FACULTY LOUNGE PARTY TOMORROW

“I’m not stupid … the paint forced me into this corner!”

Oh, it will be glorious … all the self-anointed, smartest people in the room types, fresh with reams of data and “dot plots”, get together for the June 2017 FED interest rate hike party tomorrow. The toxic level of complete bullshit emanating from the Mariner Eccles building in D.C. would put most people in a coma … which is the desired affect … cuz nobody really has any idea what they say when they’re talking anyway … it all sounds good, kinda like they know what they’re doing … and as I have said before, if you have young kids in the house, please don’t expose them to the FED statement on Wednesday, cuz it could definitely stunt brain growth and development.

I’ll be taking my usual “red pill”, “yellow pill”, & “purple pill” to help ease the brain pain, but I swear, if I see the words “data dependent” and/or “transitory” one more F-ing time from these assclowns, my head is gonna explode all over the turquoise water down here in the Caribbean. These elitist Twits at the FED have done more harm to the middle class of America, over the last 100+ years of their existence, than any single other thing you can name. If there is any group of Apparatchiks that deserve public scorn, ridicule, and tar & feathers more than these Twits, I don’t know of them. This body was created by elites, has been run by elites, serves the elites, and makes sure the elites get what they want … all at the expense of the middle class who “pay the bill”.

Obama’s 8 tortuous years gutted middle class America with his “hope & change” BS, first speeding up the exodus of jobs out of the country for his Lib billionaire buddy tech donors, second imposing a health care regime that skyrocketed premiums & deductibles while doing absolutely nothing to improve health care itself, and third imposing onerous government regulations that made sure the economy remained sick; Obama being the first AND ONLY president in American history to never have had a quarter of 3% growth in the economy.

You want prosperity for America? You want a strong and vibrant middle class, along with a path to it for those less fortunate trying to work their way up the economic ladder so they can get ahead and have a brighter future? First step was getting rid of Obama; second step was not electing the corrupt and utterly criminal Cankles Clinton, who if left to her own devices with government power at her fingertips, would have turned the U.S. into Venezuela in short order, all the while her Clinton Crime Family would have profited handsomely via influence peddling, corruption, and bribery. It’s what they do; it’s what they have always done; they are addicted to money & power.

Now throw the FED into this bubbling pile of toxic waste, and their job is to find somebody to pay the bills long enough to keep the Ponzi scheme rolling along … that somebody is you. The only way for America to regain its status in the world as an economic powerhouse, is to start by getting rid of the FED and backing currency with gold. Of course, this solution is like showing a group of vampire’s a cross at sunrise inside a Catholic church, and their utter horror at the solution is your first indication it is the best policy … cuz if you think the assclowns in D.C. are working for your benefit and that of your family, then you are simply delusional beyond hope. They are there to do the bidding of their global money masters.

Equity markets, of course, will be in silent reverence of the process, and traders will wait for 2 P.M. tomorrow, when the oracles will release their musings to the masses to pour over and ponder every word and syllable trying to glean their brilliance and intelligence so that we mere mortals can understand. “As for me, I’ll simply ask the dog what he thinks after I give him some bacon & roast beef, and depending on how he lays down to nap after his feast, I’ll be better able to figure out what’s gonna happen. If he lays horizontal somewhere and starts to sleep, then I know 1) the “Plunge Protection Team” is at the ready should any idiot get the notion now is the time to sell stocks, 2) central bank bids underneath key stock index components will remain and get larger, and 3) stocks will not be allowed to go significantly lower ever again, especially in the stock indices, cuz their elite masters don’t want that, and also cuz some day they gotta retire and get a gig at Squid or JPM that pays 7 digits, and who wants to upset that apple cart”?

Well, there you go … my analysis is every bit as scientific as the “Wall Street Herd”, who like their FED brethren speak in bullshit and go to college so they can spend 30 minutes talking and nobody has any idea what they said. “You wanna listen to that? Ever actually read a prospectus or listened to a Wall Street analyst? Seriously, you can’t make it to the end without starting to drink heavily. Point is, none of it matters; this is such a circus show, and every FED meeting draws dolts who will listen intently for “clues” to what they are going to do. What they are going to do is continue to screw you and me by raising rates into a “falling down” domestic & world economy and making business conditions tougher for average people”. So, now I’ve saved you from drinking heavily [for the moment].

