iBankCoin
I turn dials and fiddle with knobs to hone in on harmonic rotations
Joined Oct 26, 2011
3,251 Blog Posts

Gary Cohn is out, here is the Wednesday NASDAQ trading plan

NASDAQ futures are coming into Wednesday gap down after an overnight session featuring extreme range and volume.  Price was balanced overnight after an impulsive drop lower on the unexpected news that Gary Cohen would step down from his role as economic counsel to President Trump.  Price worked down near the Monday low before discovering a bid.  At 7am MBA mortgage applications came in worse than last week.  At 8:15am ADP employment data was better than expected.  At 8:30am Trade Balance data was below expectations.

Also on the economic docket today we have crude oil inventories at 10:30am, Fed beige book at 2pm, and consumer credit at 3pm.

Yesterday we printed a neutral day.  The day began with a gap up and slow move higher.  After briefly going range extension up sellers stepped in and close the overnight gap, taking us RE down along the way.  The rest of the day we spent chopping along the daily midpoint.

Neutral.

Heading into today my primary expectation is for buyers to work into the overnight inventory and close the overnight gap up to 6906.  Look for sellers ahead of 6922 and two way trade to ensue.  A check back to the “scene of the crime” to see if sellers truly meant business.

Hypo 2 sellers arrive ahead of 6882 setting up a move to take out overnight low 6798.25 which triggers a liquidation down to 6764.50.  Look for buyers ahead of 6740 and two way trade to ensue.

Hypo 3 stronger buyers rally up through 6920 and sustain trade above it setting up a move to target 6947.75.

Levels:

Volume profiles, gaps, and measured moves:

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NASDAQ higher overnight, here is the Tuesday trading plan

NASDAQ futures are coming into Tuesday gap up after an overnight session featuring elevated range and extreme volume.  Price steadily campaigned higher overnight, taking out the Monday high along the way.

On the economic calendar today we have factory/durable goods orders at 10am then a 4-week T-bill auction at 11:30am.

Yesterday we printed a double distribution trend up.  The day began with a gap down that was quickly resolved.  Then, an attempt lower was rejected when responsive buyers defended the area around last Friday’s NVPOC.  We spent the rest of the day working higher, up through overnight high and beyond, eventually testing above last Thursday’s trend down before close of business.

Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 6877.  From here we continue lower, down through overnight low 6876.  Look for buyers ahead of 6850 and two way trade ensues.

Hypo 2 gap-and-go higher up through overnight high 6926.  Look for to defend the NVPOC from 2/28 (last day of February) up at 6950 and two way trade to ensue.

Hypo 3 stronger buyers take us up to 6960 before two way trade ensues.

Levels:

Volume profiles, gaps, and measured moves:

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Extreme overnight trade ahead of first full week in March

NASDAQ futures are coming into Monday gap down after an overnight session featuring extreme range and volume.  Price briefly worked above the Friday high before settling into balance.

On economic calendar we have ISM non-manufacturing/services data at 10am, then a 3- and 6-month T-bill auction at 11:30am.

Last week markets began strong but by Tuesday sellers stepped in.  The selling accelerated through the week before finding a strong responsive buyer late Friday.  The last week performance of each major index is shown below:

*note the relative strength of the Russell

On Friday the NASDAQ printed a double distribution trend up.  The day began with a gap down to a new low on the week.  The rest of the day was spent steadily campaigning higher.

Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 6805.50.  This sets up a move to take out overnight high 6833.  Look for sellers up at 6845 and two way trade to ensue.

Hypo 2 sellers gap and go lower, take out overnight low 6742.50.  Look for buyers ahead of 6700 and two way trade to ensue.

Hypo 3 stronger buyers trade us up to 6872.25 before two way trade ensues.

Levels:

Volume profiles, gaps, and measured moves:

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“Cautiously optimistic”

Sometimes interesting things happen inside a data set.  A rare quirk that makes you remember the specific rules of your system.  Today’s IndexModel reading is the exact same as the hybrid Exodus score, so the spread between the two is zero.

This has never happened.

If the IndexModel score were one one hundredth lower, it would trigger the bunker buster signal—my favorite signal—an alert of ultra-violent markets that knife lower and ultimately form a tradeable low.

But instead the model is neutral.

I have been bearish based off of extreme model signals many moons ago, back on February 4th.  I laid into Jerome Powell pretty hard last week, and I feel bad now.  He is probably a decent dude, I just saw the uncertainty he introduces to the market, and being bearish, I overly-criticized him to fit my narrative.

