Well now, fresh out of ideas for fleecing “Muppets” [a/k/a “clients], JPM along with
the other usual suspects, have finally come round to noticing 0DTE options, and
we now got an official new market “bogeyman” to blame for every move they
never saw coming … the details linked directly below.
https://www.zerohedge.com/markets/kolanovic-warns-0dte-can-lead-volmageddon-
20-30-billion-intraday-selling
Armed with all kinds of statistical chart porn & data, you simply can’t blame us
when Spec Morons lead the market up / down at the speed of light, when dealers
[like us] are forced to either buy / sell to keep deltas / gamms in line … it doesn’t
matter that we sold OTM [out-of-the-money[ premium to Dopes who don’t know
better, the premiums that are skewed so high it’s laughable, they just keep buying
more … forcing us to eventually buy or get roasted … and this “feedback loop” is
what JPM is lamenting … and what worries the suits is that eventually this
bullshit works its way around to the other side, and when that happens they
calculate it could lead to “Volmageddon 2.0 and a crash very quickly … “who’s
gonna be there to sop up in excess of $30 billion in selling in a rapidly falling
market?” … over 50% of the volume most days now is directly attributed to 0DTE
options expiring within minutes or hours, and just the other day 19 out of 20 of
the most heavily traded instruments were 0DTE! … “congrats Casino, you’re
doing a Helluva job!”
From a trading perspective, the problem this kind of horseshit causes is one of
totally inconsistent M1 ranges … minute after minute, hour after hour of
miniscule m1 ranges, then out of nowhere comes the nuclear explosion in
DOW30 and/or the “Spoos”, and in seconds the market is either sharply higher or
sharply lower, and when you add it all up, according to JPM, the notional value of
all of this “gambling” approaches $1 TRILLION PER DAY … and none of it is tied
to anything remotely associated with “fun-durr-mentals”, just intraday bets cuz we
can, which of course drives the suits bat shit crazy [BSC] cuz it makes THEM DO
THINGS THEY DON’T WANNA DO, whereas in their opinion that’s their job when
they heist your money from your account and blame it all on “DUH!, market
conditions, DUH!”… and we all know what the red spikes from Hell are like,
especially when some FED PIE HOLE says something on the chicken dinner
circuit … ignore them at your peril, but react to them and you end up selling the
bottom of a red spike before it starts climbing again … cuz in all of this bullshit,
the army of Specs flooding 0DTE options is creating havoc for dealers across the
board … you can almost feel the unease and panic from the ZH article … “JPM,
are you sweating much? … or just not making the kind of coin you’re used to
from the Muppets?”
Through all of this horseshit, the trading algorithm does a very good job of
modeling price flows, but there isn’t a “Hoover Dam” thing you can do about
price explosions that come out of nowhere and go through buy signals … nothing
… “oh that’s nice, we got a buy signal in the DOW30 2 seconds ago but it’s 70
higher now … can we fill your buy there? … is that OK? … F no Skippy, it ain’t
OK!” … and then when it’s over, price dies like nothing ever happened for the
next [pick a big number] minutes, and you end up wondering what level of Hell
inside “The Twilight Zone” you’ve entered … and from here, it’s just rinse and
repeat endlessly.
Even Mrs. Watanabe & Gal Pals have noticed, cuz lately the Asian session has
been eerily quiet when it comes to “Stock Bellies” … movement and ranges have
come way down and literally collapsed, and IMHO it reflects the fact that even the
Dopes in Asia understand that nothing is gonna happen until the criminal NYSE
opens, and it all becomes nothing more than roulette bets inside the casino … so
why not just wait? … well no shit … about time you figured it out!
Today a blizzard of useless econ states coming at 8:30 AM EST, including PPI
… not that it’ll matter much for longer than about 30 seconds, cuz the agenda will
be the same inside this new paradigm Wall Street has created with the FEDS
blessing … not until the whole fucking world is distracted from real life and is
locked and loaded for 0DTE fun & games every single day, is the relentless,
idiotic gambling via seriously OTM options gonna subside … until then, or until
the system breaks via “Volmageddon 2.0”, or somebody like JPM goes under [one
can only hope & dream] will anything change the course of this latest exercise in
stupidity.
Well, that escalated quickly didn’t it? … PPI inflation mucho higher, other econ
stats mucho lower … a perfect recipe for new all time highs in “Stonks” … amirite
or amirite? … in an hour the criminal NYSE opens, and let’s see how the 0DTE
crowd lays down their initial bets today … “don’t forget to clip the coupon in your
local paper for a 50% off on the lunch buffet at the casino, and thanks for being a
Chump!” … stock jockeys not liking these numbers pre-open, but no worries,
Biden is on the case and if you’ll just stop eating, heating your home in winter,
and driving your car, there won’t be any inflation … “see how easy it is to solve
this?” … who’s ready for “Volmageddon 2.0?!