Turning to today’s market … “sleepytime” is the key word for today, as I expect nobody to do anything but wish they weren’t trading or watching a stupid computer screen. It’s gonna be that kind of day, as we wait with baited breath what the faculty lounge Twits come up with tomorrow at 2 P.M. “Is the circus hiring for the summer”?

Here in the pre-market, a few hours to the NY open, it’s “flatline city”; no doubt somebody will probably ramp the Dow30 up into the open so the Chipmunks can do their thing, but really, there is nothing going on now … yesterday into the close of course, the central planners ramped the Dow30 up about 30 points in the last 5 minutes of cash trading … absolutely can’t have a lower close if the Dow30 is anywhere near the previous day’s close; must have it turn green so Sheeple can be told the market closed higher and they can hopefully get that fuzzy illusory feeling of wealth tingling through their legs.

NDX100 higher this morning, and there isn’t any way this stuff goes lower today or tomorrow into the FED report; this baby will be propped up, goosed up, and bid supported the entire day, with the goal to keep it out of the news cycle. And who knows, that could be good enough reason to ramp the SP500 & Dow30 to record-er-er highs later today, cuz that would be seen as vindication that the FED is on the right track … even though everybody knows they are clueless Twits. We’ll see.

Chipmunks gotta be chipmunks, and so it’s no surprise they come out of the box on the open and buy … what else is new? … however, as I have explained so many times my mouth gets sore from having to repeat this to people, you absolutely cannot buy rallies or sell breaks in the stock indices; you have to do the opposite, and buying breaks and selling spikes up is what most traders do not want to do. Thus, they lose money, and then can’t understand what happened and why.

First trade of the day, directly below, sees me getting long not exactly like I want; well, no problem, I lower my volume a little and then wait for a spike up. I get the spike a lot quicker than I expected, and I liquidate on the then high tick. Granted, it went a few ticks higher, but as I have written before, when presented with spikes up, you liquidate and don’t care what the ensuing upside consequences are for the simple reason we know spikes up don’t last. Again, not being able to buy it like I want, forces me on the spike up to treat it as a scalp … if I want to make money, I have to make the trade and not worry where it goes.

This isn’t the kind of day where I think a nice “pony ride” up is going to take place with no worries … FED meeting tomorrow takes care of that scenario … much more likely this stuff chops around taking cues from NDX100, politics, and whatever else hits the newswires. So far, it’s a “chopfest” with a higher bias.

And sure enough, after some brief mini blasts to the upside that come out of the blue on central banks adjusting their bids under key index components, if you take away a few of those M1’s, what are you left with? That’s right, not much; and what we end up with on “waiting for tomorrow” Tuesday, is the slow glacial drift up. No breaks of any consequence, and no real moves up on any buying other than those dumb enough to sell this stuff looking for a down move [and good luck with that]. So, after the NDX100 gets taken out and shot the last few days, the Dow30 sits at record highs, and the new catch phrase among FED sycophants is now a “dovish hike”; there’s a bullish reason for anything/everything, and if you haven’t figured it out yet it’s called central bank manipulation.

These last few months especially, once the NY open is over and done in the first half hour or so, the market moves into its coma stage, where you can expect as little movement as possible, and then comes the next M1 from somewhere to lower the boom in 30 seconds to wipe out over an hour of “action” [if you want to be nice and call it that]. And if you are in a position, it leaves you in a terrible dilemma; do you stay in and possibly let the loss get bigger hoping it comes back, do you “double up”, or do you cut the cord and eat the loss only to see it come back and then know you got caught in chop? Meanwhile, to make matters worse, and to which I have cataloged in the past here on the blog posts, the SP500 is right now, one of the sickest markets going when it comes to trading, so it’s not providing the trading leadership it should be; all it does is “gap” from one price point to another on the M1. All this, of course, unless the market is breaking or rallying, leaves you in a not very comfortable trading zone; one I’m not willing to enter because the risks are not commensurate with the reward.

