Total G-3 Central Bank Control

20
Tue, Aug 29, 2017 - 4:10pm

There's a lot of amazement and wonder at how the "stock market" can be up today with the devastating news out of Texas and the latest North Korean missile launch. Longtime readers of TFMR know exactly how this market levitation is accomplished so this post is designed as a public service in order to better educate and inform everyone else.

Let's just keep it simple...

In 2017...and, actually, since 2008...the "markets" don't actually exist. Oh sure, there are trades and prices but in terms of what the markets were 20 years ago?...those days are long gone. Instead, what we have now is total HFT domination. Over 90% of all volume on the NYSE and NASDAQ is now done through HFT machines that swap positions back and forth. This is common knowledge and if you and I know this, then you can be assured that The Fed, The ECB and the BoJ (known henceforth as the G-3) know this, too.

To that end, since the G-3 are dedicated to market stability and the wealth effect, these central banks clearly seek to influence the direction of the equity markets by influencing the two key drivers of the HFT machines. And what are these drivers? The currency pair of USDJPY and the volatility index known as the VIX. Simply stated, if your wish is to drive "the stock market" higher, all you need to do is buy the USDJPY while at the same time selling the VIX. It truly is that simple.

To that end, daily observation of trading patterns allows us to observe a clear and obvious, algo-driven program in the all-important USDJPY. Because of the sheer size of the forex market (up to $7T/day), any algorithm put in place to manage this pair could only come from pockets deep enough to make it happen....namely, the G-3.

And what does this computer-based, G-3 buying program look like. Again, in the simplest terms, this program sets up a USDJPY floor at some pre-determined or even random level. Once a bounce is initiated, a buy program then follows after the pair have come back down to a newly-discovered double bottom. For today (Tuesday, the 29th), it looked like this:

By driving a rebound in the USDJPY and selling off the VIX, the G-3 get the desired impact of a recovering "stock market". These screenshots were taken earlier today as the equity bounce was in progress:

Now, lest you think this was some kind of one-off and that my tinfoil hat is on too tight, please check the charts below. Here's a chart of the USDJPY from last evening after the Nork news hit:

Here are three charts from last week:

Here are just four from earlier this month:

And here are just a handful of occurrences where we caught the G-3 redhanded in July:

LOOK, YOU SIMPLY MUST UNDERSTAND THIS:

What you see is an illusion and a mirage. Since the financial crisis of 2008 and particularly since 2012, the global central banks have moved to assume nearly full control of the global markets. They do this through influencing the key inputs which drive the HFT machines that control nearly every "market". So going forward, when you're perplexed as to how the stock market could be up on a day when the news is all so bad, just simply check the all-important USDJPY and VIX and you'll have your answer. And yes, we have now reached the point where the stock market won't decline even in the face of a nuclear event or natural disaster. So long as the USDJPY and VIX are unchanged, the S&P will be unchanged too, regardless of a nuclear bomb in Times Square, an earthquake in Tokyo, a massive bank failure in Europe or any other type of "disaster".

Lastly, what does this have to do with Comex Digital Gold? Well, as we first discovered and reported back in 2014, The Bullion Banks have their own algorithms which have tied the price of "gold" to the USDJPY , as well. Simply put, if you want the gold price to go higher, you need the USDJPY to fall. Period and end of story. All other technical and fundamental factors are largely meaningless. See the charts below where the inverse USDJPY is plotted in candles and Comex Digital Gold is a blue line.

One day (Today, Tuesday 8/29):

One week:

One month:

Six months:

One year:

Five years:

HFT now controls everything and the global central banks (but primarily the G-3) seek to control the HFT. Once you admit and understand this, the daily action of the "markets" will no longer confound you.

TF

www.tfmetalsreport.com/subscribe

About the Author

Founder
tfmetalsreport [at] gmail [dot] com ()

  20 Comments

  Refresh
Aug 30, 2017 - 11:16am

USDJPY

We've been watching this 2-point range be enforced all month. As anyone can see, the sudden spike yesterday allowed it to continue.

