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Signal Continued Breakout- Feb 11, 2020

MARKET COMMENTARY

With the latest folks saying that the Coronavirus is nothing more than a very contagious bad cold, markets rebounded sharply and sit at new highs. With resistance demolished and another squeeze of sellers in play, traders are testing our Fibonacci levels between 3364 and 3371 for now. Minor technical divergence is present – another reason why we don’t look at technical drift to determine motion but slope. Higher lows remain more likely with a retest of 3327-3332 possible but countertrend if we head there.

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

WEEKLY PRICE ACTION
Earnings season continues with more than 600 companies reporting this week. Monthly support has shifted down with a midweek candle showing the way -now sits at 3212. Weekly support is 3264-3291 while resistance and Fibonacci extensions show 3364 – 3386 as targets on the horizon if trend holds.

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Great news here – we now have sharing links for each of the charts we follow that (if you have ThinkorSwim) you can load directly onto your charts.
NEW LINK FOR TODAY’S TRADING DATA EXCEL SPREADSHEET

Individual TOS Chart share links for ES_F , NQ_F , YM_F , CL_F , GC_F

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.

WEBINAR LINK FOR THE WEEK BEGINNING Feb 10, 2020

WEBINAR RECORDINGS ARE AVAILABLE BY REQUEST

COMMODITY & CURRENCY WATCH
Gold has broken back above 1563 confirming the rounding bottom we were watching. If the participants fail to hold this region near 1556, we will focus on 1536 once more – and holding over 1570 could easily go to 1581. We remain in congested support near 1574 at this writing. The US dollar is holding over 98 once again – seems like a press to 99 is on the horizon as we continue to hold trendlines upward-particularly after the jobs number that weakens the Fed’s likelihood of dropping rates. WTI failed deep monthly support regions but is attempting a bounce near the 50 region for several days

TRADING VIEW & ACTION PLAN
We are still looking at choppy news-driven markets after our deep fade recovers and sends us to new highs under technical divergence. SIGNAL LIGHTS ARE YELLOW-but much more bullish than before so look for higher lows at the first passes from resistance to support. If levels near 3306 fail, we will have a much greater chance of bearish action building before buyers try to engage again.

The theme of INTRADAY motion is: BREAKOUT under technical divergence but in a retest of support.

POSITIVE AS LONG AS WE HOLD ABOVE 3337.75ish today (with big spikes likely with shallow fades back into breakout)

CHOPPY BETWEEN 3312 AND 3346.75

NEGATIVE AS LONG AS WE HOLD BELOW 3317ish 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 – intraday trading signals present only

METASTOCK SWING LONG – intraday trading signals only

Intraday LONG trading from support edges like the VWAP or tight moving averages will give you the least risk event for engaging – removing your trade at resistance

Intraday SHORT trading from resistance edges like the old highs or bigger moving averages 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

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