AIN’T GONNA TAKE IT

                                                 Ya Think?

Over the last couple of years far too many brokerage houses have said one thing, then turned around at crunch time and caused me many problems. Here is a list of brokerage houses/banks, and the reason for me leaving;

1)      FX Open – got rid of all U.S. clients,

2)      Saxo Bank – irregular options pricing and off market fills,

3)      All U.S. based brokerage houses – idiotic CFTC & NFA rules on leverage, and other things [like Frank-en-Dodd regulations], as well as a tendency to go bankrupt and screwing customers out of their hard earned money,

4)      Hot Forex – got rid of all U.S. clients, but also had issues with requotes and stops,

5)      Forex FS – changed rules on PAMM accounts and lowered payout, along with sub standard customer service.

Well, you can now add to this list Forex-Metal. While I haven’t closed my account yet, it’s only a matter of time [meaning within the next couple of weeks]. I simply cannot do business with a brokerage house that a) lies to me, and b) refuses to contact me in a timely manner when I have a problem. This latest clusterfark started last Wednesday; it’s now the following Monday, and still all issues have not been resolved because they have refused to call me.

Over the last 3 business days [Thursday (not a Holiday outside the U.S.), Friday, and today] myself and the staff have literally beat the bushes talking to over a dozen offshore [meaning outside the U.S., and not necessarily a “tax haven”] brokerage houses that accept U.S. clients. I have found one, I think, that is acceptable to me. We’ll see in the following days.

I’m also looking into different ways to present trading signals for traders that doesn’t involve exorbitant fees and large trading spreads. So, we’ll also see how that turns out in the days ahead.

The biggest problem we are facing is the fact that at least 80% of most brokerage houses outside the U.S. want nothing to do with U.S. clients. They have made a business decision not to mess with anything that has U.S. in it. Thank you President Gobbels.

Fortunately, I see light at the end of the tunnel; I think we will be able to get something started that involves 1) extremely low spreads, 2) trading signals, 3) verified track record results for the public, and 4) the flexibility for you to decide which methods you think best for you and then use them.

It’s not all tied up yet, and I haven’t yet finalized all parts of the equation, but rest assured we will have the best solution where most people can easily choose the best option for themselves.

What it finally comes down to, is that I refuse to be lied to, and I refuse to accept corporate “happy talk” as a solution. When you consider that their primary job [at any brokerage house] is to keep you trading no matter what, you then realize they will tell you anything and everything to keep you there. Once they break the trust you have placed in them, it’s over for me.

So, be of good cheer, as solutions are at hand, and stayed tuned in the days ahead as we go forward. Trading is hard enough; following the algorithm is hard; having to deal with brokerage house issues shouldn’t be part of the process; and when it is, you have to do something about it.

When I look at the algorithm signals from last week, I should have made a bundle of money; instead I’m down a few bucks, and it makes my head want to explode because brokerage house issues dominated the week and prevented me from getting long on a price explosion upwards. Oyyy !!

Since I have spent so much time the last 5 days dealing with this, I have intentionally delayed answering reader emails. I checked this morning, and I have about 50 emails to go through; if one of them is yours I will get to it in the next day or two; just wanted you to know.

Have a great day everyone.

-vegas

THE NAZIFICATION OF AMERIKA

                    Symbol ForAmerika: It's For The Kids & Fairness

There are 2 things I need to address today. The first is market related and the second is far, far more serious.

Tomorrow is NFP Friday and right now gold has the potential to see tomorrow as one of the biggest bloodbaths you will likely ever see. An upbeat NFP jobs number and with the technical configuration of the market as it is currently, you could see a gap lower that will remind you of Feb. 29.

I’m not predicting, I’m just sayin’. Every blog in existence is bullish. Everywhere I turn I see articles about how gold will explode higher. Uh huh, well how about the downside to this equation? [I hear crickets.]

I was told late yesterday, after my post, that HotForex will no longer do business with U.S. citizens. They will not accept any new U.S. clients, and existing accounts must be closed by the end of business June 5, 2012.

