Walmart Lower – Sells Lipstick For Pigs

If you had to pick just one name, one brand…….a single company that just “screams America” like no tomorrow –  which company would it be?

WalMart anyone?

Walmart Stores reported disappointing earnings for its fourth quarter and fiscal year, citing domestic problems like severe storms, cuts to federal benefits, an economically struggling customer base and international uncertainties like currency fluctuations.

The company announced on Thursday that profit in the fourth quarter, which included the pivotal holiday shopping season, was down 21 percent from the same period last year!

Down 21% from the same period last year!

Storms? are you kidding me?

Cuts to “federal benefits”? you can’t be serious…

An economically struggling customer base? No shit.

And my personal favorite “uncertainties like currency fluctuations”…..Walmart concerned about “currency fluctuations”? ( Now that’s just hilarious as…again “no shit” – your own local currency being taken to the woodshed by the Fed!)

By the time you’ve got Walmart in your sites ( as pretty much the lowest common denominator ) and even “that’s a miss”! You’ve really got to ask yourself….seriously…..

What’s with all this talk about recovery?

Get the lipstick out man ( perhaps purchased at a .99 cent store? )……this pig needs a touch up.

When America’s Retail Giant Stumbles, Your Currency Portfolio Should Listen

Let’s get real about what Walmart’s earnings disaster actually means for your trading account. This isn’t just another corporate earnings miss – this is a canary in the coal mine singing its death song in perfect harmony with a currency that’s been living on borrowed time.

The Walmart Warning: More Than Retail Weakness

When the company that built its empire on selling cheap goods to broke Americans starts complaining about their customer base being economically struggling, you know we’ve hit rock bottom. But here’s what the mainstream financial media won’t tell you: Walmart’s currency fluctuation concerns aren’t just corporate speak – they’re a direct indictment of Federal Reserve policy that’s been destroying dollar purchasing power for years.

Think about it. Walmart sources globally and sells domestically. When they’re getting hammered by currency moves, it means the dollar’s strength – that mythical narrative the Fed keeps pushing – is actually working against American businesses at the most fundamental level. Every imported good gets more expensive in local currency terms when your suppliers are dealing with a volatile, manipulated currency environment.

The Fed’s Currency Manipulation Chickens Come Home to Roost

Here’s where it gets interesting for forex traders. The Federal Reserve’s money printing circus hasn’t just inflated asset bubbles – it’s created a currency environment so unstable that even Walmart can’t navigate it profitably. When you’re printing money faster than you can count it, every international transaction becomes a gamble on exchange rate movements.

The real kicker? This dollar weakness is just getting started. Smart money has been positioning for this collapse for months, and Walmart’s earnings just gave us the confirmation we needed. The world’s largest retailer can’t make money when the currency system is this broken.

Trading the Retail Apocalypse

So how do you profit from America’s retail giant face-planting? First, understand that this isn’t isolated to Walmart. When the bellwether for American consumer spending is missing earnings by this magnitude, every retail-dependent currency pair becomes a shorting opportunity.

USD weakness against commodity currencies makes perfect sense here. When American consumers can’t afford to shop at Walmart – literally the cheapest option available – the entire consumption-driven economic model falls apart. Countries that export real goods to America are about to see demand crater, but their currencies will outperform the dollar because they’re not printing their way to economic suicide.

The currency fluctuation excuse from Walmart’s management is particularly revealing. They’re essentially admitting that the forex environment has become so chaotic that basic retail operations are getting destroyed by exchange rate volatility. That’s not normal market behavior – that’s what happens when central banks lose control.

The Bigger Picture: Economic Reality Meets Currency Fantasy

This earnings disaster perfectly illustrates why traditional economic recovery narratives are complete fiction. You can’t have a recovery when your largest retailer is getting crushed by the very monetary policies supposed to stimulate growth. The Fed’s currency manipulation has reached the point where it’s actively destroying the businesses it claims to support.

For forex traders, this creates massive opportunities. When the disconnect between policy rhetoric and market reality gets this extreme, volatility explodes. Walmart just told us that American consumers are tapped out, federal benefit cuts are impacting spending, and currency instability is making international business unprofitable.

The market rally everyone keeps expecting? It’s not coming when America’s retail foundation is crumbling. Instead, we’re looking at a currency crisis that will make previous dollar declines look like minor corrections.

Walmart’s 21% profit decline isn’t just bad earnings – it’s the sound of an economic model breaking down in real time. And when America’s retail king can’t make money selling cheap goods to desperate consumers, the dollar’s days as the world’s reserve currency are numbered.

