Boy, Am I Glad…

UPDATE 10:50am EDT: Boy, am I glad to be in cash today:

It’s going to get to the point where it’s going to be only Goldman playing with itself. This tape has become almost untradeable and I recommend all you rats to play it extremely small – unless you are a day trading hound like BalaB.

UPDATE 11:07am EDT: I think today is the perfect day to point you guys to this article posted last week by ‘GamingTheMarket’.

BTW, for you bean counting rats: We just rallied 20.64 SPX points in about an hour.

UPDATE 12:02pm EDT: Deja Vu?

The last bid actually made me crack up when drawing it. Alright, I’m grabbing breakfast – hold the fort and share the love a little.

UPDATE 1:00pm EDT: I’m back to work but not amused. Seriously, this is the type of tape where I mentally check out. I’m very hesitant to make any calls due an increasing factor of randomness as expressed by those wild swings. evil.rat/NQ is getting wipped around and I actually told subscribers to ignore one of the alerts. Second time in a week – and fortunately it turned out the right thing to do.

I’m all in cash and am hating this – as you know I rarely daytrade and on a day like this the best I can offer is to stay the hell out. IF you are trading evil.rat today (the NQ might get another signal – ES is flat right now) I recommend you only use one or two ITM SPY options. Keep it tiny.

BTW, the same should apply to tomorrow as we’ll get an FOMC meeting announcement in the early afternoon. So we should probably expect some wild swings ahead of that.

UPDATE 2:22pm EDT: This tape is completely fucking random and I have very little to contribute right now – sorry. We kept bouncing back up and down against the lower NQ VWAP (about 1367) and just broke back through again. I have told my all evil.rat subscribers to ignore any further alerts as the chart I posted above seems to turn into reality.

The point I would like to make however is that we are probably seeing the onset of a major market dislocation in equities. The gyrations of the past week are only increasing in intensity and participation, although strong today, appears to be dissipating. This makes trading any type of equities extremely hazardous and I might start looking at other sectors to compensate. The whips in Gold for instance almost appear mild in comparison these days…

So, your mission – should you choose to accept it – is to identify non-equitiy trading opportunities and bring them to our collective attention. We are talking anything commodities related of course, currencies (probably ETFs), treasuries, etc.

UPDATE 3:49pm EDT: Finally – the last ten minutes of this shit. I won’t be posting a wrap up today as I’m in an extremely bad mood. On top of this horrid tape I was just alerted to the sad fact that some asshole was relaying evil.rat alerts on some public forum. I already know who it is and have already let him know that he just violated his subscriber agreement which is part of the sign-up process (remember the long form full of disclaimers – it’s in there). His ass will be terminated immediately if I see this happen again.

Anyway, I’m outta here – had enough for today.

Peace,

Mole