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Into Resistance & Beyond? Employment # Next – Jan 10, 2020

MARKET COMMENTARY -Bullish behavior holds steady as we crest into the highs of the option traders levels for the week before the employment numbers ahead this morning. Are we buying the rumor and selling the news? Or are we off to stretch this move even higher north? My suspicion is that Nasdaq traders want to peg 10,000 and Dow traders want to press 30,000. Just a hunch, but you can hear the rumblings in the wind of such things. Healthy attention to support means the best thing for us as traders- engage long at the test of key VISIBLE support- and pay attention if prices fail those front lines of support. That number is now near 3272. Complacency still abounds.

WEBINAR LINK IS IN THE PROTECTED AREA OF THE BLOG – Please login and scroll down for the link.

WEEKLY PRICE ACTION
Positive momentum holds us in a breakout pattern after a bounce from support. We closed last week above 3236 and currently sit above this new region near 3268. It is reasonable to assume that buyers will engage at support levels noted but continue to keep watch for lower highs or the failure to hold nearby lows to signal a change of direction. Fades into weekly support areas noted will give us good engagement regions for long action.

INTERESTING SNAPSHOT from Koyfin -a ten-day look back

COMMODITY & CURRENCY WATCH
Gold spiked into 1613 before fading into 1550 where traders struggle to recapture at this time. Traders positioning for volatility continue to drive price higher. The US dollar is above key support zone- 96.6 as traders continue to trade in dollars for euros in the current cycle- I anticipate a price test of 97.4 again(accomplished and holding), as we did the Fibonacci study in our last webinar but it looks like we could have more. WTI exploded higher tonight but reverses into deep support regions near 59.27. Support sits between 59.27 and 61.2. Resistance levels sit near 63.5 to 66.97

TRADING VIEW & ACTION PLAN
We had a wave of a reversion to the mean complete under a bullish price environment and that has us at new highs. Pullbacks will be buying opportunities but we are potentially looking at choppy markets as traders digest moves-particularly if jobs numbers show something unexpected. Broadly speaking, buyers still have an advantage above 3215. SIGNAL LIGHTS ARE GREEN-but watch those supports

The theme of INTRADAY motion is:

POSITIVE AS LONG AS WE HOLD ABOVE 3269ish today (with big spikes likely with shallow fades back into breakout)

CHOPPY BETWEEN 3235 AND 3252

NEGATIVE AS LONG AS WE HOLD BELOW 3231ish today (with sharp bounces failing and deep pullbacks holding)– choppy inside the range.

Follow short term trend and momentum signals while in the intraday trading environment 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.

TARGET RICH TRADES

METASTOCK SWING SHORT – Complete and stopped out- very choppy environment if we are looking for engagement and hard stops

METASTOCK SWING LONG – No swing longs in play…intraday longs off support

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.

Here’s a link to the METASTOCK software

WEBINAR LINK FOR THE WEEK BEGINNING January 6, 2020

LIBRARY LINKS

https://register.gotowebinar.com/recording/4308493892161213709 -Thursday

https://register.gotowebinar.com/recording/8317319884080143362 – Wednesday

https://register.gotowebinar.com/recording/3100995928842248715 – Tuesday

https://register.gotowebinar.com/recording/765013106865826056 – Monday

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IF YOU HAVE THINKORSWIM, YOU CAN LOAD MY PRIMARY LEVELS EACH DAY FROM THIS LINK. Because levels change often, you’ll need to download these each day. I do not draw all secondary price levels on my charts-

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NEW LINK FOR TODAY’S TRADING DATA EXCEL SPREADSHEET

REMEMBER, WE ARE USING AGGRESSIVE ENTRIES IN THIS MARKET– If those levels have passed you, simply walk your targets up the levels noted on the spreadsheet as the next entry as long as trend prevails.

HOW TO TRADE THIS SPREADSHEET AND TRADE MECHANICS IN GENERAL- STUDY VIDEOS SERIES

HOW TO STUDY THE CHARTS WEBINAR – RECORDING

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