Face Ripper GBP/AUD – Making The Turn

I’ve refered to these pairs many times before as “face rippers” in that……they can move with such violence and such volatility as to literally…..well – you get it. It can get pretty ugly if you’re not careful.

It is not uncommon “in the slightest” to see these pairs move some 200-300 pips in a given 24 hour period, only to shoot back 150, then jet off in the opposite direction another 200 or more. They are “crazy volatile” and cannot be treated in the same fashion as one might consider trading a “pussycat pair” such as – lets say..USD/JPY.

I’m talking about EUR/NZD, EUR/AUD, GBP/NZD and GBP/AUD.

These guys can produce some major moves, and in this case the “upside potential” is easily….EASILY 1000 pips and higher – if we finally see the commods (AUD and NZD) roll over, as they appear to be doing now.

You trade these pairs as if holding a hand grenade so….careful, careful, small  (tiny small) order with “super wide stop” if you look to stand “any chance” of taking the ride.

Again, you may consider that I’m usually “early to the party” so get these on your screens – and watch for some “serious fireworks” in coming days.

USD Repatriation – Up Before Down

Repatriation - is the process of returning a person to their place of origin or citizenship. This includes the process of returning refugees or military personnel to their place of origin following a war.The term may also refer to the process of converting a foreign currency into the currency of one’s own country.

So from a financial perspective – it’s the currency part of it we’re concerned about.

Don’t you find it interesting how… just when you’ve finally got a handle on the current fundamental issues and geo political concerns that “may” influence movements of a given currency – things start moving in the complete opposite direction?

Huh? Dollar going up? Well……I thought the U.S Dollar was doomed?

Well…..( after weeks of me going on about it ) you “now” have a much better understanding of what’s “really going on” with respect to the U.S and it’s concerns / involvement in The Ukraine right?

Russia continues to “call the bluff” and continues to move forward ( along with her good buddy China ) in creating and promoting trade agreements “outside use of the U.S Dollar” – representing likely one of the “largest and most serious threats” to the U.S “global domination campaign” of our time.

The U.S can’t have this, as it represents a major, major , MAJOR blow to the dollar’s status as the  “global reserve currency” and throws a big monkey wrench into the U.S plans to “print and export toilet paper” – keeping  the ponzi scheme alive a while longer.

They will go to war over this. I guarantee it. They will go to war before letting go of this “insane privilege” as it serves as the very backbone for their ultimate plans.

The east has had it, and has finally decided enough is enough.

So…..before the U.S Dollar can “fall off the side of a cliff” and in “preparation” for such an event many investors will begin “selling/closing” investments financed in USD abroad, and bring that money home FIRST. Get it?

An example:

If you thought the shit was gonna hit the fan and had recently bought a summer home in Italy lets say……you might now consider “selling that home in EUR” and in turn sending / taking that money BACK HOME TO AMERICA ( converted to good ol USD) – where you’ll feel safe/ better knowing your investment isn’t at risk and your money is “safe” back in your piggy bank.

You see? Repatriation. Reee-paaat-reeee-a-shaaawn.

A simple concept with massive implications.

USD needs to go up up up up up ( as investors “unwind” investments abroad) and bring those babies home.

Only “then” to see them further reduced to toilet paper.

 

There’s Our USD Swing – Right On Time

As suggested there on Friday “if” we saw an expected turn upward in USD ( or at least…I was expecting it ) this is clearly a “swing low” at a fairly significant area of support.

This could possibly be a very significant “low” for USD, marking “the bottom” of what could turn out to be a very powerful new set of “higher highs” and “higher lows”.

All trades suggested on Friday – moving in the right direction.

Otherwise, The Australian Dollar continues to baffle as “risk is clearly expected to come off” here in coming days and weeks.

The Nikkei taking a bump up this morning –  and that’s “all it is” a bump up, as you’ll recall – nothing moves in a straight line for long. This too…soon shall pass.

We’ve moved from an environment of “buying the dips” to now “selling the rips” so…..you better get your head wrapped around it.

Stocks can and will “fall further” over the coming weeks, if not months.

Over the weekend I’ve had incredible interest in the “Members only / paid services” area – thank you. I’m only a day or two away so for those who’ve already contacted me so I will get back to you via email as to login / site address etc. The payment system will be Paypal based so please be aware and maybe even look ahead. You’ll need a paypal account in order to subscribe/use credit card. It’s a snap to set up.