Which brings me back to my point earlier, which is you can’t care about the level of the Dow30 when you trade it; it’s all about the “setup”. If the market isn’t going to give you rallies and breaks, and instead goes into “chop mode”, you have to have the discipline and patience to wait it out and make the very high percentage trades, and if you can’t buy it like you want, your choice is to either wait it out or lower your volume and leverage some, until you get what you’re looking for in terms of “setup”. And to that end, I’ll be the first to admit, the Dow30 over the last 2 months for sure, and really since the end of February 2016 with only a very few specific exceptions, hasn’t really performed like in the past, thank you very much central banks. But that doesn’t mean you throw away all discipline and patience and do “stupid shit”, just so you can trade.

The only people who should care about the level of the Dow30, are those who regularly buy ETF’s and/or index funds; and then only when you are within about 5 years of your financial goals, cuz there is no rule that says the market has to be near record highs when you cash out, so the market might not be there when you need it most. As I have repeatedly said in the past, the PAMM’s total return after incentive fees over time will absolutely “monkey hammer” any long term ETF or index fund you choose to buy and hang onto in the indices, all the while totally avoiding overnight and weekend risk exposure that most certainly rears its head every once in a while over the years and can potentially cause great damage to any portfolio. So while lately, not very many days have seen multiple trades, I can assure you when ranges and volatilities pick up from 50+ year lows which we have now, that widening performance will become evident and manifest itself greatly. That’s why I don’t care whether the Dow30 is at 5,000 or 50,000; it simply doesn’t matter in making your cash balance grow.

Here in the late afternoon, we are seeing the Dow30 flirt with ever increasing “record-er-er” highs, first shooting up quickly and hitting a new all time high, then quickly falling back … this is a classic short covering modus operandi cuz there is no follow through. What this means for tomorrow, though, is that the new mantra of “dovish hike” most likely is a “buy the rumor, sell the fact”, and if they hit all cylinders perfectly, the Dow30 initially jumps on the rate hike and then sells off on “profit taking” [thank you Bob Pisani]. As I said, it’s all about the setup.

It’s about 45 minutes to the close, and I’ve had enough of watching paint dry for one day; I didn’t really expect today to be any great shakes one way or the other … realistically, making a buck today is about all you can expect from a market held captive by politics and the NDX100 takedown the day before the Faculty Lounge Twits meet and decide to raise rates … moving nowhere on nothing and then right back; rinse & repeat enough to kill an account if you get sucked up into this … hell, since Noon the Dow30 hasn’t even had a 20 point range top to bottom; the SP500 almost as ridiculous… cuz “fun-durr-mentals”. In that respect, making some pennies today is better than losing, so I’ll take it and move on. Tomorrow all hell breaks loose at 2 P.M.; and of course, “Onward & Upward”.

PAMM spreadsheet directly below.

Beach time! … the dog and I are outta here … until tomorrow.

Have a great day everybody!

-vegas

OUR TURNKEY FOREX  “PAMM/MAM”  IS NOW OPEN AND OPERATIONAL; SEE “PAMM/MAM MANAGED MONEY PROGRAM” IN “DOWNLOAD LINKS” SECTION IN RIGHT HAND COLUMN FOR DETAILS [VIEW ONLINE AND/OR DOWNLOAD] AND START YOUR JOURNEY FROM WHERE YOU ARE AT TO “ESCAPE TO SUCCESS”!

VIX EXPLODES: “GEE, WHO COULDA PREDICTED THIS?”

“Some waves are bigger than others Lance … don’t forget that!”

And then there comes a day, when Newbie traders get “re-educated”; they’re not ready for the explosion in volatility [largest ever percentage increase in the VIX yesterday for 1 day … 110%], they have no concept of “setup”, and they have no idea of the mechanics & logistical patterns of market breaks and/or rallies in the stock indices. Eventually it catches up to them … yesterday was one of those days.

