Month: April 2014

Your Broker Selling You Shares – You Still Buying?

Forex Kong 1 Comment

While the SP 500 “pass the bag to the innocent bagholders” show continues, have a peak at this (borrowed) chart of what “institutional investors” have been doing all the while.

You know “institutional investors” like your bank, your brokerage firm, your investment advisor – you know…..those guys you can really count on to let you know what’s up – and how you should be investing.

20140416_smart_money_Forex_Kong

20140416_smart_money_Forex_Kong

Think anybody’s sneaking out the back door on this last “SP 500 pump job”?

Oh right….he’s your broker, ya ya….your banker right right…….

Who do you “think” institutional investors are pal?

– I don’t want to hear it.

 

 

Nikkei Reversed – China PMI Next

Forex Kong 2 Comments

What’s absolutely hilarious about this is that….

The “planetary growth engine” China has already posted 3 straight months of CONTRACTION, with the “flash manufacturing PMI” numbers set to be released later on this evening.

The industry “expectation” is ALREADY at 48.4 ( Above 50 indicates expansion – while under 50 suggests contraction ) so……market analysts already “know” the number is low – and that this will mark the 4th straight month of continued slow down in China.

China’s amazing growth over the past 5 years “fueled” the “planet wide sale of stuff” as China practically bought “everything under the sun” in order to keep on growing/building.

So who’s buying all that stuff now? All those goods and services that made corporations profitable, all the contracts / investment made during the “boom times”?

You’ve got to be “completely 100% nuts” if you haven’t figured this out by now, and seriously starting thinking about “becoming a seller”.

Get ready “bagholders”.

Here comes good ol USD on the “repatriation trade” I made light of a couple of days ago. If Japan hasn’t already stomped you into the ground…..get ready for China on deck tonight.

PinBar Anyone? – Nikkei Continues To Lead

Forex Kong 10 Comments

You may scoff.

You….. there in your ivory basement suite. Wading through piles of overdue bills reaching for the phone – only to be greeted “once again” by your local collection agency.

For a while there, you fancied yourself a “stock trader” and perhaps “financial blogger” too but…the dream has now faded, and the stark reality of your situation clear.

You are 100% hooped.

Was it the Fed that got you? But I thought they had your back?

Or maybe it was those damn “high frequency traders” on Wall St. But…I thought you worked on Wall Street?  How on earth did you ( such an astute investor ) manage to get yourself trapped, and leveraged to the hilt – when the warning signs where so clearly seen via The Nikkei?

Oh yes…that silly Japan. It’s not “America”!! How could anything going on “over there” have any possible impact on “us!” Us Americans!

Silly silly……Wall St wanna be’s.

A pinbar to the abdomen I say! A pinbar to your right knee!

Nikkei gonna show you the way – DOWN.

Many thanks to those who’ve already signed up for the Premium Services – I really do appreciate it. I’ve got a couple spots left here short term so again will offer that if anyone wants to get in touch with me directly – you can drop me a line at: [email protected]

 

 

Forming A Fundamental View – Climb Higher

Forex Kong 6 Comments

From a fundamental perspective we need to look at things from the top down.

Now…..depending on “how high you climb the beanstalk” things may appear very different as…we all climb as high as we can ( based on our own knowledge and understanding ) formulating  an overall view of “what we think” is going on below. But what if you don’t climb high enough? Is your perspective “all encompassing”? Or are you only seeing things from a vantage point that ( innocently not knowing ) only allows you to see a small portion of the larger picture.

How high do you need to climb in order to formulate a macro view “wide enough” to feel that you’ve got things in the proper perspective – and in turn use this perspective to your advantage?

This of course…is wildly subjective,and always up for debate as – we all formulate our “macro views” based on our own experience, knowledge and understanding.

My macro views start with “Earth” if that says anything.I then start to work myself down.

Movement in financial markets is merely a “bi-product of human activity” so……it only makes sense to better understand who’s got the largest influence and what their intensions are no? Central Banks sit high above you and are currently in “desparation mode” world wide – doing everything they can to keep the “debt balls up in the air”, while facing the stark reality of continued “slowing global growth”.

As a retail investor don’t kid yourself. This has nothing to do with “mom and pop” buying a couple stocks with hopes of making a buck or two. The big boys push this thing around “like a skinny kid on the playground” with the sole intention of extracting your “hard earned live savings” as readily as possible – then depositing them in their offshore bank accounts.

You are at war every single day you put your money at risk in financal markets, against an enemy with every possible weapon at their disposal. Failure to recognize this generally leads to one thing, and one thing only. Failure.

