“What the hell happened & where am I … GBPJPY reflects!”
Well, wasn’t yesterday special? … as if any market needs more drama coming
from every corner, yesterday’s rumor of U.S. Treasury wanting tariffs against
China lifted, gave the final “party like a rock star” boost to GBPJPY that
blew shorts a new one … of course, it was quickly denied and markets deflated
as fast as they went up … and after this blatant manipulation scheme burned
& crashed, I’m left wondering how anything today can even remotely be in the
cards … order books wiped out on both sides … political drama over ‘till
Monday, and a Friday that sees every trader in the world hating Britain cuz of
the clusterfark of a market mess that they have created. How can Friday
possibly top this crazy ass day?
Which of course, only means that Call Spread premiums will be priced in the
stratosphere opening the day’s trading … which, they didn’t disappoint, priced
right around 80 at the open … 12 hours later and a dull Asia and first couple
hours of European trading, and they’re at 60 … good luck making book with
this stuff on a Friday after Thursday’s blow out.
But, once again, yesterday sees another manipulation attempt by government
& apparatchiks alike, to bolster the SP500, to bring back to life the BTFD
mentality in stocks, to punish the Yen [higher USDJPY], and most importantly
crush short sellers … all this has side effects, and you saw it yesterday in
GBPJPY, where if you tried to pick a top you got carried out “toes up”.
All of this leads to what I call the “Friday Hangover”, where getting anybody
with a pulse interested in taking a position before the weekend and the Monday
MLK Holiday, a tad difficult … that leads to dull trading action. Of course,
things can always pick up in the U.S. session, but so far today Europe and Asia
have said “no thanks”, we’ll sit this one out, and after the political drama the
last couple of days, who can blame them. “In short, it’s a shitshow with no
winners … we won by doing nothing”!
Outside of a quick $5 drop in gold at the European open, by somebody who no
doubt is tired of hanging onto shit that isn’t moving before the weekend starts,
there isn’t a “Hoover Dam” thing happening in markets … everything dead
… as in D.E.A.D. … some of the dollar FX pairs with sub 20 PIP ranges [hello
Swissy & Loonie], and stock indices completely devoid of any activity. “Quite
frankly, I don’t think anybody wants to play today, and with massive winter
storms set to hit the Midwest & Northeast, traders are out the door and headed
home for a 4 day weekend, see ya Tuesday … you think it’s dead now, wait a few
hours and it’ll be even worse”. So, where do you find volatility in this bucket of
slop? … me neither.
Cuz lately, the music stops when Europe closes, and excepting either some
bullshit story planted RE China and the tariff story, or something to do with
“Brexit”, it’s a dead market. Today ain’t any different, and so we see again
another day of high premiums and no trade signals cuz premiums are too high
relative to volatility and you can’t possible make up the difference unless you
get a “bigly & yuge” move … and it being Friday, I’ll take the bet it ain’t
gonna happen.
So, blog update Sunday night … I’m outta here for today … until Sunday mi
amigos … Onward & Upward!!
-vegas
OUR NADEX SIGNALS SERVICE IS UP & RUNNING … DAILY
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IN 20 OTHER MARKETS, INCLUDING COMMODITIES, FX,
& STOCK INDICES! … “what on earth are you waiting for”?
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