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Tuesday, August 10, 2021

HOW BADLY WILL THE FED BLUNDER?

 

“What could possibly go wrong?!”

I sense a disturbance in the force … the FED has no options other than to make

QE permanent [until the revolution], and the only question is how many

helicopters do they order to throw money out of … but the problem is the math

… “yes Barbie, math is hard”, and quite frankly the way the FED is printing money

out of thin air to 1) prop dinosaur companies, 2) bail out bankrupt cities and

states [amazingly, they’re ALL BLUE], and most importantly 3) expand the

biggest asset bubble the world has ever known, the exact moment the bubble

pops is the exact moment the revolution starts.


What really matters is not that they’re gonna FUBAR everything they touch … they

are! … the question is can the country ever recover, and quite frankly I don’t think

it can, and given the proclivity of ‘Murica to go down the Venezuela rat hole, I

don’t particularly see a rosy future dead ahead for the shrinking middle class

… who are about to be part of the Serf class, if Preezy Idiot Boy and his

“Manchurian Candidate” VP get their wish of endless lockdowns, vaccine

passports, and authoritarian government control over every aspect of your life

… what will be interesting to watch is just HOW FAST SHTF when it comes, and

markets react like nobody has ever seen.


Meanwhile here we are stuck in the mud, and outside of BTC & ETH, not a

“Hoover Dam” thing is moving in the financial sphere … gold is completely

“dead money” for the foreseeable future, and while crude oil has promise as a

market to trade, CFD pricing borders on ridiculous to insane … yea, maybe it’s

the “Summer blues” that has markets quiet, but maybe we are just in the eye of a

CAT 6 FINANCIAL HURRICANE about to hit and unleash unbelievable damage

… given the crew of idiots running the “U.S. of China”, you gonna sit there and

tell me they have any clue about anything? … well, good luck with that.


For a group of financial markets supposedly being open, and there’s no Holiday

today, I don’t think I’ve ever seen a quieter European session in my life … FX

completely DEAD, and no interest in any other markets as well … yea, let’s

trade! … only we need something to fucking move first!


BTC & ETH are moving, but unless you’re on an “open order book” platform,

where conditions are transparent & open, you subject yourself to horrendous

bid/offer spread conditions that can and do change MUY RAPIDO! … and those

changes are not gonna be in your favor … so your losers become worse and

your winners get cheated … but it’s no “bowl of cherries” over on the “open order

book” platform for either spot or perpetual futures, cuz unless price is moving

well and has some flow to it, cuz of the “gas fees” [a/k/a commissions to get the

trade on the block chain] nobody wants to reach for the bid or offer cuz the price

isn’t moving enough to offset the “gas fee” [usually 0.05% per side, but could be

higher] … yes, the last week or two has seen BTC & ETH come alive some, but the

alt-coins as a group are not enjoying the same kind of movement, although

Cardano [ADAUSD] today is popping some … still, one day does not a trend make.


The “London Fix” comes & goes, highlighting just how pathetic FX is, where

Cable today powered in a 40 PIP range … man, what a bag of shit, and even

crosses like EURJPY seeing a 28 PIP range … quite frankly I don’t see how it can

get any worse than this … another criminal open at the NYSE, where something

not worth stealing isn’t worth trading, and after a “Plunge Protection Team” [PPT]

& corporate buyback binge that saw both the DOW30 & SP500 hit an ATH, since

then it’s crickets … what’s truly amazing is that the bubble shows no signs of

slowing down … that is, until it does, and then look the hell out below … cuz

without the CNTRL-P machine from the FED feeding Wall Street, who’s left to buy

all of this shit at historic, ridiculous valuations never seen before in the history

of the world?


Meanwhile the NDX100 starts hitting new lows for the day … and given the

backdrop for tech going forward, as I said the other day, the world is LONG TECH

OUT THEIR COLLECTIVE ASSES! … and given NASDAQ’S history of bloodbaths

in the past, the one coming up could be a doozy! … and if these extremely

stretched support levels fail up here [see a weekly chart], this has the potential

to turn ugly very fast … a lot faster than most people think.


I want to highlight ETHUSD … if the bid/offer pricing at Turnkey can stay

reasonable to excellent [a big “IF” at times], going forward I’ll trade it for the

PAMM … Ethereum [ETHUSD] is basically where BTC was 4 - 5 yrs ago, but for

crypto & the defi space as a whole, ETH offers a whole lot more value and price

appreciation potential than BTC. Its current 20 Day Range MA = approximately

$180, so there’s plenty of trade opportunity here … the key criteria is the spread,

cuz when the scumbag HFT LP gets greedy, you have to back away from it. Over

the last 3 weeks, it’s been up 18 out of 21 days, and it's come from 1800 to now

around 3100 & change … so it’s somewhat stretched at the moment. But, given

the lack of any kind of discernible movement in DOW30, DAX30, or anything in

FX probably until early September, IMHO it makes sense to trade ETHUSD if

conditions allow it.


When you look at the difference in how ETH trades versus anything in “Stock

Bellies”, you can see the manipulation in action, where there’s the “one & done”

move up/down, and then it’s time for the “Loser Formation” as the manipulators

show up once again and literally KILL VIX! … you sure don’t see that in ETH

… granted things can get slow at times, but what we’re seeing today in the

DOW30 is manipulative bullshit … I had hoped coming into today, the DAX30

would show us something … it did … it said get lost I’m not playing today … and

with Europe closed and a whopping 80 index point range, it wasn’t kidding

… pathetic doesn’t even describe it adequately … but it’s “Summer”, and that

time of year [August] where the entirety of Europe is basically on vacation or

about ready to go on one … have fun this year locked down! 


These tiny ranges in the “Stock Bellies”, accompanied by “slow crawls up”, is

not what I’m looking for in a trading market … the DOW30 or DAX30 doesn’t

need 500 point ranges for us to make money, but a few dozen points in “drift”

over hours isn’t the answer either … cuz when they trap you, they make it hurt!

… just take a look at minute 20:45 & 20:46 on the Turnkey server on the M1, and

you’ll see what I mean … crawl, crawl, crawl some more … WAP!


If Turnkey can keep the LP from a case of the “greed monkey”, then trading

ETH there is as good as it gets … but when SHTF and it really moves, they’ll

want their pound of flesh to let you out, simple as that … but even on the “open

order book” platforms, when SHTF, bids / offers get crazy going up/down, so

even if you’re spread is technically 5 cents, it won’t matter much cuz the bid/offer

is changing rapidly multiple dollars … so, pick your poison cuz there isn’t much

difference.


No trades today in the TURNKEY PAMM.


Really nothing to do … tonight [tomorrow] sees me in ETHUSD and if the spread

is adequate, when I get buy signals I’ll be taking them … this puppy can and does

move in every time zone, so no matter the time ETH is usually moving.


For “The Syndicate” today, I came in looking for the DAX30 to do something

… as I said previously above, it didn’t … some small trades in ETHUSD, and we’re

UP APPROXIMATELY 0.46%


I traded early for “The Syndicate”, on its way up into the $3200 area … one look

at the daily chart though, and it’s come very fast from the $1800 area … time for

some corrective activity that’s much needed, and the last thing I want to see is

some kind of parabolic move skyward … we all know what that brings and it

ain’t good!


Outta here early before my head explodes [again!] … “the future looks so bright,

I need sunglasses”! … Onward & Upward!!


-vegas



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