Month: December 2015

It's Raining Money – Weekly Candle On Dow

Forex Kong 1 Comment

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

Forex Kong 4 Comments

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

Forex Kong 5 Comments

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

Forex Kong Got something to say?

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.

 

 

 

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Forex_Kong_Face_Book

Long JPY – Kong Nails It Again

Forex Kong 11 Comments

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

Forex Kong 3 Comments

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

Forex Kong 4 Comments

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

 

 

 

 

Patience In Trading – Jedi Mind Tricks

Forex Kong Got something to say?

The ability to remain patient with your trading is arguably one of the most difficult skills to master when first getting started. You turn on your T.V, you hear the bullshit “hype”, you pull up your charts and you see the action , then something comes over you like a Jedi mind trick.

“Push the buy button Luke…..be apart of something…….change your life……..get rich…..buy…buy…buy”. As the Emperors spell works its magic on you.

The discipline needed to fight back, to remain “true to thyself”, to block out these evil messages and to remain patient is virtually impossible to exercise – short of many. many years out in the swamp practicing with Yoda.

Yoda_trading

Timing helps….but ultimately it’s patience that serves you best.

How can this be learned? ( Cuz believe me I can tell you…….it’s impossible to teach ) In a word……

Observation.

The market is full of opportunities each and every day…some bigger than others, but in all..there is never a need to “rush in”.  You can still call yourself a trader. Just a trader that has learned to exercise patience.

“Errr…trading you will do then……strong is the force with you.” ( In Yoda voice of course ).

USD Shorts obviously “massive” trade as of this moment.

USD Short – Luke And I Shift To The Darkside

Forex Kong 18 Comments

Stubborn as a mule…this kind of mindset can really get you in trouble.

If it wasn’t for the reasonable understanding of the “big picture” it would be very easy to just jump on the ‘long train” and passively assume the The U.S Dollar will continue to rise.

What’s also interesting to note is that no matter how much media hype, or how many days where risk is still “seemingly in the green” – world markets are still in the process of putting in a “lower high”.

After an entire month trading sideways The SP 500 as well DOW are still unable to make new highs, and are now “juuuuuuust on the edge” of tipping back to the dark side.

I hear rumors that Luke Skywalker slips over to the dark side in the new Star Wars film.

Sign of the times maybe. The timing looks right to me.