MARKET COMMENTARY -Markets gapped up again last night after the news from Beijing. The move might be a squeeze but nevertheless it is a move and there is likely to see a bigger move as the markets globally have no place to go but here to capture yield.
WEEKLY PRICE ACTION
Support as the week continues is near 2881-2890 -a watermark for buyers with 2946-2957 as resistance broken and expanded into 2971 before retracing. Pullbacks are still buy zones.
Expected moves from volatility ranges give us likelihoods of breaking out of ranges before pulling back – CAUTION if trading reversals today- stops should be tight and follow the breakout if it happens and momentum agrees. Weekly charts continue to show flattening momentum and some more downside weakness that that is confirming but still close to major supports.
COMMODITY & CURRENCY WATCH
Gold price is fading but still well above the support zone of 1530. Late arrival to the party participants in silver and other metals are feeling a bit of pain as we fade off the highs. Higher support levels in gold could break could push us to 1505 or so. Buying highs will give us quite a bit of risk exposure-as we can see. Currency risks remain in play with the dollar fading into the 98 area. Steep fades will create buying opportunities here-but the fade into 98.57 couldn’t catch a bid, so we are now near 98. WTI is still solidly range-bound where buyers are more comfortable at deep support near 53-54 (sitting above 56 this morning) and sellers at higher levels above 56.8- 57. This chart will likely press higher if the market holds.
Breakout but likely whipsaw action and waiting on the Sept 17 meeting from the Fed. Follow the trend in the shorter time frames and watch the price action. The caveman view – do what’s working and watch for weakness of trend. Please log in for the definitive levels of engagement today
METASTOCK SWING SHORT – in a wait state –
Interim ACTIVE long action yesterday at 2894.5 with a 10 stop with targets at 2957-2970. Very hard to see more upside here but follow the trend until candles stop breaking higher.
IF YOU DON’T JOURNAL YOUR PROGRESS, YOU SHOULD – How about finally starting that trading journal?
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