stock market analysis

Graphene To Change World – Future Kong Series

Forex Kong 10 Comments

In the new year I plan to start a series “future kong” where I will be highlighting new technologies and cutting edge concepts primed for future investment, as well as researching the companies involved.

If you haven’t already heard of “graphene” you’d better listen up.

What is graphene?

Graphene is a revolutionary carbon based material made of a single layer of carbon atoms that are bonded together in a repeating pattern of hexagons. Graphene is one million times thinner than paper. So thin in fact…….that it is actually considered two dimensional.

Paradoxically, Graphene is also said to be the strongest material every made. So strong in fact, that if we rolled out a single sheet ( less than the thickness of plastic wrap ) and  could balance an elephant on the head of a pencil – the tip could not break through.Yes…….that kind of strong.

Graphene’s special properties don’t stop there…not even close:

  • Conductive: Electrons are the particles that make up electricity. So when graphene allows electrons to move quickly, it is allowing electricity to move quickly. It is known to move electrons 200 times faster than silicon because they travel with such little interruption. It is also an excellent heat conductor. Graphene is conductive independent of temperature and works normally at room temperature.
  • Strong: As mentioned earlier, it would take an elephant with excellent balance to break through a sheet of graphene. It is very strong due to its unbroken pattern and the strong bonds between the carbon atoms. Even when patches of graphene are stitched together, it remains the strongest material out there.
  • Flexible: Those strong bonds between graphene’s carbon atoms are also very flexible. They can be twisted, pulled and curved to a certain extent without breaking, which means graphene is bendable and stretchable.
  • Transparent: Graphene absorbs 2.3 percent of the visible light that hits it, which means you can see through it without having to deal with any glare.

With only about 10 years of practical research thus far, the real world applications are endless, including production of solar cells “hundreds of thousands of times thinner and lighter” than those that rely on silicon, more efficient computer transistors, “bendable electronics”, applications in engineering/building as well space aeronautics – and the list goes on.

So far there are a few companies worth taking a look at as early adopters / movers in the space.

Graftech International Ltd. ( symbol GTI ) is on my radar, looking for a pullback since its recent break out. 

The Future Economy Explained – Video

Forex Kong 16 Comments

The following video ( and series of videos should you wish to view all of them ) provides some of the most straight forward and easy to understand explanation of The Federal Reserve, the history of fiat money and Central Banking ,as well ideas of what the future may hold – with respect to the outcome of this current financial “experiment”.

These are some extremely well-respected gentleman talking ( many have beards ) including one of our favorites Dr. Paul Roberts, and the material is extremely easy to understand.

I recommend that “anyone” who still may have questions about some of the basics, or still may be struggling to wrap their heads around some of this  – Watch these videos.

I wanted to include them in the material available here at Forex Kong as the information is provided in such a straight forward manner.Perhaps plan to bookmark and come back throughout the week as each video is about an hour-long.

[youtube=http://youtu.be/nB8GmcRV_yg]

Traders Paradise – Tulum – USD To Fall

Forex Kong 6 Comments

Don’t worry yourself for a second. The US Dollar will make a small counter trend move here  ( or may already have ) before falling further,as we all know that nothing moves in a straight line for “too long”.

You’ll have to understand….there are millions of “dollar bulls” out there, lapping up the nonsense about “tapering”, falling all over themselves to “get long the dollar” before the “big announcement” on the 17th so…when you see “an occasional green candle” in anything “USD related” – you know these people are trying…”again”.

Meanwhile – I will be taking a holiday this weekend at the mystical ruins of “Tulum” so…eat your heart out dollar bulls.

Tulum_Forex_Kong

Tulum_Forex_Kong

Tulum is an absolutely amazing place, as the Maya sure knew where to build their temples. You can wander the ruins a while, head down to the beach for a swim, then hit the little beach town for a bite. The iguana’s here are massive, such that one particular “ruins resident” has aptly been named “Tyson” after the boxer Mike Tyson.

I have little concern about the markets moving forward, and look to “clear my mind” and enjoy every single minute I can. Away from numbers / math / trendlines / blogs / news and “anything” remotely related to Forex.

I’ll still plan to post – maybe some pics too.

Have a good weekend everyone!

U.S Budget Talks – I Can't Listen Anymore

Forex Kong 46 Comments

I’m done.

I can’t do this anymore…….It’s over.

I’m finished……We’re through….Good-bye……No more… “Se acabo”.

Let today mark the last day I will comment on the subject, short of the possibility of small intermittent outburst throughout the coming years – as the need arises.

Have I completely lost my mind in quickly interpreting todays ” budget deal ” as being a complete and total waste of paper / time / energy ?

