Mind The Bounce – Tomorrow Should Confirm

It’s been a great run, but markets look set to bounce here with the SP 500 finding support area around 1880.

Long JPY trades closed, as a “swing low” on daily charts ( when tomorrow’s closes “higher” than today’s high ) should confirm a short-term move to the upside.

This will be a bounce, but considering volatility these days one can’t say for certain just how “big a bounce”.

Technical damage to markets is massive. I expect we float /drift sideways for the next couple weeks – offering few decent trading opportunities.

Stack all the cash you’ve recently made long JPY / short risk and go hit the beach for a couple of days. You won’t miss a thing.

 

 

 

Weekly Charts – Confirmation We Go Lower

The weekly charts in SP 500 and Dow now clearly broken.

We move lower here….like weeks lower…so don’t get caught buying dips!

We sell rips in this environment so what you are looking for are strong “daily closes” in order to find higher levels to continue to “add short on”.

Find “max green” intra day / week  to continue loading short.

Long JPY the biggest winner ( as you guys already know this! ) with Commods like AUD getting punched in the knee.

Looming buys in both EUR and GBP vs USD but likely not for a few days…..legging in as soon as this evening /  late afternoon tomorrow.

 

 

 

 

Year 2016 Starts Now! – Get With The Program!

A fantastic start to the new year with equity markets in particular – showing their hands early.

Today looks fantastic as currency markets are essentially `giving us the day to catch up`….with little movement in USD itself – but OBVIOUS movement in JPY as risk sells off hard.

You guys know this…..this should look very straight forward at this point as the clear trade is still Long JPY vs Commods….as well short USD coming up here again soon.

These pairs are a given as risk falls off the cliff, while we get another full day ( or two more perhaps ) before USD rolls over and `those` pairs get added to the pile.

I wish it was more exciting at times too folks…however after a time…this just gets redundant.

We are going lower…..days lower…….weeks lower.

 

Forex_Kong_Face_Book

Forex_Kong_Face_Book

It’s Raining Money – Weekly Candle On Dow

Pull a weekly chart and check out the candle now formed on Dow.

This is what we love to see, as it’s raining money in the land of Kong.

For those with a solid grasp on reality, and not some dumb ass perma bull loud mouth spouting that it’s “option expiration to blame”….bravo. The U.S Dollar’s fundamental role change in global trade/economy now confirmed – Rate hikes won’t be driving anyone to it. It’s not a reflection of safety.

Read back over the past few days. Simply put things are playing out exactly as forseen.

Merry ho ho ho !

Kong In Cash – Tomorrow Will Crush You

I have closed all positions Long JPY ( thousands of pips profit in total ) as well all USD trades and am now 100% in cash.

Tomorrow, potentially  brings with it one of the largest “market moving” events/announcements of not only this past year….but perhaps even the last 10 years – as The U.S Fed looks to either “raise interest rates” ( .25 token move if at all ) or sit tight.

Either way ( once the dust settles ) it’s all bad news for USD and likely risk in general.

I have no opinion on it…..as it makes absolutely no difference to me.

The U.S Dollar is no longer viewed as a safe haven. Further QE is coming……so tomorrow is just another day.

I do however recommend “what ever you decide to do” – do yourself a favor and wait until “at least” Asian markets express their views or likely even better….the following day in U.S trading closer to the closing bell.

There is no trade until the fireworks end. …unless of course you enjoy having things blow up in your face.

I’m not much for that.

Good luck everyone!

 

 

 

 

Forex_Kong_Face_Book

Forex_Kong_Face_Book

Japanese Markets Crashing – Monday Comes More

The Japanese Nikkei Index is down  nearly 3% ( -525 ) and it’s not even lunch time in Japan.

Care for a dynamite roll? Lol. Markets are imploding.

As suggested here countless times in the past…..just tune into to The Nikkei on Sunday nights for your early morning trade strategies there in the U.S. as it would be a very rare occasion that such destruction over seas doesn’t hit the shores of America come sunrise. When will you expand your circles of influence wide enough to truly get a grasp on this thing we call a “global economy”?

CNBC and the Wall St. Journal just won’t cut it girls.

I am making “sick money” long JPY since last week ( you could be too ……..but wait….the trade involved discussion/concepts of something “asian” so……its more than likely you “let nothing but patriotism stop you” ) – bleeeep! Red button. Some silly buzzer going off on some hilarious Japanese game show set – YOU LOSE Honky.

It’s a “global economy”! You seriously don’t believe it? How long can the television continue to guide you?

