Gold And Silver Miners – You Missed The Boat

Not to say there isn’t considerable medium / long-term opportunity in the miners ( cuz there is ! ) – you may have missed the boat.

This chart will make your head spin as……the gains have been nuts. Even Gary Savage ( apparently ) got this one right.

 

Pullback_Exected_in_Gold_and_Silver

Pullback_Exected_in_Gold_and_Silver

Short term – I would encourage you to just stay put, but as I’ve always said – Get this stuff on your radar! You need to identify levels, plot support and resistance on your charts, keep a pad of paper by the computer for f@*k sake!

Consider “post election” as a fantastic time to enter, as we are obviously over extended here. But get a list together! Make a plan! It won’t matter if the people of the Unite States vote for – the puppet or the clown.

Gold/Silver will both head for the moon as the entire planet completely freaks out.

Bloglodytes Unite! – Intro To Economics

Q: What did the midget say when I asked him for a dollar?

A: “Sorry bud……………………………………….I’m a little short”.

Feel free to pull the trigger anywhere in here today, as most currency pairs have done what was expected – providing for fantastic entries here “short USD” and short “risk in general”.

You’ll see a number of the other usual correlations play out ( as this is so straight forward and obvious ) with commodities moving higher as “the currency that they are priced in” slides lower, then lower…….and lower some more. And yes folks…..even gold and silver!

Again I marvel at the “hoards of financial bloglodytes” peddling this kind of information for money.

This is about as common knowledge as it gets.

Literally……”Introduction to economics 101″.

 

 

Gold Smashed This A.M – No Worries At All

At this point in the game I have little concern for the price of gold as it’s trading almost exactly in tandem with the Japanese Yen ( JPY ) – both functioning as obvious “safe havens”.

These assets obviously gain momentum when “risk comes off” and considering that markets are now re testing the near term highs – what should one expect? ( insert lightbulb above head here )

The average investor, caught in the headlights of the main stream media and The Fed is certainly not “seeking safety” here as of this morning

Appreciate that nearly everything I track is stretched to extremes right now and rightfully so as…we are so very close to one of the largest turns this market will have seen in a very long time.

Why would  gold be any different? A couple bucks here and a couple bucks there – not to worry.

These low volume days ( some of the lowest volume days of the year ) are legendary for getting people excited / worried as prices in “all assets” swing to extremes, washing out weak hands, luring in new buyers etc…

It’s always this way before a major turn in markets as the boys at your local brokerage / bank take the opportunity to push prices “as far in their favor as possible” before dumping.

September has everyone back in their cubicles. Likely back in their cubicles selling stocks and buying gold.

Gold is good – just not particularly “speedy” here at the moment.

Equities Exhausted – USD Double Top

It’s been a tough grind here as of late, with such low volume trading leaving so many asset correlations stuck in the mud. Traders looking for the usual “signals” in one asset class with hopes of “putting it all together” have been pushed around and pulled back and forth – left struggling to “find an answer” within the continued “day-to-day chop”.

A tough market to navigate with Central Bankers hiding behind every corner, and with such low volume it would appear that on many days…..the market just seems to be sitting there – doing nothing.

Oil looks to be heading lower here and USD appears tired now sitting at its near term “double top” ( as seen via $dxy ).

Gold’s pullback appears to be resolving itself – sputtering out at a pretty solid area of support around 1292.00, while U.S Equities ( as well EU equities and Japan ) look weak, tired and exhausted.

Does anyone else expect that next weeks “U.S GDP report” will disappoint? And that perhaps markets are “finally considering” things aren’t nearly as rosy as the U.S Media continues to suggest?

It would have to have been “some kind of amazing quarter” ( the past 90 days only ) for the report to make up for the incredible ” -2.9 % loss in growth”  reported in the first quarter now wouldn’t it?

Stars would clearly align with USD moving lower, gold moving higher and “global equities” finally taking a break after the SP 500 has made it nearly 800 days straight without a meaningful correction.

Food for thought moving into next week. Perhaps you’ll want to take a peak at your computer / trade account a little more regularly.

Have a good weekend everyone. Enjoy the sun!

 

 

Forex, Stocks And Gold – Trading The Week Ahead

The updates trade table offers little in the way of “new trades” here as of this morning, as last Thursday’s “drop” and in turn Friday’s “pop” has left the higher time frames unchanged, and more or less “yellowed the waters” shorter term.

Weekly_Forex_Overview_Sunday_July_20_2014

Weekly_Forex_Overview_Sunday_July_20_2014

 

What may be of particular interest to you this week will be USD, and “yes once again” the debate as to which way she’ll go ( with conviction and follow through ) should we see this distribution environment “flip” to something with a little more trend / conviction either way.

We’ve got JPY and its related pairs under the thumb, with eyes on Nikkei if considering to “beef up / add ” to any positions under our current framework. Ideally we’ll want to see JPY “breakout” from it’s ascending triangle moving higher…as “appetite for risk” moves inversely lower.

NZD in particular remains weak here this morning, but Thursday brings with it “another possible rate hike” out of New Zealand. It’s my thinking perhaps they “hold off” on an additional hike here and perhaps markets have already suspected as much but….that’s just speculation.