All I can make of it is that the “debt ceiling will be increased forever” and they’re just going to kick the can for an additional 10 years! Averting shutdown in Jan / Fed MUST mean debt ceiling raised no? ( And we can see that “markets” likely view this the same as Kong no? )

( There is no such thing as “the debt ceiling” by the way….but that’s another story)

Forgive me please but…….can an American citizen please explain to me how they can suggest that “a significant change to the pensions of federal government workers and the military will save $12 billion over 10 years, $6 billion each from civilians and the military, and much more over time”.

When 85 BILLION “PER MONTH” IS BEING PRINTED OUT OF THIN AIR!

Get this:

There was just a little over $800 billion of base money in existence before the crisis in 2008… that’s 200 years worth of currency creation equaling 0.8 trillion

Now the Fed creates ONE TRILLION EVERY YEAR…meaning they are creating more than 200 years worth of currency……………… every single year!

Perceived “savings” stretched over “ridiculous periods of time” while 1 TRILLION DOLLARS ARE BEING PRINTED EVERY YEAR!

That’s it…..seriously….last post on it ( maybe not ) but……..common really?

Fantastic profits today in combination with trades initiated late last week…USD “continues” ( now 8 days in a row since posting ) to lose ground, Commods bounce and now reverse, EUR and GBP strength abound…and …..(wait for it…….wait for it……) JPY making the turn???

Habanero chasers for my fine tequilla tonight peeps….apparently …..I better practice up.

China Drops Bombshell On U.S – Quietly

Forex Kong 15 Comments

China just dropped an absolute bombshell, entirely ignored by the mainstream media in the United States. The central bank of China has decided that it is “no longer in China’s favor to accumulate foreign-exchange reserves”. So in other words – China sees little need to continue “hoarding” USD as they have in the past ( in order to keep their own currency suppressed ) and is likely to stop purchasing U.S Debt as well.

As well China also announced last week ( again – completely ignored in mainstream media ) that they will soon look to price crude oil in Yuan on the Shanghai Futures Exchange, bypassing the need for exchange in USD.

The implications and ramifications are massive.

  • China is now the number one importer of oil in the world, and will soon openly challenge use of the petrodollar.
  • Dropping the purchases of U.S denominated debt leaves only the The Fed (as no one else in there right mind is buying U.S Treasuries ) so we can likely expect further downside in bond prices…and of course the dreaded inverse – rise in interest rates.
  • When China starts dumping dollars and U.S denominated debt, it’s pretty safe to say the rest of the world will too.
  • Allowing the Yuan to in turn “appreciate in value” will make all those wonderfully cheap products sold in The United States much more expensive.

In all….this is likely the largest , most significant story / issue now facing the U.S as China’s “backstop” to the U.S Dollar and never-ending purchases of U.S Debt “until now” have been primary drivers in supporting “whatever it is you call this” economic recovery.

Pulling the rug on U.S Dollar and debt purchases is without a doubt the move that “takes the queen”.

Checkmate next.

World Bank Whistleblower – Video Truths

Forex Kong 10 Comments

I stumbled upon this video over the weekend, and thought you might enjoy.

Karen Hudes “tells it like it is”, offering a glimmer of hope as well. Perhaps she’s a wack job too so…I’ll let you be the judge.

[youtube=http://youtu.be/4hgA9j-4dB0]

The usual Sunday ritual for Kong ( chipotle basil bolognese ) as we get ready for another exciting week trading. Volatility has certainly kicked up in currency markets as USD makes a bold turn “lower” as suggested. My eyes are still on JPY for the “big one” when it comes, but continued trading in GBP as well short those commods.

I expect we should see some real action here this week.

Buy Volatility As Your Hedge – Why Not?

Forex Kong 10 Comments

I must have dreamt it but…..I could have sworn I’d posted this chart some time ago.

A quick look at $VIX.

THE VIX REACHED 90.00 AT THE HEIGHT OF THE CRASH OF 2008 IF THAT MEANS ANYTHING TO YOU.

Forex_Kong_Vix

Forex_Kong_Vix

Volatility “rises” when fear sets in. This cannot be questioned.

The $Vix has “bobbed along the bottom” for the entire Fed driven rally, and cannot / will not break below around 12.50 no matter how high the market goes. This is complacency to a degree BEYOND my scope of understanding….as it’s painfully clear that most people have indeed been “lulled back into thinking” every is going to be alright.

THE VIX HIT 90.00 back in 2008!

EU Zone Trouble – More QE On Deck

Forex Kong 9 Comments

With all the high-flying stocks out there, and the endless promotion of “recovery in the U.S”, it gets harder and harder every day – to believe anything less. The media machines are in full swing, and the general census ( I believe something like 74% of analysts / newsletter writers ) suggest that the sun is shining, the water is warm – common everyone! It’s safe! Jump on in!

