MARKET COMMENTARY -Mad wild swing with broken averages that recover….this remains the relative temperament of market participants. Again, many old school investors are saying don’t fight the Fed – that means, when the Fed is tightening we should not be long the market. And vice versa. Dislocated markets remain and these swings on lighter volume and heavier volume fail to confirm direction- which means we are rangebound. As said in prior posts, in order not to miss out, investors and traders remain long at support areas, but with one foot and both eyes checking the exits. This will increase market volatility intraday -whipsaw remains a problem. We are expanding into the edges proposed at the first of the week.
WEEKLY PRICE ACTION
Support holds near last week’s levels – 2984 -with 2991 above that- and we tested the low edge of that support yesterday premarket and have bounced this morning. Neutral action is now present. If we look at bigger pictures, all the watched indices are still in breakout formations. Reversal zones at the upper edges near 3015 to 3025.
Weekly charts continue to show flattening momentum. The line in the sand today is 3011.75 – above this zone, buyers will be more brave than beneath 2997- range widens.
COMMODITY & CURRENCY WATCH
Gold prices hold above breakout areas near 1514. Currency chatter remains in play with the dollar holding its upside above 98 for an extended period of time giving it more lift. WTI is trying to stabilize above 58. Noisy chatter with Iran keeps prices elevated, even in global slowdown chatter.
TRADING VIEW & ACTION PLAN
Traders struggling below 3007- an approximate broken support region. Pullbacks are still the best places to engage if risk exposure is your primary concern (and this is always my concern). Follow the trend in the shorter time frames and watch the price action. The theme of motion is POSITIVE AS LONG AS WE HOLD ABOVE 3002ish 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 LONG – in a wait state –
Intraday LONG trading from support edges like the VWAP or solid moving averages will give you the least risk event for engaging. Intraday SHORT trading from resistance edges like the old highs will give you the least risk event for engaging. Follow the candle 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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