forex trading

You get the message. This is setting up to be one of the largest scale moves ( downward ) we will have seen in quite some time. As suggested many, many moons ago…I see the Japanese Nikkei as putting in a “lower high” on very large time frames. This is the market that leads. USD/JPY bounce is gonna flop hard.

I see SP 500 / Dow / Risk Appetite topping out with “near to all time highs” or even “all time highs” with a large-scale / major correction to follow. Can you understand that the investment world at large is “scared sh%tless” with respect to the current geopolitical situation? Let alone the U.S Gov gone broke and now nearing “shutdown” over the weekend.

Remember that pesky “debt ceiling” I was ranting about some months ago? Of course you don’t well…..if these boneheads in Washington don’t get their heads together over the next few days….Government shutdown.

Oh the irony. Trump needs billions for the wall? ( never gonna happen ) and promising tax cuts / infrastructure spending? ( never gonna happen ). The dems and repubs can’t get together on anything “of value” but they suuuuuuure can when it comes time to increase the debt ceiling right? Unreal.

I could just as well jump on this now as this is so telegraphed / so glaring. Short risk. Short USD. Short humanity.

We’re headed lower FAST, and with my profits in gold/ short USD via Forex –  I will purchase enough graphene to build my elevator to space.

                           Future_Kong

Let’s put this in perspective first.

You live in a tiny “tiny” bubble. You see the world through the broken lens of your local media, and can’t imagine a world where “fake news” actually exists. Wait…..you actually believe the news on your local news channel?

Aside from the human interest stories ( often highlighting people with their dogs…or more often than not – people “crying the blues” about how hard they have it ) your local news serves only as a simple extension of the “administration” and the message you are “required to view” – short of actually developing opinions/ideas of your own.

Television shepherds to living room sheep.

Face it. You have absolutely no clue what is going on, short of tuning in each night with your Cheetos and Budweiser in hand…having the local “news gal” spew crap ’til you finally switch to the game.

Gag/Choke/Puke/Sputter/Kack.

The world is moving much faster than you can imagine. Currencies tell all –  T.V’s suck.

Trade wise…..hmmm…….an interesting junction although in all – really not that interesting.

Commodities “in general” are up against a bit of resistance here so – I could suggest a few things.

                                                                      Commodities At Resistance

• Take profits in Gold as it’s been a hoot ( not to say the long term play is 100% totally still in play ).
• Take stock of the current geo political situation and ask yourself..truly…..is this really the time to go “all in” on the long side? Don’t be a dumb ass.

The powers that be aren’t quite ready to switch the algo’s from “buy to sell” in a macro sense, but in all honesty….even a run towards the highs doesn’t really amount to much.

Sometimes “no trade” is the best trade…and I’m not suggesting anyone get’s all giddy bout stocks but….we’ve got war! We’ve got war now so…..what does any American President do when his ratings slip past the red line??

You betcha…..time to really the troops! Time to get that ‘Merican blood pumping! We’re going to war! Let’s just start a war!

So obvious….so “cliche”.

I’m in cash….and will stay that way for at least a day er two. You know where I’ll be should anything “significant” actually come to play.

An old high school girlfriend of mine had a grandpa. This guy was sharp as a tack.You just knew it the second you met him. Words rolled off his tongue, math was a joke. He could sing / play the piano and was outright hilarious on almost every occasion that we met.

You know what he owed it to? His secret? His “super power”?

Cross word puzzles. Yup……good old run of the mill crossword puzzles.

When you’ve got a trade environment such as this ( struggling to move higher, yet refusing to go down ) go find something to learn! You’ve got the time! The charts / stocks and currencies aren’t going anywhere. Everything will “be there” when you get back.

Japanese candle sticks for one…..go study Elliot Wave Theory. Take a crack at Gann’s Studies or “get wild” and go have a look at Lunar Trading and the connections with human sentiment. Pull up some charts and start throwing new indicators on them / evaluate what they can or can’t do for your trading. Go read a report…..or pick up a musical instrument for Petes sake! Do something else!

This stuff will drive you bat sh#t crazy if you let it. Trust me…..I know. I have trouble sitting in a room with an overhead fan ( as I tend to look for cycles / counts in the rotation) and god help me if there might be a tap dripping, or a dishwasher running at the same time. I start pitting the rhythms against each other looking for patterns etc….its nuts.

Sitting on the sidelines is healthy as….I do far more “observing” than I actually do trading these days – and it pays off big time.

Get away from the computer more, and you will see your trading improve – I guarantee it.

The 3x leveraged  ETF’s have just not performed during this last waterfall in USD so I’m booking out of NUGT here at 9.86

The way things are setting up we will get another fantastic buying opportunity once The U.S Dollar gets its inevitable bounce out-of-the-way here in the next few days. Once USD puts in a daily cycle low….we can really only expect about 6-8 days UP before she rolls over for another devastating leg down.

I am sitting 100% cash as of this moment. Not a single penny on the table.

Can you imagine how good that feels?

       Forex_Kong_In_Cash

Ugly in Japan right now ( Nikkei now down -323 ) ….so you can likely look for a pretty tough open there in ‘Merica tomorrow morning. Yes that’s right…..Japan’s stock market opens while most of you are still “drinkin buds ‘n throwin horseshoes” out back yer mamma’s trailer. Sunday night baby!

Sunday night is when “we” start putting in the work.

The U.S Dollar continues to get absolutely demolished on the back of Trump’s “healthcare beat down”. You get it right? Markets are recognizing very quickly that poor Mr. Trump isn’t gonna get jack shit done in Washington ( as this was his first real attempt ) and that future tax cuts / infrastructure spending and all the other horse shit promised ( no fault to the Donald on that though…. ) will inevitably fail. Not gonna happen. Impossible. So…….

QE5 is coming to America. Sooner than you think, and it doesn’t have a single thing to do with “who” sits at the helm.

USD and “risk trade” works like this:

The U.S Dollar is incredibly late putting in a “daily cycle low” and will likely do so very soon. Not to say we don’t get further “waterfall action” first but….I’m actually more interested in “the next leg down”.

                                                                                                USD Failed Daily Cycle

Now that we have what we called a “failed daily cycle” we can count on the next one doing the same ( as suggested months ago ) so……you wait for a daily swing low – then max 6-8 days bounce ( in this case likely less ) for re – entry on the next full daily cycle expecting it to go EVEN LOWER.

This will coincide with all the same currency correlations I’ve hammered you with for years now, so keep your eye on JPY as well EUR and AUD for some “massive trades” coming soon.

Gold is…..well gold so……fear = gold up and we’ve got “just a wee bit of that” going on now no?