“It doesn’t matter how ridiculously priced it is! … I want MOAR!”
In a financial world gone completely insane, and make no mistake it has, the
seemingly irrational acts of humans eventually become rational & commonplace,
and thus are treated as perfectly normal … and nowhere does this apply more,
than the NDX100 … a glued together misfit of mostly fairy tale tech companies,
propped up in price by hopium … then there’s the 5 big shots … Apple, Amazon,
Facebook, Netflix, & Google [FAANG] … and the never ending flow of money
into these, no matter their actual prospects to earn money from operations, cuz
since when does that matter? … so what is it that drives people to throw money
at these companies?
Let me cut right to the chase … it’s got nothing to do with the companies
themselves, and everything to do with central bank NIRP [Negative Interest Rate
Policy] … and as I have said for a good long while here on the blog, the U.S. is
headed full steam towards negative interest rates on government debt … and
given that scenario, anything & everything that can possibly turn a yield return
in the future will receive plentiful money flows, regardless of the present
circumstances in the economy … as well, simply look at Bitcoin [BTC] the “gold
standard” of digital currency … while every central bank in the world has every
available helicopter dropping money from the CNTRL-P machine, and thus fiat
everywhere is multiplying like rabbits in heat, there are only about 16 million
BTC available for the entire world, which means there’s a fixed supply … throw
in all of the advantages of BTC from anonymity, privacy, and immediate payment,
and it’s not hard to see why more & more people want it as an asset … well, ditto
kinda with the FAANG, cuz they’re all involved in “buy backs” thus decreasing
supply of actual stock, and as long as I can’t get a yield on anything, and actually
get penalized cuz of taxes & inflation over time, I might as well own Apple, or
Amazon, and let the chips fall where they may! … now, I’m not sayin’’ I buy into
this horseshit, but that’s the illogical thinkin’ behind it.
And of course, there’s always the “feedback loop” of propaganda from POLS &
Apparatchiks that “stocks always come back stronger”, and that simply increases
the hysteria of “take my money, please!”, I don’t care how bad things look, cuz if I
don’t throw money at these tech parasites right now, “it’s FOMO baby”! … and so
here we are, 33 million people thrown out of work in less than 10 weeks, multiple
millions of small businesses ruined, large Zombie companies pleading for
bailouts, interest rates plummeting to zero, government spending & deficits in the
trillions, and a business environment that looks awful … and the NDX100 is
“UNCH-ED” for the year, after plummeting over 30% at the height of the virus
fears.
Money pours into these stocks in ever increasing amounts cuz 1) people think
they have no alternatives, 2) they aren’t gonna pay the f-ing bank to hold their
money, 3) they don’t fully understand block chain technology and the implications
of BTC and how it shapes the future, and 4) they feel “comfortable” with the
names cuz they can see the products [like an iphone, or they use a Google
search engine, or they can order from Amazon] … I don’t know anybody who
thinks it’s right to pay the fucking bank to hold their money … and so, unless
there’s a cataclysmic event like we saw with the coronavirus, price declines are
gonna be short & sweet, and the vast investment universe sees nothing but
BTFD! … it’s been like this for years now, and it’s the premise of the “88/6/6”
trading paradigm where “Stock Bellies” [DOW30, SP500] & the “Unicorn100”
[NDX100] find themselves firmly parked.
From a trading perspective, which means any market offers some kind of value
to us through trading conditions, right now only BTCUSD & the NDX100 make
any kind of sense … you can add FX WHEN IT MOVES, but the biggest “bitch” I
have against FX is that one day sees a 200+ PIP range, and then the next 4 sees
60 - 80 PIPS if you’re lucky, and if it comes when you’re sleeping, now what?
… there’s no worse feeling than being in any FX position, and minute after
minute goes by and you can’t get the “Hoover Dam” thing to even get out of the
spread, and feeling like getting Cable to move 5 PIPS has the same probability
of picking up a rock and throwing it across the Grand Canyon.
Trading costs matter! … do the math Skippy … cuz if you don’t pay attention,
you’re throwing money out the window … it makes no sense to pay 3 - 7 index
points to trade the NDX100, I don’t care what the range or IVIX is … likewise, it
makes no sense to pay upwards of $10 to trade BTC … you just have to back
away and come back later.
Today is an NFP Friday … almost meaningless in the virus environment of
markets … other than that, overnight sees the insatiable demand for FAANG
continue, as the NDX100 looks to climb ever higher into the stratosphere to
new recorder-er-er-er all time highs at some point down the road, probably
sooner rather than later … as always, it simply doesn’t matter where the index is
from a trading perspective … I could care less if the NDX100 is at 1,000 or 20,000,
what does it matter? … I care about “buying at 1 and selling at 2”, and cold hard
cash or BTC put into my account … the Mrs. doesn’t spend NDX100 … “oh look
honey, I got you some NDX100!” … wait, wut? … and now that she’s become a
BTC trader / guru / analyst, and trades it like a pure pro, she’ll perk up at the very
mention of the word “Bitcoin”, but NDX100?
