“Government + FED + Scumbag Bullion Banks! … Got gold!?”
A great article on ZH on Saturday morning, where to nobody’s surprise, we learn
just how much the bullion banks are short gold … these horses ain’t going back
into the barn … the link directly below.
Read the article if you can, but the bottom line is simple … bullion banks are
short gold from much lower prices to the tune of about $53 BILLION Dollars in
the hole … and I’ve been saying for a very long time, that they’re nuts to partner
with government [FED] to suppress the gold price, but dangle free money in front
of a Wall Street scumbag banker, and it’s inevitable they will make very poor
decisions … “so, when can we expect bullion bank failures or bailouts? … you
thought the Palladium run last year was explosive? … you ain’t seen nothin’ yet!
Today’s blog update sees some changes [yes, unfortunately yet again in this sea
of shifting sand dunes of brokerage house + LP bank stupidity] … gone are the
“Stock Bellies” AND XAUUSD [spot gold] rejoins the mix! … over these last
weeks, I’ve been working on creating a measurement of IVIX [intraday volatility],
that can create an index comparison between markets … today sees me roll this
out for GBPUSD & XAUUSD.
What makes me want to trade gold again are 2 important criteria taken together
… 1) I can accurately track bullion bank PLUS HFT positioning versus the spec
community, and 2) the bullion banks PLUS the FED PLUS the BIS [Bank of
International settlements] have lost the battle to control gold via the “Rally
Protection Team” [RPT] and the gold market today is “FREER” than it has been in
years, maybe even decades … what started on March 23, 2020 with the bid/offer
spread in XAUUSD going insane, is now down to levels that are supported by
HFT’s and NOT THE SCUMBAG BULLION BANKS! … it’s no secret, that the
NO KYC offshore brokerage houses that trade XAUUSD have better spreads, cuz
they aren’t using the bullion banks, they’re using HFT’s like Citadel, Virtu, and/or
Blackrock, that not only have more capital than the banks, but make better &
faster markets than the banks … in other words, the bullion banks are screwed!
… and the dirty little secret is, the HFT’s don’t give 2 shits about what the FED or
the BIS wants, they are strictly front running futures and judging order flow to
make pennies per OZ. on millions of ounces of trades … and what this means is
bigger volumes, better ranges, and much more opportunity.
Don’t get me wrong, I’m not saying the average XAUUSD spread is “ideal” … it’s
not … but given the price level of gold, increased ranges & new all time record
highs in price versus the dollar, plus greater worldwide participation, where it’s
at now around $0.35 cents, IMHO it’s fairly valued … directly below, gold’s 20 Day
Range MA for the current week.
XAUUSD
click on ANY chart to enlarge
As you can clearly see, ranges have expanded as gold broke through all time
highs and price is above $2000 per OZ … directly below, the 20 Day Range MA
for GBPUSD … “where’s the beef”? … for a group of major FX pairs that
supposedly saw a 40 year record run against the U.S. Dollar, you wouldn't know
it looking at this chart.
GBPUSD
Ok, now let’s look at my NEW "IVIX INDEX", that measures IVIX of one market
against another … I’m not gonna reveal the guts of how it’s done, cuz I don’t
want others knowing in real time what’s going on during a trading day
… however, it’s still extremely instructive to chart its DAILY progression and
extrapolate around the edges for some interesting & useful trading information
on a weekly basis … below the comparison between GBPUSD & XAUUSD
starting 6/29/2020 for each trading day … so, there’s about 5 weeks of info here.
As I publish this IVIX chart every Sunday for the previous week, keep in mind
that XAUUSD needs to be TWICE THE LEVEL ON THE INDEX TO BE EQUAL TO
GBPUSD … in other words, by way of example, if gold = 60 and GBPUSD = 30,
they are equal, meaning trading either gives no advantage over the other
… looking at the current readings, gold = 167 and Cable = 36 … given the 2/1
premise of the index, that’s over a 100%+ advantage gold has over trading
GBPUSD for profit based solely on IVIX.
I wrote a “BOT’ program in Python that captures minute by minute the data, so I
know at any given time of the day or night where these 2 primary markets are
relative to each other [or any other market as well], and can analyze in real time
whether or not it’s worth trading … combine this with bank and/or HFT
positioning, along with the trading algorithm, and it’s fireworks … time to let the
ponies run again in gold for the PAMM / MAM!
… until tomorrow … Onward & Upward!!
-vegas
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