Author: Forex Kong

Gold And Silver – A Second Chance To Win

Forex Kong 4 Comments

In the wake of President Trump´s “trouncing”of Hilary Clinton, markets have been less than kind to our beloved gold and silver mining stocks. But wait…..

The Daily Chart of IMG

second_chance_in_gold_and_silver

second_chance_in_gold_and_silver

Stepping back and looking at the bigger picture, one can most certainly see that “all is not lost”. In fact….as I continue to build positions in one little gem in particular ( IMG ) we can look at recent days movement in the stock ( and in my view the entire metals complex ) as an excellent “opportunity” to take your shot, likely having missed out on my last buy some weeks ago.

Keep in mind the time frame here, ands “how long it has taken” for this stock to:

  1. Finish it’s downtrend: If you consider October 10th “the bottom” we can see price movement “gradually” heading in the upward direction, but it’s not until the green box that an experienced / seasoned trader / chart reader can honestly “confirm”….
  2. Uptrend has been established: Why you ask?? Because the series of “lower lows and lower highs” ( the zig motion of assets in a downtrend ) is now broken with the establishment of a “higher high”. It’s this signal that essentially “confirms that the downtrend has ended” but then of course you get this….
  3. The first major pullback in a newly established uptrend: It’s the stock market right? Everything generally moves opposite to what the majority of traders are thinking / doing so it only makes sense to see a major “dump” directly following confirmation of a new trend right?? This is so basic, so common and such a standard that many an experienced trader develops plans to “always look to buy on the first major pullback in a newly established uptrend”.

You can see how the levels so closely match those of the previous downtrend ( the orange line across the chart ) as the same levels that once offered resistance, now offer support ( see what happens when you start marking your price levels! ) with this major reversal looking something like a big huge “W”.

Price could just as easily stick around these levels for some days, but if traditional technical charting is worth a damn….this would be an absolutely fantastic place to take a shot at entry, as I am adding to my current position here at 4.98.

The expected “pop n drop” post-election looks to have run it’s course, and I would expect that both gold and Euro will continue to move higher, with stocks and $USD finally topping out. Opportunity abound my people….all you need to do is pull the trigger and keep yourselves protected.

Hope it helps. Have a great weekend everyone.

Kong. Gone.

Nikkei Down -900 Points – USD Shit Canned

Forex Kong Got something to say?

If I’ve said it once, I’ve said it a thousand times! You guys don’t have a chart of The Japanese Nikkei on your radar??

Nikkei Craters

Nikkei Craters

What do you think “Dow Futures” are numb nuts? ( I mean in the most literal sense )

How bout millions of traders waking up on the other side of the planet ( in Japan ) and selling like mad! Now that’s some real fortune-telling there Kong…how can you see the future?

Look to Japan dumb ass (not you my loyal readers of course). I’m talking to the “dumb asses” ( you know very well who you are). The US Dollar now taking the largest one day loss I think I’ve seen in my entire life.

Maybe this bounces back if Clinton manages to pull this out but man..it really doesn’t matter.

I wonder what the gold spike will look like in wake of this full-blown US Dollar crash. Pure money, money, money.

Hang on to your hats gents….gonna be one interesting trading day tomorrow. I might unload my gold and silver trade for huge profit, or I might just sit back and watch the action.

 

 

Failed Cycles Abound – Gold and Euro Win

Forex Kong Got something to say?

This market has now taken out some pretty serious support, but now is essentially “too over sold to short”.

With the election looming – it would not be advised to make any large scale trades/investments or decisions as……no one wins come November 8th.

Gold miners bought weeks ago looking great as “king dollar” takes the expected pounding. No rate hike and two nut bars looking to take over the country. How could you possibly consider a “bullish” angle – short of a “pop” and then “ominous drop”?

I’m adding short USD and holding my Gold…..now eyeing “short Canadian housing” as the next big win. Currently researching the best way to hit it.

More on that soon.

dollar-on-fire

dollar-on-fire

 

 

 

1H Chart – Big Volume in Gold and Euro

Forex Kong 8 Comments

This isn’t easy by any means but……after doing this for so long –  confidence builds.

You need to trade “so small” for “so long” that you still have some kind of an account balance left – once you finally figure this out. Most traders bet the farm within the first 3 months, lose everything, get super bitter and never return.

That´s not how I roll.

Boring as hell at times…( as trading should become – once you understand it ) but….one can´t really complain while sippin a cold one in their undies.

You wanna trade for a living? Calm the f”$k down……plan your trades, and TRADE SMALL when getting started!

In any case…I digress.

As per the post on Gold, USD and Eur back like….8 days ago……everything moving according to plan.

USD taking a pounding today……gold surely holding it´s own and EUR looking very close to bottom – if not already.

Hope you’re all doing great.

 

Forex_Kong_Ready

Forex_Kong_Ready

 

 

Post Election Pop ´n Drop – A Country Divided

Forex Kong Got something to say?

