Author: Forex Kong

Mrs. Kong Says – Buy Pesos – Sell USD

Forex Kong 13 Comments

If any of you have ever wondered “How the hell does this guy keep facing these treacherous markets day after every day? – What on Earth could keep this guy going?”.

If it isn’t “painfully obvious” now, I present to you – Mrs. Kong.

Mrs_Kong

Mrs_Kong

Up until just recently Mrs. Kong has been quietly “hording away” a small stash of U.S Dollars, tucking them away here and there with idea in mind that “some day” – they may be of some use to us.

Well…..with a keen eye for forex, ( and financial markets in general ) I’m very pleased to see that Mrs. Kong has now “gathered her stash” and is off to the bank to exchange them for her native currency.

People here in Mexico have a slightly different perception of money / exchange, and a tremendous respect for every penny earned. If there’s a chance that perhaps another couple of dollars might be squeezed out of the many hard hours worked well……that’s money in your pocket.

I don’t mess with Mrs. Kong when it comes to money, as she runs a tight ship so……when she says sell let me tell you…..

I’m selling!

Way to go babe! Look at all those pesos!

On a serious note….seriously….The Mexican peso looks “golden here” vs The U.S Dollar. That means “short USD/MXN”.

Real Unemployment More Like – 18%

Forex Kong 2 Comments

252K “new jobs” added “this month” ( primarily bus boys, servers and part-time workers )  with 294K new additions to the unemployment lines “this week”.

I marvel at the math…and the American vision that “things are improving”.

252k new jobs added this month…..with aprox 1.2 million “new additions” to the unemployment roll. Please…..help me understand how this can possibly be seen as anything other than “horrific”.

Seriously….someone with some “shred of sanity” I implore you….explain this to us.

252k “new” jobs paying close to ( if not under ) minimum wage, while 1.2 million people jump on the “unemployment benefits wagon” this month alone.

Now that’s what I call economic growth.

That’s what I call “recovery”.

Gag.Puke.Choke. Sputter.Split.

Let’s see how things look near days end as USD and the “currency world in general” just isn’t buying it.

Holding steady….and waiting for the “swing high” in USD.

Watching Oil, USD – Earnings To Suck

Forex Kong 8 Comments

Watching oil here – now exhibiting some “bottoming characteristics”. Still very early ( as thus far only the 1 minute, 5 minute and 15 minute charts have reversed ) but…….

What do we know about “the price of oil” and the “value of USD”?

Oil is priced in U.S Dollars right? A low in the price of oil could very well mark the high in USD no?

Both Gold and Silver ( including the miners ) look to have found some support these past days, regardless of USD poking a touch higher.

Looking at oil related currencies such as The Canadian Dollar as well The Mexican Peso we can also see USD weakness.

A flood of money coming into commodities in general would clearly suggest USD topping out “medium term”.

The SP 500 has now retraced a full 50% of the recent plunge ( now at 2035 ) so even a touch higher at 2051 would provide for a low risk entry – short.

Earnings season is gonna “suck” as there is not a U.S based multi-national company on the planet that can “honestly” report that they’ve increased bottom line profits in the face of the rising dollar, let alone the number of energy related companies that just got their asses kicked by falling oil.

It’s impossible.

 

Singapore Survives – Global Growth Tanks

Forex Kong 2 Comments

Readers / visitors from Singapore have now overtaken the total number of visitors to Forex Kong from all North American countries combined.

A recent study has found that the number of households with investable assets of US$1 million (S$1.26 million) or more rose 14 per cent to 188,000 last year. That means 17.1 per cent of households – or one in six – are millionaires ( this data may be a full year old ).

Wow.

That’s like sitting down for dinner at your local McDonald’s and knowing that there is “at least one millionaire” sitting at the 4 or 5 tables surrounding you – although I don’t imagine many of them are “actually sitting at McDonald’s”.

Some other interesting facts about Singapore:

  • Singapore is the fourth-largest foreign currency trading center in the world, according to the Bank for International Settlements.
  • Singapore is the fourth-strongest financial market in the world. The World Economic Forum praised the country for its high degree of financial stability, bank efficiency, and commercial access to capital.
  • Singapore could overtake Switzerland as the world’s largest offshore wealth hub by 2020, according to WealthInsight, a London-based research firm.
  • There are more than 500 players in the asset management industry in Singapore, with total assets under management of more than S$1.4 trillion.

