions are another story, so it pays to check it out first], so if houses want

to keep trading business they must remain competitive, AND 2) gold is easily

understood by everybody and is popular among the public, although U.S.

Sheeple remain collectively clueless and uninformed … but along with this

comes another revelation.

And that revelation is that, along with crypto like BTC, gold has major forces at

work that fly in the face of government fiat and shitbox institutions like the FED,

ECB, & the BOJ … in other words, math is about ready to take over the world and

that surely heightens the awareness of gold & crypto … the question then

becomes, “OK, but can I get the necessary ingredients I need to make consistent

money in this”? … a month or two ago, especially for U.S. citizens or residents, I

would have said it’s gonna be tough cuz as most know the US government does

not allow XAUUSD trading by any brokerage house that is domiciled in the US,

and about 98% of the world’s offshore brokerage houses do NOT accept US

clients … now however, mostly cuz of crypto, not simply just cuz of the changes

at Turnkey, there are at least 6 - 10 places that are highly competitive for the

trading biz of XAUUSD … it’s not clear to me if this is cuz of the LBMA wising up,

or industry people waking the fuck up an smelling the coffee, or maybe a

smattering of both, but bottom line is it’s a fact of biz now … and I know this to be

the case cuz the corrupt CME now offers “micro futures” contracts in gold, which

are 10 OZ. contracts, cuz they feel threatened by the offshore community … and

just for reference, yesterday, the “micro futures” in gold traded 31,624 contracts

… most of that volume, I’m assuming, comes from small CTA’s and/or small

institutions, cuz you’d have to be literally insane to trade inside the US today if

you’re an individual [and you should know why without me saying so].

Add it all up, and gold trading has “evolved”, and what we have as a big

advantage, is knowing you can kiss any house off if they stray from the

mainstream … and bottom line without saying so, I think this is at the heart of the

change at Turnkey in regards their new LP’s, their relatively new “Global Live”

trading platform, and their behind the scenes insistence on not losing further

business in this market … they pay a shipload of fees to the LBMA members for

access to their servers, and that means you got to have people trading it … I

don’t give a shit how greedy you are, that greed won’t mean anything if nobody

trades your XAUUSD and it just sits there … they know it, and we now know it,

so might as well make the best of the situation by making it the best it can be

and everybody wins … that’s where we’re at now … let’s hope it stays like this!

Looking at gold today, so far it’s an “inside day” as things get started this early

A.M. … feels like the market is just resting … I will note that over the last couple

of days, there have been some “fat fingers” that have come in and dropped price

from $5 - $8 per OZ. within a minute … and these have been bought aggressively

seconds later … I don’t see this as some sort of manipulation lower by the FED,

as much as I see it allowing bullion banks to cover shorts and even the books

… think about what would happen to price if one of the major players like JPM,

Barclays, or HSBC suddenly went the way of Bear Stearns cuz their shorts got

out of control and the market kept rising … say goodnight baby, we’d be off to

the races in true gap style higher … of course, the “Rally Protection Team”

[RPT] doesn’t mind if your sell stop got hit off, cuz more than likely a scumbag

bullion bank bought it … most days, gold hasn’t been correlating very well with

stocks, but when SHTF like it has this week, suddenly traders are peeking at

stocks for clues … do yourself a favor, and don’t get sucked into this trap.

For the most part, since Europe opened, gold has been in rather mild $7 - $8

range, with trips up/down to the outer edges in the infamous “Flying Wedge of

Death” [FWD] pattern that kills “MoMo” traders like garlic or sunlight are to a

vampire … quiet, very quiet … how long does this last? … and against this

backdrop, the FED is hellbent on taking the US into NIRP and negative interest

rates … and that is bullish as all get out for gold going forward … rates can

never, ever go significantly higher ever again, cuz if they do the math says the

game is over, and trust me no FED Twit wants to see that on his/her watch.

Imagine gold with $100+ ranges for the day, M1’s that average $5+ the entire day,

and the market going $10 - $20 up/down in seconds … or how about any FX pair,

with 1,000 PIP ranges, etc. … well welcome to stock indices, and quite frankly I

want no part of this FED induced “shitshow circus” they are responsible for

… this is fucking insanity, watching bid/offer quotes go hundreds of DOW30

index points in seconds and/or minutes, only to stop on a dime and reverse with

a vengeance … and once again today, the PPT just has to pump stocks up at the

open, and then comes the “Thelma & Louise” ride down, and sets the tone for

the day … thanks, no thanks, I don;t feel like playing when conditions get this

bad and chaotic … quite frankly, if the SP500 breaks 3000 tomorrow on the

downside, and starts free falling from there, we’re looking at a 1929 type of

market crash. And with the way the news flow is going, no stock index is safe.

There is some really “squirrelly” shit going on in gold today … bullion dealers

using every trick in the book to keep price from rallying, and once again today

somebody’s “fat finger” goes hunting and sends mystery tick lows into the mix

that get bought up quicker than you can blink your eyes … the FED doing

everything under the sun to bail bullion banks out of their massive short

positions … problem is, all breaks are being aggressively bought by central

banks and everybody else … even if you subscribe to “fun-durr-mentals”, there

isn’t anything on the horizon to give gold “legs” to the downside … we’re on our

way to NIRP & a government default on debt sometime in 2024 if rates don’t go

negative, and both the ChiComs & Ruskies are buying gold hand over fist

… simply put, it makes for great trading.

I didn’t do any trades today for the Turnkey PAMM / MAM, as I am transitioning

back over to gold, and putting stock indices on the back burner … it’s gonna be

a long time before traders recover from the total “ass beating” they’ve taken this

week … the BTFD at all costs crowd has been taken to the cleaners  and most

likely won’t be back anytime soon … that means you can kiss the NDX100 off,

cuz it’s gonna be a while … and while the “88/6/6” paradigm most likely still is in

play, it’s gonna be a lot more unforgiving & tougher than before … and these

straight freight train moves up/down definitely don’t help matters. Quite frankly,

it is not “trader friendly” and it might be a while before the indices see any kind

of sustained rally and/or good trading conditions … what we’ve this last week is

horrible.

The gold algorithm today did extremely well, and once you get the e-book and

read it, you’ll know why … looking forward to getting back to gold, starting with

tonight’s Asian session and I’ll take it from there … until tomorrow mi amigos

… Onward & Upward!! 

Have a great day everybody!

-vegas