If you can’t adopt a “warrior type attitude” with respect to your trading / investing then you may want to consider taking something up that’s just a little “teeny weeny” bit  “safer”.

Needlepoint anyone?

 

Don't Read This – I Repeat – Don't!

Forex Kong 12 Comments

What people fail to understand when looking at a simple “side by side comparison” of the U.S and China ( with respect to their stimulus programs ) is that while nearly ever dollar printed in the U.S “leaves the country immediately ” to be invested in markets abroad ( where the bankers/shiesters can get a “real return” on their investments) the money and credit put forth in China goes directly into the country’s own people and their development!

Do you honestly think “The Fed funny money” printed over the past 5 straight years has gone “back into America”? Then where is the result? Show me!

China’s infrastructure growth over the past 5 years is off the charts! Total investment “in itself”.

With completely “new cities” popping up everywhere, highways, new roads, railways, bullet trains shit…..China’s even got a rover rolling around on the moon right now while what?? Last I heard NASA is close to broke / shutting down and has scrapped the Space Shuttle – currently “outsourcing” to private companies for future developments in space!

I hear the power grid across the U.S hasn’t been improved / updated since like…..1842 ( joking ) and that the majority of the nuclear power plants across the country are literally “from the 70’s”!

China sitting on the cusp of “cutting edge technological breakthrough/development”, coupled with an “ever-growing” consumer economy and growing middle class…while U.S citizens take their place in line at the nearest unemployment office with food stamps in hand!

How can you not see this? How? Tell me!

Where do 85 BILLION “NEWLY PRINTED  DOLLARS” GO EVERY MONTH????

BILLION??? EVERY MONTH??

Where are the new and improved highways, repaired bridges, the latest technologies invested in rail, clean energy etc?? WAKE THE F UP MAN! You are getting hosed!

Taxes to increase ( cuz you pay the bill for Gov spending ). Interest rates to rise. Gas prices to the moon. Inflation up your ass. Unemployment your neighbor. Repo. Foreclosure. Poof!

Start making some plans bro……this is only the beginning.

You think it’s any surprise that Putin doesn’t give a rat’s ass about any “U.S imposed sanctions”? Who the “F” cares? He’s got an entire planet looking to buy the goods, and pay for those goods with “real money” as opposed to USD. Trust me….this is the beginning – not the end.

 

 

 

Commods CLEARLY Rolling Over – Down We Go!

Forex Kong 12 Comments

When you see selling in the high flyers such as the Australian Dollar as well the “bullet proof” New Zealand Dollar – you know something is going down.

These “higher yielding” currencies generally hang on to the very last moment til risk is “fully unwound” and shit hits the fan.

I’ve got “weekly swing high” in NZD as well continued weakness in AUD.

Anyone looking through a microscope at “the tiny world of U.S Equities” needs to step back about a quarter-mile or so.

The big  ship takes weeks if not months to turn, and when she turns “wow – does she turn!”

I can only assume ( now ) every stock trader on the planet will soon start watching currency markets / global shifts after seeing the Nikkei top out weeks ago and now this with the continued JPY strength, soon to be USD “rocket ship” – and the waterfall in risk that soon draws near.

It’s all there in the currency market – LONG before you bozo’s see it.

(not you guys………the “other” guys.)

I Love This Price Action! – Everything Has Changed!

Forex Kong 10 Comments

While everything remains “exactly the same”.

I love it.

The market is doing exactly what it’s designed to do.

Drawing in those last hopeful bulls ( after already trapping the majority of “old bulls” in devastating fashion ) as well dangling the carrot for “hopeful bears”  legging into position here – but quite possibly “equally under water”.

The push and pull of good and evil! happy and sad!

All that you love and all that you hate – playing out in one incredible combination of “ones and zeros”! “dollars and cents” !! I love it I LOVE IT! I LOOOOOOOOVE IT!

I LOOOOOOOOOOOVE IT!

Complete and total devastation awaits you on both sides of the fence should you lose your head here.

Always remember that “human emotion” is one of the largest and most powerful contributors to market direction so step back a second and ask yourself…….

Are you “more scared” than you where a week ago?

I think that’s right around the time I mentioned the Nikkei leading, oh ya ..and days before that getting short Japan etc….blah blah.

Oh no wait……let me guess…..you’re sitting in some crap “monthly rental” office somewhere in the bowels of New York City, watching your investments crap their pants wondering “WTF?”

Word of advice…….look out your window pal….( more likely a basement suite in Minnesota ) – It’s CALLED THE REST OF THE WORLD!