Obviously something must be going right for these “astute investors” and I’m very pleased to see their numbers growing.

Perhaps a couple of them may have managed to “push through the my sarcasm and disdain” – and taken precaution to protect their profits / exit the markets some months ago – I dunno but……I’ll be hard pressed to hear of any “American Bulls” that have survived January thus far. Impossible.

I expect a “slight bounce” here, providing a last chance opportunity to re-evaluate your current holdings before the real fun begins. As per charts/banter going back some weeks. Global risk has clearly topped.

I’ve seen plenty of waterfalls in my days ( those of  Costa Rica the finest ) but have visions of “this one” topping all.

A shout out to Singapore and good luck to all!

 

 

 

 

 

 

I Could Lose 10K – USD Shorts Start Today

Forex Kong 22 Comments

One of the most entertaining parts about “financial blogging” truly lies within the “immediacy of it all” as….unlike “posting a recipe” (where people may choose to “give it a try or not”) here in the financial space – real money is at stake.

Traders on both sides of the fence get an opportunity to “compare as they dare” when fellows like myself ( and all you other guys with the balls to do so ) put it out there for all. You write it down…you make your move, and regardless of whether you fail or succeed – people really get a charge out of “watching you burn” – or “watching you earn”.

Oddly….or perhaps not so ( considering humanity in general ) I think the majority of people (as sick as it is ) rather “enjoy” watching others fail. Perhaps it makes then feel better about themselves – I can’t say for certain but…..I guess if I lived in a lean-to behind my grandmother’s trailer park and ate spam each day for breakfast, maybe I wouldn’t “mind so much” hearing that the guy eating lobster on a Caribbean beach took a hit or two.

I dunno….its small, it’s petty but for the most part – sounds pretty “human” to me.

In any case….by close today I will initiate the “first of three” planned trades ( as I always spread my total allocation to a given trade idea over 3 separate entries – over time ) short The U.S Dollar against a number of other currencies.

I assume the trade will pan out late January / early February ( or perhaps earlier ) with a total allocation / risk of 10K – spread over 3 separate entries over the coming days / weeks.

I have fully factored that the entire 10k could be lost….so for “lovers and haters alike” I invite you to follow along and comment ( uncensored ).

You can see what kind of “gorilla I can be” so……………….let’s see how “human” you can be.

Good luck to all.

 

 

 

Beer Money In 2014 – Happy New Year!

Forex Kong 5 Comments

With the fundamentals “out the window” now going on some 6-9 months ( if not the entire year of 2014 ) traders and analysts alike have simply stuck with the familiar adage “you can’t fight The Fed ” and just buy the dip.

No question that “if” you’ve been able to endure the massive swings (Sept – Oct for example – essentially wiping the entire “yearly Dow gains” in a matter of 12 days ) or even the smaller one just recently ( drilling The Dow 1000 points in a matter of 6 days ) you should be very, very , very proud of yourself.

Oddly….you never really hear much from “perma bulls” during these times, and one really has to wonder…if it was just that easy to “buy and hold” – then shouldn’t virtually “everyone” be stinking filthy rich right around now??

Funny……you don’t really hear much of that kinda talk either, and by way of U.S unemployment figures ( another miss at 298,000 last week ) you have to appreciate the “mixed message” most people are getting. Is this thing going up? Or is this thing going down?

It’s really the “art of survival” these days. Bull or bear….if you’ve got some extra money in your pocket at the end of the year hey…..job well done.

2015 will undoubtedly bring with it an “even more challenging trade environment” as global geo-political tensions are clearly on the rise, Central Banks are “still” struggling to put floors underneath spiraling economies, and global growth forecasts have been cut, then cut…….then cut again.

I wish all of you the very best in the new year, and as always – encourage you to stay vigilant. The rug gets pulled very quickly, and if I’ve learned anything over these past few years….I’d rather be the guy standing over in the corner………. with a cold beer in hand when it does.

Happy New Year all!

 

USD Sliding Closer – Japan Already Off The Edge

Forex Kong Got something to say?

Not exactly the “best end to the year” for the good ol Nikkei eh?

Down some 6-700 points over the past two days.

You know I’ve recently been focused on USD, but lets not forget – the insane QE program of The BOJ is “still” propping up USD/JPY and U.S Equities the best it can.

