Wednesday, June 20, 2012

FIRST THE DIP, THEN THE RIP


                          Another Market “Chip Diller” Moment

One of my big rules for trading survival is that when apparatchiks or politicians speak they have as one of their major objectives to severely hurt speculators. Prima facie evidence on display today.

To be sure, there were a slew of algorithm signals as the Pols spoke, with EURUSD and EURJPY reacting in an epileptic fashion; gyrations of 5 – 10 pips per second as the Fed news was breaking. For good measure, and not to be outdone because they have their own agendas, the “Alice in Wonderland” Pols that infect Europe started their own scripts to reporters across the pond.

A very difficult trading environment, with first a 50 pip dip followed by a 100 pip rip, and then a move back to the middle. Stops on both sides taken out and shot. What we are left with is a market that wants, no demands, hopium in large quantities to keep its nerve.

With record short positions still in play, I have no doubt one of the main objectives of Merkel et al is to destroy those who have the nerve to try and make money off the Euro debacle.

“How dare you try and make money off of our stupidity and arrogance!”

Over the years, they have learned very well how to punish the specs; a little hint here, a little hint there, and next thing you know the freight train is running in the other direction. “Oh, so sorry you got stopped out.”

We made 2 trades today, both slightly profitable, adding some incremental return, but really this type of day is to be avoided. Now that the “big news” is out, markets should return to some sort of normalcy going forward, in which we can take good advantage.

End NAV:  0.8997

Have a good day everyone.

-vegas

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