Why?

Simple; they got strong-armed by the CFTC [Commodity Futures Trading Commission]. When I talked this morning with one of the managing partners, he told me the CFTC notified them on Monday [April 30] that they would hold the partners and officers of the company personally liable if they failed to expunge U.S. clients.

Since they need this like they need cancer, and since their U.S. business is relatively small compared to their total operations, they said fine. End of discussion. Bye.

This is the same CFTC that did such a bang up job protecting MF Global clients when Corzine et al stole vaporized $1.6 billion in customer money; same with REFCO a few years earlier.

Of course, we all know what the issue here is. HotForex is domiciled in Mauritius, with offices in Cyprus. They offer evil CFD’s and of course spot gold. They offer funding/withdrawal via e-currency, which the U.S. Treasury says only child pornographers and drug dealers use to escape taxes and detection. In other words, they have tax haven status.

“I’m shocked! Shocked I say!”

[Meaning]

“We can’t track what you’re allowing U.S. citizens to do so we aren’t going to let you do it anymore. And if you don’t do what we want we will make life absolutely miserable for officers and directors of your company. We will tie them up in litigation and do our best to sully your brokerage house reputation. You want a piece of this?”

To those of you that are U.S. domiciled and are U.S. citizens, this should be a gigantic wake-up call showing you the Nazi State you are a part. Somebody please tell me what business it is of government to tell me where [and what] I can trade with my own money?

In the near future here is what is next, all in the name of “fairness” of course and your protection; confiscation [again] of your physical gold; only being able to have a bank account in a government approved To-Big-To-Fail ]TBTF] bank; the end of retirement accounts [IRA & 401k’s]; forcing U.S. workers to buy U.S. Treasury bonds so the government can fund deficit spending when the Chinese won’t do it any longer; eliminating the ability of any U.S. citizens of having brokerage and/or banking outside the U.S.; and finally taking away your passport if the government thinks you owe them money for any reason, no proof needed only suspicion [already in the works].

“That’s right kids; report any suspicious activity by your parents to www.obama.org and help us save the future. Forward!”

If you can’t see what this means you are blind and in denial. I implore you for your own good and that of your loved ones; take measures to protect yourself by getting money and savings OUT OF AMERIKA before it is too late. Use the law firms outside the U.S., at the links on this webpage, to protect yourself. I have no connection with any of them, and receive nothing from them. I link to them because they are all very good and reputable.

As for me, this is like going over a speed bump in a parking lot. No pain just some minor irritation. The website, the commentary going forward, and my trading won’t in any way be hindered; it’s business as usual.

For those of you in my PAMM, please go to the PAMM webpage where I have some additional details [ http://vegaspamm.blogspot.com ] once the trading day is over.

Ultimately, it’s your decision as to what you need to do. Remember, it’s better to be 10 years too early than 1 day late. Or, you can let the Nazi’s tell you what you must do; you know, like the prestigious CFTC, IRS, or EPA. Oh, and let’s not forget Obamacare down the road. This is scary but you have time; do something about it.

Have a good day everyone.

-vegas

MANIPULATION THEORY: PART I

                                          A Stain On Trading 

“Gosh vegas, is there really manipulation going on?”

For those of you still in denial, there isn’t anything I can do for you; you probably still believe in the tooth fairy.

I mentioned in an earlier post some of the hallmarks of successful manipulation. I’m going to address the 3^rd issue first: make sure the manipulation counts.

Aside from the front-running at the JPM proprietary trading desk [prop desk], which is another story for another day, you need a financial firm that can handle the orders and give you cover. What better firm than JPM, which continues unabated every single day violating CFTC position limits and is defendant in a number of Federal lawsuits alleging manipulation?

“Hey, you play ball, we make all these other problems go away; sound good to you guys?”

Ok, you now got the quid pro quo that allows you total access to the financial markets without revealing your identity. We let you front-run; we get anonymity.

