Author: Forex Kong

I'll Throw You A Bone – GBP/AUD

Forex Kong 3 Comments

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.

Well….

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

Forex Kong 7 Comments

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.

Why?

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

Forex Kong 4 Comments

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.

SP500_Future_Move_2014

SP500_Future_Move_2014

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.

$USD_Future_Move_2014

$USD_Future_Move_2014

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!

Forex Kong 19 Comments

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

Forex Kong 2 Comments

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.

Aud_JPY_June_03_2014

Aud_JPY_June_03_2014

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?

Forex Kong 1 Comment

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.

 

 

Trade Like The Big Boys – Here's How

Forex Kong 7 Comments

Horrible data out of Japan last night has indeed “capped” the recent move higher, but more importantly has “put a stop to further easing” til at least October, if not til early 2015!

The weakened Yen has pushed inflation higher as import costs on food and energy continue to rise. This is absolutely fantastic news for us , as it removes “yet another Central Bank” ( if indeed the Fed has stepped back at all – which I really don’t believe they have ) and opens the window for some  “serious” medium term planning.

No BOJ printing til maybe even 2015? Fed looking to continue tapering? ECB more or less caught like a deer in the headlights? Hello! Contraction time is coming!

Trade wise, this could be a real break as we all know what it feels like “week after week” with markets hanging on every single word from Central Banks. More easing ? Less easing? Ping pong, ping-pong. The message is starting to come clear that the “easy money” is most certainly going to slow.

Strength in JPY has slowing been building since the beginning of the year, as the big boys quietly build for the entire first five months of 2014. Wow.

Yen_2014_Forex_Kong

Yen_2014_Forex_Kong

The market has been an absolute grind the first half of 2014 – and for very good reason. When major shifts in monetary policy loom in the “not so distant future” major market players start making “major market moves”. This takes time. A lot of time. So much time that you’d have to imagine a plan being put in place back in January and “only now” getting closer to a time to see it realized.

Has the “extended down period” in Gold been any different? Absolutely not. Big boys getting into position for the turn. Takes months. Many months, as they can’t move price “to fast” in that they essentially move prices “against themselves” with plans to buy in such quantity that when the time “finally comes” they are “so loaded” it rains money for the following year. This is how it’s done.

When I say patience is required. I don’t mean sitting on your ass waiting for something to happen. I mean working your ass off getting into position “before” something happens.

This is how it’s done. Come check us out at the Members Site…you might actually learn something.  www.forexkong.net

Buy EUR! – Don't Ask Just Buy

Forex Kong 10 Comments

No. Don’t do that – or at least not like it’s gonna be the “get rich trade of your life”. I’ll tell you when to pull the trigger.

I’ve thrown this out there to prove a point, as I imagine I’m the only voice out there suggesting something so insane. Insane is it?

I look across the financial blogosphere and financial news sites today, and all I see is a continuous stream of “bearish Euro” “time to sell EUR” “”Euro to tumble past all support” blah blah blah.blah blah….

As I am completely devoid of emotion, I can’t hate the Euro any “more or less” than I hate or love any paper currency ( all paper currencies being tiny pieces of toilet paper with fancy graphics and holograms ) as the “sell spiel” currently running in main stream media would have you thinking “The Euro” is about to run itself directly off a cliff.

How much do you want to bet “Dear ol Kong” this thing is going nowhere but UP UP UP!

Let’s just let it sit. Let’s let this “glaring example” drive home the point – even harder.

The retail forex/investment landscape works from every possible angle to rid you of your hard-earned dollars as fast as humanly possible ( computers do most of it so….that “is” faster than humanly possible ) with the media only seconds behind.

I challenge you to watch the EURO in coming days and put me to the test.

Clinging to your T.V set, you still can’t quite accept the fact that you are being lied to every single minute of every single day.

Oh Kong I pray you are mistaken!!!

 

 

You Doubt Everything – So Tread Lightly

Forex Kong 3 Comments

You doubt everything right now.

Day to-day you question everything. The endless sea of “arrows pointing this way” or “arrows pointing that way”, the bullish argument or in turn, the bearish. Everyone’s got “a reason for this ” and a “reason for that” all with a million bullet points and charts to equally support “either view”.

You know nothing.

I know nothing, short of the fact that “when in question” – one should always tread lightly.

