The U.S Dollar – Here’s What Happens Next

You know it’s funny…..human beings have become so lazy these days…so passive so….sedentary – they really just want to be told whats what. What’s going to happen. What to think. What to do.

Just lay it out for me in a couple of bold headlines and perhaps a small snippet of information please ( as anything more would simply be “just too much”. ) No need to get into any “great detail” – just tell me what to do so I cam make lots of money, and most importantly…think about very little.

Don’t raise any controversy, don’t rock the boat…don’t make me “question anything”. I only want sound, actionable information….and it MUST make me money while I do “as close to nothing” as humanly possible.

This is what is going to happen to the U.S Dollar, and this is what I am doing about it.

The_Next_U.S_Dollar_short

The_Next_U.S_Dollar_short

So there it is.

About as straight up / straight forward as it gets these days….right down to the levels, and the days. Is This gonna work for you, or would you also prefer that I push the buy and sell buttons for you too?

The last little “spike” in USD offers is yet another fantastic opportunity to “sell the rips” not “buy the dips” as we are in a very solid and confirmed daily downtrend.

USD Trend is down – the trade is short. This is a rip t be sold.

Do it. Make cash.

Gold Mining – We Humans Like To Dig

In light of the recent ( and suggested ) pullback in Gold and Silver Mining Stocks…

I had to pull out an “oldy but a goodie”. Makes me laugh looking back….

Looking ahead……..this pullback and continued build of small gold and silver miners should prove to be very, very profitable.

Forex_Kong_Face_Book

Kong On Fire – A Look At Weeks Past

I’d been sitting on the sidelines for quite some time ( as markets continued to astound ) until just recently taking aim at a couple nice set ups. Here’s a look back a couple of weeks. Let’s see how ‘l Kong made out.

Short USD: August 1st – CHECK

 

Crude Oil Bottom: August 3rd Post – CHECK

USD/JPY To Parity – Nasdaq Double Top – CHECK

Patience always the key when trading. You really need to plan your attack and not get caught chasing markets. In any case…pleased to be back in action. Looking forward  to my next adventure. Stay tuned folks, and if there is anyone here from Chile ( Yes the country of Chile…in South America yes ) please drop me a line.

Stock Market Trickery – Don’t Be Fooled

The chart says it all, as many a reader still has this illusion that “stock market highs = economic prosperity”.

Count your blessings if you’ve made out well….watch for post election mayhem.

Stock_Market_Trickery_-__Don't_Be_Fooled

Stock_Market_Trickery_-__Don’t_Be_Fooled

The current “gong show” playing out in U.S politics simply cannot be ignored ( as much as I’d love to just see this go away) as the economic “shit storm” brewing underneath continues to gather steam. I implore you..can any of you find a single “legit argument” that the price of U.S Equities will continue to climb past November?

As suggested in the previous post. It’s time to start making a plan. It’s time to batten down the hatches and consider “what the hell you are going to do with your current portfolio” as “E Day” ( election day ) draws near.

Any solid arguments that Clinton can improve/save it? How bout Trump?

From the jungle side looking in……I can’t see any good coming from either but….so we shall see.

Opinions and views more than welcome.

 

Back On The Big Short – The U.S Dollar

Knowledge is power right? Or so they say….

So…..if you’ve only got a view of oh…let’s say just a small portion of the market ( maybe a couple of blue chips, gold) and perhaps the U.S Dollar “against” your own local currency well…..one might suggest adding a couple more “market indicators” to the pile.

I know you may find this incredibly hard to believe, maybe even IMPOSSIBLE to believe but….The U.S Dollar “spike” here in the wake of Brexit market madness will soon provide one of the greatest “short opportunities” of our time ( slight exaggeration perhaps ).

While you’re all drooling over the massive moves “upward” against both the EUR and GBP ( no kidding right? As the vast majority of traders got “wacked” by Brexit ) The U.S Dollar “continues to sink” against its arch rival ( or at times good buddy ) the Japanese Yen (JPY).

The two are now almost at par.

Now….for those with near term memory loss – do you remember the continued explanation here at Kong with respect to money flows on this planet? The safe havens / funding currencies such as JPY going absolutely “parabolic” during times of “risk aversion”? The money that comes “flooding back” to these this currency as large-scale “carry trades” are wound down? Well……if you think the U.S Dollar is strong right now……why is it getting its ass kicked by the Yen? Why is USD losing all support / falling like a rock against JPY?

That’s what I call JPY stength. That’s what I call “risk off”.

The U.S Dollar will soon follow….providing for large scale gains SHORT USD against any number of currencies.

I will again be waiting for a daily “swing high” in USD ( likely within the next 3-4 days tops ) for another joyous ride “back on the big short” – USD.

Pack yer bags…this could be a loooong journey.

Stop And Reverse – Day 3 Already

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

Trading Is Art – Filter Out The Noise

The U.S Dollar likely has a few more days of downside before petering out and completing this last leg lower, so you can feel free to hang on – at least another couple of days short.

HOWEVER!

It’s  quite possible that this last leg down may mark “the end” of an intermediate down trend, where in the bounce ( and possible trend change ) could be quite dramatic.

Myself…..I’m going to close my few open positions over the next day er so…..then consider “mission accomplished” short / medium term shorting USD.

