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Jobless Claims & Snow? – May 7, 2020

MARKET COMMENTARY– Range bound trading continues with a bounce into the known congestion zones. Gold has lost 1700 in the slow bleed to support below. A cautionary note remains there. Jobless claims are today, and employment situation tomorrow. European numbers as well as Chinese numbers look better than expected, likely lending enthusiasm to the rise ahead. The oil space is continuing to climb well and the dollar is holding above the $100 mark in continued volatility. The polar vortex is taking a spin around the northern half of the US and we are set to have cold weather and SNOW for a few days in the Northeast and Midwest. Just when you thought spring was really here.

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

********If you feel you need some help understanding how price moves, remember you have the COACH’S CORNER for video review

WEEKLY PRICE ACTION
The morning bounce from Sunday holds steady after a dip yesterday into old support zones. Please remember to orient your prices relative to the current environment and resist the urge to collapse your view to micros views. There has been little to dissuade me that the summer ‘wait state’ is ahead as we sift through carnage for another quarter.

Chart share links for ES_F , NQ_F , YM_F , CL_F , GC_F – levels here for download to the ThinkorSwim platform

PASSWORD FOR THE SPREADSHEET – NEW PROTOCOL

This week’s password is BlueSkiesGreyClouds

LINK FOR TODAY’S TRADING DATA EXCEL SPREADSHEET – please note this requires a new password each week and that password is BlueSkiesGreyClouds

WEBINAR LINK FOR THE WEEK BEGINNING May 4, 2020– NO WEBINAR ON FRIDAY – I will be out of the office on Friday – and completely out of pocket – again, working with a property of mine in a sale state and need to be present with the transaction.

TRADING VIEW & ACTION PLAN
Range based trading continues with bounces off deep support and resistance selling at the highs or recent congestion.

Levels near 2714 to 2692 make the wide ranges of support where we are seeing players and the 2854-2929 range looks like front line resistance for now with a BIG LEVEL FOR THE BUYERS TO TEST AT 2882 which we are likely to visit once more in the current whipsaw.

Traders will be whipsawed trying to engage, particularly if thoughts of trending come to mind. Choose wisely. if you find yourself being chopped up, widen your time frame or take time away from your screens. This is a time when less is more.

Here’s a link to Target Rich Trades and the METASTOCK software

Intraday LONG trading from support edges like ABOVE the VWAP or tight moving averages will give you the least risk event for engaging – removing your trade at resistance will allow you to participate – understanding that countertrend bounces can be swift and sharp but will likely fail under the broken structure of the market.

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– you can have your own copy of Metastock to run these tests and setups using Target Rich Trades.

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