MARKET COMMENTARY -Markets held gains again last night into the jobs numbers this morning and the Fed response in two weeks on a new cut that is priced at 100%. The move might be a still 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 2912-2930 -a watermark for buyers with 2946-2957 as resistance broken and expanded into 2981 and holding. Pullbacks are still buy zones in the breakout in progress.
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 struggling to confirm but still close to major supports.
COMMODITY & CURRENCY WATCH
Gold price is fading and well below the support zone of 1530 as of this writing. Late arrival to the party participants in silver and other metals are feeling more pain as we fade off the highs. Lower support levels in gold could break could push us to 1505 or so. Allow these to settle and don’t think that you’re going to miss the bounce. Anxious never a good a thing 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 55 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 now closed – all targets met. From 2894 to 2970 Very hard to see more upside holding 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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