Trade Alert! – JPY Sell Strategy

I don’t usually do this – but as it stands I feel it’s worth noting that the Yen is in serious trouble here

The selling pressure appears to be significant which would again add credence to the idea that “risk” is on the verge of bursting higher.

From what I get of U.S media – it also appears that the “get in while you still can” propaganda is in full effect as stocks break higher and higher.

Should the USD FINALLY┬áROLL OVER HERE – we would see the usual correlation of “safe havens” being sold and risk currencies being bought. As well stocks moving higher.

My current strategy in many pairs “short JPY” is holding existing positions – and adding buy orders in AUD, CAD, NZD, EUR, GBP as well USD and CHF well ABOVE the current price level. I repeat WELL ABOVE THE CURRENT PRICE LEVELS.

Should risk on continue and the JPY take the substantial hit I envision – my orders will be picked up IN THE DIRECTION OF MOMENTUM. If not, then the market is free to go against me – as I will not be involved with price action in the “opposite direction”. You see how this works? – Let the market come to you!

 

 

11 Responses

  1. Ben March 6, 2013 / 11:03 pm

    Kong – I don’t do much trading, but I like reading your perspective on how the world turns. It’s a good read even to those who aren’t here strictly for profit.

    Would love a post on your opinion of bitcoin – seems right up your alley and it very well may be trading on forex sites within the next 12 months. Cheers, Ben

  2. Rolo March 7, 2013 / 11:56 am

    Thanks Kong for the profitable pointers on the recent JPY trades

    • Pot Stock Watch March 7, 2013 / 2:49 pm

      Go Rolo man – I hope you’re doing great.

  3. Ben March 7, 2013 / 12:10 pm

    Yes, thanks, Kong. I don’t have a forex account set up, so I bought some calls on YCS after your post yesterday. It worked.

    • Pot Stock Watch March 7, 2013 / 12:33 pm

      Yo Ben – great seeing you are still around. I’m going to catch up on Bitcoin.

  4. Ben March 7, 2013 / 12:52 pm

    Thanks, Kong. Glad you are keeping the blog up so consistently.

  5. illutionz March 7, 2013 / 2:28 pm

    Another day another right call by Kong.
    This has become as normal as my alarm clock in the morning.

    • Pot Stock Watch March 7, 2013 / 2:48 pm

      You are very kind illutionz – I do appreciate it.

  6. zkotpen March 10, 2013 / 8:58 pm

    Hi Kong!

    Glad to see your Yen trading going so well.

    Do you believe the current decline in the Yen will continue right thru the BoJ meeting in early April, or are you looking for a little recovery in the Yen before then?

    So far, it seems like all current trends are continuing: Dollar up, PMs down (though Palladium is continuing up), Miners down, S&P 500 up,… Yen down.

    I would think the upcoming BoJ meeting should result in a nice drop in the Yen; I’m trying to get a feel for what to look for between now and then.

    Cheers ~ zkot

    • zkotpen March 11, 2013 / 1:22 am

      More Yen news…

      bloomberg.com/news/2013-03-11/kuroda-says-bank-of-japan-will-consider-buying-derivatives-1-.html

    • Pot Stock Watch March 11, 2013 / 12:28 pm

      Zkotpen.

      Yes JPY has further to fall. Keep in mind – none of this exists in a vaccum – and nothing moves in a straight line.

      As it stands…..the massive downward move in JPY MUST be headed for a counter trend rally – but……..when will fundamental factors influence such a move?

      Safe havens are bought during periods of “risk aversion”. So ask yourslef…..and look at chart (a bit) as well current fundamentals.

      You will need to look for “risk aversion” to see the Yen climb.

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