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.
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.
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???
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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?
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.