Get Rich Trading – I’ll Show You How

If one considers “capturing the most pips possible” and entering a trade at the “exact right time” where as to not only move directly into profit, but also catch a turn of “such significance” that the trade produces “substantial profit over time” – you’ve really got to look out to the larger time frames, as well draw on your knowledge of the fundamentals.

Shooting for small “short-term gains” is fine too ( as this skill comes into play when timing “any entry” ) but there’s nothing like nailing and entry on the “longer term” – watching it move directly into profit, then running for weeks.

These types of trade don’t come around very often, but when they do……wow.

Lets look at an example:

Long_Term_Trading_Example_Forex_Kong

Long_Term_Trading_Example_Forex_Kong

You can easily see what I’m saying.

When identifying a “macro change in trend” in a particular market one sees “amazing profit potential” but only if positioned either “before hand” or “very early”.

I’m very often early……but rarely…RARELY ever late.

I can show you how to do this.

I’m considering opening / starting the premium services here at Kong but wanted to first ask those who’ve been following along for some time.

I’m considering “pulling back the curtain” and taking a small group of traders ( 50 maybe? ) along with me through this next phase of the markets – where one has to assume…. many will struggle.

Full blown intraday trading / signals / weekly overviews, entry levels, stops, “the whole enchilada” as well as tools / charts etc – stocks / forex / whatever so…….as it stands – I’d look at it on an “individual basis” so…..anyone interested please drop me a line at info@forexkong.com and we can go from there….

Otherwise….good luck to all.

 

 

 

 

 

Trade Ideas For Next Week – If USD Gets Legs

If the U.S Dollar can put in a solid “swing low” and reversal down here ( which it appears to be doing ) then it looks like a number of solid trades setting up, with well-defined risk – having that stops can be put just above or / below any number of USD related pairs such as:

  • short EUR/USD with “stops above” 1.39 ( that’s only 30 pips risk )
  • short GBP/USD with “stops above” 1.6820 ( 100 pips )
  • short AUD/USD with “stops above” 94.60 ( 60 pips )
  • long USD/CAD with “stops below” 1.0856 ( 100 pips )
  • long USD/CHF with “stops below” 86.90 ( 75 pips )

The Kongdicator hasn’t “officially rung the bell” on any of these, as the technology “looks ahead” a specific number of bars / time , taking into account near term volatility and a number of other factors BUT!….I’m out ahead of this with some “general trade ideas” should we see a solid swing in USD, as early as Monday / Tuesday.

Short of that, seeing the U.S Dollar fall below the recent lows in $DXY around 79.28 would have it in some real trouble, simply extending gains in all the currencies mentioned above.

Looking at “EEM” turning lower as of yesterday ( near the “same ol area” of resistance ) also suggest possible U.S Dollar strength ( if you can ever call it that ) to come.

From a fundamental perspective, as much as the Fed wants / loves a lower USD,we’ve come to an interesting junction where ( for the Fed unfortunately ) a showing of strength is really whats needed if these guys want to uphold “any sense of confidence” on the world stage.

Most of you likely don’t realize that Russia’s “announcement” that Gazprom ( largest supplier of Nat Gas to EU ) will soon be signing a massive deal with China “priced in Yuan” was a huge reason for market concerns / risk off type action over the last couple of days as I don’t imagine “that” was mentioned in American news.

I guess J.P Morgan ( one of Americas most “trusted banks” ) shit canned earnings / missing both top and bottom line expectations too but……you know….”that” can’t have much to do with anything either I suppose.

As well curious if anyone took note of my “short Japan trade” EWJ puts / short going back to March 31st?

Have a good weekend all.

Do or Die For USD – Seriously…It’s Do or Die

At these levels you’ve got a pretty serious situation on your hands.

The U.S Dollar is literally “a hair way” from breaking below an “extremely significant level of support” with some pretty wide-reaching implications.

A massive drop in value of USD from here ( where it’s “already” dropped huge! ) would have serious ramifications as the international investment community and “world-wide holders of USD” would be concerned – continuing to watch their “USD reserves” reduced to toilet paper.

How much lower before a “literal waterfall” ensues? With international holders of USD finally giving up and “adding” to the selling pressure –  hoping to “just get out” with whatever they have left.