From my perspective, it certainly could have been a hell of a lot more violent than it was … breaks off of rally attempts were, for the most part, rather orderly … there were a couple of 5-7 point downdrafts, but 5-7 Dow30 points ain’t nothing like 20-30 Dow30 points when you start talking gaps in prices.

What bothers me more than anything, though, is that trading has become a “tent sideshow” in the circus known as Western Civilization; increasingly, markets are being held hostage to anything and everything “non trading related" except in the most tangential way possible by corrupt and despicable politicians [most notably Libtards, who won’t be happy until the U.S. is turned into Venezuela … “it’s for the children … you knew that, right”?] who increasingly view power as their “right” and not a privilege bestowed by the governed. All you have to do is ignore the rhetoric and watch their actions, to know they can never be trusted with power of any kind ever again or the country as you know it is over. O.V.E.R. With all we know due to the leaked emails by Seth Rich, who worked for the Democrat National Committee and was murdered … yes liberals, he was murdered … shot twice in the back and left for dead with wallet intact … it has now been confirmed he leaked over 44,000 emails to WikiLeaks [“oh, I was assured by the WaPo and NYT it was the Russians”!] … can you imagine the plundering of the country via Cankles & crew if she was elected?

While politics generally repulses me due to the hypocrisy, arrogance, smug attitudes, smarmy self-superiority complex, and basic delusional mindset of how the world works by people who think they know what’s best for you, when it spills over into markets you can’t totally ignore its manifestations. The problem is you don’t know whom to take seriously; for example, anytime professional Loons like Pelosi and/or Maxine Waters speaks, you can rest assured nobody is paying attention. However, moving up the political food chain, it’s sometimes tough to know what market reaction is going to be from people like Chuck U. Schumer, Ryan, or McConnell.

The other problem comes from the FED, and their near maniacal desire to crush VIX and keep their Over Lords [where they go to retire and make millions for doing absolutely Mr. jack Squat] happy with near dead markets that drift lazily higher. When the cork pops, like today, their efforts exacerbate the problem they say they want to eliminate; again, if you believe this line of bullshit, you probably believed in Obama’s “hope & change” tour and thought sea levels were dropping. Sorry, I can’t live in this dysfunctional delusional world without getting sick.

Turning to today’s market … can anybody see in the pre-market hours leading up to the open an increase in volatility? … Dow30 is all over the place, but as I said yesterday, the worst thing that can happen today if you want to see higher prices at the close and get rid of the downside action, is to have a lower open @ 9:30 that opens and “attempts” to go lower … the sharper & quicker [time] the better, and that “washout” sets the stage for a very good afternoon rally as shorts get caught and have to cover. We’ll see what happens here in an hour.

Well, here in the first half hour, the doofus, assclown institutions do what they do best, which practically every frickin’ day is “buy the New York open”! I swear, I have nothing but contempt for these chumps, cuz they have no clue what they’re doing … “oh wait … these are the ‘smartest people in the room’ Ivy League types, who when on the trading floor lost so much money they became contra indicators … no matter, these brilliant stock buyers have never seen a price they didn’t like and for the effort, equally doofus coastal types place trillions with these clowns to manage … is it any wonder people flock to ETF’s & index funds”?

My day did not start good; first, a mistaken buy fill when moving the order box. Of course, it went straight down from there “no problemo Nemo”; I would whine with my cheese, but “Bones” sums it up best directly below.

 

“I can be a Princess if I want to, OK?”

But, the problems are only beginning cuz now I have to deal with the scumbag LP’s in the Dow30, who now see a reason to screw every order cuz volatility has increased. To wit, 2 examples from today; the first directly below just seconds before a 50 point explosion to the upside, where the LP decides [cuz he knows what is about to happen] to “jack” the spread out to 4-5 index points from the normal 2.

So why do you suppose the dealer thinks he needs this extra protection via an increased spread right before a 23 point move in 1 second to the upside at 14:25 with no news pending? [EASY PEEZEE: “He knows something I don’t, and if I want to ‘play’, I got to pay”!]

