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Pressing Higher into Resistance- Jun 3, 2020

MARKET COMMENTARYBuy the dip remains in full force as we sit near a prior week’s close of 3091.5 – a target seen on many traders’ screens. The song remains the same in terms of engagement. Wait for the dip. The dollar continues to drift lower along with the bonds and gold. This is a clear signal of some kind of orchestrated effort in currencies. More in the future on that.

Again, 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 prior week’s close which occurred in overnight trading. I don’t want to sound like a broken record but many of us are still trying to short these highs as higher lows prevail. We are ONLY able to trade the short edges countertrend as long as resistance has been confirmed. The charts remain bullish with the break above 3036, and again over 3036.

LIVE TRADING ROOM LINK –WEBINAR LINK FOR THE WEEK BEGINNING June 1, 2020

This week’s calendar

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Gold did really well to bounce off support near 1700 abut appears to be heading back there. The levels there now see even lower support into 96-97. The call of negative rates rises again but I am still hoping this falls on deaf ears at the FOMC – it is clear from Japan that they do not work.

********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

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

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

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WEBINAR LINK FOR THE WEEK BEGINNING Jun 1, 2020

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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