If indeed we see an intermediate cycle complete –  a full stop and reversal in USD related trades could soon provide another “easy trade” in catching it so early. Obviously pairs such as EUR/USD as well GBP/USD will provide fantastic vehicles here, as well as long USD/CAD and USD/JPY ( but I’d be sure to really wait on these ).

So you see? This is traaaaaaading. Trading yes. Not beating down on The U.S Dollar like I give a rat’s ass about one particular currency or another. This is making money in a market “regardless of direction”. This is charting, this is macro economic analysis, this is timing – this is art, not some bullshit rhetoric aimed at keeping you invested and ultimately cleaned out.

You can do it…….you’ve just got to turn your biases off. You’ve got to learn to think for yourself, and filter through the noise.

Step Outside – Embrace Death – Start Living

You think I could pull this off if I was scared?

I know you……..

Well…..I know some of you.

I know a handful of successful people who kick around here on occasion – likely getting  a bit of a charge out of good ol Kong as….these are people who have weathered their own storm, and can relate. People who’ve made sacrifice, people who’ve taken chances. People who’ve thrown “caution to the wind” to realize their dreams.

People that recognize you don’t get anything for free in this world, and that nothing…..and I mean NOTHING can stop you if you work hard and believe in yourself.

Is that you?

Or are you some “lurker” here fishing for a “free tip” –  hoping you’ve lucked into the “lotto blog” and your wildest hopes/dreams will be instantly realized in doing what I say…..no effort….no sacrifice……no “self belief”?

Have you lost your mind?

In any case……….

I’ve been invited to a party this evening. A friend here in Playa. A very successful gent from Holland running a very successful beach bar and club. A celebration of birth on a level you’ll likely never see in your life.

I’ll pass thank you.

This is how it works for me…….

I’m not much for “birth” as much as I am for dieing.

If I didn’t approach it this way –  how could I have lived this incredible life?

If I didn’t have complete and total belief / conviction that this “brief time in human form” was exactly that well….how could I possibly have done the things I’ve done? Imagine if I lived a life “in fear”?? How could I know what’s possible?

Do you know what’s possible? Do you know what you are capable of? Are you scared to die –  or perhaps scared of living? Do you think you know the difference?

Total bullshit.

The sooner you start thinking/believing  you are “eternal” and that this “brief stint as a werkin joe” is just a stop over – the sooner you and I start getting along.

Don’t do anything stupid ( short of the standard stupid shit we do ever day ) but seriously….

Step outside. Embrace death…….and you never know – you might just start living.

This blog is gonna change soon. I’m bored stiff with the simple math of  trading.

Psychology coming soon to a theatre near you.

Stay tuned er bug off.

Thoth

Thoth

USD Cycle – New Daily Cycle Begins

The short USD Trade has been all too kind.

Have a peak at some “marketing timing” as a new daily cycle now begins for USD. I’m obviously 100% completely cash.

For the brave at heart – full reversal trade here….feel free to take a couple of days on the long side if you like.

Not for me….as I trade with the trend, but I’m sure you’ll squeeze a couple of days ( maybe as many as 6 ) long here if ya like. Have at it.

I’m hitting the oysters hard. No plans to trade for at least the coming week.

 

 

USD Devastation – USD/JPY Over The Edge

Absolutely incredible.

Silly people clinging to their television sets, clinging to their currency – still clinging to the ridiculous notion that “everything is going well”.

Straight up…..anyone suggesting that you “buy” is likely a banker, a broker or some dumb ass blogger with a single strategy ( or total lack of strategy ) appealing to you on the only level they can.

The notion that “bears are negative” and bulls are “positive” is completely and totally ridiculous as this is a “market” that trades in both directions. If you can’t develop strategies for the “red candles” how on earth do you possibly think you can be successful? Just buy and hold? Just “buy” cuz you are “optimistic about the future”? Dumb.

I’m as optimistic as it gets. Building my spaceship, saving my pennies for the liver transplant I expect to get somewhere down the road..plotting my investments in Graphene and spending my spare time plugging away at the latest developments in physics. The future looks amazing! But what the f#@k does that have to do with making money in the markets?

Blind optimism has no place here. It’s actually pretty irresponsible.

Since the vast majority of you don’t even trade Forex, it’s very likely that you lack proper context. If you dig back into the blog, you’ll find countless references to the fact that “currency markets lead all other markets”. Pretty straight forward considering that you need “money” to buy stocks so…….there it is. If you’re watching the money – you will always be one step ahead.

So what’s the deal with my USD Short Trade?

The deal is – it’s been 8 straight days since entry, and the trade has been amazing.

The US Dollar has absolutely cratered against it’s “printing partner/funding currency” the Japanese Yen. Didn’t hear too much about it in the news? Not surprising.

USD/JPY has fallen 1700 pips ( yes that’s right – 1700 pips! ) since markets topped out some months ago., and is quickly approaching “intervention territory” as far as The Bank of Japan goes. The huge move in Japanese Yen – a Tsunami for the Japanese economy.

USD-JPY_April

USD-JPY_April

 

I’m banking profits, as well letting a couple of these trades run with a tight stop as the money has already been made on this recent “leg lower in USD” but don’t be mistaken.

 

There will be another one coming. Bank on it.