Blog

Bounce Fades on Weak European Data – Aug 14, 2019

MARKET COMMENTARY – After a big bounce and a likely short covering squeeze, traders are taking prices back into the support zones of importance. Whipsaw action from news suggests that algorithms that general on news feeds are alive and well and creating a fair amount of trading opportunities. Takeaway ? Profit taking continues on the bounces. Stock pickers continue to excel with selective stocks performing in spite of the backdrop – caution required across the board, though. Don’t chase highs and remember that charts can come back much more than we think they can, and vice versa.

PRICE ACTION
The e-mini S&P, though off its highs, is holding above 2900. The mini Nasdaq is above 7657, a support region of importance. The mini DOW traders have us above 26026 but like the others, could easily give back all the gains. Markets are settling into a range once more while traders remain very skittish. Ranges could easily break, accelerate away and then return and we have seen this happen consistently.
COMMODITY & CURRENCY WATCH
Gold broke resistance, faded sharply and immediately recovered as technical divergence continues. Currency moves continue at the forefront of the markets for another week and over the coming months. The USD index now holds above the familiar channel support near 97.3 to 97.5 remaining resilient to other currency movement. WTI is holding well above 54 as yesterday’s tweet affected outlook.. Holding 52 remains the floor in the near term.
INTRADAY RECAP
Ranges intraday widen and as cross currents continue, we hold levels between 2871 and 2937. The mini Nasdaq is battling in the range between 7508 to 7767.  The mini DOW is battling support near 25808 with resistance sitting near 26289. Continue to be careful here on the edges of your charts as we could accelerate out and continue if traders get too heavy on the edges, in which case, you’ll have to reverse your position. Whipsaw is likely over time.
OVERALL WIDE ANGLE
Divergent action still sits below the movement of price on both sides of the trades – long and short – but traders are still looking at deep support edges to bounce – see the weekly charts for this confirmation.  Weekly charts are showing flattening momentum and some more downside weakness that that must be confirmed.
METASTOCK SWING SHORT closed yesterday – 
Intraday new short will engage if we fail 2906 and then bounce but fail 2914
TARGETS -major target hit again 2881 and heading to the expansion level near 2874 during the trading hours – we have done this twice for solid gains of more than 30 points or 120 ticks using the Metastock software.

   Here’s a link to the METASTOCK software

IF YOU DON’T JOURNAL YOUR PROGRESS, YOU SHOULD – How about finally starting that trading journal?

 Here’s an easy way to keep track of your progress

PROTECTED DATA SITS BELOW –

IF YOU CAN SEE THIS LINE, YOU ARE LOGGED IN

NEW LINK FOR TRADING DATA EXCEL SPREADSHEET -REMEMBER, WE ARE USING AGGRESSIVE ENTRIES IN THIS MARKET

WEBINAR LINK FOR THE WEEK BEGINNING AUGUST 12, 2019 – 

HOW TO TRADE THIS SPREADSHEET AND TRADE MECHANICS IN GENERAL- STUDY VIDEOS SERIES

HOW TO STUDY THE CHARTS WEBINAR – RECORDING

This image has an empty alt attribute; its file name is DECISIONS-1024x561.png
DECISION EVENTS

WEBINAR RECORDINGS ARE AVAILABLE BY REQUEST

NOTICE: All user and member interaction and participation with TheTradingBook.com implies agreement with our Terms & Conditions