It’s truly amazing how well markets have been holding up, considering “the gong show” currently playing out in the 2016 U.S Presidential Elections. Looking at it from both a Canadian “and” a Mexican perspective ( as I’m sure you all recall……Mrs. Kong – Mexican Goddess ) it’s hard to imagine:

  1. This election is happening at all, as by now I would have fully expected ( at the very least ) a Trump assassination attempt, faked alien invasion or perhaps a false flag / terrorist attack, in order for Obama to call the entire thing off and keep his seat in the Whitehouse a bit longer.
  2. Either of them as the actual President of the Unites States, considering that whichever way it goes…..the other half the country is going to absolutely detest their new leader.
  3. How markets could possibly remain buoyant as social mood quickly deteriorates in the wake of ( quite likely ) civil unrest.
funny-trump-and-clinton

funny-trump-and-clinton

There is no possible way that Donald Trump will just “disappear” if Clinton takes the helm. In fact, one would have to imagine Trump making even more aggressive moves “after” the election, as he will have millions and millions of supporters across the country that quite frankly…..I dont think will just sit idle as Clinton continues with the status quo.

Lots of talk out there now about Trump’s “master plan” – Trump T.V

So markets will likely have some kind of intial “pop” post election, as supports of “whom ever” wins rejoice in their selection. A brief period of euphoria soon followed by the complete and total opposite.

Social mood and appetite for risk will take a solid hit. I expect markets to fall hard shortly after the inital pop so….be aware.

 

 

EUR/USD – USD And Gold – Alien Knowledge

Forex Kong 3 Comments

A simple correlation – the price of commodities and the U.S Dollar.

Gold being priced in USD obviously.

As the “value” of The U.S dollar rises – Gold price goes down. When the value of USD falls….one would expect the inverse in gold. Gold moves higher as USD falls. All good?

So you should find it interesting then, that over the past few days ( since giving the green light to buy gold ) The U.S Dollar has remained strong. Suggesting to myself at least…..that “even with a relatively strong dollar” the price of gold and silver related stocks have not only remained buoyant, but have made some pretty sold gains over the past few days.

I bought IMG at 4.68 a couple days ago –  Now sitting at 5.29 – All the while USD has continued to move higher.

So what gives Kong? How can the value of the U.S Dollar keep rising AS WELL as Gold and related names?

Answer: An intermediate bottom in Gold.

I’m not talking about a nice little dip to buy, or a quick little stock tip to make you a couple extra bucks for beer….I’m talking about a large scale “fundamental shift in money flow” where the big boys are already well in position. Fully prepared for the U.S Dollar to fall – just that couple of steps ahead of you as…….you still see relative strength in USD even while the big money keeps scooping up Gold.

These large-scale “intermediate turns” don’t play out in a single day.

This will be short-lived, and here is why:

The Euro only further confirms the move currently in play as……it’s now very VERY close to bottoming as well.

Currencies don’t lie. You can’t have EUR and USD going up at the same time!

eur_bottoming_at_1-09

eur_bottoming_at_1-09

So the trade at hand is as follows. Long Gold / Silver and the miners NOW…….and short USD ( long EUR ) here in coming days…once this turn shows itself to the masses.

These “big turns” take weeks and even months for the big boys to build positions, so you don’t always see typical correlations playing out “minute to minute”. It’s my firm belief that the entire year of 2016 has essentially had the big money distributing stock to retail investors….while they quietly and patiently unload USD and scoop up Gold.

Make no mistake. It’s “Dollar Short Time” again here soon, with large gains planned in EUR longs, and a solid investment in Gold.

You think it’s backwards. You don’t think it makes sense but…….haven’t you been reading / lurking here long enough to know better by now? Once you throw currencies into your watch lists, and basket of tools to draw from…you can see things much clearer.

Big moves coming post election.

 

Invest In Gold Now – Thank Kong Later

Forex Kong Got something to say?

A golden opportunity? I should say so.

Let’s look at the technical side of things first……

buy_gold_as_an_investment

buy_gold_as_an_investment

As far as a “technical set up”goes……it really doesn’t get much better than this. Gold and the entire complex has essentially broken out of the long-term downtrend of the past “years” ( yes I said years ) then pulled back in a “huuuuuuuuge” way – now sitting at the “perfect place” to consider this as an “investment”.

Don’t f^&k around here……these kinda things don’t come about every day of the week. You don’t have to rush into anything but if I was you….I’d be inching into gold and gold/silver miners here pronto ( if not already….as I have ) with consideration of a much longer term trade than I would normally consider.

My goal here is simple. 

Take a fixed amount considered an “investment” – let’s say 25-30k and just start pounding away with small orders over the next couple of weeks. Find the trade at break even / somewhat in profit in coming weeks…..move stops to break even and don’t look at it again forever.

This is “investment talk” not trade so………don’t confuse the two.