forex market analysis

Swing High In U.S.D – Significant Move Ahead

Forex Kong 13 Comments

Today marks a fairly significant day in the life of Kong as yet another milestone is passed…..another goal achieved.

Stars have aligned, cosmic events have fallen into place and years worth of work and dedication have finally paid off.

It’s time to make “a significant trade”.

The U.S Dollar has juuuust barely swung high as of this morning, and I am placing what may very well be the most significant trade of the year.

I am getting short The U.S Dollar for what I expect to be a “large-scale move” to the downside.

There are a million different reasons to justify such a trade, but I’m sure you already know. Yes the global economy is in shambles, yes the American election is set to be the most embarrassing political event in history, yes the crisis in Syria continues, and yes I am still 1000% completely convinced that further QE is in the cards for America.

This turn looks ugly. I’ve been staring at charts for weeks, and I see the same thing reflected “everywhere”.

Watch from the sidelines, or just buckle up for the ride.

Sideways soon turning to downside.

Get Short – Today

Forex Kong 3 Comments

The British Pound has climbed 358 + pips since the last post, and the U.S Dollar looks ripe for “the next down turn”.

Then up a bit…then lower……then lower etc..I continue to place trades on the “downside” winning tidely week in – week out.

Oddly the mainstream media “still” running stories of “continued USD strength” in the face of this……”USD remains buoyant compared to rivals that”…Total bullshit.

The Dollar has lost over 1000 pips since topping out against the Japanese Yen some months ago….and there is no possible chance of recovery.

 

Today I am placing further orders “short USD and risk in general” ( SP down….Dow down….Naz down ) long JPY – same ol drill here today!

Brexit Is A Total Joke – Retail Investors Smoked On Pound

Forex Kong 2 Comments

Britain isn’t going anywhere.

In a world where tensions between East and West continue to escalate, do you really think “now” is a time for the West to divide? Not a chance…..not in a million years. Not to mention the fact that the referendum isn’t set to go off until June 23rd! Th pound has been “pounded” down to serious levels of long-term support ( 1.39 area in general ) and has 3 full months to go ’til this “ridiculous exercise in bureaucracy” plays out.

What is happening?
UK Prime Minister David Cameron has announced a referendum on whether Britain should remain in the European Union to be held on Thursday 23 June.
What is a referendum?
A referendum is basically a vote in which everyone (or nearly everyone) of voting age can take part, normally giving a “Yes” or “No” answer to a question. Whichever side gets more than half of all votes cast is considered to have won.

I am looking for serious trade opportunities in GBP over coming weeks, but am patient enough to wait a little longer. We are close “level wise” but timing is always a factor.

USD down as well stocks cratering – as suggested. My first set of orders were picked up last night around dinner time.

Could be in for a “quick hit” here as markets are still trading in a fairly “blurry range”….but I expect downside to continue. Responsible trading has me holding small orders with a watchful eye.

Getting stopped out is a good thing remember….as you can’t win every time.

Key is to just to keep those losses small.

 

 

Forex_Kong_Snow

Earth Sells Off Hard – Lower Lows To Follow

Forex Kong 5 Comments

With over a month of inactivity short of holding the same positions, the same strategy as outlined here countless numbers of times – our old friend The U.S Dollar has done us proud.

The “dumb buck” has lost some 1000 pips v.s the Japanese Yen since markets topped some months ago, and has made an equally bad showing against the majority of its rivals.

This has only just begun.

You may recall chatter some months ago about China and a number of other countries moving away from use of The Dollar in international trade, and recent news suggests that now Iran ( with sanctions being lifted ) is looking to sell its oil in Euro only.

Unfortunately you just can’t have it both ways.

Things will only spiral further down the drain when U.S interest rates go negative ( where essentially they are already if you consider inflation ) and The Fed looks to launch QE5.

All those worthless dollars already printed…..and a shit pile more coming soon – to an unemployment office near you. This is no time to be disappointed or upset! Rejoice in your new-found knowledge that the entire “economic recovery” has been a complete and total sham, and be glad you made the realization early enough to survive.

Have you survived? I hope so.

And it’s really not too late…unless of course you are still of the mindset that “The Central Banks” have got your back well then…….one would think you’d of learned your lesson over the past month er so.

Earth is selling off hard. There isn’t a damn thing “they” or “anyone” can do about it.

Global stock markets are literally “tanking daily” and in my view things are just getting started.

From a technical perspective we’ve only just “shaved the top” off this mountain off bullshit, now with The SP 500 still hanging around the neckline area of support – but that won’t last much longer.

New lows…..then even “lower lows” to follow as The U.S Dollar plummets, Japanese Yen come flooding back to the country where they were printed, Euro and GBP remain elevated and the commodity related “currencies” trade flat.

A low in oil at some point ( correlating with the dump in USD ) won’t mean the markets will recover…not in the slightest as oil will then just bounce along said bottom for eternity. No immediate opportunities there.

People are flat busted, food prices are “out of this world” and global economic data is quickly turning from bad to horrific. This is not a blip. This is not a “correction”. This is not a drill.

This is 2016 baby….and it will be one for the books.

 

Dollar_No_More

Dollar_No_More

Mind The Bounce – Tomorrow Should Confirm

Forex Kong 2 Comments

It’s been a great run, but markets look set to bounce here with the SP 500 finding support area around 1880.

Long JPY trades closed, as a “swing low” on daily charts ( when tomorrow’s closes “higher” than today’s high ) should confirm a short-term move to the upside.

