“A perfect metaphor for today’s markets!”
I’m left this Holiday weekend with a case of “WTF”, as I look at some of the
charts of the 20 Day Range MA’s … truly baffling, to say the least. For
example, the DAX30 has gone ballistic [see chart below], while stock indices
generally are quieting down and sloping lower with their respective MA’s
… not the DAX30, and with the problems in the E.U., it makes no sense to
me.
Likewise, the relative difference in EURJPY versus GBPJPY is also a little
startling … granted all the bullshit “Brexit” rumors flying by at the speed of
light, but the difference between the range’s of the two remains historically
very large, in terms of how they are trading … one bat shit crazy and the other
on sleep medication.
In any event, directly below the 12 of 14 markets we cover and the most
current 20 Day Range MA’s. [Gold & SP500 are over on traderzoogold
blog site.]
click on any chart to enlarge
One thing to notice also, is that the 5 week MA for GBPJPY is awfully high
… I’d expect this to come down some over the following weeks into Easter, cuz
over the last month it’s added approximately 160 PIPS … yea,
“duh Brexit duh”, but even so that’s a helluva lot of PIPS to add to the weekly
range, meaning I’d be really careful what you pay for volatility in this pair
going forward.
Directly below, for the first time, is the chart of the daily range of GBPJPY
versus the opening NADEX CALL SPREAD buys for the volatility strategy,
that opened the night before when the day began. I’ll be tracking GBPJPY,
GBPUSD, EURJPY going forward. I’ve left off the last 2 FX pairs, cuz I only
have one day’s history … they’ll be included starting next week.
And for those wondering why I haven’t done any gold trades via NADEX, or
recommended any Call Spreads, it’s cuz NADEX [for some reason] has
extremely wide “floors & ceilings” with regards their call spreads … $50, with
another being $100 … when’s the last time gold moved $50 or $100 in a day?
… and so, the spacing is almost always off which makes pricing a disaster, and
that’s why I haven’t done anything … in the gold binaries, the lack of a decent
range makes pricing out of the money binaries very, very cheap … and while
you might think buying a gold binary $3 out of the money for 20 is a good
deal, good luck when it spends the next 3 hours in a 50 cent range and your
binary is now bid at 3 with an hour to go before expiration … I haven’t
recommended any trades here for complete lack of any trading action … until
and unless things pick up, you are simply wasting money to the market
makers.
The Call Spread action in the stock indices has me completely baffled … the
ease and speed of these markets to run up/down in seconds is unnerving
… ZH had an article recently about how liquidity in the SP500, meaning # of
contracts bid under the current price, has never been lower … a few years
ago it was in the thousands … now, it’s between 100 - 200 contracts … which
means trading the call spreads is a nightmare.
Oil has settled down somewhat, and action returning to more normal
expectations … most likely I’ll be returning to this complex for some
recommended algorithm trades this week in the call spreads … volatility
trading here, though, isn’t nearly as good as it is in FX, simply cuz the
premiums are way too high when the day starts … get to the New York
morning, and there’s at least one call spread that can generate an algo
signal … so, don’t be surprised to see some oil trades going forward.
Tomorrow the MLK Holiday, and U.S. markets are closed, meaning NADEX
is closed. I’ll have my usual blog up in the early afternoon after Europe closes.
Until tomorrow mi amigos … Onward & Upward!!
Have a great Holiday weekend 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”?
