MARKET COMMENTARY -Employment numbers ahead that could create new market dips – however, selling pressure is diminishing so I suspect deep dips will create buying pressure.
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WEEKLY PRICE ACTION
Neutral to negative action, and flattening to negative momentum are now present. Indices are coming into the major volatility boxes. This makes for a messy patch of trading. Watch those edges – closing the week below 2877 would be fairly bearish. Closing above 2911 will be more bullish on a weekly close. All that said, we move clearly into the wide range in all the indices we watch.
COMMODITY & CURRENCY WATCH
Gold prices still holding the bounce above 1504 making it new support once more. Deep pullbacks remain active buy zones – short positioning will require careful attention. The US dollar is holding above 99 and should grind to 100, with deep dips finding buyers. WTI has fallen back into below the 53.40 support area as fears of global slowing continue. Failure to close the week above 54 will be quite bearish and we are sitting just above defined support zone near 51.40 which was broken.
TRADING VIEW & ACTION PLAN
Buyers are struggling near 2900. Deep pullbacks are still the best places to engage if risk exposure is your primary concern and you are considering long action. Trade the edges of these formations and realize that we could bounce higher than anticipated and fade deeper than anticipated on the monthly close and quarterly close before returning to the range. Follow the trend in the shorter time frames and watch the price action. The theme of motion is NEGATIVE AS LONG AS WE HOLD BELOW 2884ish today -and POSITIVE AS LONG AS WE HOLD ABOVE 2906ish today. Do what’s working and watch for weakness of trend. Please log in for the definitive levels of engagement today.
METASTOCK SWING SHORT – swing shorts will now be daytrade shorts as the profile is building in
METASTOCK SWING LONG – inactive
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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