forex trading

Limit Orders – How To Effectively Sell Short

Forex Kong 1 Comment

I’ve done my best to explain this on several occasions…”oh how I’ve tried to explain this!”

But you humans….crazy humans – so anxious to “hit those buttons” so “spurred by emotion” compelled to “buy buy buy” or “sell sell sell” on a moments notice. If only for a minute you could learn to slow things down, you’d quickly realize – you’ve missed nothing, there is no rush, the markets move far slower than you think. Everything will be O.K, and “even better” –  if you could just manage to control your emotions.

If you are considering placing an order on a particular asset “short” (with hopes that it will fall in value) there are most certainly ways to go about this without “losing the farm”.

You need to understand how/why to place “limit orders”.

Limit Orders – How To Use Limit Orders

Limit_Sell_Orders_-_How_To

Limit_Sell_Orders_-_How_To

A limit order is an order to buy or sell a set number of shares at a specified price or better. A limit order guarantees price, but not an execution.

So for example…..If I see a particular stock priced at $108 per share, and I have some idea that said stock is likely to fall in value. I don’t just “sell short”! I look to place a “limit order” to sell at a set price LOWER than the current value of $108!

If in fact the stock price falls ( lets say my order was to “limit sell” at 107.50 ) then great! I get my order picked at 107.50 and am well on my way! If the stock shoots for the moon and I was totally wrong in looking to go short…..my “limit order” does not get picked up….I am not in the trade….the stock rockets to $120.00 and I am left with no trade…..but a perfect example of “no trade….being a great trade”.

Limit orders allow you to “take your shot” – but only on momentum moving your way. If price doesn’t move in your direction – you don’t get picked up!

Use ’em –  I know I do.

Several of’em currently lying in wait.

 

 

 

U.S Stocks Pull Back – Watch Nasdaq, USD/JPY

Forex Kong Got something to say?

These days it makes little sense contemplating every single “little move” in any number of currencies, as forex markets are more or less flat / stagnant. Sure the Brexit did it’s thing and the pound (GBP) got hammered, and sure the Japanese Yen (JPY ) has been on a tear since big banks and large-scale traders have clearly been ditching their Carry Trades – in preparation for a larger scale fall in risk assets ( likely to follow post U.S Election ).

So what’s a trader to do?

Many have been suggesting that the long-term “double top” in Tech stocks / Nasdaq could very well be what markets are shooting for, prior to pulling back….and it looks like we are just about there.

 

Nasdaq_Weekly_-_Double_Top

Nasdaq_Weekly_-_Double_Top

What might throw a number of you for a loop, will be to keep a close eye on USD as U.S Equities pullback.

Traditional thinking would have the U.S Dollar rise ( as U.S Equities are sold and “cash is then raised” ) but we’re not much for traditional thinking ’round these parts. Nothing has changed with respect to the longer term idea that USD is set for a much larger fall.

I would take a very serious look at “any currency” Vs JPY on the smallest indication that “risk aversion” rears its ugly head as…..money is gonna pour back into the primary funding currency of this charade ( that being Japanese Yen ).

Not USD.

 

 

Rate Hike In The U.S.A – Total Bullshit

Forex Kong 10 Comments

I’m sure by now you are all well aware –  I can’t stand the mainstream media.

I cringe every time I see some “breaking news story” ( particularly in the U.S ) hinting of rate hikes, when in reality…..this is complete and total bullshit.

Let’s do a test.

Ask yourself if this mornings headlines such as “Fed rate hike odds jump on positive July employment report” didn’t bend your ear. Sounds pretty certain. Sounds like the odds of a rate hike are right around the corner.

You didn’t read the rest of the story. As you live in a world so full of information….your habits have changed, your DNA on the move. You don’t “read” anymore. You scan. Exposed to more information per day than people 20 years ago had available “per decade” –  you have no real idea what to believe, as there is so much bullshit out there….so much crap…you’ve morphed into a “scanner” and not a reader. Soon to be a tiny body with an oversized head, sitting in a chair of virtual reality – sipping some algae/protein/zanex based concoction – sold to you by Dupont.

U.S Rate Hike - Total Bullshit

U.S Rate Hike – Total Bullshit

The probability for a rate hike in September jumped to 18%, from the 12% registered prior to the data, according to CME Group’s FedWatch tool.