You know – I bet the majority of people “actually believe” that “miraculously” – the troubles in the EU Zone have all magically vanished as well! I’ve heard the floating heads on CNBC as well CNN state this as fact. Josh Brown ( a well-known floating head on CNBC ) looked me square in the eye the other day and stated that “the recession in the EU Zone was over”.

Some facts borrowed from Graham Summers:

1) The European Banking system is over $46 trillion in size (nearly 3X total EU GDP).

2) The European Central Bank’s (ECB) balance sheet is now nearly $4 trillion in size (larger than Germany’s economy and roughly 1/3 the size of the ENTIRE EU’s GDP). Aside from the inflationary and systemic risks this poses (the ECB is now leveraged at over 36 to 1).

3) Over a quarter of the ECB’s balance sheet is PIIGS (Portugal, Italy , Ireland and Greece ) debt which the ECB will dump any and all losses from onto national Central Banks.

So we’re talking about a banking system that is nearly four times that of the US ($46 trillion vs. $12 trillion) with at least twice the amount of leverage (26 to 1 for the EU vs. 13 to 1 for the US), and a Central Bank that has stuffed its balance sheet with loads of garbage debts, giving it a leverage level of 36 to 1.

The troubles in the EU are far from over, only masked during this “latest attempt” to ensure confidence in a system that is hanging precariously near the edge.

Keep in mind Spain’s currently unemployement rate is 25%!

The European Central Bank is currently considering ( and will soon likely implement ) a QE program of it’s own with bond buying and the works, similar to that of Japan and the U.S

This, coupled with “almost guaranteed” additional stimulus from the Bank of Japan has this currency war shifting gears moving forward, and leaves absolutely NO ROOM for tightening / tapering.

I will continue to complete ignore the media, as with the example sighted above……they are “paid” to keep the puppet show going.

Global QE – Currency Wars 2.0

Forex Kong 19 Comments

The Japanese stock market has ripped higher the past two consecutive days – pushing through overhead resistance and seemingly broken out, on the back of Janet Yellen’s last two days testimony ( I’m not holding my breath but very often these “inital moves” are the “fake out” only to be reversed days later ).

As the new chairman of the Federal Reserve, Mrs Yellen made it “all too clear” that she is indeed the “dove” everyone was expecting – and that further monetary stimulus was most certainly her “tool of choice” in the ongoing battle to right the U.S economy.

I am even more confident now that the Fed will “increase” its QE programs in the new year, and that further destruction of the U.S Dollar is all but a given. Simply put “those of us in the biz” know pretty much for fact that Japan is planning to increase its stimulus come April, and it now looks like “only a matter of time” before the European Central Bank throws their hat in the ring as well.

Given these circumstances, and the continued unemployment numbers and poor data coming out of the U.S – any idea of tapering is ridiculous, as “if anything” the Fed will need to “step it up” in order to remain competitive with the currency wars now headed for the next level.

With such an “unprecedented scenario” playing out over the coming months / year it’s pretty fair to say we’re going to see more of the same – this being the most hated “risk rally” in history. A difficult situation for “fundamental traders” as clearly the fundamentals play no role with the continued “pump of liquidity” so……..we take it day by day – rely on our technical no how , patience and experience to navigate the waves and continue to profit.

Having my longer term views yes…I could care less which way this thing goes short-term as…..which ever direction the money goes – I’ll be going there too.

I’m sticking to my guns here through the weekend and into next week, still looking at this as an excellent area to start looking “short”. The Naz short still in play, the weak USD considerations still in play, and the “inevitable turn” in JPY has only gotten juicier here as….when it does make it’s turn – its’ gonna be a whopper.

 

A Quick Look At Oil – USD Correlation

Forex Kong 13 Comments

In case you hadn’t noticed – the price of oil has been falling precipitously since September.

With the simple mechanics of supply and demand, larger U.S stock piles have been reported while U.S drivers (feeling the pinch of still “lofty prices at the pump”) are driving less. As of late we’ve also seen a strong U.S Dollar so that hasn’t helped much either.

I don’t feel we’ve got much further to go until oil reverses, and reverse hard.Perhaps another dollar or two max – with reversal coming in a matter of days.

Refiners may have already made moves on this  – with symbols such as “WNR” already popping huge over the past week.

Forex_Kong_Oil_Refiners

Forex_Kong_Oil_Refiners

I’d expect that “this time around” we’ll likely see the price of crude reverse here around 91.70 – 92.00 dollar area, with the usual correlating weaker USD.

I’m going to start running short term technicals on stocks here soon, as well hope to offer those of you who “don’t trade forex directly” additional options and trading opportunities.

Dig up “oil related stocks” over the weekend and plan to get long.