forex trading

You know…..if I was a terrorist I’d likely start with….well I dunno…maybe I’d start foreclosing on people’s homes and pushing them out into the street where they’d be much easier targets.

Then I’d likely put considerable effort into devaluing their currency making it even more difficult to survive and provide for their families, all the while outsourcing all the manufacturing / factory jobs overseas, choking off any opportunities for employment.

At that point it only makes sense to make health care completely unaffordable, and perhaps I’d allow my friends running the insurance companies to just get away with murder there as well.

I’d kill education and even if education “was” available it would be far to expensive as….you can’t have “smart people” running around now can you?

Terrorist hate smart people.

Then if that wasn’t “quite enough” I’d likely look to monitor every single cell phone and email correspondence country-wide, looking to gather that information and use it to the best of my abilities to “really put it to em”.

Then…..just sit back in some overly priced leather chair…..write myself a big fat bonus ( somewhere in the 7 figure zone ) grab a little popcorn and watch the show.

Or maybe if I got bored, I’d throw darts at a map and look to find some other country to go and do the same in.

Sound at all familiar?

I encourage any and all to pass this one around a bit as what the hell……..perhaps I’ve now made the list on some “surveillance opp” having used the word “terrorist” in the title.

No wait……no “real terrorist” would ever be so dumb as to do that.

I imagine I’m ok.

Forex_Kong_Face_Book

At this point, having taken a lump er two holding a couple of USD longs, it’s an easy “stop and reverse” for a decent trade in the opposite direction.

We’re pretty much looking at the long anticipated “USD waterfall” here as of yesterday, and you’d not want to get stuck on the wrong side of that.

Pure play – a simple long both GBP/USD as well EUR/USD.

Otherwise, some great comments and ideas on AUD here overnight ( thank you everyone who’s contributed ).

As counter intuitive as it may seem I’m easy holding / adding short AUD while holding these two “new trades” for a shorter term rip. It doesn’t “appear” AUD has got much life left in her anyway.

USD looking to take out lows from October….and then some. Easiest play – long EUR and GBP.

You’ve really got to shake your head when the “poster child currency for risk” continues to move higher in the face of looming credit crisis in China, possible war in Eastern Europe and a “soon to be announced” USD debacle in the states.

Or do you?

Doesn’t it make the most sense to “those of us in the know” that things generally go “higher” before going “lower”?

I mean really…….markets don’t “crash” from the lows! Markets fall from the “highs”!

Currencies really being no different.

I imagine in a couple of days ( or perhaps even within a couple of hours ) you can look back on this and say “Ya ya Kong was early as usual…damn! That Australian Dollar really put up a good fight there near the end”.

And that will be that.

At Zero Hedge:

UPDATE: It’s happened – China has suffered its first domestic corporate bond default as Chaori fails to meet interest payments on schedule and rather more surprisingly failed to receive a last-minute mysterious or otherwise bailout…(read more)

In case you hasn’t seen or heard yet, the Internet is “on fire” with the latest concern coming out of China, that a tiny little solar company is on the verge of default.

Chaori Solar Energy out of Shanghai, ( a maker of solar cells ) said March 4 it may not be able to make an 89.8 million yuan ($14.7 million) interest payment in full by the deadline tomorrow.

Now, while this may not “immediately appear to be that big a deal ( as we’ve all seen companies default / go belly up before ) the implications are that “if indeed” Chaori defaults on its corporate bond interest payments on Friday it will be the first “ever” corporate bond default allowed in China.

Ever.

Where normally bailouts are quietly made and companies / investors are “bailed out” by the PBOC (Peoples Bank Of China) and the government, it appears that in this case China is looking to set a “new example” in simply allowing the company to default – as a simple matter of market mechanics and ever day market volatility.

The message clearly being “we are not going to be there to bail out every single company that goes off the rails” and that the “permanent backstop/endless liquidity injections”  investors in China have come to enjoy ( and even come to rely on ) will “not” be there moving forward.

A bold move, with far-reaching implications.

How many other companies in China are on the brink of default? How many corporate bond holders might just look to “get the hell out of the road” now knowing the government isn’t going to be there to step in and help?

Bank of America Corp. is calling it “China’s Bear Sterns Moment”.

Do you think the sudden “blast higher” in AUD might just be indication that the big boys are front running this a bit? Providing even “higher levels” to get short from?

So we’ll see. So we’ll see.