Still no aggressive trades in EUR, GBP vs USD as I want to give it another day or so to see if  USD turns lower here as I expect it to.

A weak open here as Japan was weak overnight as well EU stocks so…..it remains to be seen of “the machine’s that be” will again step in at the U.S open and work their “usual magic” to keep this thing flying a little longer.

Comments from both The BIS ( Bank of International Settlements) as well the IMF “AND” even The Fed suggesting that it’s getting a little out of hand here – with public perception and the underlying fundamentals now clearly out of touch with reality.

Gold miners entries as of a few days ago remain strong, and the final “short SP 500” added at 1956.00 ( via Sept 191 puts ) appears to be holding its own.

 

Want to see what other irons we’ve got in the fire? Come join us in the members area for weekly reports, daily strategies, real-time chat and trading of “anything and everything under the sun” at: www.forexkong.net

Gold Bugs! – Here's Our Pullback!

Just fantastic.

The recent surge in gold now wiping out the “bottom pickers” and providing excellent long term opportunity across the board. This is the dip to be bought.

The price of Gold is now the exact same as it was back on May 14th! We’ve timed it perfectly, and haven’t missed a thing.

I’m still waiting for lower in both Gold, Silver as well the related mining stocks but as of today one can “offically” get it on their screens, and start creating those short lists.

EXK has always been a favorite of mine, but “it’s all gonna go” in the same upward direction once this pullback runs its course.

A blast from the past: Gold Going Down

You’d have to imagine that “letting gold out the basement” has some pretty braod sweeping implications…one being…..now that The Fed has losened the grip one can imagine that USD will also be allowed to move higher – as the “massive dilusion” will once again be masked with both Gold and USD moving higher medium term.

Fantastic!

 

 

 

Gold and USD – Passing In The Night

With the expected move out of USD coming together over night, we’ve seen more than enough follow through here to confirm what was suggested yesterday.

Stocks won’t hang on here, and I expect the power of the U.S Dollar “repatriation trade” to flatten gold here as well.

For those of you “investor types” I imagine you’ve come this far so a couple more months ( and perhaps further drawdown ) as gold slides into “its final leg lower” likely won’t kill you.

However for those looking at gold,silver and the related mining stocks as a trade….unfortunately – I see lower prices – before higher.

This is no “small blip” as far as USD is concerned, likely marking a significant turn “not only in the currency” but “in all” that it affects.

So far only the European currencies have taken the initial hit, but it won’t be too long now til we see the Canadian Dollar, as well Australian and New Zealand follow suit, and I’m not talking about a trade here……I’m talking about a major shift over the medium and even long-term investment horizons.

Top call still very much so “intact” here as of today – with the “Members of Kong” doing very nicely in our first month working together. Feel free to poke around the members site, and hey….you can even join us if you’d like. I’d take an additional 20 if you want to contact me over the weekend at : info@forexkong.com

Have a great weekend everyone! It’s sun sun sunshine here!

 

 

Chinese Fire Sale – U.S Dollar Up In Smoke

Make no mistake…China “will” take the hit on those warehouses filled with “useless dollar bills”, or at least what’s left of them by the time they’ve used all they can to buy gold.

As the “macro plans” continue to take shape, the Chinese will soon look back on the “massive fires that raged through the warehouse district” as a passing story in the news – in the context of a “time of change”.

Consider trading hockey cards with a couple of the other kids on your street. All of the same set and series, until a month or two later a new set is introduced and you start trading those. More kids are buying and trading these “new cards” until finally – all you’re left with is a tiny box of the “old ones” eating up precious storage space under your bed.

Eventually you forget all about them, as the trade of these “new cards” now has you buying and trading with little concern for the “few dollars lost” on the inventory of “old cards” gathering mold underneath your bed.

I think that sums it up.

As China continues to grow its domestic economy, and promote trade in Yuan as opposed to the U.S Dollar, it’s really only a matter of time until both China as well “a large portion of the industrialized world” separates completely from any dependence on a U.S imposed system of trade in U.S Dollars.

We good here?

No terrorism here. No “bash America” / China to rule the world type thing no.

Just a simple outline of how a couple of countries on this planet have grown to be less “export dependent” and more “domestically driven” and far less interested in the purchase and hold of U.S “funny money”- with the unfortunate result leaving The United States and it’s continued devaluation of the U.S Dollar  – out in the cold.

As the Fed continues to “mask” the true devaluation of the U.S Dollar by shorting the gold paper market and driving prices down, China gladly scoops up every ounce she can – demanding “actual delivery of the physical gold”.

China will continue to not only produce more gold, but as well purchase more gold “on the cheap” with every single “Fed raid in the paper market” to soon present the Yuan as a completely convertible currency on the global stage.

Complete with stockpiles of “real gold” sitting in vast warehouses behind it…..somewhere on the other side of the tracks.

So what does this mean for the future of the U.S Dollar and it’s use as the worlds reserve currency? What does this mean for the massive amounts of money previously gained by the U.S via the “use” of USD in trade world wide – soon to be lost?