All Green On My Screen – As Dollar Tops Out

As suggested over the last two days – it appears that the dollar has finally completed its last push higher – and is looking to roll over. There may be a day left, or perhaps a quick spike in this evenings trading –  but I expect any further upside to be “limited” at best.

All trades entered as of last night are sitting in  profit – and the plan moving forward is shaping up – right on track.

I am currently short both the U.S Dollar and the Japanese Yen against the Commods – as well as long EUR/JPY.

Depending on overnight action, I will be adding to these positions rather aggressively here at the turn – as to maximize profits and catch this next leg “up in risk” – staying short the safe haven’s – and getting long the commods.

This is a rather significant turn here, as the dollar is unlikely to gather much support (thanks to Ben’s QE to the moon!). One would have to expect that “inverse” to the dollar moving lower – gold, silver and related stocks are set to fly.

I would not suggest missing this entry in gold and related stocks – as the gold bull is incredibly difficult to ride. The pullbacks are deep – so deep in fact that most traders dump at the bottom – and then get beat up trying to chase it.

There are only a few times a year ( if that ) when buying gold is a no brainer – this is one of those times.

13 Responses

  1. Rick4779 October 30, 2012 / 9:22 pm

    I am a member of Gary’s SMT site. I like your site (this site) and will put you on my bookmarks. Good luck to you.

  2. Schmederling October 30, 2012 / 9:34 pm

    FOREX…

    Do you see the buck re-bounding here tomorrow or later tonight?
    If so do you see it testing the 200MA before it heads lower?

  3. Schmederling October 30, 2012 / 9:37 pm

    I am still short AGQ & long DOG…..
    Also holding ACI (Long) – after the burst Friday, looking to see what tomorrow will bring….Cheers

  4. rickybobby October 30, 2012 / 9:48 pm

    Forex_Kong – looking forward to following you on here in the future. Best of luck with your new venture! I’m short USD/CAD and long USD/JPY (on top of a boat-full of gold) – lets make some money! 😀

  5. 1inbluemoon October 30, 2012 / 10:03 pm

    you are about to get spanked big time gorilla. Dollar is not done and commodities have not bottomed yet.

  6. simonsays October 30, 2012 / 11:28 pm

    How long do you anticipate being long commods/PMs and short USD? I wasn’t going to post it on Gary’s site but I think you’d be better off posting at BullBearTalk, a site full of traders that encourages open discussion and alternative market/trading views.

    • Forex Kong October 31, 2012 / 1:28 am

      Hi Simon….again sorry for the late reply.

      It’s always difficult to forecast “how long” I will stay in any given trade – as exits generally give a trader just as much grief as entries!

      My strategies differ – depending on the given environment but….one thing I do take very seriously – is taking profits off the table.

      For example – If I’ve planned for entry – and find that only a day or two later I am staring at heafty profits – Ill take’ em! . and just look to re enter the trade again on a smaller time.

      • simonsays October 31, 2012 / 4:49 am

        Thanks for the reply. Much appreciated!

  7. Forex Kong October 31, 2012 / 12:48 am

    Hello everyone…..sorry for the delay…I am still getting a couple of the kinks out of the blog/site. I so appreciate the feedback thus far – and hope to do the best I can here.

    I am not particularily concerned with another day or to of upward action in the dollar in that…..a junction like this has such significance (marking a near term top in the dollar) – and represents a level that may not be seen again for some time.

    My trade strategies account for the volatility inherent to forex – and short of some kind of fundamental “shift” – a squiggle of 100 plus pips is generally not a problem.

    I scale orders at many levels along the way – and never go “all in” at any given price level so…….again….short of uncle Ben “retracting” QE – I am confident that we will see further dollar downside – coming soon.

  8. Schmederling October 31, 2012 / 2:06 am

    Hey folks – I came found this & looks very interesting as an alternative to SLV… & it’s on home ground….

    Now this is an interesting turn of events – further investigation is needed but this looks much more appealing than SLV and it’s on home ground…. and can be redeemed @ 5000 ETR’s…. looking very interesting.

    For those Canadians currently investing in SLV to generate capital to further increase a physical holdings this could very well be a perfect… also trading in Canadian currency which is suspected to stay at par or higher….

    This will definitely be something I will be looking at – set to launch Nov – 5 -Monday…. Looking to break-away for SLV ASAP…. No faith in activity in this exchange.

    Here is the link….

    http://www.bullionstreet.com/news/rcm-launches-etrs-backed-by-silver-bullion/3243

    • Forex Kong October 31, 2012 / 2:25 am

      Very interesting indeed -so far it looks and sounds great. I too will look into this further.

      • Schmederling October 31, 2012 / 2:53 am

        ok – if you find anythings of interest please share as will I…. cheers..

  9. Schmederling October 31, 2012 / 3:39 am

    HK – back at it again…. to the tune of 350 mln….

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