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Silver Bottoms – U.S Dollar Tops

Forex Kong 3 Comments

I’ve been patiently awaiting the bottom in Silver, and the correlated “top” in the U.S Dollar.

We have now arrived.

The same principle in markets playing out time and time again…..commodities priced in USD fall, as the “perceived value” of the U.S Dollar rises. This “inverse correlation” will now flip – with commodities ( silver / oil ) moving decidely higher, while my ol buddy the U.S Dollar get’s back on it’s way to the basement.

You just can’t have both folks. The recent “strength” in USD coupled with the massive blow to U.S companies exporting to China is most certainly not good for markets. Remember??? Forex?

The U.S ( and every other country for that matter ) wants / “needs a weak domestic currency” in order to compete / promote sales abroad.

Here’s how the two charts look:

U.S Dollar Top

U.S Dollar Top

Take note of today’s candle formation = top top top.

Now Silver:

Silver Bottoms

Silver Bottoms

I’m looking at a couple super cheap silver mining stocks in order to take advantage as…for the most part the sector moves as a whole. Endeavour Silver Corp ( EDR ) looking like a great way to go as it’s only 2.37 cents.

Don’t get me started about China and the trade war – this is serious shit. Markets no likey.

Haven’t you noticed? It’s not a silly headline and it’s not “that stupid Trump”. It’s serious shit gang.

Watch yerselves.

 

 

 

 

Daily Cycle Maxed – We Bottom Wednesday

Forex Kong Got something to say?

I don’t own any stocks first off…….and I haven’t for months. What have I missed? Jack squat man……15 weeks of watching this thing day in day out –  wiped in a few afternoons? Not my bag.

I don’t trade Forex much anymore either as it’s lost it’s appeal in comparison to “riding into the future” on a spaceship purchased with Bitcoin.

You may want to to revisit my previous posts / suggestions about cryptocurrency and consider my firm belief that we are on the cusp of an entirely “new financial paradigm” wherein –  I don’t want anything to do with the phoney baloney / last gasp / hand off to retail / overvalued / bought back stocks of the day.

Wall St. is selling like mad, as the last of the “armchair investors” scrape together their last few shillings to buy stocks – right at the top. Just like always. This will never change.

Did you happen to see any of the recent crypto currency gains? Gary? You there? You dolt. Way to go man….running a pay service with suggestions that crypto will go to zero….pure brilliance.

From a technical standpoint, you stock jockey’s are gonna catch another break here mid week with the equities cycle on day 44 now. we are totally oversold and the bounce will come within days “if not” tomorrow. I don’t question that stocks will bob along over the next 3 – 4 months but……if they do get anywhere near the previous highs…once again you’d count yourself as “batshit lucky”.

Dow now at support

Dow now at support

Here on the weekly chart we can clearly see an area of support and resistance around these levels, and the daily trend is still “up” so……another run towards the highs quite probable, although please keep in mind…

This will be the 4th attempt to break thru. How does that line up with a recession on deck? Perfectly…if you plan to sell.

Bitcoin is on a tear as expected but I assume it will pull back to a new level of support here soon – then be off to the races FOREVER.

I’m just throwing out another quick reminder to all – please be cautious. Please bank profits. Please don’t buy anymore CNBC Kool-aid.

Oil baby oil! Silver baby silver! Bitcoin baby Bitcoin!

 

 

 

 

 

 

 

Count Your Lucky Stars – Fed To Talk Down Hike

Forex Kong 3 Comments

Everyone needs to take this “shot across the bow” and the “survival of said shot” – to count their lucky stars. Talk about complacent eh? Damn! I bet a whole lotta folks just got 100% cleaned out!

I don’t mean YOU….I mean the market, and it’s participants “in general”. Everyone still not willing to accept how “flimsy” and “phony” things truly are. How soon we forget.

lucky_stars

lucky_stars

Gone are the company buy backs…..now the Fed “tightening not loosening” monetary policy, guidance for 2019 all pointing down ( these are the companies you invest in TELLING YOU – we aren’t gonna hit the mark in 2019) and then of course….the “incredibly significant” trade war / tensions building with China.

These stocks don’t exist in a bubble right?

There is nowhere to hid when the “entire planet” (or at least those institutions with large enough positions to affect markets) turn from buy to sell . NOTHING survives.

So hey…..this time around we catch a break.This time.

The Fed meetings get underway tomorrow. This is everything now.

The idea of interest rates climbing higher is the absolute foundation for this sell off. You get it right? You realize how leveraged to the freakin balls these big trading houses  / investment firms / wall st. gangsters are? Another basis point higher, and that nice new house out in the Hampton’s you’ve double mortgaged and now taken additional loans against gonna be the banks soon. You don’t own shit.

So here’s how it goes down.

  1. Fed holds out and doesn’t make the hike = markets are back off to the races for a final shot to the highs. USD tanks / final roll over / another fantastic short entry – post fed. Gold and commods final bottom. Crypto as well.
  2. Fed makes hike ( as it’s already priced in fok……look at the slide ) but TALKs down the next few = markets are back off to the races for a final shot to the highs. USD tanks / final roll over / another fantastic short entry – post fed. Gold and commods final bottom. Crypto as well.