Even though the entire planet clearly recognizes…it’s “end game for Japan”. I can’t imagine a single long term / medium term investor could possibly “still believe” that The BOJ is going to print / buy itself out of the current “never ending spiral” of the Japanese economy. No chance. End game Japan.

So…..USD has “almost” created the “swing high” I’m looking for ( falling short by a point er two ) while U.S Equities have struggled. The SP 500 has now fallen “back into the expanding megaphone pattern”.

What happened to all the “year end buying” and all the chatter online of the “bonuses on Wall St” / and continued move into stocks?

What a load of crap.

The Central Banks are starting to lose the “confidence game” if you ask me….and I’m equally confident that Draghi and the ECB will also dissapoint here mid January.

So what’s left?

Day in, day out….the constant debate of “how many points higher The SP will go”? Wow….even if it’s 2130 or 2200 for that matter…it only amount to a couple days worth of trade action.

I’m looking to stick a fork in this thing.

The low volume / holiday season type action does nothing for you short term guys. If you’re not looking at the “medium term” swing upon us well…..get used to another couple of weeks with no clear advantage.

I’m looking to jump on this “short USD” trade as outlined a couple days ago. So far……( short of pulling the trigger ) I like what I see.

Members will get the trades here in real time as they come to fruition.

Happy New Year everyone!

Christmas Time With Family – Be Thankful

Forex Kong 5 Comments

As a child I remember it well…..Christmas was always amazing.

No matter where we were, whatever the circumstances – my parents always made Christmas something very special for my brother and I.

The tree was magnificent, the lights, the music, the food and the gifts!! Always “so much more” than either if us could ever have imagined.

“Spoiled rotten” as it were.

Looking back I realize “now” ( as when you’re a kid – who gives a shit right?? ) that it likely wasn’t easy from them. Raising two boys ( eating them out of house and home ) the money to provide such a wonderful experience may “or may not” have been there year after year….but we’d never have known.

Year after year I got every single freakin thing I’d ever wanted. We were “on top of the world” hearing my Dad’s cheery voice in the wee hours of Christmas morning – “Ho ho ho !!”…..”Ho ho ho !!”

I bolted out of bed like a rocket…literally….I’m not even sure my feet hit the ground.

These are very fond memories. Things I will never forget.

So……. I’m far far from home for yet another year, but the memories will suffice for now.

I want to pass along a very Merry Christmas to everyone here at Kong, and encourage you to enjoy every last-minute you possibly can with your family and friends.

These are the people who love you…..no matter how far from home you may stray.

Merry Christmas everyone!!

 

 

I Will Short USD – See You In January

Forex Kong 3 Comments

Just a few quick clicks away……USD at 90.15 – Please mark this post.

Today’s magical “U.S GDP revision” is the icing on the cake.

I have never in my life seen data / information so grossly manipulated, so completely out of wack….so totally out of this world as to suggest a U.S “revised 5% GDP” output for the 3rd quarter.

You would have to have had your head buried under the front porch of “yer hill billy cabin in the hills” this entire year to buy that.

It’s absolutely insulting…considering any human being with half a brain would “actually believe” this. You too must be “off your rocker”.

The U.S Dollar is only days from topping out, and a number of other “area’s of the market” are already well on their way.

Take a look at “IBB” The Biotechnology ETF selling off, as well “JNK” junk bonds now set for reversal.

I may or not be posting tomorrow or Thursday, but if you see a “red candle” in USD either tomorrow or the next day – you know where I’ll be.

I’m only a couple “pushes of the button” away from one of my largest / most confident trades of the year.

I wish you all the best over the coming holidays! Merry Ho ho ho ho ho!!

Long Term Investors – The World Has Changed

Forex Kong 10 Comments

You don’t need to hear anymore from me on the subject, but I strongly encourage long-term investors and perhaps anyone over the age of 40 to pull up a chair, sit back in front of your beautiful hi-res monitor, get comfy and watch the following video.

Jim Rickards is an extremely intelligent and highly regarded professional in his field, with a unique ability to take very complicated and confusing elements of the global financial system, simplify them, and explain their implications/ramifications – making it very easy to understand.

From the coming fall of the Petro Dollar to China’s interest in buying gold, Mr. Rickards cuts through the bull and provides a very clear picture of what investors can expect in the years to come.

I strongly recommend you take the time to familiarize yourself with the information and principles outlined, as there is absolutely no question it will be of considerable value to you.

[youtube=http://youtu.be/KYW5OGWfqJc]