“So sorry, we don’t comment on customer activity.”

Next on the list are the “wink wink nod nod” conversations and communications that don’t exist. This allows the front-running to be successful on JPM’s part because they trade in front of the orders and use the size of the manipulators orders to their advantage.

“C’mon man, there’s gotta be something in this for us?”

Besides that, they are privy to when the large sell orders are going to hit the market, so they can position themselves to cover short positions on the way down for their own account. This is borne out by CFTC COT data which shows “commercials” as the biggest buyers on big down days.

Gosh Mr. Regulator, it wasn’t us. Why, we were buying all day long. Anything else we can do to help?”

So, in effect they execute one order and the market does the rest. They get all the chartists and traders rushing in their orders to take advantage of the “new direction”, only they have been had. This explains why the “Lemmings in Asia” [LIA] have disappeared in the last 4 to 6 weeks; they’ve wised up. They now wait and buy the breaks.

Ask yourself this question: why do practically all of the big spikes and drops happen in the U.S. trading session? Easy peezee when you get what’s going on day to day.

This is the new paradigm for gold trading; manipulation on a scale that, up until now, is unprecedented. Get used to it, it’s only going to get worse and more blatant; all in the interests of national security or some such pap they will spin.

Why should you, as a trader, be allowed to profit off the government and their stupidity? I can see the puppets in the media spinning this already. Why not, Chalky Soetero has already declared war on oil traders?

I revised the algorithm to take advantage of these manipulations; it’s available free of charge for traders at the “Get It For Free” at the link.

Have a good day everyone.

-vegas

THE GIG IS UP

                                           This IS Important

Sooner or later the beans had to be spilled. I mean, you can’t keep this stuff a secret forever can you?

I am referring of course to the blatant manipulation of gold led by the U.S. Government and their lapdog institutional hacks JP Morgan [JPM] & HSBC [HongKong & Shanghai Banking Corp].

Two excellent articles, yesterday and today, over at www.zerohedge.com prove my point. Below are the two links in case you missed them:

http://www.zerohedge.com/news/chris-martenson-explains-how-gold-manipulated-and-why-thats-okay#comment-2298764

http://www.zerohedge.com/news/paul-mylchreest-presents-various-visual-case-studies-gold-price-manipulation

Although I have known for years, and have witnessed first hand in the gold trading pit, the blatant manipulation of prices, I didn’t really know exactly the extent of the numbers.

In a nutshell, gold has risen approximately 590% in the last 11 years; if you had simply bought gold at the U.S. open and closed your position at the U.S. close of trading you would have lost 70% over this 11 year period.

In this same 11 period, if you had been long from the Asian open through the European session until the U.S. open AND then gotten short from the U.S. open until the close where you liquidated the short position, you would be up over 5,000% !!

How many of you knew this?

For me, it perfectly explains the “Lemmings in Asia” phenomena, and why my algorithm works so well the vast majority of the time gold rises. I will be the first to tell you, and I have said this in the algorithm manual, that my algorithm has a very definite long bias.

I get emails all the time asking me why I start trading gold at about 11 PM or Midnight [Chicago time]. This time is about half way through the Asian session and goes from there. And this data also helps explain why so many of the algorithm profits come in the early AM hours of the U.S. time zones.

The second document talks about the algorithms the government uses to initiate their manipulation. Fascinating stuff and I highly recommend you read both documents closely.

Both JPM & HSBC have historically held extremely large short positions in both silver and gold futures and options. They both regularly exceed speculative position limits established by the CFTC [that everybody else has to respect] but nothing is ever done about it. The end justifies the means when you are doing God’s work.

Have a good day everyone.

-vegas

WEEKEND EDITION: ALPHABET SOUP, GOLD, AND YOUR FUTURE

                                         It’s For The Children

Doing God’s work here on earth isn’t easy. It takes a special morally corrupt individual to go to work for a six digit salary, get no cost unlimited health care, not be responsible for your work product, get a pension worth millions of dollars, and then think you earned it, all the while bashing private enterprise for "greed".

