Author: Forex Kong

Remember To Laugh – It's Only A Trade

Forex Kong Got something to say?

I catch myself once in a while too so….you are not alone.

Considering that 95% of traders fail, its difficult at times to keep a positive attitude. I understand that better than anyone.

Having already gone through the “trials and tribulations” of learning how this all fits together, I know “full well” that it’s hard….not just hard, but damn near impossible when you are just starting out.

Don’t lose sight of yourself as….it’s only a trade. You have to remember to laugh.

I remember a time back when I was trading options, struggling with a relationship with a “wicked and evil girl” and incarcerated in Colombia!

Days later I came home to a “world full of hurt” as markets tanked, my stitches didn’t take, and my heart lay smashed on the cold tile floor. I’d lost more than I care to remember, but still managed to pull myself together and live to to trade another day.

How?

I laughed ( I cried too ).

I learned.

Then I laughed a little more.

You can’t let this get the best of you, and you can’t lose sight of the fact that it’s only a trade. You’ve really no control over it no matter what happens so….all you can really do is protect yourself, and do “everything else you can” to  remain positive. Laugh once in a while! Go see a movie! Go pet a dog!

There are a million and one reasons to laugh these days as the world “outside of trading” is more comical than ever! Trading is trading but it’s certainly not “everything”.

Remember to laugh, and do what you can to put this all in perspective. It’s only a trade. You “should” live so….you might as well have a smile on your face.

P.S – I just burnt the shit out of a roast in the oven while writing this so……..what do you think I’m gonna do about it??

I’m laughing my ass off!

Pushing people to absolute extremes here, markets continue to pull you apart. Buyers are losers, sellers are losers, and the entire thing feels like it’s just one big joke!

Laugh about it people! Your’e gonne feel alot better!

Check us out in “real time” over at the Members site: www.forexkong.net . Lots of laughter going on over there.

 

 

 

China Data – 5th Straight Month Contraction

Forex Kong 5 Comments

How long do you really think this can go on?

If you ask me…… I’d  pretty much say “today is the day”!

China PMI data overnight comes in “under 50” yet again, marking the 5th straight month of contracted growth, Japan is in shambles, The EU Zone toast, and The United States continues to just keep “racking  up the credit card”.

CNBC HEADLINES ARE FLAT OUT 100% FALSE! CHINA NUMBER IS -NEG NOT A POSITIVE!

Broken record yes, but as I’ve stated so many times in the past – If there was something “positive” to talk about then I would! From an investor’s perspective if the lights aren’t clearly “flashing red” then I’d put into question what kind of an investor you are.

The insider selling and “distribution” that has taken place over the past 6 months would have it that “pretty darn soon” the big boys will have everything in place to “drop this thing like a rock”.

Even the commodity currencies have now started to tank, and the Japanese Yen ( the big safe haven / repatriation play ) has locked in a very solid and confirmed UPTREND.

I’m adding to my short SPY / U.S Equities as we speak.

 

Morning Ramp – Robots Only Buyers

Forex Kong 2 Comments

I’m always amazed at the general “market enthusiasm” most people have during the opening hours of trading.

Myself included ( as I’m a very early riser and absolutely love my quiet time in the “a.m”) I to awaken with a certain amount of excitement and enthusiasm anticipating what the day might bring, but always tempered with good dose of realism.

Ahh the psychology of it all.

“Hey look at that!” Markets are up, up , up here this morning! Complete and total bliss, with absolutely no vision of the “actual reality” that “No….actually markets are lower than they where yesterday, and yesterday is far lower than the same day a week ago!”

( now in robotic tone )

Does not compute. T.V says markets surging higher. Must call broker. Can’t get left behind. T.V says markets higher.

The “morning ramp” and the media blitz behind it goes down as one of the most “telegraphed human brainwashing” of our time, as it continues to play out –  day, after day, after day.

When markets are lower than they where yesterday, and in turn much lower than they where a week ago…..isn’t that called a trend?

Oh ooops…..it’s a “down trend” so we best ignore that.

Let’s just eat our scones, sip our coffee and watch the funny people jumping around shouting “buy! buy! buy! “Hey look at that one honey! He’s wearing a funny tie!”

Gold, Bonds, Stocks – Everything Gets Pounded

Forex Kong Got something to say?

