THE BEST CRIMINALS ARE THOSE WHO CONCEAL THE CRIMES BEST OR.....
Here is a picture above of a crime scene followed by a picture of a criminal.
The question is, which is a worse deed? Is it the constant meddling of the PPT in every down day in the stock index futures? Is it one of the most notorious criminals in the history of the financial services business, being protected by a corrupt president, blatantly stealing money from clients with impunity?
I am not quite sure. I suppose in the first case they would argue they are protecting the public interest by making sure the markets stay stable. On some level there is merit to that argument as much as I don't like these constant interventions. I just think markets should be allowed to trade freely, and that a company like Bank of America should not be able to go for months without a single losing trade in their prop trading. ( are they really that good or might they have someone whispering in their ear at convenient times? ) It is also beyond shocking that in the face of being caught absolutely red handed stealing customer money, in a direct violation of the law, that Corzine is being protected by his cronies.
Both of these instances are par for the course in the F You I won and will do as I please administration. There are countless examples of things like this. The real question is, what do we do about all of this? Since we know with a pretty good probability, that any significant down days are going to have an attempt to lift them at the close, why not just devise a trading system to ride along?
I have been trying to do this and it is somewhat challenging. Just buying down days at certain times has not yielded good results, basically a coin flip yields the same thing. What this leads me to is that these guys are being more crafty than I thought about how and when they launch these buy programs. I knew it would not be so easy as to just say buy every day if we are down for the day at X time.
Here are some of those results:
This is buying around noon every day at the 3 bar high on a 5 minute chart, and exiting at the close. Obviously this is no good.
I was really surprised to see this result, it is from 2010 forward and it is the E Mini S&P. The next result is buying on a limit starting at noon, at the lowest low of the last 3 bars. This result also is no good.
Here we get a lot more trades, but a lousy result all the same. There are many other ways of looking at this, and I will keep touching on this subject as I research it. Readers know I am not a big fan of trading really short term intra-day charts, so this is not a top priority for me. However, I know there is something here and I am going to find it. Right or wrong, yesterday showed us once again, there is a powerful force out there that is saving these down days one after another. It is our job to figure it out and take advantage of it. We have certainly seen no evidence to suggest, that public officials even remotely consider what the electorate thinks about anything they do.
We are at the time of the year where we should see some type of dip in the stock market, but the daily chart is becoming a chop fest.
The above chart shows a market clearly not following the rules at all. The seasonal has been dead wrong here for a while now. Usually when this type of thing happens, I just ignore the seasonal until price comes back in sync with it. As a result, I do not expect a decline to occur just because the seasonal says it should. I do however, see a market here that is on the verge of rolling over. Often these types of looks just break back out on the high side, but if this were to break down and close below this little ledge here, we may have a bit more of a down move that will follow it. I don't have any signals in either direction today in this market, so I have no orders working in the ES currently.
For the time being anyone wanting to sign up for the Bond Service can send me money through Pay Pal, just sent it to me as an individual. There are a few people that have done this. I have a snag with Pay Pal getting the links into the web site. I will have this resolved soon, but it could take a couple of weeks. Regulations! If there is anyone reading who has extensive experience with Pay Pal please contact me at firstname.lastname@example.org.
Here are the results from last months trading with the service, we are off to a good start: