VOLATILITY ON VACATION

 

“The face of volatility!”  

Well, it only took the worst miss in over a decade in U.S. retail sales to get 

anything FX to move more than a couple PIPS, which goes to show how 

pathetic this group’s trading action has become over these last couple of 

weeks. EURJPY the worst culprit, as it can’t seem to move for anything. 

GBPJPY responded begrudgingly to the news, but at least it moved and 

more than likely saved some people from another disastrous day … and with 

all the shit being reported, it’s retail sales that’s the catalyst … unreal.

Quite frankly, I’m disappointed in NADEX from the standpoint of their  

“market makers”, whoever they are, cuz not only are call spread premiums 

unreasonably high at the moment, in anything other than FX, the entire 

trading complex is a frickin’ joke … I go over to the stock indices this 

morning, and in the DOW30 call spread ranges are huge, with bid/offer 

spreads between 6 - 8 Dow index points … and on top of this insult to my 

intelligence, I’m supposed to pay $1 per lot commission on top of this? … and 

literally, it’s no better in anything else either … gold 40 cent spreads … crude 

oil 2 - 3 cent spreads … silver 4 - 5 cent spreads … DAX30 3 - 5 index point 

spreads … and then add in commissions plus the fact the market isn’t 

anywhere near a floor or ceiling for any kind of protection … and even if it 

was close, I’m supposed to pay 70 cents premium on a crude oil call spread for 

a trade? … seriously NADEX, get fucking real here will ya, cuz this is not in 

anybody’s interest to be trading these. And so, yes I’m a little pissed off about 

this.

Markets NADEX should be highly competitive in, they aren’t … and I’m here 

to tell you, nobody can make money when premiums are this high, and remain 

this high when volatility goes down … “I dunno, is it designed this way on 

purpose”? … moving to the binaries, those markets move BEFORE the 

underlying moves by a second or two, telling me that there are latency issues 

between the feeds retail specs get, and the faster HFT feeds the LP’s get, and 

so what we end up with in the binaries is another front running scam, where 

nothing on your screen can react fast enough to get a signal that works 

without paying top dollar for it … “remind you of another exchange in 

Murder, Illinois”? 

Even in both of their most popular instruments, the SP500 & WTI crude oil, 

bid/offer spreads are a joke, and $1 per side commissions per 1 lot add to the 

expense. Remember, every minimum tick at NADEX is worth $1 … so, the 

SP500 is valued at 10 * the index, and priced with one decimal … crude is 

priced in dollars and cents, so a 1 lot there is 100 barrels … with crude, the 

call spreads “floors & ceilings” are so far apart, they offer no protection, and 

even if they are somewhat close, you pay for it in spades … in reality, you’re 

no better off than trading the CFD via the jokers at Turnkey. In the SP500, 

spreads here in the middle of the New York day are anywhere from 0.4 index 

points to as many as 1.4 index points … now add another tenth for 

commissions, and tell me how this benefits me to trade it? 

… “yea, me neither”!

And it only gets worse from there as you wander into the other FX pairs, 

where currently USDJPY spreads are at a FULL 2 PIPS, versus Coinexx 

currently at 0.1 - 0.2 PIPS … AUDUSD currently at a FULL 2 PIPS, versus 

Coinexx currently at 0.3 PIPS … GBPUSD currently at a FULL 3 PIPS, 

versus Coinexx currently at 0.6 PIPS … well, you get the idea … “where the 

hell do I sign up and become an LP for all the Chumps trading dollar pairs 

here”? Quite frankly, the only thing that makes sense to me at the moment is 

the volatility strategies, simply cuz if volatility is there you can overcome the 

high spread and commissions and make money in spite of it … but when 

volatility disappears, oh boy head for the hills, cuz this place is gonna rip you 

blind! I haven’t seen a decent spread in either oil or stock indices since before 

Christmas, and the same goes with premiums. And yea, it pisses me off they 

continue with this bullshit.

Onto tonight, where we’ll see if spreads can compress some … tomorrow’s 

Friday, so it should be slow … we’ll see what transpires … I’m outta here 

… until tomorrow mi amigos … Onward & Upward!!

Have a great day everybody!
 

-vegas

OUR NADEX SIGNALS SERVICE IS UP & RUNNING … DAILY 

WTI CRUDE OIL SIGNALS & “VOLATILITY” STRATEGIES 

IN 20 OTHER MARKETS, INCLUDING COMMODITIES, FX, 

& STOCK INDICES! … “what on earth are you waiting for”?