Trade Alert For Monday November 11, 2013
I want to thank Gary and the group at Dumb Money Tracker for the consistant flow of new users / followers here at Forex Kong! Hopefully some of you still maintain a small chance of “seeing the light” or possibly even making some money with some sound trade suggestions!
Thanks guys!
The Kongdicator has “finally” issued a formal signal on the Nazdaq that would have entry approx 4 hours from now so…..Monday will certainly do.
The entry signal is “short” people, so to be clear – I will consider “selling” not “buying”. This is fantastic news really, as this “melt up” has been a long and drawn out affair, and has kept alot of people “out of the trade”.
I will be looking for significant strength in JPY as well as we “should” likely see “risk” sell – along with tech stocks. When risk sells off money floods back into Yen as we’ve discussed here a million times over.
There are plenty of ways for stock traders to take advantage of this also….and perhaps over the weekend “we can all chip in” and post / comment to put some creative ideas on the table.
I generally don’t enter markets on Sunday night / Monday morning so…take my advice…let this play out through the day Monday and have a look at the close.
Getting ahead on this and doing some solid research over the weekend could be a very valuable exercise for many of you, as you already know…
“I’m very often early…and rarely ever late.”
Thanks kong! Does it work on s&p too?
In this case…..Id be pretty confident the signal represents “risk” as a whole so…..
YES!
Take a look during the day Monday…..see what we see.
Ok thanks! Tomorrow begins china plenum. Should be interesting as the meeting is a 4 day event that seem to tie in with your signal..
Yes as China has some very, VERY interesting plans moving forward that will most certainly have significant impact in markets.
Things lining up very well here.
So will the dollar take a hit?
As bizzare and confusing as the never ending “flip n flop” of USD and “risk” has been…..I think this next turn should be quite definitive.
Im watching and planning to trade JPY moreso but of course USD should offer some great opps too….only a little trickier “against what”?
Near term we should see USD correct downward so Im going to take it as it comes.
I don’t trade Forex, so I’ m long EUO from 17.14 and thinking the /DX will eventually make it to the 200 day. So I’ll try to endure the pull back and continure to hold. Thanks for the observation.
Kong.. how much of a correction or risk off do u think is coming? 10 to 20%?
Generally I don’t speculate as to the “extent” of a given move as much as nailing the turns.
In this case…looking at some seasonal things as well….perhaps we get a nice fast correction to a level of reasonable support and then…….
With all things considered u think the fed will let Xmas come without continued pump of equities?
Holy bonds batman. Serious selling the last couple days
Bingo….
TLT smashed since Tues……not great signs for those in the recovery camp.
Stick a fork in this thing already!! Twitter “was” the top!
The equities mkt is simply crazy! Yesterday selloff totslly erased today…top aint twitter perhaps
Im just kidding around – as I’ve been saying this is the top or around 7 months now.
If you can “pick a stock” and are feeling lucky…..all the best you.
Complacent stock traders are getting hammered these past two weeks no matter they “claim”.
Ya as I certainly know by my es short, picking THE TOP is kinda hard. I’m pretty confident we are topping though and I intend to add beef to my JPY longs and ES short position on Monday-ish or whenever I see the hits come with more juice so to speak.
NAZ is a cap weighted index, so a good question to think about is whether your signal is coming from the overall index, a few larger cap stocks, or a number of smaller cap stocks within the index…
In this case it will be interesting to see what’s what as……..the last time I traded spy short it was bang on the money.
We’ll watch er here closely over the next couple days.
Kong, have you considered hooking up your strategy to FF Trade Explorer?
If you trade options, you can straddle JPY at 99. Place a buy on the call side and a buy on the put side. The JPY is preparing to make a big move. Prudent to consider March Calls and Puts.
Hi Carlos and thanks for the input.
You bet…a “straddle” is always a fantastic way to catch a move when the direction is still in question. Getting an in order on “both sides” and just letting price come to you.
We know options are very risky so…..I would always suggest going out a minimum of 6 months as well staying as close to “in the money” as a trader can afford.
Great input man…and for those reading u can google “straddle trade” for more info.
Alright, so USD is going down from now on?