Wise up. Going down.

 

 

 

Face Ripper GBP/AUD – Making The Turn

Forex Kong 7 Comments

I’ve refered to these pairs many times before as “face rippers” in that……they can move with such violence and such volatility as to literally…..well – you get it. It can get pretty ugly if you’re not careful.

It is not uncommon “in the slightest” to see these pairs move some 200-300 pips in a given 24 hour period, only to shoot back 150, then jet off in the opposite direction another 200 or more. They are “crazy volatile” and cannot be treated in the same fashion as one might consider trading a “pussycat pair” such as – lets say..USD/JPY.

I’m talking about EUR/NZD, EUR/AUD, GBP/NZD and GBP/AUD.

These guys can produce some major moves, and in this case the “upside potential” is easily….EASILY 1000 pips and higher – if we finally see the commods (AUD and NZD) roll over, as they appear to be doing now.

You trade these pairs as if holding a hand grenade so….careful, careful, small  (tiny small) order with “super wide stop” if you look to stand “any chance” of taking the ride.

Again, you may consider that I’m usually “early to the party” so get these on your screens – and watch for some “serious fireworks” in coming days.

USD Repatriation – Up Before Down

Forex Kong Got something to say?

Repatriation – is the process of returning a person to their place of origin or citizenship. This includes the process of returning refugees or military personnel to their place of origin following a war.The term may also refer to the process of converting a foreign currency into the currency of one’s own country.

So from a financial perspective – it’s the currency part of it we’re concerned about.

Don’t you find it interesting how… just when you’ve finally got a handle on the current fundamental issues and geo political concerns that “may” influence movements of a given currency – things start moving in the complete opposite direction?

Huh? Dollar going up? Well……I thought the U.S Dollar was doomed?

Well…..( after weeks of me going on about it ) you “now” have a much better understanding of what’s “really going on” with respect to the U.S and it’s concerns / involvement in The Ukraine right?

Russia continues to “call the bluff” and continues to move forward ( along with her good buddy China ) in creating and promoting trade agreements “outside use of the U.S Dollar” – representing likely one of the “largest and most serious threats” to the U.S “global domination campaign” of our time.

The U.S can’t have this, as it represents a major, major , MAJOR blow to the dollar’s status as the  “global reserve currency” and throws a big monkey wrench into the U.S plans to “print and export toilet paper” – keeping  the ponzi scheme alive a while longer.

They will go to war over this. I guarantee it. They will go to war before letting go of this “insane privilege” as it serves as the very backbone for their ultimate plans.

The east has had it, and has finally decided enough is enough.

So…..before the U.S Dollar can “fall off the side of a cliff” and in “preparation” for such an event many investors will begin “selling/closing” investments financed in USD abroad, and bring that money home FIRST. Get it?

An example:

If you thought the shit was gonna hit the fan and had recently bought a summer home in Italy lets say……you might now consider “selling that home in EUR” and in turn sending / taking that money BACK HOME TO AMERICA ( converted to good ol USD) – where you’ll feel safe/ better knowing your investment isn’t at risk and your money is “safe” back in your piggy bank.

You see? Repatriation. Reee-paaat-reeee-a-shaaawn.

A simple concept with massive implications.

USD needs to go up up up up up ( as investors “unwind” investments abroad) and bring those babies home.

Only “then” to see them further reduced to toilet paper.

 

There's Our USD Swing – Right On Time

Forex Kong 4 Comments

As suggested there on Friday “if” we saw an expected turn upward in USD ( or at least…I was expecting it ) this is clearly a “swing low” at a fairly significant area of support.

This could possibly be a very significant “low” for USD, marking “the bottom” of what could turn out to be a very powerful new set of “higher highs” and “higher lows”.

All trades suggested on Friday – moving in the right direction.

Otherwise, The Australian Dollar continues to baffle as “risk is clearly expected to come off” here in coming days and weeks.

The Nikkei taking a bump up this morning –  and that’s “all it is” a bump up, as you’ll recall – nothing moves in a straight line for long. This too…soon shall pass.

We’ve moved from an environment of “buying the dips” to now “selling the rips” so…..you better get your head wrapped around it.

Stocks can and will “fall further” over the coming weeks, if not months.

Over the weekend I’ve had incredible interest in the “Members only / paid services” area – thank you. I’m only a day or two away so for those who’ve already contacted me so I will get back to you via email as to login / site address etc. The payment system will be Paypal based so please be aware and maybe even look ahead. You’ll need a paypal account in order to subscribe/use credit card. It’s a snap to set up.