There It Is! – Profit Taking All Around!

Finally! After a pretty grueling couple of days, bobbing in and out, hovering around my trade terminal like a spy drone…There it is! Nearly every single pair / trade well in profit and time to take profits.

You’ll need to pull up charts on many, many pairs to see the end result of trades entered ( then re entered etc ) in NZD/USD, AUD/USD, EUR/USD, GBP/USD, USD/CHF,AUD/JPY,CAD/JPY and a big winner in EUR/NZD to name a few.

Forex_Kong_Blue_Hole_Belize

Forex_Kong_Blue_Hole_Belize

I will plan to take the majority off the table here either this morning, or let a couple of run through the day but……in all – I now look at monthly charts to see just what’s happened here over the past few days and the message is clear.

This is very likely only the “first leg” down in what will shape up to be a “much larger correction” ( as suggested previously ) running into late March – right around the time I expect “full-scale panic” and the printing pressed to start-up again.

Japan already knows it’s in very deep trouble ( and has been forever ) with effects of QE very quickly dissolving. I don’t think they “or” the U.S will have any choice but to kick things into high gear “printing wise that is” come late March.

Trade wise….I’m taking the weekend off, and booking /planning next weekend’s trip to the tiny broken islands off the coast of Belize ( The “Blue Hole” and Ambergris Caye – please google them) as the “math and theory” is already complete for the coming weeks.

These trades and several others will simply be “re entered” at various points along the way as……we’ve finally come over the crest, and find ourselves on the “other side” of the mountain.

A painful and extremely frustrating process but….the next “peaks” are certain to be sold.

Hope everyone else made out OK too!

Kong……..”more than” gone!

The Real Money Move: Beyond This Week’s Profits

What we’ve just witnessed isn’t some random market hiccup that day traders can capitalize on with a few scalps. This is the beginning of a structural shift that will reshape forex markets for months. While everyone else celebrates small wins or licks their wounds from getting whipsawed, the smart money is already positioning for the next phase.

The currency pairs that delivered this week—NZD/USD, AUD/USD, EUR/USD, GBP/USD—they’re not done moving. This first leg down is textbook market behavior before a major correction unfolds. The institutions know it, central banks are quietly preparing for it, and if you’re not seeing the bigger picture here, you’re going to miss the trade of the quarter.

Central Bank Desperation Mode Loading

Japan’s QE effects dissolving faster than expected isn’t some surprise development. It’s the inevitable result of monetary policy that’s been on life support for over a decade. But here’s what the mainstream financial media won’t tell you: when Japan goes into full panic mode, it won’t be alone. The Federal Reserve is watching these developments with the kind of nervous energy that precedes major policy shifts.

By late March, when the USD weakness becomes undeniable and the printing presses fire up again, the currency landscape will look completely different. The pairs that just delivered profits will be setting up for even larger moves. This isn’t speculation—it’s pattern recognition based on decades of central bank behavior when they’re backed into a corner.

The Technical Setup Nobody’s Talking About

Pull up those monthly charts again and look beyond this week’s action. What you’re seeing is the early stages of a multi-month correction that will create trading opportunities most retail traders only dream about. The problem is, most people can’t handle the volatility that comes with moves of this magnitude.

EUR/NZD’s big winner status this week? That’s just the appetizer. Cross pairs like this are going to become the real profit centers as major currencies start moving in opposite directions. When central banks are fighting each other with competing monetary policies, the crosses tell the real story. Smart traders are already mapping out the next entry points for when these setups reload.

The mountain crest we just crossed isn’t the peak—it’s the transition point. Every rally from here becomes a selling opportunity, every dip becomes a chance to reload short positions in the right pairs. This is mechanical trading at its finest, where emotion gets replaced by mathematical probability.

Why the Next Phase Changes Everything

The March timeline isn’t arbitrary. It aligns perfectly with quarterly central bank meetings, fiscal year-end positioning, and the typical seasonal patterns that drive major currency moves. When full-scale panic hits and the printing presses restart, it won’t be a gradual process. It will be swift, decisive, and profitable for those positioned correctly.

Here’s what happens next: the pairs that delivered profits this week will retrace partially, creating the illusion that the move is over. Retail traders will get comfortable, start buying dips, and position for a return to the previous range. That’s exactly when the second leg down begins, and it will be more violent than what we just experienced.

The rally scenarios everyone’s hoping for will be brief, shallow, and designed to trap the maximum number of traders on the wrong side. This is how institutional money operates—create false hope, then deliver reality.

The Mathematics of What’s Coming

Theory and math have already calculated the next several weeks of price action. While others are guessing, the mathematical models are showing clear directional bias across multiple timeframes. This isn’t about being right or wrong—it’s about following probability to its logical conclusion.

The re-entry points for these trades aren’t random levels. They’re calculated based on fibonacci retracements, institutional order flow, and central bank intervention patterns. When these levels hit, the positions get reloaded, and the next wave down begins.