This will be a bounce, but considering volatility these days one can’t say for certain just how “big a bounce”.

Technical damage to markets is massive. I expect we float /drift sideways for the next couple weeks – offering few decent trading opportunities.

Stack all the cash you’ve recently made long JPY / short risk and go hit the beach for a couple of days. You won’t miss a thing.

 

 

 

Weekly Charts – Confirmation We Go Lower

Forex Kong 2 Comments

The weekly charts in SP 500 and Dow now clearly broken.

We move lower here….like weeks lower…so don’t get caught buying dips!

We sell rips in this environment so what you are looking for are strong “daily closes” in order to find higher levels to continue to “add short on”.

Find “max green” intra day / week  to continue loading short.

Long JPY the biggest winner ( as you guys already know this! ) with Commods like AUD getting punched in the knee.

Looming buys in both EUR and GBP vs USD but likely not for a few days…..legging in as soon as this evening /  late afternoon tomorrow.

 

 

 

 

Year 2016 Starts Now! – Get With The Program!

Forex Kong 1 Comment

A fantastic start to the new year with equity markets in particular – showing their hands early.

Today looks fantastic as currency markets are essentially `giving us the day to catch up`….with little movement in USD itself – but OBVIOUS movement in JPY as risk sells off hard.

You guys know this…..this should look very straight forward at this point as the clear trade is still Long JPY vs Commods….as well short USD coming up here again soon.

These pairs are a given as risk falls off the cliff, while we get another full day ( or two more perhaps ) before USD rolls over and `those` pairs get added to the pile.

I wish it was more exciting at times too folks…however after a time…this just gets redundant.

We are going lower…..days lower…….weeks lower.

 

Forex_Kong_Face_Book

Forex_Kong_Face_Book

It's Raining Money – Weekly Candle On Dow

Forex Kong 1 Comment

Pull a weekly chart and check out the candle now formed on Dow.

This is what we love to see, as it’s raining money in the land of Kong.

For those with a solid grasp on reality, and not some dumb ass perma bull loud mouth spouting that it’s “option expiration to blame”….bravo. The U.S Dollar’s fundamental role change in global trade/economy now confirmed – Rate hikes won’t be driving anyone to it. It’s not a reflection of safety.

Read back over the past few days. Simply put things are playing out exactly as forseen.

Merry ho ho ho !

Kong In Cash – Tomorrow Will Crush You

Forex Kong 4 Comments

I have closed all positions Long JPY ( thousands of pips profit in total ) as well all USD trades and am now 100% in cash.

Tomorrow, potentially  brings with it one of the largest “market moving” events/announcements of not only this past year….but perhaps even the last 10 years – as The U.S Fed looks to either “raise interest rates” ( .25 token move if at all ) or sit tight.

Either way ( once the dust settles ) it’s all bad news for USD and likely risk in general.

I have no opinion on it…..as it makes absolutely no difference to me.

The U.S Dollar is no longer viewed as a safe haven. Further QE is coming……so tomorrow is just another day.

I do however recommend “what ever you decide to do” – do yourself a favor and wait until “at least” Asian markets express their views or likely even better….the following day in U.S trading closer to the closing bell.

There is no trade until the fireworks end. …unless of course you enjoy having things blow up in your face.

I’m not much for that.

Good luck everyone!

 

 

 

 

Forex_Kong_Face_Book

Forex_Kong_Face_Book

Japanese Markets Crashing – Monday Comes More

Forex Kong 5 Comments

The Japanese Nikkei Index is down  nearly 3% ( -525 ) and it’s not even lunch time in Japan.

Care for a dynamite roll? Lol. Markets are imploding.

As suggested here countless times in the past…..just tune into to The Nikkei on Sunday nights for your early morning trade strategies there in the U.S. as it would be a very rare occasion that such destruction over seas doesn’t hit the shores of America come sunrise. When will you expand your circles of influence wide enough to truly get a grasp on this thing we call a “global economy”?

CNBC and the Wall St. Journal just won’t cut it girls.

I am making “sick money” long JPY since last week ( you could be too ……..but wait….the trade involved discussion/concepts of something “asian” so……its more than likely you “let nothing but patriotism stop you” ) – bleeeep! Red button. Some silly buzzer going off on some hilarious Japanese game show set – YOU LOSE Honky.

It’s a “global economy”! You seriously don’t believe it? How long can the television continue to guide you?

Now I’m not asking you to consider ducking out on your “trailer pad rental”, packing up Grandma and yer guns and moving to Canada ( at least Canada “admits” it’s in recession with back to back quarters of negative GDP growth now in the can ) – Juuuuust hoping to alert you to the stark realities of the current situation.

If you haven’t sold yet – you are not going to be the happiest camper moving forward.

Forex markets don’t give a rat’s ass about you, so if you can keep your eyes on the fundamentals and “not” on the tube. You’ll do fine.

Tomorrow morning the entire move with “have already happened” pre – market ( ya…actually it’s called Japan ) and the most likely scenario will see Western investors pile in short around 10:30 a.m thinking they’ve “scored a tip” here Sunday night.

Wall St. will then strip you clean ( ramping the thing into the late afternoon ) then sell hard into the close.

That…….or perhaps a fake alien invasion and an address from your leader.

I stand impartial ( this is my forex blog……..so you can imagine my thoughts on other “more interesting things” ) so take it with a grain of salt.

I trade to make money….I blog to help you.

Try your best not to get the lines crossed here k?

 

 

Forex_Kong_Wood