Meanwhile, at 1:30 PM EST today, FED Pie Hole Bullard gets his chance for
another 15 minutes of infamy, and he can add fuel to the 0DTE fire … that he and
his Lounge Lizard Buds have created … how these Asshats have any credibility is
beyond me, and I’d rather take financial advice from Mr. Rogers or SpongeBob
Squarepants … how do we know if this Apparatchik is lying? … easy, his lips are
moving.
IMPORTANT ANNOUNCEMENT REGARDING “BACK TO THE FUTURE”!
For the last several weeks. Miss Gimpy has been trading EURUSD if it’s active
[which usually it isn’t], but at my direction I’ve had her trading at Coinexx the
crypto pair ETHUSD [Ethereum] … I put some coin into her account cuz the MAX
leverage is only 5X, and she’s already on the VPS platform, but the reason I did
this are several fold … 1) the bid / offer spread is only about $0.50, with a round
turn [RT] commission based on the FX model of $1 per side per $100,000 notional
… that translates into a total cost to trade of just slightly more than 50 cents
… compare that to Binance or Phemex, and unless you get the volume discount
and trade in the hundreds of millions per month, you’re gonna pay “gas fees” of
0.1% … given the price of ETH, that comes to about $1.60 while the spread is a
penny or two … in other words, the total cost to trade is roughly 3X higher at the
main crypto houses than Coinexx … 2) the 20 Day Range MA currently is running
around $80 … given the total cost to trade is 3X less than the main crypto houses,
it means you can scalp while others are waiting to get above break even! … and
3) this market escapes the 0DTE Nitwits!, and trades like a market rather than a bet
on a roulette wheel … in other words, it trades … this ain’t the crypto market from
2 years ago, where we had thousand dollar ranges everyday, and everybody and
their pet monkey were trading it … those days are gone forever, and unless they
somehow come back, the crypto algorithm I used back then isn’t going to work
cuz the VIX is much, much lower than those heady days.
So far, so good … it appears that the early Asian session to open the day, for
about 3 hours or so, and then once the sun comes up in New York [around 6 AM
EST] and to the end of the biz day around 4 PM EST looks to be the most active
parts of the day … Europe like always usually lags badly … but the trades are
there, and while leverage is a bit skimpy, the market is one Helluva lot smoother
than “Stock Bellies” and what that space has become with the 0DTE Chumps
calling the shots … if you want a decent trading market with low cost without the
usual banker bullshit, OR you want to escape the idiocy of “Stock Bellies” and
the 0DTE crowd, give ETH a shot! … the algorithm works exceptionally well in
this market … I’ll be adding ETH to PAMM trading, cuz it trades and trades well!
Back to the reality of stupidity in “Stock Bellies” … it seems here early, buyers are
on strike … Gee, I wonder why? [snark] … how long does this last before sellers
give up and launch a blistering short covering rally? … and here comes FED PIE
HOLE MESTER, giving her 2 cents of worthless bullshit, as she says higher
inflation could prompt more rate hikes, and why not another 50 bps rate hike?
… Gee, really? … I guess she needed to re-emphasize this in case bulls got any
ideas of a big reversal … but remember, PIE HOLE Bullard at 1:30 PM EST, so
there’s more bullshit to come!
And here we go to the upside! … that didn’t take long … cuz all this bad news
only means to the BTFD’ers that higher rates means the Lounge Lizards created
depression, means lower rates sooner, no matter the “blah blah, yada yada”
bullshit coming out of their lyin’ lips! … go head, raise rates MOAR!, it simply
means cuts earlier cuz you’ll “pivot” faster than Biden losing his thoughts … got
that logic, even though every Lounge Lizard says otherwise? … can new highs
for the day before the close be close at hand in another epic squeeze reversal
day!? … or maybe a double or triple reversal? … of course it can!, anything is
possible and probable in “Stock Bellies”, where no matter how bad the news is,
“Stock Bellies” rally cuz [fill in the blanks] … I can just envision the headline
… “Super volcano at Yellowstone erupts and blankets the entire Western United
States under 10 feet of molten ash … “Stonks” rally on hopes for FED rate cut!”
… who the fuck knows, only the tail of the dog in this clusterfark of idiocy!
