MARKET COMMENTARY – Traders continue in the ‘all clear’ signal break higher with an unexpectedly good jobs number (relative to the environment, that is). Trade deal news keeps markets pressing higher without dips into Friday’s range- quite a bullish signal in the premarket.
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WEEKLY PRICE ACTION
Bullish action with a close today over 3061 keeps us bullish (in terms of weekly closes), with positive momentum present and building. Weekly patterns remain quite strong as do the monthly patterns- from a bullish perspective. Pullbacks ought to be buying regions. Be cautious adding to swing positions in either direction – particularly if you are considering shorts.
COMMODITY & CURRENCY WATCH
Gold prices sit on the upside of support even as charts break higher. We should see some measure of capitulation from buyers, if the bullish action holds in the broad markets. Breakout patterns look like tests of 1520 to 1535. Certainly a mixed signal as traders test all time highs while gold continues a march higher. Use caution with size – there is significant risk in the charts. The US dollar has failed at a major support region but still holding above 97. The longer it sits outside of the channel, the more likely it is to break down. This would help the Fed in its plan to stop interest rate drops. WTI sits right above 57 after a bounce off on Wednesday of last week. Resistance now sits at 57.85.
TRADING VIEW & ACTION PLAN
Buyers have pressed higher- well above the breakout level above 3063 in the ES_F which will hold as baseline support with sellers likely to try to wage a battle there. Buyers have the advantage currently. Be patient and wait for your setups means that mornings like this that come into key support means that we can engage at this region. Understand your levels and prepare for them. Realize that we could bounce higher than anticipated and fade deeper than anticipated before returning to the trend and range – 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 3061ish today (with big spikes likely fading back into congestion)
NEGATIVE AS LONG AS WE HOLD BELOW 3032ish today (with sharp bounces failing and deep pullbacks holding)– choppy inside the range.
Do what’s working (that means follow short trend and momentum signals while in the intraday spaces) and watch for weakness to develop away from your trade direction in order to leave. Please log in for the definitive levels of engagement today.
METASTOCK SWING SHORT – inactive
METASTOCK SWING LONG – Green diamond shows newest support ranges
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.
NEW LINK FOR TRADING DATA EXCEL SPREADSHEET -REMEMBER, WE ARE USING AGGRESSIVE ENTRIES IN THIS MARKET- If those levels have passed you, simply walk up your targets as the next entry as long as trend prevails.
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