Be the water – we are here to make a living and then make a fortune. It may seem like ignoring everything around you is the wrong thing to do, but focus on the task at hand and then when you are through with your work- focus on what matters next. Observe, ORIENT, Decide, Act – and repeat.
MARKET COMMENTARY– Buy the dip remains in full force. Wait for the dip. Price distortions continue as we keep higher supports and see negative news on business. Europe has opened and that has their markets bouncing sharply with German car sales sharply higher. Bifurcation is the fancy word to describe what markets are looking at as we move forward – lots of very bad performance pockets and a few very good performances – across personal, and business entities. The dollar continues to drift lower-
BUY THE DIP stays the reliable trade – we just need to wait for entries and then trade into resistance for now – AND we must look for the breach above the close of last week which occurred in the overnight. We are able to trade the short edges countertrend as long as resistance has been confirmed. The charts remain bullish with the break above 2988, and again over 3006.
This week’s calendar
Gold did really well to bounce off support near 1700 and is holding over 1736. The dollar move now looks like we have We are testing resistance from prior months in both these instruments, again with the dollar in the tough place. The levels there now see even lower support into 96-97. This really works well with the underpinning of the Treasury.
LIVE TRADING ROOM/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
Buyers remain in charge, as sellers have to buy to cover as they suspect upside will fade and they keep getting smashed- as in the last three weeks. Though we see the markets in full breakout mode, we must be careful to consider that we rise under high levels of liquidity – this will continue until we bump into the questions of solvency – this is what we will begin to see as June/July rolls on. I am just going to do this the simple way and follow the moving averages, rather than try to predict the market reversals. I call it the ‘Forrest Gump trade’. Simple
LIVE TRADING ROOM LINK –WEBINAR LINK FOR THE WEEK BEGINNING June 1, 2020–
PASSWORD FOR THE SPREADSHEET – NEW PROTOCOL – EmergingMarketsWatch5152020
LINK FOR TODAY’S TRADING DATA EXCEL SPREADSHEET – please note this requires a new password each week and that password is EmergingMarketsWatch5152020
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.
TRADING VIEW & ACTION PLAN
Wide-angle range based trading continues with bounces off deep support and resistance selling at the highs or recent congestion. Support holds lower near 2973 so far and the levels near 3054-3135 look like front line resistance for now. Traders will be whipsawed trying to engage, particularly if thoughts of trending come to mind- the markets are grinding. Choose wisely.
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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