Thursday, June 30, 2016

Another dumb uninformed article from CNBC / Wall Str Journal

CNBC claims machines had advantages over humans in Brexit trading because they are not "emotional" and that humans have "projection bias" and "hope" for a positive outcome.  Totally uninformed crap.  Here's the link:

This article is total BS.  People weren't guided by "hope" for a positive outcome.  Most traders i know love chaos in the markets because there's the possibility of making money if the mkt collapses rather that melts up. There is no "projection" bias crap in this case, rather just a lot of polling propaganda that steered peoples' expectations into thinking bremain would win out.  Fact is that a lot traders thought there was no way brexit would win, that even in the small chance brex woulda won that they would've RIGGED the polls in favor of EU.  Also, no one thinks bremain was a positive outcome for anyone but the elites and stock markets.  And lastly i will add, this article is misleading, most algos actually lose money, they are programmed by losers in general, and the code has to be constantly tweaked.  

The big winner that keeps getting carted out in the media is Soros.  But they fail to mention that Soros trades on insider information and loves to capitalize on world destruction.

As far as CTA's winning because they have computers trading for them, ridiculous assertion.  Big CTA's put hedges on before a big binary event to balance out their deltas and hedge their long book.  The vix started spiking 2 weeks before the referendum, prior to that the S&P options had volatility premiums way in the low end of their spectrum.  Big hedge funds were buying OTM puts when they were cheap.  Doesn't take a computer / genius to figure that one out. 

Tuesday, June 28, 2016

Gotta love this rather Dickensian image that accompanied CNBC 's brexit article yesterday.

Alot of gloom out there, as conveyed through above illustration, with Frexit on tap and then of course you got Guixit and Spixit up on deck.

When the people have nothing left, they have nothing to lose, something the elites have not quite grasped.  So no matter what threats and bastille-like scare tactics the euro-loyalists proffer, they have yet to face the consequences that in a corporate welfare system where all the wealth gravitates to the privileged few, that the hungry masses are apt to rebel and will be trepidated no further by the establishment propaganda (which is always demoralizing and condescending to the proverbial "little guy").  These are Jacobin times upon us.

Of course, the only ones who are about to lose, and lose in a massive way, are the big financial institutions, the ultrarich, and the multinationals.  England, a feudal backward little mess of an island, the hallmark of the middle ages, is very important for the financial elite.  London is a portal.... a portal through which numerous offshore tax shelters are setup.  A nexus of nefarious banking activity. Command control center for the international banking mafia.

People may be celebrating now for the plebeian victory over the Eurofascist beurocracy tyranny, but the arena is large and this is just a small campaign in a much larger battle.

Behold the fourth reich, better know as the European Union

Thursday, June 23, 2016


Gold could take a hit tomorrow, post-brexit poles, and if it does, it could be potentially massive.

What we have have seen over the course of the past couple months in this gold consolidatory bull flag formation is the highest number of speculative buying since the 2011 gold highs, and the commercial hedgers have built up record short positions in gold.  That doesn't mean much on its own until you take into account that physical demand for gold has been falling in India and elsewhere and it's only the speculative paper demand that is rocketing higher. 

Early summer is a seasonally weak period for gold.  The speculative call option buying will be unwound if gold fails to rally which will exacerbate the gold selloff even further.

Gold is particularly vulnerable at this juncture to coordinated efforts by bullion banks to push the price down knowing it will trigger an avalanche of selling by the speculative dumb money.

In any event gold tends to rally for all the wrong reasons, as desperate fringe elites like jim rikards, james turk, etc etc and all the punters you find on sites like King World News, never up for a real challenge, try to make the case for $10,000 gold so that they can line their pockets in a frenzied bid for low hanging fruit.