“Tony Montana explains the Yen flash crash!”
“Well, that escalated quickly into the New Year, didn’t it”? … cuz while the world
was busy elsewhere, the C- teams manning the FX desks in Australia & New
Zealand, as is so often the case when manipulative horseshit like this happens,
there’s no liquidity & zero volumes and somebody gets the bright idea to move
a few trillion in Yen to set off sell stops … “well, mission accomplished, cuz
@ 00:35 & 00:36, USDJPY fell about 400 PIPS, down to the 104 handle, before a
vicious rally ensued, no doubt the buying by the same “liquidity providers”
[an oxymoron if there ever was one] that created the mess to begin with, and an
army of sell stops sees USDJPY move the most it’s done in 10 years”!
And knowing what I know about the FX community at large, my money lies
with the argument somebody got the message, in no uncertain terms, that the
mistress fund didn’t quite cut it for the Christmas Holiday, and that
somebody somewhere is just a tad unhappy … “now, GTFO there and show me
the money! … I got expenses & I got needs … comprende?”!
Isn’t it amazing, and I’m sure it’s purely coincidental [cough, bullshit, cough],
that all of the flash crashes in FX in recent memory, always come in this 2 - 3
hour window from the close in New York, up to the start of the Asian session
in Tokyo … it’s almost as is somebody knows this is the place & time of day
where “scumbaggery” is not only the easiest to pull off, it’s the most profitable
as well.
Well, all of this bullshit happens right in the middle of the hour where NADEX
is closed, which is 00:00 - 01:00 of the new trading day [5PM EST - 6PM EST],
and when NADEX opens at 6PM EST, I start to scan the trading platform,
oblivious to what has happened in USDJPY, and none of the prices of the call
spreads, or the binaries, make sense to me … I’m wondering what the hell is
going on, and who made the mistakes with call spreads not even close to where
the underlying instruments are, and binaries that are all above or below the
market … when I got to USDJPY, it finally hit me, and a quick glance at the
M1 explained everything.
Here at the start of trading, you got half the trading world in pure shock, and
the other half terrified of doing anything, cuz nobody really knows what has
happened, and you very much have the syndrome of “the other shoe dropping”,
that paralyzes all markets … in other words, volumes immediately dry up,
spreads balloon, and any market you’re looking at becomes an untradeable
mess … and nobody really knows when things return to normal. Bottom line is,
it turns to shit every volatility trading strategy at NADEX in seconds … unless
you want to pay a completely ridiculous price to get into something, you got no
choice but to leave it the hell alone and come back later.
Of course, back in the traditional world of trading, like Turnkey, scumbag LP
banks can now justify to the world [cough, more bullshit, cough] higher
bid/offer spreads, cuz you know … “duh, market conditions, duh”, and who
knows how long this horseshit continues, where again if you view it as a
“trading tax”, it all makes perfect sense.
Today, I’m announcing for the service signals, that all of you that are signed up,
as well as those who will be signing up in the near future, I’m not starting your
free trial period of three [3] months FREE SIGNALS SERVICE, until I have
posted over in “Download Links”, all four [4] tutorials on our NADEX
strategies … “yes, that’s right … free until it’s free for 3 months … I think this is
only fair, cuz it will allow many of you to bring yourself up to speed with concepts
and strategies that might be new or unfamiliar, without the need to worry about
the clock ticking away while you learn … if I was a client, this is the way I’d want
it if I was somewhat new to these financial derivatives … the first tutorial on
binaries is already up in “Download Links”, and the second tutorial on
“Call Spreads” I’m working on now … hopefully done this weekend, but who
knows right now, cuz it could be later than that. In any event, it gives people time
to learn new trading skills, that I assure you, are better than what you know now!
… and, as I have said before, there is no pressure for payment for anybody, cuz I
won’t charge anybody for signals that aren’t profitable for a small account
… you either make money over and above what’s in your account, or the signals
remain free until you do … so, there isn’t a “downside” to this for anyone”!
To get you started, all I need is your name and email address … and when it
comes time for payment, I’ll email you with PayPal instructions … PayPal is
free & easy, and most importantly it protects your bank card information
… at the end of the trial, if you don’t want to continue, simply do nothing and
your email address is taken off the subscriber list … “I don’t know how this
could be any easier”. So, if you’re looking for a better way to trade, don’t want
to do all of the statistical work, and like us to do the work, it’s not exactly like
we’re asking for a shipload of money here … pennies a day … and really, the
only reason we charge is to separate serious traders from the wannabes
… “there isn’t anybody with an account that can’t afford this, simple as that”. So,
if you want to take advantage of some extra free time, send me an email and
sign up.
The USDJPY flash crash last night pretty much destroyed pricing into today
for “Hoover Dam” near every market … particularly in the call spreads, it got
utterly ridiculous … even the binaries were affected, cuz NADEX couldn’t
keeping adding strikes fast enough to keep up with market price changes
… within about 10 minutes, after the new NADEX pricing for the day at
8 AM EST, binaries in the stock indices were all ABOVE the market price of
the index … “well, that escalated quickly didn’t it”?
Looking at FX, it’s the same story ...that leaves crude oil, where we had one [1]
trade for the signals service in the binaries … at the turn off the New York
session bottom [bottom so far], we used the proprietary crude oil algorithm
staff & I developed this past Summer, and purchased the
WTI Crude Oil > 46.00 [2:30 PM EST] @ 49.25. The trade ticket, directly
below.
About 14 minutes later, we exited on a limit sell order at 58.00. The trade ticket
for the liquidation directly below.
[color is wrong, it should be the sell side, which is red, which we changed before liquidation]
Our MAX THEORETICAL RISK on the trade was $50.25 per 1 lot … real
world risk about half that, at around $25 per 1 lot. After commissions, we
netted $6.75 per 1 lot, so our return on risked capital was approximately 30%.
Now that we’ve moved into the New York afternoon, things are slowing down
some, as USDJPY is rallying some and taking the stock indices slightly higher
along with crude oil … although, there isn’t much “punch” to the up moves.
I’ll be posting trade tickets from now on, instead of NADEX
CONFIRMATION EMAILS, simply cuz the trade tickets give better
information on the trade … namely, bid/offer with the color highlighted for the
trade, time of the trade to the second [EST], and the underlying indicative
price at that moment … for those reconstructing the trade, it makes it much
easier. In addition, NADEX sometimes delays the confirmation emails for as
much as 5 minutes, and bundles trades sometimes, which makes our job more
difficult … simply using trade tickets that reflect the signals service
recommendations makes our job much easier and gives traders a lot more info.
I don’t see anything else I want to get involved in today … markets are starting
to quiet down … maybe there is action near today’s close, but I don’t see it
… in any event, hopefully at the open tonight we won’t see another flash crash
somewhere that distorts everything on the board … “when I said be bat shit
crazy, I meant after we are in it, not before”.
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”?