You getting this? a jump in probability from 12% to 18%…….and markets go wild. Kinda like a jump from “zeeeeeeero” to never….but the spin doctors got’choo.

Do yourself a favor……….stop watching cable. You are not yourself.

Note the bold text in this post.

Looks like I “got’choo” too. Rate hike impossible. Not gonna happen. Actually……an 82% change it’s not gonna happen.

Oooops……isn’t that what you read?

 

Crude Oil – Reverse Head And Shoulders

Forex Kong 2 Comments

For those of you that looooooove technical patterns and set ups –  crude oil is starting to look good.

If we’ve established that The U.S Dollar is set for a solid turn lower ( which we have! ) then it only makes sense that commodities “priced in USD” should be shaping up to make the inverse move higher.

Crude Oil Set To Move Higher

Crude_Oil_Entry

Crude_Oil_Entry

Considering this incredibly long period of consolidation / distribution in most asset classes, it looks like we are finally going to see a number of “standard correlations” come back into effect.

A large move lower in USD being the key factor, as these assets priced in U.S Dollars begin to move higher.

I’m simply ignoring “any and all” other news  with respect to inventory / consumer demand etc as oil will take a sizable jump on further USD weakness.

 

Timed To Perfection – USD Gets Cooked

Forex Kong Got something to say?

I laugh out loud this morning….as Im sure you´ve seen my last two posts – encouraging you to get short USD.

Talk about timed to perfection. USD is getting hammered on ¨no real news¨ and look at that…..U.S Equities falling pretty hard too. Again I wonder about all those blow hard ¨dollar longs¨struggling to understand how I keep making this look easy.

dollar-on-fire

dollar-on-fire

The trade is ¨short USD¨…….the reasons are many.

Timing has been key here these past months as you´ve recently seen me come out of hiding to bang down the first trade in weeks – if not months.

Boom……. thar she be.

 

 

 

 

The Wait Is Over – USD Rejected at 200 SMA

Forex Kong 1 Comment

As I am always a touch early……..short USD trades are looking very good here.

One can see that The Buck has had it´s day, and has now been soundly rejected at the 200 SMA.

You guys can look back and recall short trades in Apple – with the exact same set up. Very straight forward…when an asset hits the 200SMA from below, then gets smoked. A very large level of resistance, and generally a pretty clear indication that things will be headed lower.

USD Rejected at the 200 Simple Moving Average

USD-lower-Aug-1

USD-lower-Aug-1

You can look for a million different reasons, but fact remains that a rise in interest rates will blow this market up, and that if anything….further easing will likely make more sense, and that´s bad for USD.

You have to keep in mind that the big boys are ¨spinning the story¨ not sheepishly following along! Long positions by the big boys have already been sold to you, as the common man ¨reactes¨ to the trickle of silly news stories aimed at keeping you on the wrong side of the trade.

You falling for this shit? Grab a backbone. Get informed. Remember the days when The U.S Federal Reserve was printing like mad, and crushing the currency with hopes to boost exports and the economy?

How did that go?

Brexit Actually Happens! – Speculators Washed Away

Forex Kong Got something to say?

“Brexit” –  I can’t stand these catch phrase / trending terms –  “Brexit”.

Although rather fitting in this case right…..who would’a thunk?

The hoity toits of Great Britain have actually pulled the plug on remaining a part of The E.U. Currency markets ( not to mention equity markets! ) are flipping out. Truly “exciting times” we live in today.

Now…..the question begs –  WTF? ( what the f*$k? )

Is this an economic issue? Political? Or……..perhaps even more telling – an IMMIGRATION ISSUE?

You don’t see it as close to home – like the Brits do. Things are clearly getting out of hand with respect to the huge numbers of people now “displaced” due to the insanity raging in the Middle East. the British people have stood up and said “hey!” We can’t just stand by and watch our great nation “dilute”.

Touchy stuff for sure – as I am a globalist.

The “movement of human beings on this earth” has accelerated considerably over the past few years, and has now gone “parabolic”. There is true and legitimate “fear” out there, as people ( mostly narrow-minded and slow ) hold tight to what they know…..what they understand –  what they feel is “safe”.

I don’t see this as an economic issue ( although that will come next ) but more so as another indication of the larger issue at hand….and the larger issue on most people’s minds. People are moving! The world is shrinking! People are starting to freak out.

