Month: April 2014

If It's "Sell" On Yellen – You'll Know For Sure

Forex Kong 4 Comments

If it’s “sell” on Yellen you’ll know for certain that the “machines that be” have most certainly flipped the switch from “buy” to “sell”.

I can assure you “anything” currently in play with respect to the big boys ( and I ) positioning for the “very near future” is already in full motion.

You have to appreciate how long it takes for Central Banks or other large institutional players to “put on” or “take off” positions SO LARGE, that it takes weeks “if not months” to slowly leg in as to not move price to quickly.

If you think “anyone” with an institutional influence is “sitting around waiting” for more clambering from The Fed this afternoon – you are sadly, sadly mistaken.

This move is well underway as seen via currency markets some weeks ago.

Yellen has absolutely “nothing” to do with what’s “already” going on.

Let retail take risk for a final “blip” higher ( as I would gladly welcome that ) as anything higher only represents better opportunity to get short.

We’re already in position. Check out the Members Area at: http://www.forexkong.net/getting-started-start-here/

Good luck to all, and watch out for that “bad weather”.

Markets On The Cusp – USD Shakeout

Forex Kong 9 Comments

We’re looking for a stronger dollar these days, as the reality of continued Fed tapering and a generally disappointing earnings season ( in my opinion ) begin to take their toll.

As we’ve discussed here in the past, the general effect of tightening the money supply “eventually” leads to higher lending rates/increased borrowing costs, pinching corporate earnings and pressuring stock valuations.

I think it’s fair to say we’ve most certainly seen the “mojo” taken out of the “momo” stocks in the tech sector already, as well the $BKX Bank Index ( which I follow as an additional “bellweather” for U.S Equity strength ) as it “continues” to on its path of “lower highs” and “lower lows”.

Via currencies I’ve been positioned “generally short” for several weeks now seeing AUD/JPY top out around 94.50 as well The New Zealand Dollar finally rolling over. CAD took its last breath here in just the past two days essentially “completing the trio” of risk related currencies to begin their journeys downward.

Pushing through the last remaining day or two of chop in USD, opens the flood gates “wide” to a plethora of excellent “medium term” trade opportunities long the safe havens, and short the commods.

My expectation is to see The Nikkei ( The Japanese Stock Index ) continue to lead markets “decidedly lower” ( and I’m talking like….Nikkei at 11,500 now at 14,500 type lower ) as the general lay of the land has obviously already shifted to a “risk off” / safety seeking environment.

For those interested in more specific and detailed “trade ideas”, regular “intermarket analysis” as well deeper learning / understanding of forex markets – please join us at www.forexkong.net as our trading community continues to grow.

Unemployment Rate In Spain – 25.9%

Forex Kong 16 Comments

Yes believe it. The unemployment rate in Spain is currently 25.9% – coming in “lower” than expectations.

Can you get your head wrapped around that?

One in four people sitting around sipping espresso, then leisurely strolling “la rambla” In Barcelona are flat-out 100% unemployed.

How can this be possible? Where does the money come from to support this? How are they not barefoot, starving in the streets, grovelling for pennies as the “rich Mexican tourists” saunter by?

Current unemployment in Mexico is 4.8%.

But I’m sure while sitting there at your local Starbucks, possibly overhearing a conversation from a couple of “spaniards” at the table next to you, with their stupid pink cardigans, horrible plaid shirts, and fancy flat leather shoes you’ll say “Oh my! I think those gentlemen are from Spain!” Oooh! Spanish!

While the hard working Mexican kid wipes down your table, and asks if there’s anything else he can get you!

What the hell has it come to, where hard working people continue to take the short end of the stick as the “entitled” just keep dragging this thing down, down, down?

Shame on you Spain!

Get off your ass and go get a job you bums!

Intraday Rinse Job – No One Wins

Forex Kong 1 Comment

Why are you evening trying?

Assume the fetal position underneath your bed, and just stay there until this thing passes over.

Oh I mean passes “lower”.

Another complete “intraday rinse job” for those poor souls attempting to win back their paper profits, and continue maxing out their credit cards on shit martini’s and over priced parking.

Perhaps you’ll have a better understanding of this a couple of “big fat red candles” down the road.

What can I suggest?

Gimme a break. It’s “been” suggested.

You’re on your own now.

 

 

Revenge Trade – QQQ Will Take You Lower

Forex Kong 6 Comments

You’ve heard of the revenge trade right?

After you’ve been knocked over the head with a baseball bat, and the market has run off with most of your account – you then decide “I’m gonna get it all back”!

Let’s say you go out and do something stupid…like…really stupid, totally stupid, “moronic” like you decide “right now” to go out and buy Tech /QQQ and “get long technology” as means to exact your revenge.

Can anyone say “doublé whammy”?

When acting on pure emotion, traders / investors don’t make good decisions. The revenge trade ( more often than not )  kicks you in both knees, spits in your left ear, and leaves you in broken heap – crumpled on the sidewalk. Nothing good will ever come of this, and the lesson comes hard.

Check you head. Kick back and re-evaluate. Go for a walk. Drink some beer.

Prepare for the “next leg down” in technology.

 

 

 

Very Often Early – Rarely EVER Late

Forex Kong Got something to say?

I’ve said it before and I’ll say it again ( you’ve read it here a “countless” number of times prior ).

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

So what’s it gonna be? Are we looking ahead here? Isn’t that the future our there in front of us?

