Is it any wonder I’ve had little to say as of late?

There finally comes a time where……you’ve seriously “had enough” and just can’t be bothered to explain / rationalize this nonsense.

The Fed “STILL” refuses to spit it out, talking this afternoon as if they are ( rolling on the floor laughing my ass off ) “achieving their goals” and that ( love this ) the U.S economy “continues to expand”.

Again…….laughing my fu$&kin ass off. “Expand”?

Perhaps the “balloned heads” of those on Wall St. and obviously the “waist lines” of the general American populus continue to expand ( a wonderful honor – deemed the “fattest nation” on the planet ) but……the economy???

Fudge.

You boys better get this war going soon as……..even Yellens acting coach is now re watching the tape with consideration that “shit! – we can’t get away with this again”.

Adding short SP 500 at 1940.

 

 

The Fed’s Theater of Lies is Finally Cracking

Look, I’ve been watching this charade for years, but even I’m stunned by the audacity. Yellen and her merry band of economic terrorists are standing there with straight faces telling us the economy is “expanding” while every real metric screams the opposite. Unemployment numbers massaged beyond recognition, GDP figures that would make a Hollywood accountant blush, and inflation data so cooked it’s practically charcoal.

The SP 500 at 1940 is a gift from the trading gods. This market is built on nothing but hot air and central bank promises that are worth less than the paper they’re printed on. When reality finally catches up – and it always does – this house of cards is coming down hard.

The Dollar’s Death Spiral Accelerates

While everyone’s distracted by the Fed’s comedy show, the real story is unfolding in the currency markets. The dollar’s strength is pure illusion, propped up by nothing more than institutional inertia and the collective delusion that America still runs this show. News flash: USD weakness isn’t coming – it’s already here, hiding behind manipulated data and coordinated central bank intervention.

Every major economy is quietly diversifying away from dollar reserves. China’s buying gold like there’s no tomorrow, Russia’s dumping treasuries faster than a hot potato, and even our supposed allies are hedging their bets. The writing’s on the wall in letters ten feet tall, but somehow Wall Street analysts keep acting surprised when currency volatility spikes.

Market Mechanics Show the Real Story

The technical picture doesn’t lie, unlike our friends at the Federal Reserve. Volume patterns, institutional positioning, and cross-market correlations are all screaming the same message: this rally is exhausted. We’re seeing classic distribution patterns across multiple timeframes, smart money quietly heading for the exits while retail investors keep buying the dip.

What we’re witnessing isn’t a healthy correction – it’s the beginning of a structural shift that’s going to catch most traders completely off guard. The same fools who bought into the “soft landing” narrative are going to be holding the bag when this bubble finally pops. Rally expectations are about to meet the harsh reality of overleveraged markets and exhausted monetary policy.

The War Card is Their Last Play

Here’s what really pisses me off: these clowns are so backed into a corner that military conflict is starting to look attractive as an economic solution. Nothing covers up a collapsing financial system quite like a good old-fashioned war. Suddenly, massive government spending becomes “patriotic,” currency debasement becomes “wartime necessity,” and anyone questioning the narrative gets labeled unpatriotic.

The playbook is as old as central banking itself, but the execution is getting sloppier. Too many people are awake now, too many traders understand the game, and too much information flows outside traditional media channels. The internet has made it impossible to maintain these lies indefinitely.

Trading the Collapse

So what’s a real trader supposed to do in this environment? First, stop listening to financial media – they’re either clueless or complicit. Second, focus on what’s actually happening in the markets, not what officials claim is happening in the economy. Third, position for the inevitable rather than hoping for the impossible.

Short positions in overvalued equity indices, long positions in hard assets, and currency trades that benefit from dollar weakness – these are the plays that make sense when the foundation is crumbling. Don’t fight the Fed’s printing press, but don’t believe their fairy tales either.

The smart money knows this game is nearly over. The question isn’t whether the current system survives – it won’t. The question is whether you’ll be positioned correctly when the music finally stops playing.

4 Responses

  1. David June 18, 2014 / 2:52 pm

    Liking the S&P short here also Kong on this strength and getting some August PUT contracts.

    Sadly, America is no longer the fattest nation on the planet, that honor now goes to Mexico. Blame the sugary soft drinks (or better yet, invest in them over there).

    • Forex Kong June 18, 2014 / 5:22 pm

      Hilarious…..and very VERY hard to believe as I see very few “obese” people here.

      Perhaps “a little around the middle” as I assume world wide but…..so far – no reality T.V shows / discovery documentries on obesity here in Mexico.

      I’m gonna read up now though…and appreciate you bringing this to my attention.

      I’ve got to see if any “credible source” backs the claim, as opposed to the usual “U.S media clowns”.

  2. pecuniae June 18, 2014 / 3:13 pm

    Hi Kong, 🙂

    Do you have a stop on that SPX short position? With it hitting new highs, shorting seems extremely dangerous when this thing can continue melting higher in a possible vertical bubble top before the long awaited crash. I’m with you about where this market is headed in the long run; however, markets (especially stocks) are known for remaining in irrational territory longer than most, who try and fight the trend, can stay solvent. Wouldn’t it be a better idea to limit that risk and wait for a bit of a bearish trend, similar to the NIKKEI, before committing yourself?

    • Forex Kong June 18, 2014 / 6:34 pm

      No stop at the moment as I’m “swing trading” this little correction and will just plan to blow out the entire position ( across several currency pairs as well ) on the swing / low.

      As it stands…..the 1880 region looks a bit more likely than the 1860-40 I had originally suggestes but hey….who can say these days as it more or less amounts to a days worth of trading on either side.

      I’m not holding short here…..as I expect another shot at the highs so…..it’s a trade.

      Win or lose……it’s a trade nothing more.

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