There it is.

You’ve got one more shot at the highs, before May of 2019 and it’s time to get down in your bunker.

Buy water and gas…..buy crypto / silver n gold, and consider moving inland.

There’s more than a little problem up north, and it’s coming a lot sooner than 2030.

 

 

 

 

Dow Weekly Swing Low – Back To The Highs

Forex Kong 4 Comments

The completion of this “intermediate cycle” is now within striking distance, after several days of extremely frustrating / volatile trading. Wow – what a shake out.

Now the technicals are “just a hair away” from confirming a “weekly swing low” (when the close of the weekly candle is “higher” than the close of the previous weekly candle).

You see it here? Just a few more points and the swing will be complete.

Dow Weekly Swing Low

Dow Weekly Swing Low

I would also take note of the “screaming double top” There around 26,900. Yo can clearly see rejection back in Jan/Feb as well as here in October.

The average stock today (ok a few days ago) is trading at 73% above its historical average valuation.

There are only two other times in history that stocks were more expensive than they are today: just before the Great Depression hit and in the 1999 run-up to the dotcom bubble burst.

One would have to ask themselves ‘What possible upside could remain” considering the gong show in evaluations, the bleak earnings we just saw in Q3, the trade war as well both China and Russia dumping BILLIONS of U.S Dollar Debt…..and the results of the mid term elections likely to have “significant impact” if indeed democrats steal back the house or senate.

Since March, Russia has dumped 84% of it’s American debt holdings! 84%! The bond selling has now reached “waterfall levels” with no real signs of support.

The U.S Dollar is set for the next “dumping” here as of today as well.

With the weekly swing low “essentially in” one might expect that stocks shoot for the highs here once again BUT! Mid terms could put a rook in those plans.

Generally speaking……what we will see over the next few weeks will be those retail investors who have “finally gotten off the couch” thinking this time it will be different.

It’s never different.

10 years straight up……..unprecedented. How does 2-4 years down sound? 

Totally normal, as we’ve got 150 years of data to work from.

10 years up? Common…….the “down” is gonna look equally nutty.

 

 

 

Stock Cycle Low – Hang On Another Day

Forex Kong 2 Comments

Stocks have almost completed their  “intermediate cycle low” so you “holders of paper” only need to wait another day er two / catch your breath / don’t freak out.

You have grown “so complacent here” that these “few down days” have you on pins and needles, debating whether you should simply just “sell” before you’re left with nothing.

You sell on green candles traders ( some days ago? )…… and you buy on red.

None the less…..we are still very much so in a right translated / daily uptrend in stocks – with this cycle extending to like…..38-40 days? Wow….a long one….but now near completion.

Dow Nears Support

Dow Nears Support

This is still a very strong uptrend – with an “intermediate cycle decline” now near complete. The test of support area ( as seen by the black line ) looking good.

I can only assume the next leg higher starts like……tomorrow.

 

Bitcoin slowly moving up from the proposed low at 6400.00

Gold = flat ( who really cares right? )

USD – Crater on deck – as suggested.

 

Stay SHORT USD – USD Pop ‘n Drop

Forex Kong 4 Comments

Daily cycles can vary in length for different assets, but in general The U.S Dollar tends to move in an “18-22 day period” from trough to trough.

The previous daily cycle topped out on day 4 then rolled over for a good solid move lower over a 16 day period.

Today marks the beginning of a new daily cycle now………don’t get excited.

USD Downtrend to Continue

USD Downtrend to Continue

A new daily cycle that will “again fail” early ( if not immediately ) and roll back over for another “crater” into oblivion so……..a new daily cycle in a “bearish downtrend” only providing further opportunity to SHORT. The dark black line showing the resistance zone for USD. She ain’t poppin thru that – no way!

I’m not flinching / moving a muscle as today is a single day’s action that has already run straight into overhead resistance. The U.S Dollar is NOT reversing its downward trajectory here – hell no.

Waterfalls ahead. Stay Short – keep accumulating crypto. You’ll see.

 

 

Comments Anyone? – Kong Back From the Future

Forex Kong 1 Comment

I welcome your comments. Trolls and fans alike…….bring it on people. If you’ve got a gripe.

As I had mentioned some time ago, the “infrequency of posts” can be generally correlated to “how well I’m doing in markets” or more so in recent days – my complacency. Admittedly – complacent.

Why so Kong? You’ve always advocated vigilance and planning / observation as key elements to any trade plan. How’d you get so “chill” here these days? The world is crazy! What about Trump? Trump??

Relax.

Kong_Complacent

                                                                                   Kong_Complacent

As much as the American’s have such terrible views of their current sitting President –  have you seen how markets are performing lately? Trump continues to confuse…..but the big boys / highest earners / tax bracket / big business / economic drivers are loving it!

And now another massive depreciation of the U.S Dollar to boot? Anyone in the “financial biz” in complete heaven!

The “short USD trade” now 5 days running……now swung high on a MONTHLY chart = doom / waterfall action in USD coming AGAIN here pronto.