THANKS TO THE FED, THIS IS NOT GONNA END WELL

 

“Good grief!”

Well that “un-escalated” quickly didn’t it? … “Stock Bellies” the culprit of course,

as the “Plunge Protection Team” [PPT] dumps more Billions down the rat hole

protecting the world’s largest bubble ever seen, right from the NYSE open … and

for FX and gold it’s a massive reversal to the upside, straight up the frickin’ wall

… gold up 8 out of the last 9 trading days, including today, and we’ve all seen how

this rodeo event ends from history … this will be no different, just as ugly to the

downside when it comes in the next few days.

None of this so called trading action has made any sense since the get go, in

either gold and/or EURUSD outside of the initial move lower on the CPI miss to

the upside… at least not to the extent of the moves put in, and the fact that

interest rates have been climbing all day long and are now above 2% on the

10 YR. Treasury, with odds of 6 rate hikes coming before the end of 2022 now

about 50% … and this is major league bullish gold and EURUSD, to the point of

going on a straight up skyrocket ride to the moon WITHOUT any corrective

activity? … madness I tell you.

But then after the London Fix, things start to fall apart, and lo & behold both gold

and EURUSD ARE LOWER IN PRICE [as I write the blog] from where they were

price wise before the CPI got released! … cuz as I’ve always told you, if ANY

MARKET goes straight up / down, the corrective activity that follows will not

yield profitable trades cuz the move is over.

I said the other day, that there are 2 limitations, or problem scenarios the trading

algorithm isn’t prepared to handle [remember, ALL trading algorithms / models

have at least one limitation, and most a lot more than that!]… 1) a completely

dead market, and 2) a market that goes straight up / down with no corrective

activity to allow for any trade signal … and today sees #1 before CPI, and after

CPI to the London Fix sees #2 … sure nice ranges for both, but it’s meaningless

… remember, the primary purpose of the trading algorithm is to NOT LOSE

MONEY, or get “whacked” … therefore, we don’t trade those conditions where

that is ABSENT … and today is “absent” in spades.

Unfortunately, no trades today in the Turnkey PAMM … this happens frequently

when important news misses the mark from expectations, and the wild rides

ensue [FED meetings, inflation prints, and NFP Idiocy Day] … not to worry,

“OPPORTUNITY IS INFINITE, CAPITAL IS FINITE”!, and all of this shit will be here

tomorrow … meanwhile over in crypto land, “The Syndicate” UP FRACTIONALLY

from trades in SOL [Solana] … BTC doing OK, but the alt-coins struggling mightily

… for the alt-coins, the trading landscape is far, far different than before New

Years … it is a very tough trade.

In addition, It certainly doesn’t help things when the FED artificially “pumps &

dumps” the major indices … talk about dislocations, they are Masters at

creating trading nightmares … in any event, onto tomorrow.

… outta here … “The future’s so bright I need sunglasses”!! 😎😎

… Onward & Upward!!

-vegas