AGXIIK
Aug 30, 2017 - 11:01am

The new paradigm in dog years

Every year we tolerate this bullshit is the equivalent of 7 years off our emotional and psychological lives.

OOOBuck
Aug 30, 2017 - 9:33am

OK - it's a new paradigm

OK - it's a new paradigm

Stock markets are controlled by HFTs
HFTs are just machines programmed by the G3
HFTs programmed not to respond to external events (operate in counter point to any surge either up or down).
(ie the nuclear holocaust takes place on Monday, New York in light trade on Tuesday closing flat on the day)

WHAT'S IT ALL MEAN?

Even a major black swan event may not be sufficient to drive up the paper price of gold.
As I see it, only one thing can do that..... demand for physical delivery outstripping warehouse supply. The machines are dumb-struck outside of the 'virtual' world and will continue to trade paper as always but the price of physical will soar and the scales will fall from the eyes of even the most ardent skeptic of market fixing (are you there Trader Dan?).

Can it happen? Absolutely! The question is when (I'm not getting any younger).

twippers
Aug 29, 2017 - 9:20pm

The big question

is.... how long can this go on? In reality it could be another 10 years. Wtf knows? The wolves are in charge of the hen house.

Ozymandias
Aug 29, 2017 - 7:00pm

Thanks for making this public

You are able to communicate what I try to explain and simply can't get it out as clearly as you.

JackPutter
Aug 29, 2017 - 5:36pm

Issues with pugs, and friends of the step daughter

"Lady" the pug hasn't come to visit for many years. I've been wistfully thinking I might go find another energetic partner, but I have to measure my priorities carefully nowadays.

I keep finding people to rescue. Many are kind of beyond help as they can't seem to generate better choices for themselves.

goldfanbrad
Aug 29, 2017 - 5:30pm

NEO (antcoin) and bitcoin

So how much of todays bitcoin rise is due to the 20% fall in NEO (antcoins) due to China's ICO decision?

AGXIIK
Aug 29, 2017 - 5:29pm

Jack Putter Whoa Dude! You are way to close to truth

I've only seen cousin IT

So I put this in 'I shit you not category'

Personalized plates Morticia.

Dad's name is Hef---as in Playboy Hefner.

The bumper stickers are all the Goth, Coexist, and weird stuff you see after a THC-fueled fortnight at The Burning Man Festival

The IRS dude better watch his 6. There have to be 3 families living in one home, a bed sitter and a conex box with windows

Visit the FAQ page to learn how to track your last read comment, add images, embed videos, tweets, and animated gifs, and more.

benque
Aug 29, 2017 - 5:22pm

Yes Jack

Or they might even be Turdites!

By the way, when is the big day? Does your wife know about your plan to elope with a pug?

JackPutter
Aug 29, 2017 - 5:19pm

The Mole people could be the local laundromat?

They could be "soveriegn" people? They might be a recent ICO? A coven of witches in direct competition with the IRS? Now I'm in th realm of conjecture.

Subscribe or login to read all comments.

Become member and subscribe to Turd's Vault

Contribute

Donate Shop

Get Your Subscriber Benefits

Private iTunes feed for all TF Metals Report podcasts, and access to Vault member forum discussions!

Key Economic Events Week of 4/12

4/13 8:30 ET CPI
4/13 12:00 ET Goon Harker
4/14 8:30 ET Import Price Index
4/14 12:00 ET Chief Goon Powell
4/14 2:45 ET Goon Chlamydia
4/15 8:30 ET Retail Sales
4/15 8:30 ET Philly Fed
4/15 8:30 ET Empire State Manu
4/15 9:15 ET Cap Ute and Ind Prod
4/15 2:00 ET Goon Daly
4/15 4:00 ET Goon Mester
4/16 8:30 ET Housing starts

Key Economic Events Week of 4/5

4/5 9:45 ET Markit service PMI
4/5 10:00 ET ISM service PMI
4/5 10:00 ET Factory Orders
4/6 10:00 ET JOLTS job openings
4/7 9:00 ET Goon Evans
4/7 12:00 ET Goon Barkin
4/7 2:00 ET March FOMC minutes
4/8 12:00 ET Chief Goon Powell
4/9 8:30 ET PPI
4/9 10:00 ET Wholesale inventories

