Buy EUR! – Don't Ask Just Buy

No. Don’t do that – or at least not like it’s gonna be the “get rich trade of your life”. I’ll tell you when to pull the trigger.

I’ve thrown this out there to prove a point, as I imagine I’m the only voice out there suggesting something so insane. Insane is it?

I look across the financial blogosphere and financial news sites today, and all I see is a continuous stream of “bearish Euro” “time to sell EUR” “”Euro to tumble past all support” blah blah blah.blah blah….

As I am completely devoid of emotion, I can’t hate the Euro any “more or less” than I hate or love any paper currency ( all paper currencies being tiny pieces of toilet paper with fancy graphics and holograms ) as the “sell spiel” currently running in main stream media would have you thinking “The Euro” is about to run itself directly off a cliff.

How much do you want to bet “Dear ol Kong” this thing is going nowhere but UP UP UP!

Let’s just let it sit. Let’s let this “glaring example” drive home the point – even harder.

The retail forex/investment landscape works from every possible angle to rid you of your hard-earned dollars as fast as humanly possible ( computers do most of it so….that “is” faster than humanly possible ) with the media only seconds behind.

I challenge you to watch the EURO in coming days and put me to the test.

Clinging to your T.V set, you still can’t quite accept the fact that you are being lied to every single minute of every single day.

Oh Kong I pray you are mistaken!!!

 

 

The Euro Rally Everyone’s Too Blind to See Coming

You think I’m crazy for calling the Euro bottom while everyone else is screaming “SELL”? Good. That’s exactly where the money is made. When the financial media machine is running full tilt in one direction, that’s your signal to start looking the other way. The retail crowd is being positioned for maximum pain, and the Euro is about to deliver it in spades.

Why the Bearish Consensus is Your Best Friend

Here’s what they don’t teach you in trading school: when 95% of the voices are saying the same thing, they’re usually about to be spectacularly wrong. The Euro bearish sentiment has reached levels that would make a seasoned contrarian salivate. Every financial blog, every talking head on CNBC, every retail trader with a $500 account is convinced the Euro is going to zero.

This is textbook market psychology. The big money doesn’t make profits by following the crowd – they make profits by positioning against it. While retail traders are busy shorting EUR/USD based on whatever doom-and-gloom headline they read this morning, institutional money is quietly accumulating. They’re not broadcasting their moves on Twitter or writing breathless articles about European collapse. They’re buying.

The Technical Setup Nobody’s Talking About

Look at the charts with clear eyes, not clouded by media hysteria. The Euro has been building a base, forming the kind of accumulation pattern that precedes major moves higher. But nobody wants to see it because it doesn’t fit the narrative they’ve been spoon-fed.

Support levels that were supposed to “crumble” are holding. Volume patterns are showing smart money quietly stepping in on every dip. The kind of panic selling that would signal a real breakdown? It’s not there. Instead, you’re seeing controlled distribution designed to shake out weak hands before the real move begins.

Remember, markets don’t collapse in slow motion with everyone watching. Real crashes happen fast, unexpected. This Euro “decline” has been the most telegraphed trade in recent memory, which is exactly why it’s going to fail spectacularly.

Central Bank Games and Currency Wars

The central banking game is rigged, and understanding who’s playing what hand is crucial. While everyone’s focused on ECB policy mistakes, they’re missing the bigger picture. Currency wars aren’t fought in the headlines – they’re fought in the shadows, through swap lines, intervention threats, and coordinated policy moves that never make the evening news.

The USD weakness narrative is building momentum behind the scenes, and when that dam breaks, the Euro is going to be a primary beneficiary. Central banks don’t telegraph their moves – they execute them when maximum damage can be inflicted on the wrong-way crowd.

Timing the Contrarian Play

I’m not telling you to mortgage your house and go all-in on EUR/USD – yet. But I am telling you to start watching price action instead of listening to the noise machine. When I give the signal, it’s going to be based on what the market is actually doing, not what some analyst thinks it should do based on his interpretation of yesterday’s economic data.

The beautiful thing about contrarian trades is that they offer the best risk-reward ratios. When everyone expects something to go down and it starts going up instead, the move is violent and sustained. Shorts get squeezed, momentum builds, and suddenly the same people calling for Euro collapse are scrambling to explain why they were wrong.

This is how markets work. They’re designed to separate you from your money by making the wrong move feel like the obvious move. The Euro trade everyone’s convinced is a slam dunk? That’s exactly the trade that’s about to blow up in their faces.

Watch the price action. Ignore the headlines. And when I say it’s time to pull the trigger, you’ll understand why patience pays in this game. The market bottom signals are already forming for those who know how to read them.

10 Responses

  1. Andyman71 May 28, 2014 / 5:02 pm

    Hey Kong, made a few quid today on some of the euro pairs but glad to say I’m out now. Can I ask what’s got ya spooked?

    • Forex Kong May 28, 2014 / 6:30 pm

      What are we doing here on the blog side you nut?

      He he he….it’s not the Euro as much as global macro here…..I don’t believe that Draghi “will or can” do a single thing here so….

      Point being….it’s about the media spin / relentless assault on retail investors with every single site I find – telling everyone to sell Euro.

      Give it a couple of days but……I’ll take the other side of that trade.

      • Rod May 28, 2014 / 8:37 pm

        I agree Kong. It is paused to accumulate and trap more shorts. As a harmonic pattern trader I have it as a bullish Nen Star (4 hour chart) – wait and buy. Ignore the noise.

        • Forex Kong May 28, 2014 / 8:46 pm

          Nice work ma man…..

          I’m out blasting the general “financial media” on it here today, and will continue to monitor before considering any trades.

          Nice work . Go go go

  2. Farhan Nasir (@FaniNasir) May 29, 2014 / 12:00 am

    What the fuck happened to AUD , i mean that is a very bad no for AUD and still it sky rocketed , WTF

    • Forex Kong May 29, 2014 / 8:25 am

      Look at U.S Equities!

      GDP number suggests economic contraction – the first since 2011! And up she goes!

      • Forex Kong May 29, 2014 / 8:26 am

        AN absolute grind……for everyone man.

        One day up….next day down….up, down, up , down.

        A “new level” of patience – now required.

  3. Rob May 29, 2014 / 10:00 am

    Kong, do you see any kind of catalyst in the near-term to spark some movement in these markets? I mean it has been a grind and low volatility for so long that it almost feels like this is the new “norm.” In reality I am sure a break is coming and the moves will come but holy hell this is tiring.

    Thanks

    • Forex Kong May 29, 2014 / 10:14 am

      The most tiring / exhausting in my entire time trading yes.

      I’m not quite convinced it will be the “new norm” but it certainly is an “extended slow period” – that’s for sure.

      Common already! Let’s do this!

  4. Buena June 1, 2014 / 3:35 am

    I share similar views Kong, shorts have gotten more than their share of front-running ECB action (which is really just words at this point!)

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