Welcome to the casino … the craps table will open at 9:30 AM EST … let the
penny stocks go wild!
And basically, there you have a brief synopsis of the “Stock Bellies’, where
absolutely nothing makes any sense whatsoever, only the flow of money and
volume … that’s it, everything else is bullshit … and it’s what the scumbag banks
know that pretend to make markets, and the customers ignore at their peril
… things like “fun-durr-mentals” and other useless noise, are just propaganda
for the masses.
And here we are, the second worst trading day of the month … that would be the
Monday after NFP Idiocy Day, where nobody is speaking, no horseshit stats are
released, and everything trades like a penny stock on fire … reversals
everywhere, the garden variety, but also double and maybe even triple reversals
are in the cards … and why not? … money flows faster than bets at a craps game,
and then suddenly disappears … those with the biggest wallets and access to
order flow, along with multi million dollar computer systems that operate in
nanoseconds, most definitely have the “edge” … in other words, they control
the “pink sheets”.
Now into the New York afternoon, and trips to the highs and lows of the day have
been seen in the NDX100, inside a pretty tight range [so far] … screw the shorts,
then screw the longs, par for the course so far and we got hours to go to the
close … now more than ever, options are playing a more significant role in
market movements than at anytime in modern day trading history … just last
week saw the largest single day volume in calls ever seen! … and a lot of the
interest has been generated by “0DTE” options [0 Days To Expiration … in other
words, single day options!] … a good article last week on ZH about these, the
link directly below.
https://www.zerohedge.com/markets/why-0dte-so-important-and-why-vix-now-
Even with crap New York session ranges, “Trading Ratios” [TR] for the “Stock
Bellies” are almost always a slam dunk good to excellent … the question will
always boil down to “can I get my algorithm signal trade off at a decent fill price,
and can I liquidate without getting monkey hammered?” … so far, at least for
today, that’s not a problem … Spicoli speaking tomorrow may have some traders
wary of taking positions today, cuz you never know what this Moron will say
about rates … still, historically this day isn’t a very good trading day anyway, so
what better scenario than to screw everybody at least once by going back & forth
between the high and the low several times, but never extending the day’s NY
session range … and at the blink of an eye, it’s move at the speed of light in the
other direction as traders panic … the real question becomes, now that we’re into
the New York afternoon, is which way the “0DTE” puts and calls gamblers are
going to react into the close and how are they positioned … those on the wrong
side almost guaranteed to panic, and this is one of the main reasons price activity
in the last hour can be so frenetic and wild … it’s called panic!
Today sees me watching closely the NDX100 … it’s been quite a while since I’ve
been back in this market, and it’s not the market it was years ago when it was at
circa 7,000 or so … quite different, and much more volatile than before … not
quite the “Spoos” and better liquidity and volume than the DOW30 … so far at
Noon today, volume in the NDX100 micro futures [$2 * index per 1 lot volume]
roughly 800,000 contracts … and this is on a slow day with a tight range, and
there’s about 4 hours or so to go to the close, so it’ll easily see 1 million +
contracts traded … TR of between 9 - 11 most of the NYSE day so far, so trading
activity is excellent, even though it’s not really going anywhere, but instead
chopping longs & shorts to pieces … bid / offer spread between 0.7 - 1.2 index
points, so right around 1 index point … since COINEXX has one of the lowest
commission structures in the marketplace, the total cost to trade, if there’s no
significant slippage, is better than average than those houses that quote a better
bid / offer spread but have much higher round turn commissions … all-in-all, no
matter where you trade this index, your cost is gonna be very near 1 index point,
and for an index with a 20 Day Range MA in the New York session [6 ½ hours] of
approximately 240 index points [this week’s value], it’s the best of the bunch of
“Stock Bellies” for value in trading [bang for your buck!] … “IF”! … If the spread
can be maintained and slippage minimal to non-existent when it gets super
active … and for the most part, outside of FED news, or some FED Pie Hole
saying something, or one of the major econ reports [CPI, PPI, NFP, and maybe
retail sales, PMI, & ISM numbers if they sigma miss expectations], values are
reasonably stable.
Today’s trading action very subpar … like I said, I think much of that has to do
with Spicoli speaking tomorrow at 12:40 PM EST, and the fact today there isn’t
anything of substance in terms of news anywhere … with only a couple of hours
to go to the close, unless somebody somewhere panics [a real possibility], this
day goes down with about a 50% reduction in terms of the New York 20 Day
Range MA … so, not a very good day for movement … a handful of algorithm buy
signals today in NDX100, but many of them came close to the low of the day,
which given the low range values, I didn’t take cuz the reward / risk ratio wasn’t
very good … I did take one algorithm buy signal in NDX100 on a trend change,
and the PAMM IS UP SLIGHTLY … tomorrow will undoubtedly see better
conditions, and once Spicoli opens his Pie Hole, things are likely to pick up
rather substantially in terms of range and price movement.
So far, I like what I see from Coinexx in terms of the NDX100 … no issues with
either latency or slippage on fills … all we need now is better conditions, which
we’ll get more than likely starting tomorrow … so far so good!
… OUTTA HERE … “The future’s so bright I need 2 pairs of sunglasses 😎😎,
and my own Brinks armored truck” 💓!! … Onward & Upward!!
-vegas
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