Bagholders – Buyers And Sellers Alike

We’ll see a pullback in USD here as,  on a purely technical level ( looking at smaller time frames such as the 4H and 1H ) she’s extremely overbought.

Considering the over all volatility this “counter trend move” may also prove to be quite dramatic / powerful as “yet again” late comers ( as I see it  – pretty much the entire financial blogosphere ) chase a train that’s already left the station.

It’s “buy the dip time” in USD.

Commodities got smoked here as suggested,  but in all – gold itself has held up “reasonably well”.

I knew this move was going to be powerful ( although the general “silence” here at the blog “trade wise” has me thinking that most of you didn’t buy that ) and now find myself booking huge profits – looking for re-entry.

I hate to say it but……Thursday is a long way off, and I have a sneaking suspicion we’re not going to see much “tradable action” early in the week.

With some decent numbers out of China over the weekend I expect a little “bouncy bouncy” in AUD and perhaps risk in general as USD pulls back a touch before making the next leg higher.

You’ve really got to be nimble these days to bank profits, and get set for the next short-term move,  as “buy n hold” or “sell n hold” for that matter just might have you “holding a bag”.

Stay safe people…and trade within your means.

10 Responses

  1. Farhan Nasir (@FaniNasir) November 3, 2013 / 3:36 pm

    i read your blog regularly and it has helped me countless times , and i have made good profits because of your helps and for that sir i am grateful to you , and i did buy USD like you suggested , i must say you are one true guru of the forex market ,

    • Forex Kong November 3, 2013 / 5:13 pm

      Awesome Farhan.

      It’s great hearing of others making some cash.

      Thanks for the kind words man!

  2. GTFO November 3, 2013 / 5:07 pm

    I’m with you “tradewise.” I took the /DX at 79.30 and then proceeded to fumble the management, making nice cash but far less than I should have. I’m looking for a bounce in the AUD/USD and NZD/USD and a pullback in the /DX that should be buyable.

    • Forex Kong November 3, 2013 / 5:14 pm

      You’re right on the money here Andrew….lil pullback and “buy the dip” on USD.

      That’s where I’m at.

  3. GTFO November 3, 2013 / 5:14 pm

    I’m also looking for a bounce in silver, probably gold too, but I’m playing silver.

  4. Warren November 3, 2013 / 5:27 pm

    Banked coin last week thanks Kong. I however closed my positions early on Thursday because I went out of town. Oops missed out on some “easy” pips. I will be looking for the reload especially short GBP and EUR vs the dollar on a bound back up into resistance.

  5. Deano November 3, 2013 / 9:03 pm

    Hey Kong,
    Silence is golden sometimes, especially when you’re too busy counting your profits! 🙂 I saw this USD recovery as well and banked shorts on the EUR, GBP (part still open – more to go me thinks), AUD & NZD (these two probably going into a range for now). Still short gold but fully covered waiting for the break of $1300. It wasn’t hard to see these.

    Now – The hourly charts are unwinding nicely without much retracement in Asia today, so we’ll see what happens in London. May get weak Euro PMI’s and if so the EUR may head down to the channel support at 1.3435 where we may get that bounce.

    And for fun I’ve shorted the S&P at 1759 with a tiny risk as this looks like the early signs of topping. Elsewhere have a look at EURJPY – a nice double top on the weekly and the MACD rolling over, so if 132.60 gives way and closes I’m going short big time.
    Keep up the good work as usual, cheers.

  6. JM November 4, 2013 / 9:14 am

    Just like you said… Pretty amazing. I actually followed your steps and made good profits on USD longs. And I was long AUD against USD today, and squeezed some more juice. Thanks a lot man, you’re really good (and I speak as someone who stopped following countless so called gurus on Twitter).

    • Forex Kong November 4, 2013 / 9:20 am

      Thanks JM – I really appreciate it.

      One more thing….as I generally don’t “trade back n fourth” as quickly as to have caught “today’s” moves in AUD/USD ( although if you are nimble enough to catch a few more pips – that’s awesome )

      Once I’m in a trade ( usually based in larger time frames change etc…) I’ll bank profits and “reload” in the same direction, again “identifying” levels of shorter term support and resistance – and “waiting for price to come to me”.

      Overtrading “can” catch you with sudden moves and constant “switching about” so….as I’m sure you know. Be careful!

      • JM November 5, 2013 / 1:57 am

        Good to know. Indeed, we are better off trading the trend. I’ll keep that in mind, thanks!

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