Well, nothing says buy MOAR!, than a worldwide depression, record
unemployment, jobs by the gazillions gone for good, but those buying Unicorn
meat see nothing but blue skies ahead … unfucking real, but I just trade it, I don’t
date it … it’s amazing, though, to sit here and see the manipulation unfold right
before your eyes, and wonder just who it is they think they’re trying to fool
… and for you Kool-Aid drinkers out there, if you thought March 2020 was bad,
just wait ‘till the FED loses total control of the narrative … and my guess is it
won’t be another pandemic, or the collapse of the oil industry, but China going to
a gold backed digital Yuan and officially adopting Bitcoin as well … when that
happens, it will truly get scary for the U.S. … and who knows, they may be joined
by the Ruskies, Indians, and others that have been targeted with financial ruin by
the SWIFT system and the FED, and quite quickly with gold backed crypto, what
does that spell for the U.S., where we don’t even know if Fort Knox or any of the
other vaults actually have any gold in them … they haven’t been audited since the
end of WWII, and each and every time somebody like Ron Paul asks them for an
audit, they decline … why decline if it’s there? … “we’re a lot closer to Venezuela
than you think”!
Bitcoin tagging 10K today, and over on the sister blog,
traderzoocrude.blogspot.com, some early European session trades from the
algorithm … today so far seeing a modest range of only $350, but it’s morning still,
so plenty of time for action later today … and next week sees the BTC “halving”,
which every time in the past it has occured, within 6 months BTC has sky
rocketed … what’s notable about it, is that it’s the first time BTC inflation [that
BTC given to miners for verifying transactions on the block chain] will drop
below 2%, and into the future guaranteed lower than that … BTC seeing much
more interest in the European & U.S. sessions than in previous months & years
… the Asian session, which of course covers South Korea, Japan, China, Taiwan,
Thailand, & Hong Kong, all the way down the Pacific Rim to Malaysia, Singapore,
& the Philippines, has always been a very active BTC market, going back to the
early days … but as BTC goes mainstream worldwide, Europe & the U.S. are now
just as active … the Mrs. is proof of that!
Meanwhile over in “Hucksterville” [a/k/a XAUUSD], the little darlings of the gold
bullion bank community over in London are trying their mightiest to suck people
into trading gold with $0.50 - $1.00 bid/offer spreads … IVIX is going down,
ranges aren’t staying elevated over $30 per day, and quite frankly biz sucks
… well, here’s an idea scumbags, lower the fucking spreads back to where they
should be and stop expecting people to eat your fucking losses cuz the FED
double crossed your asses and left you hangin’ short when they panicked … it
ain’t my job to eat your losses and pay a “traders tax” … geesh, the nerve of
these shit weasels!
Despite the manipulators best efforts to prop stocks today, via the “Plunge
Protection Team” [PPT], it’s been a rather dull affair here the first couple of NYSE
hours … the Unicorn100 now above 9200 … only about 550 index points from all
time recorder-er-er highs set in mid-February … all you can do is laugh at the
fools pumping this worthless shit into their 401(k)’s or IRA’s and wondering how
they’re gonna handle the endgame when it comes … good luck dopes, you’re
gonna need it! … at least you got your freedoms, right? … err, wait a minute
… but, like I said, trade it don’t date it … it’s just numbers on a screen, and all
anyone can do is attempt to read the manipulators and go from there.
But, an NFP Friday is till an NFP Friday, and historically these have been terrible
trading days, and that’s insulting the word terrible … really, today no different so
far … Cable for its part, nothing but a cruel joke … “speed of light … crickets”,
and nothing in between … quite frankly the only TRUE & FREE MARKET that is
trading and trading well, simply cuz there’s ZERO GOVERNMENT MANIPULATION,
is Bitcoin … all you have to do to understand the true nature of Bitcoin, is to listen
to the faculty lounge Twits get their “big girl panties” all bunched up talking about
how it’s a threat to democracy, freedom, apple pie, and other “blah blah, yada
yada”, that focus group research has shown Sheeple psychologically respond
to … and if you don’t “get it”, you’re not paying attention.
Now into the Gotham afternoon P.M., and it’s a “Class A clusterfark” … I’m trying
not to let my brain interfere with common sense as it relates to the Unicorn100,
but it’s tough … literally ZERO reason to be up at these levels, but here we are
just sitting and drifting above 9200 … “a little song, a little dance, a little seltzer
down your pants”, and quite frankly with the way things are going I’m not sure
any trade can get outside the frickin’ spread … here at 19:58 server time, the
Unicorn100 just had an M1 range of LESS THAN 2 INDEX POINTS … in the middle
of the New York day, how pathetic is that? … and just like that, in less than 100
seconds, they take out to the downside the last 30 minutes of this charade
… “buy rallies, sleep with the fishes”!
Only one algorithm buy signal today in NDX100 … TURNKEY PAMM / MAM
LITERALLY “UNCH-ED” IN A SCRATCH TRADE.
When it doesn’t want to play it doesn’t want to play … simply a crap day in
Unicorn meat … however, starting Sunday night into Monday, if the spread holds,
I’ll trade the NDX100 from right around the European open going into the day
… many, many times the action before New York comes in far better, gives better
algo signals, and makes for more movement … the key is whether or not the
spread can hold, so we’ll see come Monday’s trade.
Before I finish for the day, I want to tell my readers, that if you’re not familiar with
BTC trading, you need to understand that this puppy moves faster than a cheetah
on meth … if you bring ANY bad trading habits to the table in BTC trading, they
will carry you out toes up … it’s not a question of “if”, but a question of “when”
… the trading algorithm takes care of this problem, IF YOU FOLLOW IT … change
anything or add anything cuz you feel like it, and don’t come cryin’ to me when it
fails … the trading algorithm is better than excellent, and all you have to do is
wrap your head around it and think about the market in the proper way … the
upgrade to “Trade For A Living!” will be done by the end of next weekend.
Blog update on Sunday … until then mi amigos … Onward & Upward!!
Have a great weekend everybody!
-vegas
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