Key Economic Events Week of 3/29

3/30 9:00 ET Goon Quarles
3/30 10:00 ET Consumer Confidence
3/30 2:30 ET Goon Williams
3/31 8:15 ET ADP Employment
3/31 9:45 ET Chicago PMI
3/31 time TBA Biden Infrastructure speech
4/1 9:45 ET Markit Manu PMI
4/1 10:00 ET ISM Manu PMI
4/1 10:00 ET Construction spending
4/2 8:30 ET BLSBS

Key Economic Events Week of 3/22

3/23 9:00 ET Goon Bullard
3/23 12:00 ET CGP and Mother on Capitol Hill
3/24 8:30 ET Durable Goods
3/24 9:45 ET Markit Flash PMIs March
3/24 10:00 ET CGP and Mother on Capitol Hill
3/25 8:30 ET Q4 2020 CDP final guess
3/25 12:00 ET Goon Bostic speech
3/25 3:45 ET Goon Chlamydia speech
3/26 8:30 ET Personal Income and Spending
3/26 8:30 ET Core Inflation
3/26 10:00 ET Consumer Sentiment

Key Economic Events Week of 3/15

3/15 8:30 ET Empire State Index
3/16 8:30 ET Retail Sales
3/16 8:30 Import Price Index
3/16 9:15 ET Cap Ute and Ind Prod
3/16 10:00 ET Business Inventories
3/17 2:00 ET FOMC Fedlines
3/17 2:30 ET CGP presser
3/17 8:30 ET Philly Fed

Key Economic Events Week of 3/8

3/8 10:00 ET Wholesale Inventories
3/10 8:30 ET CPI
3/10 2:00 ET Federal budget
3/11 8:30 ET Initial jobless claims
3/12 10:00 ET JOLTS job openings
3/13 8:30 ET PPI
3/13 10:00 ET UMich sentiment

Key Economic Events Week of 3/1

3/1 9:45 ET Markit Manu PMI
3/2 10:00 ET ISM Manu PMI
3/2 1:00 ET Goon Brainard
3/3 9:45 ET Markit Service PMI
3/3 10:00 ET ISM Service PMI
3/3 12:00 ET Goon Bostic
3/3 2:00 ET Goon Evans
3/4 8:30 ET Unit Labor Costs
3/4 10:00 ET Factory Orders
3/4 12:00 ET Chief Goon Powell
3/5 8:30 ET BLSBS

Key Economic Events Week of 2/22

2/22 10:00 ET LEIII
2/23 9:00 ET Case-Shiller home prices
2/23 10:00 ET CGP at US Senate
2/24 10:00 ET CGP at US House
2/24 1:00 ET Goon Chlamydia speech
2/25 8:30 ET Jobless claims
2/25 8:30 ET Durable goods
2/25 10:30 ET Goon Bullard
2/26 8:30 ET Pers Inc and Spending
2/26 8:30 ET Core inflation
2/26 9:45 ET Chicago PMI
2/26 10:00 ET UMich sentiment

Key Economic Events Week of 2/15

2/17 8:30 ET Retail Sales
2/17 8:30 ET PPI
2/17 9:15 ET Cap Ute and Ind Prod
2/17 10:00 ET Business Inventories
2/17 2:00 ET January FOMC minutes
2/18 8:30 ET Initial jobless claims
2/18 8:30 ET Import price index
2/18 8:30 ET Philly Fed
2/19 9:45 ET Markit Feb flash PMIs

Key Economic Events Week of 2/8

2/8 12:00 ET Goon Mester speech
2/9 10:00 ET JOLTS job openings
2/10 8:30 ET CPI
2/10 10:00 ET Wholesale Inventories
2/10 2:00 ET Chief Goon Powell speech
2/11 8:30 ET Initial jobless claims
2/12 10:00 ET Consumer sentiment

Recent Comments

Forum Discussion

randomness