Fed Has Bad News – War On Dummy

Oh no……what do you know.

I’ve seen a handful of news articles ( ironically out of the U.S ) this morning suggesting that “The Fed” will likely “guide down” with respect’s to future outlook on U.S economic growth. He he he….you’ve got to love coming from my point of view. You’ve really gotta love it.

The Fed….now “changing the language” ( well…duh…as we all know global growth is set to “slow” ) to reflect concerns of “lower than expected growth” to follow.

Do you feel that you’ve been duped? Do you feel angry?

Can you imagine that after 5.5 years of essentially “robbing you of your savings” ( via 0% interest ) as well as”rapidly devaluing” your currency, providing “a big fat zero” to job creation and economic growth AND blowing an enormous bubble in the stock market……

You’ll now enter recession?

You’ve got your head buried so deep in the sand that you don’t even realize that “the recession” never left. Only a brief “5 year soaking” of the “mom’s n pop’s” to keep those Wall St banks afloat a while longer.

Well…..no that your savings are gone…..now that the “little bit extra you thought you had” for stock investing is gone…..now that your job is gone…shit….now that your wife and kids are gone we might as throw in the fact that your hair has likely “left the building as well”.

What the f#%k are you gonna do now?

Hey! It’s America! Let me guess??

Please don’t say “join the army”….please no……please don’t say that.

War! War! ( southern twang ) What we Americans need is a damn war!! Let’s go to  war dang it ! Mamma! Mamma! I wanna go to war!!


How many times do you need to see the same stupid Hollywood movie over and over,and over again?

Have you considered taking up arms against The Fed?

Global Growth Forecast Slashed – Up We Go!

Some interesting macro factors have “suddenly” come into play over the past few days, but the question still remains – “does anything fundamental even matter to this market”?

Markets shrugged off the concerns in Ukraine, which in my opinion is very strange as “if anything” – the fighting / conflict / killing has only escalated! What started out as people throwing rocks in the street has now progressed to full on military assaults involving helicopters, fighter jets, tanks etc….

And now “suddenly” a good part of Iraq has been taken over! Practically overnight  ISIS, the brutal insurgent/terrorist group formerly known as al Qaeda in Iraq, has seized much of western and northern Iraq with eyes now set on Baghdad. Incredible.

If not under the complete and total control of Central Bankers news like this would / should normally have “ROCKED” markets but of course…..not these days as….these aren’t “our markets”. The distance between rationality / fundamentals and “absolute ridiculous manipulation” has never been greater.

Will either of these “new wars” put a crimp in global appetite for risk? Maybe we should throw in the World Bank’s recent “slashing” of global growth prospects as well. 2014 estimates slashed from 3.2% to 2.8% – with the U.S specifically cut from 2.8% to 2.1%.

Is that even considered growth?

Looking ahead…..this thing is a train wreck “slowly gathering speed”.

Those on the sidelines should actually consider themselves lucky.

If Not Balls – You Still Have Faith

You know….It’s pretty tough to teach someone to “grow a pair”.

There will always be that certain kind of person….afraid to stand to close to the edge, scared half to death of “doing something different”, completely freaked out about “most anything” that hasn’t already  been tried, tested and proven “safe”. A real “straight edge” if you know what I’m getting at. A real “puss-puss” in other terms. You know what I’m talking about? You know someone like this?


What a complete and total bore.

What kills me, is when these kinds of people “somehow” stumble into the trading / investing / financial world with actual hopes of succeeding! Like they expect “for whatever reason” that the world will be kind to them and help them along. The complete and total misconception that “everything will be alright” and “if I just stay positive…everything is going to be fine”.

( sound of iratating buzzer going off on some ridiculous game show ) Beeeeegh!!

Wrong. You lose. Thanks for coming out. Please exit stage left, and don’t let the door smack your ass on the way out.

Puss- puss’s don’t win, and from what I’ve come to understand….there’s no changing them. Once a puss-puss “always” a puss puss.

This thing is a street fight. You’ve got to imagine yourself with a skull half bashed in “swinging for the fences” against 4 or 5 guys twice your size ( true story by the way ) lookin to make you go “bye bye” for good!

You need to fight! You need to grow a freakin pair!

I can show you what I’m doing……and I can tell you what I think. But it’s you and only you!…..that needs to push the buttons.

Faith is bullshit, and last time I looked – balls are real.






I'll Throw You A Bone – GBP/AUD

We’ve touched on this pair here a couple of times throughout the past year, as it falls under the category of “face ripper” in my books.

This thing can move “several hundred pips” in a given 24 hour period, and has the tendency to “literally” rip your face off if you don’t keep your eyes peeled.


If a person was “so inclined” to enter a trade right around now…oh I don’t know lets say “long GBP/AUD at 1.79 with a full 100 pips stop ( a single penny stop in forex terms) I glady welcome “the showers of thanks” to follow.

One needs to keep in mind …..you “could” get your face ripped off but…..

I think you’ll be ok….this time.

Swing High – On The Old Nikkei

Most of you know that I follow Japan as a leading indicator right?

It’s not at all uncommon to pull prophecy from “Krystal Kong Balls” seeing what happens in Japan overnight spill into U.S equities the following morning.

Would I have told any day trader in U.E Equities that “today” would open lower? Absolutely.

Would I suggest that 15,000 in Nikkei and it’s clear rejection at that level will usher in the coming correction? Absolutely.

Will you take any interest in this, and possibly “learn something” or perhaps consider this in your trading / investing moving forward?

Absolutely not. I highly HIGHLY doubt, that the ramblings of some gorilla as to the peaks and valley’s in “some stock market” far,far away will have any impact on you and your trading what so ever.