16 Responses

  1. David February 20, 2014 / 1:55 pm

    About 20 percent of Walmart customers use foodstamps. Due to cutbacks, it’s really a shame many Americans won’t be able to get as many of their cheap goods for free anymore! (Yes, I’m being Sarcastic! lol).

    • Forex Kong February 20, 2014 / 2:07 pm

      Don’t even get me started….he.he.he….

      I literally had to edit that post ( mentally ) like 10 times as to not drive the point home any sharper, but of course……stocks climb higher.

      Past comical here, but…..hey – for the 1% making money there in the U.S – all power to ya!

  2. JSkogs February 21, 2014 / 10:54 am

    Pretty strong rejection of this mornings high for eurusd. Even though the last few weeks sideways move in the yen and sort of annoying spx action have been boring and frustrating I’m more confident today that the positioning is correct. Probably another day or two of poop. And then it’s on

    • Forex Kong February 21, 2014 / 11:02 am

      The postioning is correct for sure man….

      Just more “pain in the ass intraday action”.

      We will soon be very happy.

      I sold USD/CAD for 202 pips, and will look at re buy.

      • JSkogs February 21, 2014 / 11:26 am

        Good job! I hope I don’t regret it but I held USDCAD with the intention of adding at some point. I’m getting close to as much yen exposure as I’d like but I’m pretty light on USD exposure.

        Any interesting travels this weekend Kong? I’m dying to get outta Canada soon for a trip

        • Forex Kong February 21, 2014 / 11:36 am

          Im up to Isla Mujeres just off the coast near Cancun on Tues….

          It’s a fantastic lil Island, fishing village…even some ruins.

          Otherwise….been looking at “La Paz” on the pacific side / Sea of Tropez for a possible move…but nothing set in stone.

        • Forex Kong February 21, 2014 / 11:50 am

          You bet Farhan…

          “that” happy.

          I’ts turning…..slowly…as all currencies are moving slowly now…

  3. Careydina February 22, 2014 / 6:41 am

    I’ve closed my aud/jpy as well as aud/usd. Looking at eur now. Kong, What’s your view on eur?

  4. schmederling February 22, 2014 / 5:40 pm

    The US has been pumping out poor data for the last 2-weeks straight – with housing starts & permits and some record lows since 08? or something to that effect??? then yes the Walmart data… the benchmark of the US consumer DOWN!! One has to wonder how much more can the pig take before in needs a full blown make-over….!!! Reconstructive surgery anyone ( reduce taper )

    Still getting killed on the Short USD/CAD trade….. wont’ hold much longer….. to the woodshed I have come & gone… I think those 200 odd pips Dr. Kong (118) I just handed over to you….LOL ahh well…. I would think next week the DXY should continue it’s move lower with the Daily Neg fire playing out…. with 2hr & 8hr set-ups I may get lucky to break-even on this trade…. LOL

    PM’s must resume next week & with conviction – after a great sideways consolidation week….. A surprise I must admit…
    The bulls really need to get the ball rolling here to squeeze those shorts….. something they have yet failed to produce ” Short-Squeeze” the opportunity is there….

    Cheers Schmed

    • Forex Kong February 22, 2014 / 5:58 pm

      USD has swung low…..and sets up for at least a couple days higher.

      The “soon to be downsloping 200 SMA” a reasonable area to see things stall.

      I’ve posted / long USD ideas for some time now….but with little confidence in a sustained rally…so – may be you can hold thru – maybe you can bail.

      My feelings would be that you could hold thru, and catch break even / win but……you may endure a couple more days of pain.

      I’m using whatever strength in USD over coming days to bank small profits and get to cash / flip short.

      I will likely be in cash by Friday of next week regardless.

      Miners to pull back , and get set for re load / lift off.

  5. schmederling February 22, 2014 / 7:41 pm

    Thanks buddy – I have some room still….
    Looking @ USD/JPY – have something building on the 8hr & Daily
    Gold & Silver 2hr & 4hr…… something is going to pop there – direction should be higher – waiting on confirmation…

    Cheers Schmed,

  6. schmederling February 22, 2014 / 7:42 pm

    Thursday Yellan is speaking…. 27th just before months end….. should be interesting…
    Have a good one

  7. JSkogs February 23, 2014 / 8:19 am

    Wouldn’t want to be short CAD today because of a major gold find…….In men’s hockey!! Haha

    • Forex Kong February 23, 2014 / 8:54 am

      wow……ya I just heard.

      Nice work!

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