Filter The News – Find What Matters

You people have been reading here long enough to know – I am a fundamental trader at heart. My success – rooted in my general interests in the global economy (not some little piddly lil stock market) and my ability to discern “WTF is going on” at any given time. Filtering the news plays a big part.

Day in and day out, we are inundated with more headlines and news flashes than we know what to do with – not to mention the fact that much of this news is conflicting, bias, or outright nonsense. What’s a trader to do when faced with such a barrage of misleading and conflicting information? You need to find the story – “behind the story”.

Take Cyprus for example. Most of you likely hadn’t heard “jack squat” of this tiny little country until a few short days ago. It’s GDP is ant sized, and its influence on the global stage – a speck.

Did you consider it’s relationship with Russia? Did you consider the implications of an EU country being supported and even “bailed out” by a sovereign country outside the EU Zone? A country with considerable interests in the massive offshore gas reserves of Cyprus, a country with direct ties with not only China – but also Iran? – likely not.

The real story here, is the same ol story of “east vs west” – not of EU Zone meltdown (although this is currently in progress as well) – and as the news would have many racing to short EUR/USD – I’d be  more inclined to take the other side of that trade.

previous article: “Long EUR/USD At 1.3170 – Watch Me”

We’ll see how things unfold here this evening as the Cyprus deal hits its deadline. I’m certainly in no rush to touch EUR as I generally stay away from this POS all together. EUR/USD traders need to keep in mind – it’s a forex broker’s dream, with promise of low spreads, easy trending characteristics etc….as every newbie on the block takes a crack at it.

6 Responses

  1. schmederling March 24, 2013 / 5:44 pm

    Hey Kong – great post again…. I personally think your right on the money when it comes to Cyprus. There is more to this than meets the eye. Iran has & are connected with Cyprus, I have friends & people in my circle that tell me lots of money from Iran flows into Cyprus. They have a relationship which goes deeper than some may think, Russia & China have invested interest in the off-shore NG fields while England has 2 bases there. How deep the rabbit-hole goes is yet to be exposed however as I mentioned it’s deeper them most expect. This is a manufactured situation IMHO & the chess game just got interesting, someone is about to lose a ” Queen ” on this move.

    Cheers Schmed,

    • Forex Kong March 24, 2013 / 5:53 pm

      Thanks Schmed – ya….I’ve actually really enjoyed chasing this one down as it overlapped with some of my IMF research – and got me thinking. Why the hell the IMF had a hand in things anyway (apparently chipping in 1.3 Bil on the deal) – as its peanuts??

      I figured there had to be more to it.

      Here we are Sunday night, and of course – “last minute deal” looks to come together.

      • schmederling March 24, 2013 / 6:50 pm

        Yeah, I am the same way…. I love the investigative portion of investing…. more so than actually pulling the trigger…. for me when a trade goes well based off fundo’s and investigative info is just a confirmation. Kind of like S Homes… LOL have a good week… I’ll pop in here & there…. Keep up the great site work.

  2. schmederling March 24, 2013 / 7:14 pm

    Nice call on the EUR/USD….

  3. B March 25, 2013 / 12:31 pm

    Hey Kong… Do you know anything about Bit Coin and what is going on as a international currency and its implication on other currencies and the precious metals market, would love to see a post on this . Last summer it was 5.00 per pit coin and today it kissed the 80.00 mark .. NOW that was a hell of a trade if you got the ride!! Thanks

    • Forex Kong March 25, 2013 / 12:46 pm

      A very creative and forward thinking friend of mine has been on this for eons – perhaps we can get his input here.

      I’ve recently taken further interest and have alot more reading to do!

      In concept I love the idea…in practice/application I’m still on the fence.


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