Taking the weekend off isn’t about celebrating this week’s wins—it’s about mental preparation for what’s ahead. The next few months will separate the serious traders from the hopeful amateurs. The setup is complete, the direction is clear, and the only question remaining is execution.

19 Responses

  1. Franky January 31, 2014 / 7:59 am

    Kong…Happy profit taking!!! …FOMC trades paying off nicely.

    • Forex Kong January 31, 2014 / 8:07 am

      Nice!

      Please keep in mind ( as suggested here many, many times ) regardless of the near term action, we have now entered the “peak zone” of business cycles running some 5 years now, and with the move towards “tapering” and now global concern that the “free money” is ending – we are clearly entering a time of “contraction” not “expansion” so…….

      Dips to be bought…..not the strategy.

      Peaks to be sold.

      I don’t doubt at all that markets will zig n zag up “around here” for some time….but it’s the mentality of the trader that MUST change! Being optimistic in a downtrend is just plain foolish..

      The market goes where it goes, and it’s our business to take money from it – regardless of direction.

  2. Anonymous January 31, 2014 / 8:29 am

    just wanted to say thanks. your conviction has helped me back my ideas the last few weeks and i’ve done ok. much appreicated

    • Forex Kong January 31, 2014 / 9:40 am

      Fantastic, and thanks for the kind words.

      Conviction a “big help” in these crazy markets.

      No “Forex Puss” here!

  3. devilyell January 31, 2014 / 8:38 am

    Outstanding Kong!
    BTW, it cost me a small fortune to learn there is no support in a down thrust and no resistance in an up spike.
    Thanks for the keen analysis.

    • Forex Kong January 31, 2014 / 9:42 am

      He he he……you bet – a tough couple of days fighting it out in the trenches but – all gone according to plan.

      Your lessons learned may have been “expensive” but hopefull worth it in the long run.

      Thanks for the suppport Dev! And everyone!

  4. illutionz January 31, 2014 / 9:04 am

    I’m clearing my trade this morning. Should be back to 100% or 99% cash. How about you Kong?

    • Forex Kong January 31, 2014 / 9:45 am

      Prett much yes…..

      I imagine the ol “buck” will take a short rest here around 80.43 – 80.51 so…..no point in pushing things. I might leave a couple over the weekend.

      Hopping in and out on the smaller time frames (once trend has been established) is pretty standard for me, and I don’t like “hanging around” in these markets too long.

      • Careydina January 31, 2014 / 10:05 am

        Well done!

      • illutionz January 31, 2014 / 1:36 pm

        Left Short EUR/JPY and newly initiated Short GBP/JPY position over the weekend. Otherwise I’m cash!

        Horray for a good week thanks Kong enjoy the weekend.

        • Forex Kong January 31, 2014 / 1:45 pm

          Have a good one!

          Yes a very good week, being only the second time stepping into markets for the entire month so…..great to see some movement / action.

          I too have a couple things hanging, but not a worry in the world.

          Time to get outside!!

  5. brosbhos January 31, 2014 / 10:36 am

    I use freestockcharts (.com) for my charts but $dxy is delayed. What do you guys use?
    Had one AUD/USD entered too early but closed in profit for ~ 20 pips, then another that got stopped (lost R), and another one that went “very well” (2+ R). I could have let this one drag lower but it reached my target so i decided to stick with my trading plan. Still tip toeing this thing as i’m learning. The curve seems endless so no need to want to play warrior alongside our mentor Kong. Making right calls is in itsleft a gratification for me at this stage. The rest will come later.

    Have a good week-end y’all. Cheers from France.

    • Forex Kong January 31, 2014 / 10:45 am

      Fantastic work Bros….amazing!

      Taking profits and “learning to just be satisfied” with what you’ve got is a big part of it.

      I take profits and watch trades jet off further in the same direction all the time! In the beginning I used to curse “damn it!-It’s like this computer “knows” I’ve just sold! And now the damn thing moves 200 pips! GRRR!!

      Now a days I don’t even think about. Just get back out on the field and line up the next one, just with a little more gas in the tank.

      Great work man.

  6. David January 31, 2014 / 1:05 pm

    Stellar performance once again Kong!
    I caught some good moves on CAD pairs, which was nice, Kong caught good moves on ALL Pairs! Hats off!

    • Forex Kong January 31, 2014 / 1:21 pm

      Thanks David….good to hear.

      CAD on the move now it appears….GBP gonna roll over here soon too??

      I’m leaving a couple irons in the fire over the weekend, but ya looking across the board..

      I think I hit 12 outta 12!

      Thanks for the “shout out”! Have a great weekend!

  7. JSkogs January 31, 2014 / 2:39 pm

    Nice trading Kong! I missed that last move….no irons in the fire. Next time. Have a great trip man!

  8. rolo January 31, 2014 / 6:10 pm

    Thanks Kong great trades on forex this week and I will watch out for your thoughts in coming days – have a great island trip !

  9. JSkogs February 1, 2014 / 12:39 pm

    We hit that lower spx channel that has held up over the last 2 years. I personally don’t think we will just blow through it. Should be getting a bounce. Anybody have an opinion?

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