Month: June 2016

Change Your Thinking – Down Means Up

Forex Kong Got something to say?

Let me ask you this…….

Just because half a countries people ( yes half……as the vote was so close ) have voted to leave the E.U ( yes that’s right – The U.K is now looking to separate ) does that mean their currency just goes in the toilet?

Off the top of your head, what evidence currently exists to support such an argument?

Quickly consider the opposite.

Could it not be very good news for the Great British Pound? Could this not also be seen as “great news” for Britain, the economy and the countries well-being longer term?

Can you quickly compile a list of the “pros and cons” for The U.K moving forward?

I thought not.

Consider the incredible power Great Britain holds with respect to the entire planets banking system, consider The Bank Of England…consider the ridiculous notion of “royalty” and the planets fascination with it. The Rothschild’s. Reptilian shape shifters….whatever – you nut.

Consider that the entire planets “trading community” just got caught on the wrong side of the trade with Brexit news smashing faces and erasing “trillions” from global equities.

Talk about fear. Talk about a wash out. And for what?

For another 2 years of legal banter, political negotiations, bunk news headlines and the likes?

Change is upon us. You hate that. You fear it….and more than likely don’t really understand it.

The pound (GBP ) now back up a couple hundred points. The U.S Dollar down and ripe for the turn.

You see where I’m going with this?

Change your thinking………down means up.

Back On The Big Short – The U.S Dollar

Forex Kong 4 Comments

Knowledge is power right? Or so they say….

So…..if you’ve only got a view of oh…let’s say just a small portion of the market ( maybe a couple of blue chips, gold) and perhaps the U.S Dollar “against” your own local currency well…..one might suggest adding a couple more “market indicators” to the pile.

I know you may find this incredibly hard to believe, maybe even IMPOSSIBLE to believe but….The U.S Dollar “spike” here in the wake of Brexit market madness will soon provide one of the greatest “short opportunities” of our time ( slight exaggeration perhaps ).

While you’re all drooling over the massive moves “upward” against both the EUR and GBP ( no kidding right? As the vast majority of traders got “wacked” by Brexit ) The U.S Dollar “continues to sink” against its arch rival ( or at times good buddy ) the Japanese Yen (JPY).

The two are now almost at par.

Now….for those with near term memory loss – do you remember the continued explanation here at Kong with respect to money flows on this planet? The safe havens / funding currencies such as JPY going absolutely “parabolic” during times of “risk aversion”? The money that comes “flooding back” to these this currency as large-scale “carry trades” are wound down? Well……if you think the U.S Dollar is strong right now……why is it getting its ass kicked by the Yen? Why is USD losing all support / falling like a rock against JPY?

That’s what I call JPY stength. That’s what I call “risk off”.

The U.S Dollar will soon follow….providing for large scale gains SHORT USD against any number of currencies.

I will again be waiting for a daily “swing high” in USD ( likely within the next 3-4 days tops ) for another joyous ride “back on the big short” – USD.

Pack yer bags…this could be a loooong journey.

Brexit Actually Happens! – Speculators Washed Away

Forex Kong Got something to say?

“Brexit” –  I can’t stand these catch phrase / trending terms –  “Brexit”.

Although rather fitting in this case right…..who would’a thunk?

The hoity toits of Great Britain have actually pulled the plug on remaining a part of The E.U. Currency markets ( not to mention equity markets! ) are flipping out. Truly “exciting times” we live in today.

Now…..the question begs –  WTF? ( what the f*$k? )

Is this an economic issue? Political? Or……..perhaps even more telling – an IMMIGRATION ISSUE?

You don’t see it as close to home – like the Brits do. Things are clearly getting out of hand with respect to the huge numbers of people now “displaced” due to the insanity raging in the Middle East. the British people have stood up and said “hey!” We can’t just stand by and watch our great nation “dilute”.

Touchy stuff for sure – as I am a globalist.

The “movement of human beings on this earth” has accelerated considerably over the past few years, and has now gone “parabolic”. There is true and legitimate “fear” out there, as people ( mostly narrow-minded and slow ) hold tight to what they know…..what they understand –  what they feel is “safe”.

I don’t see this as an economic issue ( although that will come next ) but more so as another indication of the larger issue at hand….and the larger issue on most people’s minds. People are moving! The world is shrinking! People are starting to freak out.

Keep in mind Britain’s place on the global stage. They OWN the banks. They are all-powerful in ways the common man may never truly absorb/understand. The British Pound ( GBP ) isn’t going anywhere as the world’s “elite” hold it in vast quantities. They’ve already built their spaceships…and paid for it in pounds.

I’m curious to see what “spin” the two America clowns running for President put on it. The timing couldn’t be better.

In any case…..catch the news tomorrow morning, and expect all kinds of fireworks. I’ve not posted or traded for well over a month now – essentially proving a point.

Remember Apple short at 111.00? Remember suggestions that”2100″ in SP 500 was the high water mark? You’ve spent the last few months pulling out your hair trying to figure this out.

I’ve got a killer tan and cash in the bank. Hairline intact.

 

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