For most – this market makes absolutely no sense.

For forex traders we’ve been given a “tiny little gift” here as of yesterday with The Australian Dollar ( AUD ) finally taking out the last of the short-term bulls, rolling over “hard” – and rewarding our patience and fundamental approach.

This before “global appetite for risk” takes a total nose dive, all the while SP 500 “still” clinging to the highs. I’m up 652 pips in just the last few days alone…and the SP500 hasn’t even budged……..yet.

Gold and U.S Treasuries next to “take it on the chin” in an environment where many must be asking “how can all these things move lower at once”?? Where “is” the safety play if gold, bonds, stocks and “everything” head for the basement?

Cash. That’s where.

The “endless slosh” of Japanese Yen as well American Dollars used to “buy all this crap” is now finding its way “back into bank accounts” as safety is sought.

If you’ve no interest / knowledge of foreign exchange then I can fully understand the confusion but….consider something so basic, so rudimentary, so straight forward as this:

Stocks are purchased with cash, gold is purchased with cash, bonds are purchased with cash!

It’s the “cash” that dictates the value of these assets! Not the other way around!

When I have someone ask me “Kong – gold is going lower, what does that mean for the U.S Dollar?” or “Are bonds “sniffing out” a low in USD?

It’s the other way around!

As the largest, most liquid, most widely traded market on the planet it’s the “currency market” that dictates movement in all others “below” it, so when you see “risk related currencies” being sold, and “safe haven currencies” being bought – there it is.

It’s the largest piece of the puzzle and for the most part – the least understood.

You’ve got a fantastic opportunity here – to add something new to your toolbox. Watch how this unfolds and look to consider currency movement as a “major leading indicator” ( if not “the” leading indicator ) when trading in other markets / assets.

We’re in a wonderful position here with active trades well in profit before the fireworks really even get started. I invite “any and all” to have a poke around the Members Site and consider adding “forex” to the list of things you follow / track on a day to day basis.

 

Japan Is Broken – Soon You Will Be Too

Forex Kong 16 Comments

We’ve been waiting for this for a considerable amount of time, and our patience will now be rewarded.

The Japanese Stock Market Index “The Nikkei” has now breached our “waterfall zone” dropping an additional -200 points here overnight in a surprising ( only in that it’s happened on Sunday ) move lower, this early in the week.

The flow of news headlines won’t make a single difference in the world ( depending on what they look to as the cause ) in that, this has been slowly developing over such an extended period…it was only a matter of time before she cracked.

It takes the big players “weeks and months” to move such large amounts of money “in or out”  of position, and the past few weeks have had “distribution” written all over them. Distribution is a market dynamic where over time, large players continue to “quietly sell” to retail as they prepare to “hit the exits” with profits in hand. You certainly don’t want to be the last one holding the bag looking to “buy the dip” once the big boys make the move.

You doubt me? Consider the entire past 5 months as purely “distribution” and now watch how quickly these “gains” are wiped from your portfolio. Weeks and even months of trading “evaporate” in a matter of days.

You can lead a horse to water but you can’t make him drink well…..again I am absolutely stunned that so-called “traders” continue to push the “green button” in the face of something so incredibly obvious.

I guess you need to lose 30-40% of your gains to finally get it.

Best of luck with everything “bullish” here this week and in the months to come. Gorillas are already nearly 100% in position and already in profit pretty much across the board – still just waiting on the final nail ( USD ) to make up its freakin mind so we can jump on that train too.

Long JPY is the way to go, with the commods continued weakness right on cue. SPY and QQQ shorts from “days” ago still performing well and a miriad of trades lining up in USD. More at the members site: www.forexkong.net

 

Intraday Charts – Like Kids With Crayons

Forex Kong Got something to say?

You can’t get down on yourself during times like these.

You’ve studied every “technical analysis” known to man, may it be “cycle theory” or “elliot wave” or “fib trading” whatever……yet things still aren’t lining up. You still can’t seem to “time this” and generate winning trades on a consistent basis well…….

You can’t get down on yourself during times like these.

Intraday charts currently look like they’re being created by a group of small children with a couple of boxes of crayons! A real mess to say the least, and hardly what I’d call “works of art”.