Because you won’t open yourself to change. You “can’t believe” anything like this is relevant, let alone “possible” as you continue to view the world via CNBC and the hordes of “financial bloggers” regurgitating the same nonsense and “predictions” day after day.

I’m buying a bunch of EURO here today and am selling a whole bunch of USD too but I’m sure “that” makes no sense to you either right?

Here’s the symbol for The Nikkei should you crawl decide to crawl outside your hole: $nikk




Trading The Months Ahead – A Plan In Place

I can feel it in my fingertips.

We’ve worked very hard to not only stay “reasonably safe” these past few weeks, but also make a couple winning trades as well. I can assure – that’s a lot more than one can say for the many who’ve likely been “torn to bits” during this difficult time.

It’s time to put together a medium term plan that “should” have us nail the next “two moves ( taking us out as far as early September ) – where we will then find ourselves in an even better position. I plan on nailing “the third move” then.

I’m going to use the SP 500 ( and it’s correlation to USD ) as a “risk barometer” first…then move to the specifics of which currency pairs we will use to execute the plan.

I’m very confident that SP 1950 ( or so ) and Dow 16,950 ( with Nikkei here at 15,000 ) will mark our “top”, and see one important “turn” for us to be very well aware of coming only a few short weeks ahead. You’ll want to be prepared, and you’ll want to be ready as….I plan on nailing this big time.



The chart and the arrows say it all, as there is really no point debating the “fundamental reasons”. It’s simple. We are headed lower for all the reasons sighted here over the past few months, but “even at that” these next few months will likely leave both bulls and bears scratching their heads looking for the answers. It will still appear “flat” until the larger “sustained move lower” comes in early Sept.

I believe the global macro fundamentals will “finally” match up with the technicals “after” we get this “final rinse” over with this summer. I believe the U.S is already back in ( in fact never left ) recession, and that whatever other “explination” is found in the media over the coming weeks – it really won’t make a difference. Blame it on E.U. Blame it on slowing China. Blame it on war in Ukraine. It doesn’t matter. What matters is trading it effectively.



Short and sweet here.

If you want to get a look at the trades we’re putting on in order to best take advantage over the coming weeks and months – please come join us at Forex Trading With Kong !

The Turn – Draghi And I Can Taste It!

You can almost taste it can’t you?

Every single chart you view / analyze sitting “right on the cusp” – with just a “tiny push needed” to put this thing into the “golden zone”.

Draghi should provide that for us on Thursday when markets “finally understand” that Mario Draghi and the European Central Bank will not participate in the ridiculous “currency devaluation practices” put in motion by both Japan and The United States.

If a piddly “interest rate cut” is actually in the cards….it’s more than already priced in, and the idea of “massive dilution / bond buying” etc is completely and totally absurd.

Germany runs the show in the E.U, as the only country with an economy worth a damn.

Draghi can’t “act” on behalf of a dozen countries, as there “is” no European bond….and he “can’t legally” devaluate the Euro.

Christ…..imagine if Canada and Mexico where ever foolish enough to allow / agree to a “North American unified currency” with the U.S Fed at the helm?? He he he…..impossible. Speaking on behalf of “both” countries….. I know for certain – the people are much smarter than that.

Wait til U.S stocks are literally “chopped in half” and then imagine what that money printing solved. Bahhh! Nada.Zip.

So we sit patiently for yet another 24 hours. I’m cool with that.

Draghi is “once again” getting ready to to do what he does best.

Absolutely nothing.

The pool of saliva on my trade terminal widens as it’s getting difficult now to even touch the keys without gloves on.

Gross I know but……..isn’t this market just disgusting anyway?


Forex Market Solved – Here's What's Next

It’s unfortunate that we’ve been so patient these days, only to now find the odd “profitable trade” finding itself slightly “back in the red” – with the huge ramp up in both The Nikkei as well SP 500 ( our risk barometers ) on absolutely no news “if not” bad news.

So is forex.

The great news however is…..we’ve “still” not missed a thing! and for those who’ve been slightly “wary” of the current trade environment ( wonderful…as you well should be ) a number of trade opportunities are not only “very much in play” but perhaps even “better looking” than some days or even weeks ago.

Let’s take a quick recap.

Short AUD/JPY here “again” at 95.00 or ( as I often suggest ) several pips lower and allow the market “momentum” come to you.



Re short GBP/JPY here at 171.80 area is the exact same entry we took some days ago then banked 200 pips on it! Exact same thing – right here right now.

With over 900 pips banked in the last 30 days, this is setting up pretty sweet for a complete and total “re run” as markets continue to hang at all time highs.

We’ve got piles of trades in the works now, with the “near to medium term analysis” in the bag.

Come trade with us at www.forexkong.net and get the full run down, weekly reports, daily commentary and real time trade alerts.


Zero Volume – Can You Hang On?

It gets increasingly more difficult to “conjure up” any kind of meaningful analysis or even “mildly interesting” market commentary these days with currency markets literally – ground to a halt.

The amount of trade volume across “all asset classes” is “so low” right now I even see tiny holes/spaces between candles in a number of my charts! That’s what I call “low volume”.

It’s dangerous. Very dangerous as the “lack of movement” tends to grind away on you psychologically and often contributes to “poor decision-making”. Positions sit “lifeless and flat” new trades go nowhere and no matter what you seem to do “nothing” produces more than a couple of points here or there.

How long can one remain patient? How long can one remain “solvent”?

If we’ve learned anything over these past few months “Monday’s” are certainly not the day for any kind of rash decision-making, as these days the “Sunday night levitation” has become pretty much standard.

There’s nothing you can do. Just thank your lucky stars you’ve continued to trade small and just let this run it’s course as this low volume “ramp job” stuff can be extremely misleading.