Now that both sides have gotten blown apart, the “Spoos” can’t move up or
down … can’t rally, can’t break, and there is ZERO TRADING … maybe a point
or two up/down, but that’s it ‘till the next time somebody panics and off we go on
another roller coaster ride from Hell that eventually turns on a dime and screws
everybody … throw slippage into this clusterfark and I seriously don’t know how
you get out of the spread unless you get lucky … buys & sells? … what are
those? … and what is infuriating to me, not that it’s her fault cuz it ain’t, is the
fact that Miss Gimpy flows from market to market without a care in the world,
looking for action until she finds it and then acts … she looks at “Stock Bellies”
and tells me all she sees is a roulette wheel … and she ain’t wrong! … do we get
one day or two a month now to actually entertain a “trading” market in the
“Spoos” or DOW30? … the other 18 or 19 days it’s either dead or a straight shot
from Hell that never corrects, either up or down … by the time it’s over, IT’S OVER!
The last hour has seen the “Spoos” not even being able to go ± 2.5 index points
from a median price … given the spread + commissions + slippage, how the Hell
do you even make a rational case to trade this shit given its present format?
… take massive event risk for what? … some fraction of an index point? … OMG,
I’m stuck in the frickin’ Twilight Zone! … where’s that coupon for the lunch buffet?
… meanwhile, Miss Gimpy captures a $25 move on a 5 lot in ETH on an algorithm
buy signal about 45 minutes ago that takes exactly 10 minutes … rings the
register, looks at me and says … “outta here, time for the beach, you deal with
this shit now … cya!” … and the dog and MRS. are LOL and can hardly stand up!
Into the New York afternoon, and it’s another comedy gold trading day with
nothing making any sense whatsoever … break all night and into the morning
econ data, which was horrible in theory for “Stock Bellies”, and since the
criminal NYSE open it’s nothing but straight up the fucking wall with ZERO
corrective trading breaks, notwithstanding the 8 index point 3 minute panic by
somebody around lunch time … other than that it’s straight up … just another
unreal piece of shit that you couldn’t make up and have anybody with 2
functioning brain cells believe you could possibly happen … and yet, here we
are … and now the short call credit spread Dopes in 0DTE get their cashews
squeezed … like I said yesterday, it’s all the casino has to offer cuz nothing else
matters except who is or isn’t getting screwed by the dealer community at the
moment … wait too long and it’ll be your turn!
What can I say, except this is an absolute embarrassment for “Stock Bellies”
… pretty much everyone is scared shitless of moves out of nowhere coming to
destroy them, which leads to no liquidity and volume only matters when
somebody panics … and you can’t tell me where that ends, until it does and then
rips the face off of those on the other side of the trade who get caught on the
wrong side, thus creating a self fulfilling prophecy of either melt up or a melt
down … this is the 16th day in a row for the DOW30 that’s stuck in shit up to its
eyeballs … can’t rally, can’t break, except for a couple of hundred points, and
then its panic in the other direction … rinse and repeat and that’s it, that’s all
that is there … a little better in the “Spoos”, but that’s not saying much, where
ranges keep shrinking lower and lower with each passing day … it would be one
thing to trade the “Spoos” if the CFD was 10 or even a 100 times the index
[SIMPLE FX the former, CEDAR FX the big dog], but it isn’t, it’s only 1 times the
index … and that leaves me with the unenviable task of raising volume levels
with Coinexx I’m not comfortable with cuz I know they’re gonna screw us, and
screw us badly … they will obliterate us on slippage with those size orders in their
system … so unless the “Spoos” are trading normal or above, lower ranges and
lower volumes isn’t going to be any friend of ours when I trade the PAMM … we
need better trading conditions, and we aren’t getting them … and it’s much worse
in the DOW30 and NDX100 where mystery ticks fill the order box if you watch it
closely … snd every time you see one of those mystery spikes, it means
somebody got screwed somewhere in the system … and FX? … just too slow for
my blood, and the YEN is just the opposite … I’m hoping ETH can fill the void
here while “Stock Bellies” get their collective shit together and start trading
again.
Again today, no PAMM trades inside [so far, with 90 minutes to the close] a tight
range of a little over 30 index points in the “Spoos” … truly pathetic, but worse
than that is how it trades … inching along like they’re corn or oat spreads, and
then come the explosions … die again, rinse & repeat … some group of markets,
huh? … what buckets of FED manipulated bullshit … banks win, 0DTE specs lose
… what else is new? … I’m gonna attempt to trade ETH is the early Asian session,
then get some sleep, and then be up around 5 AM EST tomorrow morning for the
New York session … this seems the best and most active times, so we’ll see how
that goes … it can’t be any worse than the horseshit were getting from
“Stock Bellies”, that’s for sure! … onto tomorrow.
… 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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