trade strategies

There’s little more to be said here this morning – as The U.S Dollar plummets nearly a full 1%, down a full 100 points from 96.00.

Absolute Dollar devastation as both GBP as well EUR make 100 point gains, USD/JPY hit’s resistance and dumps….and our little gaggle of gold and silver miners now up 7-9% since entry.

I’m obviously short as “sh&%t”…and very well positioned ahead of the move. So what could you have done better perhaps?

• You “could” have plotted areas of support and resistance on your charts “long before this move was made”, and have been fully prepared with your orders

•  You “could” have created 3 small orders and “legged in” over the previous 3-5 days, ensuring and average price and not betting the farm on a single entry.
•  You “could” have shut of your T.V, eliminated the noise, and gotten back to your charting…where you would have clearly seen the set up coming.

• You “could” have opened your mind to the “other side of the trade” ( vs the general main stream media ) and taken advantage of some pretty early indications ( here at the blog ) that things where about to turn.

Forex_Kong_Ashamed

There it is…..likely the best possible entry / trade tip / suggestion that you’ve seen laid out for you over the last several days…no stress….no pressure. No chasing markets in panic…no text marathon’s with your broker…just proper planning and execution. A very well placed trade, looking to become a very VERY profitable trade.

So what are you gonna do now? Seriously………..what are you gonna do now?

As I’m sure you’ve been following the “bold call” earlier this week..our dear friend U.S Dollar “has indeed reached the 96.00 level”, and as suggested – has clearly been rejected.

On has to appreciate not only the timing and levels, but the “patience required” in planning your trades, then executing properly.

This trade “short USD” was outlined back on Monday.

The_Next_U.S_Dollar_short

This is the key difference in “planning a trade” as opposed to waking up early one morning, and “impulsively taking a trade” cuz of something you’ve heard / seen on the T.V. This generally has you “chasing markets” and usually ends in a loss.

Broadstroke……this has USD headed lower as expected. and will also likely mark a “daily cycle low” for both Gold and Silver ( have you bought your few small mining companies yet? ) providing these with several days upside to follow.

Perhaps consider a shot at EXK and / or GPL for some silver plays ( fun ones…….very  cheap ).

Have at it people. If this hasn’t put you in a decent spot to make a buck er two shit……..what else do you need?

You can play “short USD” in any number of ways….and when considering “diversification” ( as any knowledgeable trader / investor should! ) why not throw a couple of bux towards those good ol gold and silver mining stocks.

As a “token” of my current plans moving forward “as planned”….I am placing the first of many orders “long gold and silver” ( inverse to short U.S Dollar ) here today.

Long IMG at 5.00 Even.

Gold_and_Silver_Long_Entry

The currency side of things plays out pretty simply.

USD goes down and the largest gains are seen in pairs such as short USD/JPY and long GBP/USD, EUR/USD.

When risk comes off “in general” ( which will also happen for a time here ) even bigger gains are found in getting long JPY against AUD, NZD and CAD.

I expect U.S Equity markets to fall “along side” USD as well so – there’s a head scratcher for ya! Kong ! I thought that if U.S Equities get “sold” then money should just pour back into the U.S Dollar no???

No.

The big boys are already out of their “long dollar trades” and it will be JPY that rises as U.S Equity markets sell off.

JPY is the funding currency for this gong show, and you will see it hit the stratosphere when equities are sold.