Do we want to keep staring in the rear view mirror looking at opportunities gone by ( shoulda /coulda / woulda type thing), or do you want to start looking forward, and start making “pro active decisions” as opposed to making “re-active decisions”?

“Selling on red” is “re-active” as you’ve been punched in the gut, your heart is pounding out of your chest, you panic, and you “react” by pushing the “sell button”. Period.

“Selling on green” is “pro-active” as you’ve put profits in the bank, you sleep great and you are 100% completely and totally calm the next morning knowing that your wife won’t kick your ass, you “made” money and that you’ve got every opportunity to get back in there again – when the time is right.

Explain to me the benefits of “selling on red”. Please – explain it to me.

Fact of the matter is…….you’re just too damn greedy to bring yourself to “sell on green” as you’ve got it stuck in your mind that – “I’ve got this thing beat! I can just make more and more!”.

Time and time again…your greed continues to be your downfall.

No one can say if tomorrows news will bring stories of a cure for cancer, or perhaps “the next big thing” in technology – but we “as traders” can’t depend on that.  Investors as well, must take into consideration longer term cycles and trends to recognize appropriate times to “get off the merry-go-round” short of suffering long and agonizing “drawdowns”, stress and even larger “long-term term risk” in that – what if this really is a big one? Do you “really” have a backup plan?

Personally, I don’t mind so much – being one of the first to the party cuz…..if that says anything about me at all, obviously you’ll assume….I’ll also be one of the first to leave.

As it pertains to investing / trading – I’ll go with this – and you can do “whatever” it is you do.

Here We Go! – Bring On The Recession!

Forex Kong 10 Comments

Like it’s not already here, and more so…..never even left.

I look forward to hearing of your “timely exits” somewhere along the way during the next 3 years of complete and total economic devastation. I can only imagine that you’ll “do as humans do” and hang on “right til the last penny of your investments” has been squeezed from you, then of course – sell at the absolute bottom.

Why must you endure months and likely “years” of pain watching your portfolios dwindle to nothing, only to “then” decide you’ve had too much and ditch at the lows?

That’s because you are a retail investor. You are ridiculously greedy, and “for the life of you” can’t sell with profits in hand as….you must get more, and more and MORE!

I spoke of long, dark red candles yesterday. I spoke of the setting sun in Japan “weeks ago”.

I SELL AT TOPS.

I BUY AT BOTTOMS.

When are you going to finally get this flipped around?

I’ll take a couple more in the Premium Services area as we’re moving along quite nicely now.

Hit me at : [email protected] as the service is still not available to the public at large.

Monster Trades Setting Up! – Monster!

Forex Kong 3 Comments

You would seriously have to have your head stuck so far underneath the sand as to “not” see what’s shaping up here that….well…..whatever.

The Japanese Nikkei has indeed rolled over as suggested and the YEN is on fire. Commodity currencies are getting trampled left and right, and even a pile of the stupid parts of the U.S equities markets ( $tran – Transports swinging high, and $BKX banking index creating “yet another” lower high ) continue to show fatigue.

Trading markets with a single sided “bias” isn’t trading – it’s hoping.

When you’ve got this kind of this information taken directly from the “largest, most liquid, most widely traded market on the entire freaking planet” ( the forex market ) looking you directly between the eyes….what else do you need?

Maybe a nice 3 or 4 days of big fat solid , ugly red candles will do the trick for you then…..but  of course….by then it will already be much too late.

Heed to the sun setting on Japan. Take heed risk takers! Take heed!

I’ll need to smack you in the face with a sushi roll if you don’t pull up your charts and start finding a way to get long the Japanese Yen and short Japanese stocks. The U.S to follow.

The Smoking Gun – No Love For NZD

Forex Kong 10 Comments

New Zealand has raised its base interest rate to 3% from 2.75% overnight – now pushing the Kiwi “higher” than it’s neighbor AUD ( The Australian Dollar ) as far as yield is concerned.

Now……in a typical / healthy / strong / global growth / “risk on” environment – this kind of news would have sent the Kiwi “shooting for the moon” as Carry traders planet wide would most certainly look to take advantage of the % spread. Selling JPY and USD ( at near 0% ) and in turn buying NZD at 3%.

So why on Earth is NZD “lower on the rate hike”? How is this possible? Why would this be?

It’s because Carry traders are currently “unwinding risk” in preparation for what’s ahead. These types of moves take weeks if not months to play out, so once the ball has started rolling there is no way, NO WAY major players / Central Banks / institutions are going to “shift their plans” and “change direction” just because a single country has made a small interest rate hike! Not a chance!

If you ask me – the muted reaction to the New Zealand rate hike is literally a “smoking gun”.

Big boys are turning the boat, and nothing….NOTHING is gonna stop it.

I Flip You Over – Wall Street Confetti

Forex Kong 6 Comments

I’m deep in hiding now – as the “clowns of New York” seek to rally the resources necessary to silence me.

Newsletter writers and financial bloggers abound -“down in flames and outright pissed” as the “crystal coconut of Kong” continues to show the way.

A passing of the torch if you will. A “changing of the guard”.

What can be said?

You live in a cement bubble, filled with plastic cards and shiny things. You live “within the ornament” atop the dashboard of my spacebike.

I flip you over. I see you fall. I laugh.

I do it again, and again…..then again.

Standing on your head – you’ve got nothing, and “in your head” even less as…….you are hollow.

Frail shells, housing a network of tiny cables…….woven from deceit.

I flip you over and I laugh, and I laugh, and I laugh again.

I flip you over.

You “are” Wall Street confetti.