That being said he does look soft as pudding, and he is a new character on the scene.

Our authoritarian leader is adding to the uncertainty by meddling with huge economic levers.  I had to dust off the old macro-economics book and chart out a few tariffs as a refresher.  Overall I think it is a bad idea.  We do not like central planning in America.  It seems to work for China.  They will literally force an entire village of humans to move into apartments in some other city.  And it works.

Like some good central planning would be to force everyone in Flint to move to Detroit.  Detroit has everything they need and it is a waste of time, people living out in Flint.  There is no good reason for humans to live in Flint.

But we do not like central planning in America.  Libertarians really don’t like central planning.  I thought republicans didn’t either, but who knows anymore how those bible freaks like to get off.

With algos whispering in my ears, and global economic saber rattling, I am taking the upcoming week real slow, and while I suspect we are in the middle of a correction, I am cautiously optimistic about next week.

TBD

Exodus members, the 172nd edition of Strategy Session is live, go check it out!

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Extreme overnight trade takes price below Thursday low, here is the NASDAQ trading plan

NASDAQ futures are coming into Friday gap down after a session featuring extreme range and volume.  Price worked lower overnight and as we approach cash open price is hovering below the Thursday low.

On the economic docket today we have U of Michigan sentiment at 10am.

Yesterday we printed a double distribution trend down.  The day began gap up, which was quickly filled, then after some violent two-way action price gave way to selling.

Then we went into balance.  But right after lunch President Trump announced a saber-rattling steel and aluminum tarrif directly targeting the Chinese, who are enjoying the end of their annual holiday, Chinese new year.  It sent markets careening lower into the end of the day.

Heading into today my primary expectation is for sellers to press down to 6600 before two way trade ensues.

Hypo 2 buyers attempt back into Thursday low 6689 but are rejected, sending us down to 6600 before two way trade ensues.

Hypo 3 buyers regain Thursday low 6689 and work up to 6764 before two way trade ensues.

Levels:

Volume profiles, gaps, and measured moves:

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Most of last Friday’s rally reclaimed in extreme overnight selling before buyers show up, here is the Thursday trading plan

NASDAQ futures are coming into Thursday gap up after an overnight session featuring extreme range and volume.  Over 100k contracts traded as price worked deep down into last Friday’s trend up.  At 8:30am initial/continuing jobless claims data came out mixed.

Also on the economic docket we have ISM manufacturing at 10am.

Yesterday we printed a neutral extreme down. A violent morning auction eventually gave way to sellers who briefly poked below the Tuesday low.  Then a strong bid came in and worked up through IB high.  Then we traversed the entire range again, eventually closing on the lows.

Neutral extreme.

Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 6881.  From here we continue lower, down through overnight low 6823, setting up a move down to 6791.25 before two way trade ensues.

Hypo 2 buyers press up through overnight high 6898.75 and tag 6906.75 before two way trade ensues.

Hypo 3 stronger sellers close the gap down at 6789.25 before two way trade ensues.

Levels:

Volume profiles, gaps, and measured moves:

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Jerome Powell probably can’t even fix a flat tire

Flat tire.  Stubbed toe.  Speeding ticket.

Problems happen fast.

It is feast and famine at the house of RAUL, I’ve always said that.

When I was young twenties, a jovial lad full of unfounded optimism and pomp it would be some kind of mistake, the regular injustices subjected upon yours truly.

Then I realized mistakes were the day-to-day.  That life was one struggle after another.  And that it was a matter of how you handled yourself during the shit storm that defined you.  That it was either accept cubicle life and bi-weekly stipends or nut up and make something of yourself.

I had a flat tire tonight.  I had a flat tire after an important business meeting in the city.

I do not live in the city.

Are you kidding me?

Live in Detroit?  For what?   The restaurants?  Maybe…but is it worth the exorbitant taxes and potential murder?

At best, maybe, I rent a small space.  A small pad strategically positioned for foolishness.  But to own…they have a long way to come…the Gilberts and Illiches…before Detroit becomes a respectable place to own land.

I left my important meeting.  LISTEN I TAKE MANY IMPORTANT MEETINGS OK?  I am cultivating greatness.  They want to build a SOHO house here.

It takes more than buying SANGAMO at $3 to make a respectable nut in this world.  You have to pander…and kiss..and joke…and rip…and bla bla bla…convince people to sign checks in your direction.

This is something you have to do…otherwise you will end up a pathetic desk jockey earning 75k with 2 maybe three weeks of freedom a year.

Servatude.