And just when I’m dealing with this crap comes my market fill on a buy liquidation, where with the market at 68 bid and I hit “close position”, I get filled at 62. WTF is this? And because I thought we were all on the same team here, I suddenly feel betrayed like the kid below when he finds out the truth.

 

“Next thing you know somebody is gonna tell me markets are rigged!”

And through all of this, I’m even on the day, and here comes news that Comey testified to Congress under oath on May 3 [over 2 frickin’ weeks ago!], where video shows him saying nobody impeded anything at any time with regards Flynn. Ok, why isn’t the Dow30 and SP500 moving on this news? This was made public at 1:20 P.M.; it wasn’t until 33 minutes later the market started to jump … no signals of any kind, just a straight move up the “talking heads” assure us is from this news … am I living in some kind of alternate universe where it takes traders 33 minutes to figure out stuff like this? Seriously, I’m sitting here thinkin’, “why isn’t this stuff moving up on this”? And it’s got me spooked.

But here’s my questions: 1) why now in the early afternoon is this released, and 2) where the hell are the DEMS on this committee listening to this not telling the moronic idiots calling for Trump’s impeachment yesterday, “umm guys, I was at the hearing where he said under oath there was no pressure to impede the FBI, so maybe instead of putting your foot up your ass, you might want to “tone it down” a little cuz you are gonna embarrass yourself”. WHERE THE HELL ARE THESE PEOPLE?

“In my minds eye, this only proves the obvious; 1) this release was planned and coordinated from the get go to get people to sell into the rumor; then, when selling dried up, here comes the release of this video, otherwise why not release it when the rumor driven NYT had the “fake news” story of the month and it could have been used to drive it up their idiotic socialist asses, and markets would not have gone bat excrement crazy … but no no, don’t want to do that, and 2) I DON’T WANNA HEAR ONE DAMNED WORD FROM LIBERALS ABOUT MORALS, INTEGRITY, TRUTH, or what’s good for the country; all of you are scum. It’s a never ending shifting shit storm of false narratives, one day to the next, driven by the Soros sycophants in the MSM to distract & deflect away from the business of the country … all that matters is your socialist agenda and tearing the country down as it was intentionally founded… cuz if there’s one thing Libtards will and cannot tolerate, it’s a growing economy, reasonable and affordable health care, and less dependence on government. OTHERWISE, WHO NEEDS GOVERNMENT AND LIBERALS AT ALL? You simply cannot ever be trusted again with power.”

This day has been a total “clusterfark”, start to finish; problems everywhere I turned, but mostly from the “setup” of an opening in New York that immediately goes higher, then meanders to the afternoon until the “Comey News” drops, and then we get a “vapor rally” out of nowhere. Once the final shorts are cleaned out from this morning, time to take it lower until tomorrow, which has conveniently been happening since the high @ 2:32 P.M. in New York, all the way to the close.

Considering everything that happened today from stupidity [me, with the order box], outright theft by the LP on a market fill that was 6 points off the bid [“but don’t worry, we have the tightest spreads and deepest liquidity in the world! (what a bunch of bullshit)”], and the manipulative effects of the Comey news dropping this afternoon, that I’m sure “key people” knew of and positioned correctly for the rally, to be down 80 cents for the day is a major victory in my book, and I'll take it and go home. Tomorrow's another day.

PAMM/MAMM Spreadsheet directly below.

Time for the beach … the dog and I are outta here … until tomorrow.

Have a great day everybody!

-vegas

OUR TURNKEY FOREX  “PAMM/MAM”  IS NOW OPEN AND OPERATIONAL; SEE “PAMM/MAM MANAGED MONEY PROGRAM” IN “DOWNLOAD LINKS” SECTION IN RIGHT HAND COLUMN FOR DETAILS [VIEW ONLINE AND/OR DOWNLOAD] AND START YOUR JOURNEY FROM WHERE YOU ARE AT TO “ESCAPE TO SUCCESS”!