Yeah, it's called AFCME, SEIU government work.

For us traders, I round up the primary alphabet soup list of government agencies and briefly describe how they interfere interact into your life.

CFTC = Criminals For Trading Commodities

Rogue traders and/or firms have nothing to fear from the most toothless government agency in existence. This place is nothing more than a repository for political appointees who “bundle” money for politicians. A day late and a dollar short should be there official motto.

SEC = Siesta Equities Commission

Has this agency ever prevented a securities fraud being perpetrated on the investing public? Of course not, but……..the GOA [General Accounting Office] after conducting an audit of the agency for Congress, found that most of the staff and administrative professionals loitering about the agency were busy at their office computers watching porn 6 hours a day. No wonder everybody out of college wants to work for the government.

NFA = National Frontrunners Association

This place is staffed with incompetents that couldn’t get hired at the CFTC. Every futures contract traded has a few pennies stolen taken out of your trade, for your protection of course. Absolutely worthless. Front-running orders, by brokers, are still a problem at the nation’s futures exchanges, but don’t look to this outfit to do anything about it. “There’s nothing to see here – please move along.”

                         How Dare You Forget To Send Us Money?

Run afoul of these apparatchiks and you’ll feel worse than a kid getting the business at school.

                        Ultimate Money

Liberals in general, governments, and those interested in controlling other people HATE gold. Why? Because gold is ultimate money and cannot be manipulated for social purposes. Gold cannot be corrupted or compromised by politicians seeking to debase wealth for the purpose of generating power through votes.

Gold doesn’t have “special accounting” issues, or need explaining to anyone. It is what it is: the ultimate store of value.

For trading purposes, governments and exchanges have been manipulating gold for decades. This is probably the biggest open secret in trading. What is important to realize, however, is that all their efforts to diminish the “barbarous relic” have failed miserably.

                              Understanding Government Logic

The latest unsuccessful effort is the Dodd – Frank financial regulations passed recently in the U.S. A little known section of this law is the outright ban of spot gold trading by U.S. brokerage houses for U.S. citizens. WHAT?

Of course, all this has done is make people move their trading accounts “offshore”, to more capital friendly jurisdictions, all the while costing the U.S. jobs and increasing capital flight.

Brilliant move fellas !! Just one of the many reasons I trade spot gold through HotForex. Of course, they happily accept U.S. clients.

In addition, HotForex offers extremely tight spreads, competitive STP [straight through processing] order flow through multiple dealer liquidity providers, and the ability to trade spot gold [XAUUSD] in 1 oz. increments with no commissions.

Add to this, greater flexibility for you the customer, by offering higher available leverage [max 500:1] than U.S. brokerage houses [max 50:1], easy online account opening, multiple funding options with segregated accounts for all monies on deposit, minimum account funding requirements of USD $5, online customer support, and last but certainly not least, being domiciled in the tax haven of Mauritius.

 

            Dilbert Q. Public financial plan

 I know where most of you are at financially, and it isn’t a pretty picture.

What I am suggesting to you is do something about it and start trading “The Vegas BFSG Algorithm”. I don’t know how to make it any easier for you other than just bring suitcases of cash directly to your house [don’t ask; ain’t. gonna. happen.].

Unlike what most of the public believes, you don’t need to be rich or have hundreds of thousands of dollars laying around to get started. Consider the following: 1) I’m giving you the algorithm for free, as in no dinero. You know; nada, zip, zilch, $0 ?????, 2) if you have to start small, HotForex will open your account for as little as USD $5. Don’t believe me? Then go here: www.hotforex.com and see for yourself, and 3) with computer trading technology today, there is no chance you can lose more than you have in your account.

You can open an account with HotForex through the link in the upper right hand corner of this website.

                           An Open Ended Reservation For You

It’s sitting there empty, waiting for you. What are you going to do about it?

 -vegas