Step away from your computer for a couple of days and BAM!
Stocks peaked out on day 21 of their cycle, and the USD bounce just turned into a “USD crater”. Stocks could easily fall much lower over coming weeks so…
I wouldn’t think much of it considering that nearly ever single time stocks take a little break…they have generally popped back up in but – THIS TIME? The intermediate cycles have been so extended, the counts have been very difficult, but with today’s action coupled with the massive “profit taking event” in tech stocks some weeks ago?
Don’t go looking to buy a dip here! DO NOT GO HUNTING FOR A BUYING OPPORTUNITY!
If this is indeed the long-awaited “mini crash / intermediate decline in stocks” it will take weeks, and quite possibly roll over into yet another failed daily cycle pushing things lower for weeks “after that”.
It’s far, far to early to even consider this a buying opportunity, as you should have been looking at these past few months as selling opportunities anyway right?
I’m dumping my crappy “short MUX / summer play on Gold” and otherwise have “zero skin in the game”.
USD falling thru here very surprising so I am 100% out ( perhaps with a tiny profit ) first thing in the a.m.
Sorry….the sun is out, and as stated many many weeks ago……I’ve no time for this now. It’s a waste of my “oh so valuable time”.
I’m bored. You’re bored too.
The summer grind is certainly “doing its thing” so a quick update on my trade activity will have you rolling your eyes. “Common Kong! – Give us something to trade man! You’re killing us here!”
Just stay short Gold and related names…..as the move hasn’t really even happened yet. Stay long USD as again…..these last few days / weeks have generally traded flat asa pancake but an intermediate decline in Gold ( and subsequent rally in USD ) is the only thing worth looking at here short/medium term.
I’ve added to my short play on MUX ( as a cheap gold short nothing more ) and am still holding short EUR/USD.
It’s boring as hell…but these trades will materialize in a more significant manner here shortly….all you have to do is be patient.
As you all know I have been actively following Canadian Marijuana companies….with thought in mind – this is very similar to the “good ‘ol days” when I got intrinsically involved with online gaming “prior” to the global phenomenon.
For kicks you all can go rent the movie “Runner Runner” starring Ben Afleck and Justin Timberlake for a very real account of my experience those 7 years in Costa Rica. The movie documents our company / story almost to a tee – right down to the alligators, “the ladies” and the lifestyle.
Wild times to say the least.
Now looking at my position in ACB ( Aurora Cannabis ) with potential merger on deck with Hemp Food and Fiber (HEMP) – both of which recently making nice pullbacks and looking to bottom here with stock trading “halted” here this morning….I can’t help but wonder…
Could I seriously hit this again? Is this the beginning of an essentially “brand new industry” and these stocks will never, never see levels anywhere close to this ever, ever again? No moss growing on ‘ol Kong eh? Eh? I’ve started a simple newsletter that is “pot specific” if you are at all interested. I’ll plan to mail out maybe once or twice a month as things progress.
Otherwise….cheapest short gold play I could find – I shorted McEwan Mining Co. (MUX) yesterday afternoon at 3.77, and it looks like the USD / EUR ? Gold call is hmmm…….bang on the money?
Get in here and comment / chat it up people. Some great stuff flying back and forth here during the day. My posts are just posts.
Kong’s Got Weed
Personally….I rarely look at this pair as any, “ANY indication” of larger market moves or global appetite for risk as – these are they two most widely held reserve type currencies on the planet, and their comparable movement does nothing for me / my analysis or for the most part….my account.
The general “forex media / forex industry” promotes the trading of this pair like there’s no tomorrow, and new traders tend to love it. Don’t ask me why. Well ok ask me why…..cuz they don’t know anything about forex before they start trading it!
So if the coming move in forex markets “in general” can be at all illustrated for you “new comers” via this pair – take a look at the weekly chart of EUR/USD:
Resistance Ahead For EUR
See that big red candle back near the first part of October? The one with the tall “wick” on it? High of 1.1305? Then looking back…..see the confluence area surrounding this price level “rough and nasty”?
Now check Gold:
Resistance For Gold
Support For USD
These are the kinds of “large time frame” areas of support and resistance where you can start considering some “serious” trading . Not getting bogged down in the short-term flutters, if you can just manage to keep your friggin hands off the mouse for a day er two!
Not much more to be said here. You know what I’m getting at as this trade is getting very close.
It’s the “knowing ahead of time” and the “recognition” that these levels and correlations exist that will elevate your short term trading as you should “already know” the levels to watch for reversal. THEN pop down to your 1H charts and plot your entry.
Eur set to top. Gold set to top. USD set to bottom for a solid “medium term trade” so……start eyeing these charts for their reversal on the 1H at the bare minimum before even considering entry.
You owe me big time.
I don’t have a lot of time this morning but wanted to let you know…..
Gold is looking like a “top” as The U.S Dollar is “slowly” ( very slowly ) putting in a medium term bottom.
I tried to hit this trade a week er two ago…but the cycles are extended, and the trade treaded water too long for me to care/stick around. I dumped broke even…and spend the time out playing in the sand.
This is very much so “back on my radar” as….the big spike in gold and the continued pressure on USD is setting up for something “worth trading”.
Find some levels people. Look at a few longer term charts of gold, eur/usd and USD in general (weekly charts ) and you’ll see that we are very close to an area of resistance in gold, and support in USD.
Tell me you see it…..tell me you look at these longer term charts to find areas worth trading. If not….don’t tell me anything. You’ll get smoked in this environment solely looking at short-term action. Short term is “grind your account into dust” type action no?
On an aside….Aerospace entrepreneur Robert Bigelow just did an interview on 60 minutes, stating that he is “absolutely convinced of an ET / alien presence on Earth. That’s all there is to it.”
No shit sunshine….I’ve been here for 1000’s of years.
Trade setting up for Kong….just not today.