WHEN THE BUBBLES GO “POP”

 

“Financial markets are talking, are you listening!?”

Well now, nothing like more big reversal days … throw in double reversals,

triple reversals, quadruple reversals like it’s no big deal, add in some “Flying

Wedge of Death” [FWD] days, and top it all off with skyrocketing IVIX INDEX

levels & ranges all over the spectrum, and if you think it’s bad now, just wait

… my only hope is they let the air out of the balloons gradually, and not just for

the pin to make an appearance and throw the whole system into chaos from

which it may not recover … and here’s a news flash: ‘gold & silver ain’t gonna

protect you, cuz they’ll get beat to death as well … not as bad as stocks, but

nonetheless lower for some pain.

We start the day off in the DAX30 coming out of Asia with little movement … then

the PMI’s for Europe start hitting, and Germany has a slightly better than

expected PMI … natch, the DAX30 goes orbital, going up about 140 index points

straight, and as other countries in Europe start reporting worse than expected

PMI’s, the air starts coming out of the balloon … “I guess we’re supposed to

forget Monday’s bloodbath and just buy, right? … and after setting off the buy

stops from Monday’s decline among the position traders out there, that only sees

more buying and more blood among the shorts … throw into the mix going above

12,800, and you got a serious ass beating on your hands from those convinced

lower price was in the cards … but as so often happens with the DAX30, it’s more

of a “traders” market than a “positions” market, and it doesn’t take much to get

nasty reversals in no time flat … “suck ‘em in, blow ‘em out”, as the scumbag LP

banks play this market like it’s a violin.

Then of course, half way through the cash day, it’s time for the U.S. markets to

open, and a whole new set of “scumbaggery” gets unleashed, especially in the

NDX100, which is getting more volatile than rocket fuel in the smokers lounge

… all of these FAAMG stocks with their stock splits make the NDX100 more volatile

cuz the splits lower the divisor in the denominator of how the index is calculated,

and therefore traded … and suddenly, I sense a perturbation in the “force” of

high-flying NASDAQ stocks, where no matter what the Apparatchiks at the FED

say when they open their PIE HOLES, stocks ain’t buyin’ what they’re sellin’ … and

that only adds to downside pressure in the DAX30.

Today so far, excellent IVIX INDEX levels, and the day’s range [so far] is excellent

at about 230 index points … can’t ask for better conditions other than the fact that

over the last 3 days it’s been straight up / straight down with very little else in the

cards … that too should change cuz it’s not really a trending market, beholden to

very long moves up or down … in other words, it’s a market that screws people,

and why should that change anytime soon?

One algorithm buy signal today in the DAX30 … TURNKEY PAMM / MAM UP

SLIGHTLY.

We should have seen more signals, but the way the day played out they simply

weren’t there … close on about 4 or 5 other occasions during the day, but it simply

didn’t happen … still, all in all like yesterday, I’m satisfied with both latency & little

to ZERO slippage on fills … so far so good and I can’t complain at all.

Moving into the afternoon of New York, and it looks & feels like another bloodbath

in the making … Spicoli putting his foot in his mouth earlier today in front of the

House [of Clowns], saying something to the effect of “we’ve tried everything, and

we don’t know what else to do”! … great, how inspiring is that? … sure Spicoli,

now admit you don’t have a clue! … stonks not liking that much … throw into the

mix everything else that’s going on from the upcoming election to the CHICOM

WUHAN KUNG FU FLU and all that BS that goes with it, and is it a wonder stonks

are tanking? … but, never underestimate the power of the “Plunge Protection

Team” [PPT] to change things around in seconds … they certainly did it Monday

… don’t know and don’t care if they do it again today or not in the last hour, cuz

playing that time frame is akin to going to Las Vegas and gambling “red or black”

… at least there you might get a free buffet … the DAX30 now with a 260 index

point range and following the NDX100 down the “rabbit hole”.

Overall, looking at the BS that’s happening with regular frequency over in FX, it’s

good to be back in the DAX30, one of my favorite markets from its inception into

electronic markets way back at the start of the century … knock on wood, it stays

good and Turnkey doesn’t find a way to FUBAR it.

Outta here … until tomorrow … Onward & Upward!! 

-vegas