Blog

Markets Kept Aloft – Traders Encouraged by Value – Sept 11, 2019

MARKET COMMENTARY -Markets still hold most gains as the breakouts hold across the global stock landscape, even after the deep dip into support below 2971 – which has held so far. Pullbacks can be deeper as trendlines have been broken in a potential version to the mean of the broad markets is in progress. We also sit on top the VWAP and above slower moving averages. Size remains a concern as markets show some negative divergence and algorithms present unique environments that widen risk.

WEEKLY PRICE ACTION
Support as the week begins is near 2969 -with 2981 above that. Pullbacks are still buy zones in the breakout formation in progress but we did break 2969 and we are battling for the retest and hold of 2981. This is somewhat neutral with the bottom of the volatility range reaching into 2951-2954.
Expected upside moves from volatility ranges could give us ranges into 3004-3022 and beyond before reversing. We sit in a proverbial coin toss of motion. Weekly charts continue to show flattening momentum and some more downside weakness simply has not broken below major moving averages.

COMMODITY & CURRENCY WATCH
Gold prices broke 1500 even as markets faded and struggle here currently- a big disconnect, but again, evidence of rotation- for the third day. Allow these to settle and don’t think that you’re going to miss the bounce. The sweet spot sits between 1478 to 1447. Currency risks remain in play with the dollar holding its upside above 98.3. WTI is in breakout mode confirming our ideas that energy cycles are basing (see the swing portion of the blog). We are above 58 but the speed at which we have moved makes things suspect to hold. We need to build in the volume profiles below before this catches fire. That said, bullish trades on shallow pullbacks are likely – EIA report today.

TRADING VIEW & ACTION PLAN
Breakout continues but with buyers timid -wait for the deeper pullbacks to engage. Some whipsaw action should be here as we wait on the Sept 17 meeting from the Fed. Follow the trend in the shorter time frames and watch the price action. That is NEUTRAL today. 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 –

METASTOCK SWING SHORT – in a wait state –

Intraday trading from support edges like the VWAP or solid moving averages will give you the least risk event for engaging. Very hard to see more upside holding here, but follow the trend until candles stop breaking higher.

 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 –

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