Non-Farm Friday – Is our Economy Working?

November 06, 2015 at 08:39 AM EST

Only 37% of NYSE stocks are over their 200-day moving average. Usually, that's the kind of statistic you see in a bear market but, miraculously, our masterfully manipulated markets don't need broad participation to make record highs because the Banksters have very good algorithms that tell them exactly which key stocks to buy to give them maximum leverage while putting as little money as possible into any given index . You would thing the money men would hate anything with the phrase "Al Gor" in it but algorithms are the unsung heroes of the rally, used to manipulate stocks, options, ETFs, commodities, currencies – you name it and they can make it dance ! They also cause very harsh market swings that we human traders are able to take advantage of and our 5% Rule™ at Philstockworld is designed to detect and predicte algorithmic trading patterns so we can bet against them – or go along for the ride – depending on what makes the most sense at any given time. It's very profitable, too. Just yesterday, our long /NG (Natural Gas Futures) trade made over $1,100 per contract as we ran up from $2.26 in the morning to $2.37 in the afternoon. This morning, we made the call at $2.26 again and we just got a $300 run back to $2.29 and we can do this over and over and over again because the machines running the program never get tired or running the same pattern. We can even flip around and short under $2.40 (until it finally breaks) and take those rides down back to $2.26 (until that breaks) and, when our range fails us – we simply wait for the next predictable pattern to form and do it again. That's pretty much all there is to Futures trading these days. While we do pay attention to the overriding Fundamentals that are driving the market (in the case of /NG, we lean bullish because it's getting cold in the winter – duh!), mostly we look for good, predictable patterns in the algos that show up on the charts which we can then take advantage of. Much as we complain about how the markets are blatantly manipulated …

Only 37% of NYSE stocks are over their 200-day moving average.

Usually, that's the kind of statistic you see in a bear market but, miraculously, our masterfully manipulated markets don't need broad participation to make record highs because the Banksters have very good algorithms that tell them exactly which key stocks to buy to give them maximum leverage while putting as little money as possible into any given index.

You would thing the money men would hate anything with the phrase "Al Gor" in it but algorithms are the unsung heroes of the rally, used to manipulate stocks, options, ETFs, commodities, currencies – you name it and they can make it dance! They also cause very harsh market swings that we human traders are able to take advantage of and our 5% Rule™ at Philstockworld is designed to detect and predicte algorithmic trading patterns so we can bet against them – or go along for the ride – depending on what makes the most sense at any given time.

It's very profitable, too. Just yesterday, our long /NG (Natural Gas Futures) trade made over $1,100 per contract as we ran up from $2.26 in the morning to $2.37 in the afternoon.

This morning, we made the call at $2.26 again and we just got a $300 run back to $2.29 and we can do this over and over and over again because the machines running the program never get tired or running the same pattern. We can even flip around and short under $2.40 (until it finally breaks) and take those rides down back to $2.26 (until that breaks) and, when our range fails us – we simply wait for the next predictable pattern to form and do it again.

That's pretty much all there is to Futures trading these days. While we do pay attention to the overriding Fundamentals that are driving the market (in the case of /NG, we lean bullish because it's getting cold in the winter – duh!), mostly we look for good, predictable patterns in the algos that show up on the charts which we can then take advantage of. Much as we complain about how the markets are blatantly manipulated…