Is that what you want?  To help J.P. Morgan earn another 2-3 hundred million a year?

Go ahead.

Live is short.  Real short.  A blip if you are hopeful.  A twitch if we are being realistic.

So I want my twitch to be filled with thrills.

Maybe in the meantime I can convince a few others that it isn’t worth it to shape yourself into the the proverbial ‘productive member of society’.

Into faggotry.

Oh yes, that word…so offensive, with the hard -g.

Funny how humans can take a sound and make it so hurtful…if you let them.

I cannot stand humans.  There I said it.  The smell…the panic and rush they have when racing through Whole Foods.  Pathetic.

Whatever.  Listen.  I had a flat tire tonight deep down in the hood.  In a place where a lesser man, like a Jerome Powell, would freak out and call an Uber Black…a place where a Jerome Powell would worry about being shot.  Deep down in the hoods of Detroit.

Which is ironic.  Because since I arrived back home here in the murder mitten I have been lining up this joke—that anyone making fun of the pot holes hasn’t played enough video games.  Because video games sharpen your ability to react to obstructions.

Anyhow my tire went flat on the east side in a place famed to be the most violent in town.  Jerome Powell would have dialed 9-1-1 and stayed inside his locked car until police officers—-women and men who have much more important things to do—arrived and carted him to safety.

Which is fine.  Lifes been good to Jerome so far.  But I had to handle that shit on my own.  Tire iron in fist, heater on hip, come at me.  The tire was fixed manually.  The ride home uninterrupted.

Whatever.  It doesn’t make me a better citizen then Jerome Powell.

I am home now and still bearish. It will take a spring miracle to make me bullish.

Or two weeks of nothing…like sideways nothing.  Then I will be bullish again.  Hopefully  between then and now Jerome Powell can learn to stop spilling Federal Reserve secrets and start behaving like Queen Yellen bitch slayer so all us open market investors can continue making money.

Hopefully Jerome Powell stops catering to the money market account crowd.  The private equity crooks.

Doubtful.

But maybe.

We have to stay objective even if we have no real way of trusting our leadership.

Worst case we flea to Canada and commit to snowboarding.

Which is honestly totally cool.

TBD

 

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Not a risk taker’s market

I have to make this communique brief as I’m juggling five plates and have two more that need to start spinning.

I just got back in town.  I just got back after three-four weeks living on the fringe of society, burning donkey shit in the desert to keep warm and shit.  And if you think that means I have less visibility on the financial markets then you, then you will be quite perturbed when I tell you quite the contrary.

This is not the type of market I initiate risk in.  First of all my benevolent robots, my only consul in the art of financial war, my loyal leaders, the ones who never flinch and always offer only the highest level of objectivity.  Those kind robots, they saw something.  Here is the note I issued, on their behalf, three weeks and three days ago:

CORRECTION-LIKE BEHAVIOUR. There words, not mine.  I am simply a vessel which they speak through, much like your God spoke to the disciples while they wrote the bible.

So there’s the robots.

Then there is something all investors can agree sucks—uncertainty.   Uncertainty at the top, no less.  Anyone with a brain knows that capitalism is what makes the world turn.  That banks are the foundation stones of capitalism.  And that the Federal Reserve is the lender of last resort—the ultimate banker—the banker of bankers, or king of kings as they said in biblical times.

I am being told to trust Jerome Powell.  To love Jerome Powell.  To tithe my savings at the feet of Jerome Powell.

This is what I see when I look at Jerome Powell.  I see a private equity goon like Fred Wilson, the type of guy who amassed incredible financial gains before dumping his flotsam on the general population via IPO.  I see a fucking attorney, ready to send me a nice letterhead asking for a gratuitous retainer.  I see a consultant who is suited and booted before 10am.

I do not trust anyone wearing a suit before 2pm, as a rule of thumb.

Uncertainty.

Also he answers questions.  Janet Yellen did not answer questions.  She told drawn-out stories like all nice grandmas do.  Grandma Yellen was kind.  Grandma Yellen gave us butterscotch candies even while we were being little shits, running Tesla and Google to unspeakable valuations.

Jerome Powell goes to the House Financial Services committee and in no time he’s answering questions, look:

Wow bro, why don’t you just tell them everything about our precious QE?  The greatest tool the Federal Reserve ever created, a tool developed by Benjamin ‘blunt’ Bernanke.  He needs to learn to be more vague.  Until he does, and he will, uncertainty.