As traders you’ve got to learn to recognize when market “just aren’t behaving” in a rational manner, and adjust your trading accordingly. You can’t get down on yourself and throw into question everything you’ve work so hard to learn as..at times – It’s not you!

The market is at an inflection point. Period.

You need to step back. Keep yourself protected and learn from this….as you’ll be more than prepared for the next time.

Don’t let this thing get the best of you.

It’s important to recognize these are “unprecedented times”! Markets are nuts for a reason because for the most part……no one has a freakin clue what’s coming next. The entire thing “hangs in the balance” of Central Bank intervention and the realities of slowing global growth.

Not exactly an “ideal environment” for the new trader, in fact it’s a terrible environment for any trader! If you can’t step back and see the larger picture….then the “smaller pictures” will continue to confound. This is not a time to be “practicing”. This is not a time to be “taking chances”.

When I go fishing, I generally get up pretty early, but I don’t even bother loading the truck if it’s pissing down rain right? You don’t go “scuba diving” during a hurricane do you?

This is no different.  Forest from the trees type stuff – you know.

Sunday’s weekly report on tap this weekend, as well the daily strategies, trading table and intraday commentary and trading full steam ahead. Check us out in the members area and take a break over the weekend. Next week promises to be a whopper.

USD Whipsaw! – Killer Trades Abound

Forex Kong 1 Comment

We exited long USD trades last night and into this morning vs the EU related currencies EUR, GBP as well CHF, and the short SPY as well QQQ entered yesterday ( and days prior ) are really taking shape.

An interesting turn in markets ( once again likely catching many off side ) seeing that USD will likely continue to seek “lower lows”.

Wow.

The “quick catch” and reversal in USD coupled with the “line in the sand” drawn in both The Nikkei as well USD/JPY have us in absolutely amazing shape “prior” to the correction even starting.

Are you finally thinking about joining?

I welcome you to visit the members area at www.forexkong.net and/or drop me a line at [email protected] for more info.

Killing it! We’re killing it!

 

 

 

 

U.S Bonds – Fed Buying From Belgium

Forex Kong 7 Comments

I’ve had several people ask my views / opinions on the recent “up moves” in U.S Treasuries considering the fact that the Fed “suggests” its tapering asset purchases by an additional 10 billion dollars month over month.

So how on Earth do bond prices just keep going higher? Who on Earth would be buying these worthless / fraudulent pieces of toilet paper if not the Fed?

Answer: It is the Fed, only they are doing it via surrogate buyers in Belgium.

Same bullshit – even more deceptive.

I’ll let our good friend Dr. Paul Roberts do what he does best and explain to you “exactly” how this is taking place, as no one could possibly explain it better.

You won’t believe what you’re reading, when you get your head wrapped around “just how desperate” and “just how deceptive” the U.S Federal Reserve is.

http://www.paulcraigroberts.org/2014/05/12/fed-great-deceiver-paul-craig-roberts/

YOU MUST READ THIS ARTICLE

 

 

The Canadian Dollar – Trouble Ahead

Forex Kong 2 Comments

I hate to say it, but the Canadian Dollar is heading for some “rough times” in coming months.

Considered a “risk related currency” along side both the Australian Dollar and the New Zealand Dollar ( as these countries economies are primarily based on the export of raw materials / natural resources ) a slowing China, slowing global growth, and a “floundering United States” won’t do much to help Canada and its “loonie” stay aloft.

Awful employment data last week certainly didn’t help either, but that’s not nearly as large a driving factor as slowing global growth. These countries depend on “selling what they’ve got” to keep people working and to keep the economy strong, so by simple way of “supply and demand” these economies suffer when global growth slows.

Canadian_Dollar_Forex_Kong_May_14

Canadian_Dollar_Forex_Kong_May_14

And it is slowing. Not matter what you read or see on your television.

None of this turns on a dime obviously, so for the most part you’ll only really “hear of it” long after it’s well under way ( as it’s happening at this very moment ) but the reforms in China will continue to creep into the “inner workings” of our global economy, while the U.S as well Europe continue to struggle – just to keep their heads above water.

Short “Canada” starting to make sense, as I’m already long USD/CAD as well short CAD/JPY.

Check out the Members Area and get real-time trades, daily commentary on gold, stocks, forex and more…