Now I’m not asking you to consider ducking out on your “trailer pad rental”, packing up Grandma and yer guns and moving to Canada ( at least Canada “admits” it’s in recession with back to back quarters of negative GDP growth now in the can ) – Juuuuust hoping to alert you to the stark realities of the current situation.

If you haven’t sold yet – you are not going to be the happiest camper moving forward.

Forex markets don’t give a rat’s ass about you, so if you can keep your eyes on the fundamentals and “not” on the tube. You’ll do fine.

Tomorrow morning the entire move with “have already happened” pre – market ( ya…actually it’s called Japan ) and the most likely scenario will see Western investors pile in short around 10:30 a.m thinking they’ve “scored a tip” here Sunday night.

Wall St. will then strip you clean ( ramping the thing into the late afternoon ) then sell hard into the close.

That…….or perhaps a fake alien invasion and an address from your leader.

I stand impartial ( this is my forex blog……..so you can imagine my thoughts on other “more interesting things” ) so take it with a grain of salt.

I trade to make money….I blog to help you.

Try your best not to get the lines crossed here k?

 

 

Forex_Kong_Wood

 

 

Potential Waterfall Action – USD and U.S Equities

Don’t ask me why……..you already know why.

Fact of the matter is the big boys already sold all their long USD positions to “you” over the past 6 months. ( The move higher on bogus economic news – taking 6 full months to unwind and pass the bag to retail bagholders buying the hype. )

Equities? Common…….topped “months ago” and have been in “distribution phase” ever since.

Look out as this continued sideways action ( looking at the entire year of 2015 ) may have just shown its hand.

I’m long JPY against everything…..I’m short USD vs the Eur currencies…and I’m looking for waterfalls.

 

 

 

Forex_Kong_Face_Book

Forex_Kong_Face_Book

Long JPY – Kong Nails It Again

It’s one of the most counter intuitive trade concepts out there….and not surprisingly – also one of the most lucrative as the vast majority of retail traders continue to find themselves on the wrong side.

The Japanese Yen has been one of the largest contributing factors to the seemingly never-ending rally there in the U.S , as the Bank of Japan ( some time ago ) obeyed their master ( The U.S Fed ) as always…..printing Yen like mad and taking some heat off USD.

Yen then borrowed at 0% – and used to pump U.S Equities. It’s called the Carry Trade….and the big banks love it.

Until it’s time to unwind of course. Fast and furious, leaving the majority of retail traders in the dust…The Yen literally “takes off into the upper atmosphere” when risk ( U.S Equities ) is sold….and all those little Yen head back to Japan.

You are seeing a small example of that this morning with AUD/JPY trade now well in profit ( hey! Wasn’t that suggested a few day ago?? ) as well as nearly every single JPY pair making reasonable moves.

If you take anything away from this blog short of the odd chuckle – put this in your tool box. It will make you some serious coin.

Members! – The site is still down as these morons just can’t get it figured out ( hosting is so difficult right? GRRRRR!! ) Pick up here in the short term and we’ll be back up and running pronto.

 

 

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Open Your Mind – Aud/Jpy Is Next To Fall

I sound like a broken record.

Simply put ( for the 10,000th time ) The Japanese Yen takes huge inflows when risk comes off…..and commodity related currencies such as The Australian Dollar sell off hard.

You’ve got the best of both ( no shit sunshine ) when trading the pair – AUD/JPY….taking advantage of large moves ( in opposite directions ) of BOTH currencies.

This is the kind of thing currency traders really look for.

Take a quick peak at AUD/JPY on a daily chart….and once again plot the beloved 200SMA.

See anything you like?

No brainer here “price wise” as this retracement in an obvious downtrend screams “sell”.

You have to keep in mind though……price and time are two different things. This is a great level to start thinking short the pair…….regardless of how long it bounces around at the 200.

Me? I’m getting under it with sell orders a full 100 pips below. If she screams higher ( doubtful ) then I’m not in the trade ( get it? ) – job well done.

When she falls…..I get picked up on momentum.

Eezy peezy.

You have to learn to let the market come to you…….stop chasing shit all over your screen.

 

 

Trend Break Established – Drop To Lower Time Frame

Pull up $dxy ( dollar index )

Drop to a 1 hour time frame…..and plot the 200 SMA.

Let USD retrace ( move higher ) to touch the 200.

Mark this level.

Place a “limit sell order” 50 pips below said level with a stop a full 100 pips “above”.

Ride this trade for 11 days.

Ask me more.

Thank me later.

Do the exact opposite long EUR/USD.

Ask me more.

Thank me later.

Forex_Kong_Eyes_Real