All that being said, I have not reduced risk.  That is not entirely true.  I did scale part of my SANGAMO position last week.  I sold 1/3 of the position from inside a frozen RV.  I sold it because it took out $25 and that was the plan ever since it was trading at $3.  This is not a fucking game.  This is good business.

While we firmly believe in the core thesis of CRISPR, that super rich folks like Jerome Powell, with extravagant lake houses and families, that these rich people do not want to die—that they will invest their dollars in any idea that promises immortality—that these rich people control a vast percentage of the world’s investable money—and that they do not want to leave the mortal world because it is a pretty dope place for them to hang out and do cool shit—that they will funnel money to CRISPR ideas like SANGAMO.  While we believe this core thesis, we are also realistic and know that all true advancement is out on the horizon, on the proverbial 4-years from now’ timeline, a place where scientists dream and scheme…and often fail—realistically.

AND WE ARE HERE TO CONDUCT GOOD BUSINESS.  Good business in the financial markets comes down to PLAN AND EXECUTE.

It is not pretty.  No one will have sex with you because you are good at taking 100,000,000 data points, parsing and analyzing them, and churning out a statistical advantage on a Microsoft Excel spreadsheet.  There will be no cheering fans when you flawlessly execute.

Is that what you need?  To be recognized?  And for what?  To what end?

In the words of Lily Allen, “I want to be rich and I want lots of money.  I don’t care about clever. I don’t care about funny.”

Said money will be used to obtain land as far north as my constitution will allow.  Said land will be equipped with enough solar, batteries, and robotic facilities to ensure I can sit back sipping mead while the malaise of human propagation happening in major city centers goes full  pitch fork, egging each other over meaningless freedoms like assault rifles and opiates.

So like I was saying, I am not reducing risk.  But I am also not assuming new risk.  The morning reports, the ones prepared every morning from inside mothership, are showing me an orderly market that is behaving with my price levels, the best price levels in the game, and that we are balancing just below record highs.

These aren’t exactly bearish conditions.

Nevertheless, I am a bit bearish.  I am giving sellers another 10-12 days to show up before I start mashing the buy button.

So it is written, so it shall be.

Ciao

 

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NASDAQ gap up, recovering some selling seen after Jerome talked to Congress, here is your month-end trading plan

NASDAQ futures are coming into Wednesday gap up after an overnight session featuring elevated range on extreme volume.  Price made a new weekly low overnight before discovering a bid and trading back near the Tuesday midpoint.  At 8:30am GDP data came out better than expected.

Also on the economic docket today we have pending home sales at 10am and crude oil inventory and 10:30am.

Yesterday we printed a double distribution trend down.  The day began with a violent two-way auction which eventually gave way to selling once the world heard Jerome Powell speak to Congress for the first time.  The selling continued, methodically, right down to the open gap left behind from last Friday—down at 6909.

Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 6917.50.  From here sellers continue lower, down below overnight low 6893.25.  Look for buyers just below at 6890.50 and two way trade to ensue.

Hypo 2 buyers gap-and-go up through overnight high 6945.75 and continue higher, up to 6977 before two way trade ensues.

Hypo 3 stronger buyers trade up to 7000 before two way trade ensues.

Levels:

Volume profiles, gaps, and measured moves:

 

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New Fed overlord Powell to testify to Congress Tuesday, here is the NASDAQ trading plan

NASDAQ futures are coming into Tuesday flat after an overnight session featuring elevated volume and normal range.  Price was balanced overnight and traded along the upper quadrant of Monday’s range.  At 8:30am Advance goods trade balance and Durable goods orders both came in below expectations.  At 9am the Case-shiller home price index came out better than expected.

Also on the economic docket today we have consumer confidence at 10am.  At the same time, new Federal Reserve chief Jerome Powell will begin testifying to the House Financial Services Committee.  This will be our first time hearing how the new Fed chair handles Q&A in Congress.

There are also 4- and 52-week T-bill auctions at 11:30am.

Yesterday we printed a double distribution trend up.  The week began with a gap up and early drive higher.  The morning featured a bit of two-way action before buyers ultimately stepped in and initiated new risk, slowly trending the market higher for the rest of the day.

Heading into today my primary expectation is for buyers to work up beyond overnight high 7009.  From here buyers continue higher, up to 7018.50 before two way trade ensues.

Hypo 2 sellers press down through overnight low 6977.25, setting up a move to target the naked VPOC at 6960.  Look for buyers ahead of 6946.50 and two way trade to ensue.

Hypo 3 stronger sellers work a full gap fill down to 6923.50 before two way trade ensues.

Levels:

Volume profiles, gaps, and measured moves:

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