On the flip side……a “much expected bounce” and medium term move higher in USD will also force bond yields higher, tank corporate lending, push up interest rates and add continued pressure on the repayment costs of the U.S Governments monumental mountain of debt??

The U.S Government and buddies at the Federal Reserve have put themselves in a corner alright………………….with the only ones I imagine paying for it – being U.S citizens.

Bravo!

 

 

 

 

Sold As Suggested – Top Call Vindicated

This is being sold – as suggested.

The Nikkei is now down an additional -430 points, so only another “couple 1000 more points lower” to go on this “next leg down” – as suggested. Watching for 11,500 or 12,000 area.

The Nikkei leads as the money printing in Japan ( and it’s use in buying U.S equities ) has been driving the last legs of this….as U.S big boys have been selling you “their own stock” for months now, while the Fed cash just sits with the banks – as suggested.

There’s really not much more to say about it, as even if / when some “new nominal spike” takes SP / Dow prices near highs again, then again….and even “again” – it’s just more desperation / attempt to keep the ponzi alive a little bit longer.

Talk about a cynic, as I’ll be watching out for “false flags” anytime soon, with the U.S media machine and government clowns look for anything they can possibly muster  - to get people’s eyes off this.

Declaration of war next? Alien invasion?

Let’s see what they come up with next.

Moooooooo!

 

 

 

 

What If I Was Right? – And The Top Is In

Lets entertain a hypothetical situation for a moment…I mean – why not right?

Let’s say “what if”………

What if I’m correct in suggesting that the 15,000 area of The Japanese Nikkei Index marks the top, and that indeed ( as seen in the past ) this “top” will soon be mirrored in U.S Equities as well?

Now I’m not talking about a “mid-term top” or a “short-term top” – I’m talking about the “top of all tops”. The kind of top you can only imagine / dream that you may have been fortunate enough to have identified, and in turn – traded accordingly.

Yes….”that” kind of top.

So…..What if I’m right?

Can you imagine having yourself positioned not only “before” a major turn in the markets but for a “bearish turn” at that? Allowing your trades to move into profit based on market dynamics “driven by fear and panic”?

How bout letting those trades sit ( much like an investment ) for several months, or even ( in timing it correctly ) “several years” considering what might be coming down the pipe in a longer term “global macro” sense?

What if these levels in stock market valuations ( in both Japan as well U.S ) reflect levels that may “never be seen again”, or at least not for several years to come?

What if?

It’s fun to think about, especially as these past months have been so tricky.

I keep coming back to that 20 year chart I posted the other day, considering that “wow you know Kong……you might just be right”.

Nikkei_Longer_Term

Nikkei_Longer_Term

You might just be right.

Shit Will Hit The Fan In Ukraine

This is getting ridiculous, and much like a small boy poking a stick into a hornet’s nest – The United States is getting close and closer to “taking the short end of that”.

I’d suggested some time ago that “if you don’t know what’s really going on in The Ukraine” – you should really take a closer look.

Behind the unfortunate disappearance of flight 370, and the never-ending daily coverage ( I swear..my CNN watch has it that this “must be” the single most important story on the face of the planet! ) sit headlines of much greater “global significance”.

The situation in The Ukraine is heating up – and heating up fast as Obama’s complete and total desperation reaches new levels.

Keep in mind that for the most part…..these areas/people of The Ukraine “want” to become part of Russia, so running out in the streets looking to “arrest and detain” these protestors can’t sit well with Mr. Putin.

Obama is pushing his luck here…and I have every bit of confidence that – Russia will not sit idle much longer.

40 Days Trading – Wiped Clean In 72 Hours

I get the impression that for the most part…..many of you aren’t “particularily thrilled” with what you read here day to day.

You may pass by occasionally, maybe looking to “round out your daily reading” with something a little different, or perhaps you check in once in a while for a laugh at what “ol Kong” has to say about this or that, or maybe ( just as likely ) you stop by with a tiny little “chip there on your shoulder” hoping all the while ( somewhere there in the back of your mind…) that I’m flat out 100% wrong. That’s right – wrong.

Dead wrong. Completely wrong. Totally wrong. No?

Wouldn’t you rather that I’m wrong?

How bout the Japanese Nikkei crapping out at 15,000 and in turn……40 “trading days” of SP 500 profits wiped clean within 72 hours?

You liked that one?

I’ll bet.