Keep in mind Britain’s place on the global stage. They OWN the banks. They are all-powerful in ways the common man may never truly absorb/understand. The British Pound ( GBP ) isn’t going anywhere as the world’s “elite” hold it in vast quantities. They’ve already built their spaceships…and paid for it in pounds.

I’m curious to see what “spin” the two America clowns running for President put on it. The timing couldn’t be better.

In any case…..catch the news tomorrow morning, and expect all kinds of fireworks. I’ve not posted or traded for well over a month now – essentially proving a point.

Remember Apple short at 111.00? Remember suggestions that”2100″ in SP 500 was the high water mark? You’ve spent the last few months pulling out your hair trying to figure this out.

I’ve got a killer tan and cash in the bank. Hairline intact.

 

Forex_Kong_Kongdicator

More Planets Found – Just Tell The People!

Forex Kong 4 Comments

The number of known alien planets has just gone up by more than 60 percent.

NASA’s Kepler space telescope has discovered 1,284 new exoplanets, including nine rocky worlds that might be capable of supporting life as we know it, astronomers announced today (May 10). This is by far the largest haul of alien planets ever unveiled at one time.

The total exoplanet tally now stands at about 3,200, and Kepler has found 2,235 of them, NASA officials said. [1,284 Exoplanets Found: NASA’s Kepler Space Telescope Discovery in Pictures]

– See more at: http://www.space.com/32850-nasa-kepler-telescope-finds-1284-alien-planets.html#sthash.lgLHcuoi.dpuf

 

This is so old news…and just another example of the sheeple being fed this info bit by bit.

I’ve been on this planet for centuries…..when are these crook’s just gonna tell you the truth?

Stop And Reverse – Day 3 Already

Forex Kong Got something to say?

Why not take a quick second to blow my own horn right? I mean…….why not!

Day 3 of the full “stop and reverse” on The U.S Dollar – timed exactly,faultlessly, superbly, superlatively, excellently, flawlessly, to perfection, without fault, ideally, inimitably, incomparably, impeccably, immaculately, exquisitely, consummately. Bang! After week s of pure profit on the short side….3 days straight up long. Job well done for those of you that actually trade.

In any case…..always a great feeling when you nail one….or two – maybe 3 in a row, as it certainly makes up for the couple that you get 100% completely wrong.

By the strength of the move in USD I think it’s fair to say we’ve got ourselves an intermediate bottom, a fantastic entry and many more days of upside so it’s unlikely I’ll be changing my tune over the next few weeks. Mind you….I will be there for the next turn lower…you can count on that.

This is a great time to get those gold and silver miners back on your radar, and start zooming in to find solid areas of support. I hope these little babies fall hard, as the longer term reversal is now so…. major weakness will provide buying opportunities.

Rock n roll people.

Hope you’ve managed to make a buck er two. I’m back on the beach.

 

Forex_Kong_Beach

Mind The Hammer – Japanese Candles Tell All

Forex Kong 2 Comments

Can you see the candle formation currently forming on $DXY – The U.S Dollar Index? That’s reversal shit there.

A hammer is a type of bullish reversal candlestick pattern, made up of just one candle, found in price charts of financial assets. The candle looks like a hammer, as it has a long lower wick and a short body at the top of the candlestick with little or no upper wick. In order for a candle to be a valid hammer most traders say the lower wick must be two times greater than the size of the body portion of the candle, and the body of the candle must be at the upper end of the trading range.

When you see the hammer form in a downtrend this is a sign of a potential reversal in the market as the long lower wick represents a period of trading where the sellers were initially in control but the buyers were able to reverse that control and drive prices back up to close near the high for the day, thus the short body at the top of the candle.

After seeing this chart pattern form in the market most traders will wait for the next period to open higher than the close of the previous period to confirm that the buyers are actually in control.

Two additional things that traders will look for to place more significance on the pattern are a long lower wick and an increase in volume for the time period that formed the hammer.

And here’s the kick in the face for those thinking this market is still properly correlated –  stocks taking a hit.

Complete and total gong show out there folks…..stick to what you know and don’t even try to understand it day to day.

I’m full stop and reversal on USD with orders sitting above and below. Japan may well have more to show us this evening….but we’ll just have to wait til then.

When gold and silver mining companies pull back here ( on USD strength ) BOOM! – Entry of a lifetime coming very soon. I shall keep you posted.

 

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