Are you treading lightly?

Predicting the future is a fool’s game, let alone putting one’s faith in “someone else’s prediction”…I mean seriously.

Ice skating as a kid…..we’d “at least” take a stick and give the lake “a couple of pokes” before moving out the nets. Even at that, once in while we’d hear that ice make a big “craaaack” and see a big fat “white line” materialize in an instant beneath our feet. Needless to say, we grabbed our shit and high tailed it back to shore in a hurry.

It’s frustrating I know, but it is what it is…..and if you consider “skating on thin ice” playing any part in your current trading plan well………it goes without saying….you’re gambling not trading.

You may enjoy the sensation of crisp cool air blowing ‘cross your face, or the freedom of “moving fast” over the smooth shiny surface but if you really want to play ….you’ve still got to lace up those skates, put on that long underwear, and on occasion – go hunting for that puck lost deep in the mounds of snow.

Obviously it’s not easy. But didn’t your dad ever tell you that “nothing worth while” is easy? I thought it was common knowledge.

You doubt everything today. You doubt yourself. You doubt the silly decisions you’ve made based on “what other people” have suggested, and you question if you’ve even got the stones to do this at all.

Tread lightly. Start making decisions for yourself, and don’t let this get the best of you.

A little scare once in a while is fine – but hypothermia is a whole different story.

 

 

Daily Forex Strategy – May 23, 2014

Forex Kong 4 Comments

” A snippet from the Members Site”.

We’ve stayed away from making any “big decisions” with regards to the U.S Dollar and for very good reason. Getting short the commodity currencies vs USD has been fine ( as these currencies have been falling against most ) but with respect to the EU related currencies – no trade has been “the best trade” over the past few days, as USD continues to “grind away” with little discernible direction.

As of tonight / this morning USD will have worked its way up to the 200 Day Moving Average ( on a daily time frame ) and looks poised to finally show us its “cruel intentions”.

The Japanese Yen is also “flirting” with its 200 Day as U.S equities continue to stretch / challenge the “near term highs” seen only days ago.

Talk about an inflection point.

As much as I understand that so many of you have “grown a custom” to seeing the various scenarios “outlined” in charts and “speculative commentary” across the various financial blogs – hunches are hunches and “speculation” has never really done much for my trading.

At this point it seems fairly obvious to me that the Japanese Yen has indeed fueled the majority of this “last leg up in risk” and NOT AS MUCH USD in that….we know the money printing in the U.S has provided dollars for a mirad of reasons / uses to support the current ponzi scheme – but no one can say for certain “where” the money has gone or “how” its been utilized by the Fed and major players.

As “ass backwards” as it may sound, it makes some sense to me that we see USD fall “along side” U.S Equities for the next leg down, as money flows back into JPY FIRST.

USD to fall, as commodity currencies fall “harder” with JPY the primary beneficary and the EU currencies also “rising” as risk comes off is scenario #1.  Nuts eh?

On the completely other end of the spectrum, can one imagine a scenario here where “risk on prevails” and we see USD rise along with Equities, as JPY gets pounded again with the EU related currencies dropping like stones? It seem’s far less likely to me but again…..you can see why “speculation” generally doesn’t do much for my trading.

Bottom line is – you can “think” about these things but “trading off them” is a fools game, and the “heart and soul” of the many bloggers and analysts out there searching for eyeballs in a sea of speculation. I continue to trade “what’s in front of me” and move in one direction “with conviction” until proven otherwise, with the worst case scenario being “I’m totally wrong” and just switch directions a trade later. No foul. No loss. Allowing markets to “do what they will do” then quietly following along.

This is no time for speculation. This is no time for “big bets”. All will be revealed in very short order, so we learn to exercise patience and continue to trade with caution. All the “arrows in the world” won’t change which direction things move tomorrow, as it’s pointless to even consider these “projections” as having any edge in todays “more than manipulated markets”.

Armchair analysts and financial bloggers can kindly take their “bags full of arrows” and shove them where the sun……( you know what  mean ) as it “all amounts to nothing” if you’re not trading it properly.

So today we wait.

Speculation is speculation. Trading is trading.

You want to be a speculator or a trader?

I’ve never really heard of anyone “making any money” contemplating the future, where as “trading the present” has worked out pretty well thus far.

More at www.forexkong.net