I’ve sold my recent trades in NUGT and JNUG for another 25% return.
The Miners will now seek out a daily cycle low ( or perhaps mid cycle low ) before turning higher again.
USD will “pop n drop” here. I assume a wait of some 4-6 days before re entering AGAIN.
I am rebuying junior miners – right here…right now.
It’s always nice to look back and say “man I really nailed that trade”. But it’s the “knowing why” that makes the big difference between being a decent trader….and a professional trader. Was it just dumb luck? Was it a once in a lifetime “tip” from some guy dressed up as a gorilla?
Was it the hours of planning? Months looking back at longer term charts and trends….factoring in “macro global factors”, plotting areas of support and resistance and working thru best practices in money management?
Obviously the latter, with a few “ringers” in there, generally providing me with the information I need to make good decisions and trades.
I look at Japan, and I see a stock market that likely topped out a full year ago…and is just about to put in a “lower high” on long-term monthly chart. This lower high ( once confirmed ) should lead to a large-scale move lower in both Japanese and “global equities” as well the continued demolishing of The U.S Dollar. ( How many days ago did I make this call based in currency market movement?? ( a full week ago while many analysts are just now coming out with the news ).
We have arrived at the turn.
A large-scale turn on long-term charts suggesting that indeed….gold and silver ( now very much confirmed ) will begin a new yearly cycle and that USD will also do the same ( these assets moving in opposite directions ).
Stay sharp people. Book some profits at the very least.
Many gold market analysts focus on irrelevant, but catchy factors, such as mining production or jewelry demand. Others think gold is a simple inflation or stock market hedge. It is a bit strange that the relationship between the bond and gold markets is not commonly examined, given that bond market is much bigger than stock market, while real interest rates are one of the main drivers of the price of gold.
If you have even the most basic understanding of bonds, bond pricing, interest rates and how these are reflected / seen in financial markets as a whole have a quick read of this article at Gold Switzerland which quite accurately outlines my general feelings about gold, usd, bonds and our current set up heading into 2017.
A perfect storm…brewing for some time.
China giving Bitcoin a hard time, and Trump bashing pharmaceutical companies.
Wait til tomorrow’s job report disapoints as well.
USD is getting absolutely pounded.
Over the past 2 days. I’ve sold GPL, IMG and NUGT for a 28% return on the trades.
I’m still holding short USD/JPY as well long EUR/USD.
I expect this to be a “shallow dip” with respect to the gold and silver related stocks, so I will be scaling back in to these and more here shortly. On this next entry I am going to do my best to actually “buy and hold” something for at least a couple of weeks / if not months but then again…….we’ll see how that goes.
The larger macro turn in both USD as well commodities is slowly making its way…so there is still plenty of time to start building positions.
Obviously the short USD trades are now in the money as The U.S Dollar continues to weaken. The mining trades have been on fire with GPL, IMG and now NUGT ( purchased yesterday ).
It may at first appear boring to just sit around and watch a single asset / asset class ( currencies and USD ) but one has to consider “just how much revolves around the value of USD” – as U.S equities and global commodities trade in this currency.
Correlations can always be found with respect to the “value of USD” and the price of “things” on planet Earth. Thus far we’ve really only seen the beginning of a much larger and expected fall in USD.
Perhaps this is where some of you stock traders can find a solid reason to follow currency markets closely. Also with consideration that JPY ( the Japanese Yen ) trades “in tandem with risk”. When JPY value moves lower – stocks move higher. JPY moving higher ( on repatriation of currency flooding back to Japan ) – stocks move lower.
That’s just how it is!
You can easily check currency pairs at www.stockcharts.com by typing the symbols like this: $usdjpy, $audusd, $cadjpy etc… just dont forget to add the “$”.
I will now focus on JPY as a turn in “global appetite for risk” will soon see JPY on the rise against nearly every other currency on the planet. That means “shorting” currency pairs such as AUD/JPY ( meaning….I a shorting the value of Aussie Dollar “vs” the value of JPY) where in AUD will fall and JPY will rise.
Hope it helps everyone!
Forex Kong Winning Trades
It clearly looks like this will stretch into the new year…….before we see a major turn in both currency and equities markets. Money is pouring into silver and gold with the gold miners ( and gold complex in general ) finally showing us not only the daily cycle low….but quite possibly the “yearly” cycle low as well.
This makes for some pretty solid trades as……The EUR will bottom along side gold and silver, the U.S Dollar slowly rolls over for extended losses and equities make a solid correction.
Sound about right? This is EXACTLY how I am positioned with short trades in USD/JPY, long silver and gold miners ( GPL bought at 1.27 ) as well limping into further “long JPY” ideas / shorting the commods ( AUD,NZD and CAD ) with marijuana companies holding tough.
End of the year selling, and who knows what other “market shenanigans” playing out these last days of 2016. I see a large-scale correction first half of January 2017.
The US Dollar has torn higher for the past several days and general market sentiment would suggest that “no one believes it will ever fall”.
You know what usually happens next.
I’m taking another crack at it “short” here today with consideration that…..this may very well mark a final top in USD and set the stage for a considerable decline. I know I know…….but once you have a trade plan – you stick to it (to the degree that your money management will allow you to stay in the game). I’ve not entered new currency trades for quite some time now so “I too” need to see some action.
USD/JPY short…EUR/USD long…holding miners and buying weed.
Canada has recently released it’s plan to formally legalize the sale of Marijuana. The Marijuana related stocks have already taken off, but there are literally “opportunities abound” here in coming months. I strongly recommend that you start doing some company research NOW as these things are set for “stellar growth” through 2017.
Canopy Growth Corp being the largest player in the sector.
These companies ( and stocks ) are currently on fire, with the initial rush now over….providing a fantastic pullback and entry opportunity coming here soon.
Start getting a watch list together / ask me for further suggestions as these things should shoot for the moon as Canada finalizes it’s plan.
This is happening. This will happen in 2017.