EUROS RULE AND KNEE DEEP IN .........
You think I got a mess on my hands with the PFG wipeout, get a load of this? This is pretty much what knee deep in shit looks like. Vinny likes to go swim in our pond, then come back up top and roll in just about anything he can find to roll in. He does this every day so when I come home, it is basically like washing a car because of how big he is. I have to wash my car/Vinny every day. I just thought maybe some might get a kick out of this. I have learned to laugh at myself, because you just have to get away from the stress of every day life. This is especially true as a trader.
The daily PFG update is as follows. I talked to the trustee's assistant again yesterday and it appears they are waiting on the courts to give them some direction as to the asset classes, before they can file any motions for a transfer of funds. There is no way of knowing what the delay is, but I am hoping the Sentinel case ruling is not the reason. I don't know if there is any one large creditor like Mellon Bank was in that case, let's hope not. If there is we could be looking at a 100% loss. That legal decision is beyond belief to me in this country. I think we all know judges are the single largest problem we have in this country. I would just once like to backfist one of them. I remember once in my fiery younger days, dealing with an attorney at our dog park. He was just a nasty little punk. I was always worried about popping him one, because he was always threatening to sue people in front of us.
One night however as luck would have it, my chance presented itself. I was walking my dog down a path and ran into him, with nobody else around. He started running his mouth about something when we passed, said he was going to sue me for something. I got real close to him, within inches, and asked him how he was going to sue me if he was 6 feet underground? The little wimp just ran away as fast as he could, and never gave me any lip ever again. In fact he never came back to the dog park we hung out at. The point is someone needs to have a chat or two with some of these judges. I would assume there was either some political pressure put on this appeals court, or some illicit tie to Mellon Bank. This decision makes no sense on any other level that I can conjure up. This company took segregated funds illegally, and used them as collateral to get a big loan from Mellon Bank. They subsequently defaulted on that loan. The judges have ruled then that Mellon should be in line as a creditor for assets, ahead of others including those who had the segregated money that was stolen to get the loan! Quite frankly someone just needs to beat this guys ass PERIOD. It is time not to be nice in that instance in my opinion, the system has once again failed those it is supposed to protect.
It does appear there is insurance that can be bought for protection against the PFG and MF Global situations, and I am waiting on some quotes right now. It is clear to me that things are moving in the opposite direction in terms of the courts on these matters, and I am not waiting for Congress or anyone else like the MERC to do something. I don't believe they will do anything prior to the next one of these episodes occurring. Trust me there are going to be many more. Assuming the insurance is reasonable, it is a cost of doing business as a trader. The Canadian option is also something that some IB's I have talked to are looking into. There are some draw backs to that option, so stay tuned. I will give this information out as I get it.
It does appear to me now that we are about to lift off once again in the stock market. The trend is about to change back to up, assuming this gap I have marked holds through the end of this week.
There was a small gap that is hard to see but it was there during the last move down a couple of months back, that had shifted the trend to down. Now it appears we are about to shift back into up mode, so this trend method got whipsawed here. It happens. This is not a trading system, it is just a way of determining what side of the market to trade. I then look to shorter term things to make actual trades. In this case the only short I took was that Russell trade I showed the other day, that wound up a scratch. I just never had any of my sell patterns show up, which is why I do this top down approach. The second level of filtering saved me from losing money here as this market has taken off again. We seem to be back into this light volume, PPT controlled, up drift. This light volume is heaven for the PPT, it is so easy for them to make a save when it is like this.
I have been looking to get long Silver today, but it does not appear now that my orders are going to be filled. This is such a large range that even if we go up to my entry price, I am going to try and enter on a retracement. Often I miss trades doing this, but I have to get my risk lower than I used to for obvious reasons.
The Bond Trading System has been quiet the last few days. For those trading it be patient, this does happen from time to time. We have had a gangbusters start, so just be patient.
The reason I said Euro's rule in the topic was just alluding to the accuracy of the EURO Commercials in predicting our stock market. They nailed it once again, INCREDIBLE. I think in all my years of studying the markets, that chart and it's predictive power, is the most befuddling thing I have ever come across. There is absolutely no reason why that should work other than some incredible intricate tri-lateral commission type of conspiracy theory. Even that doesn't explain this to me due to the one year lag.