After comments from our Daily chart of Crude we decided to post a weekly chart. Note how Crude has been winding since mid 2011. While the swings can make for good trades be sure to consult a higher time frame chart in order to get a clear picture. Crude has slammed into it's support...will it bounce or keep sliding. We will start watching lower time frames...
We missed it! After a nice head and shoulders pattern Crude broke the neck line and started consolidating for another leg down. We are not in this trade. We took this off our radar screen and unfortunately there were a couple good trades. We don't chase trades so we will wait. Take a look at a weekly crude chart. While it is moving...we are in the middle of...
And there she is! After the crop report the boys decided to give a little head fake and run the stops of the weak longs. Now if we get above the 362.2 we could see a nice squeeze would could pop us. We are long and will be holding for the gap fill. Understand we are not fools at OFT... we can read. We understand that the agency is calling for a record 14...
Possible heads and shoulders forming. On the watch list for now.
AUGUST crop report is due out this morning and we are watching. There isn't a lot of markets to be trading at the moment but that's summer time trading. However, with happenings in Russia there could be some movement in the grains. We are watching to see if they push things down and get later comers short in the hole before squeezing them. We would like to be...
We are choosing to to stay out of GC1! for the time being. While the break of the descending wedge was tradeable...the action has been whippy and the risk has been hard to identify. Look at the larger wedge building. We are keeping a close eye on this for a big break.
The 6J is still dead. The "experts" think they can guess the direction. Most got stopped out on the most recent break lower. Head fakes will kill your P&L. Don't let the pundits lull you in to a stupid trade. We are still on the side lines with the $J61!. There is NO edge. Be smart and keep your powder dry while waiting. There are better trades available.
The more time we consolidate below the most recent highs the higher likely hood we continue to the down side. That being said there is alot of unrest over seas and that can have an effect on the markets so be nimble.
This is a nice move in the NQ1! If you weren't positioned short last week you most likely missed this move. We were not short and since all the indices are heavy we will aggressively be shorting any bounces. Part of being a successful trader is not being married to one side of the trade.
And we are flat! As suspected the FOMC news would create a lot of volatility. We will keep watching GC1! to see if anything else sets up. However, this is a great example of how it's important to manage your trade. DON'T get married to any one trade. There will be plenty more in the future.
Corn has fallen to far to quickly. We are now back to the original buy areas. If you are still holding from the buy point this will be a good lesson. It is important to take some profits on the way and trail stops. We missed this trade but for some it was very profitable. If price jumps to our sell zone we will look for a short signal.
The 6J is officially dead in the water. We will avoid this until we see defined breaks. See our last posts for break areas. If you think you "must" trade it...understand it's going to be choppy ride and it will most likely eat your trade account. Be patient and find a better instrument to trade. Keep your powder dry.
We are still hanging onto our shorts here in GC1!. We would like to see a test of the recent lows. We are in a "free" trade and will tighten the stops further due to FOMC, Yellen speaking and issues in the Middle East. WHile we beleive we could test the 1180 area this year we don't trade on what we think....we trade on what the chart tells us. Trade well!
We are still short GC1!...however, we didn't add to our shorts. While we expected a move back to the breakdown area the buying has been very heavy so we will keep stops in and see if we can't test the most recent lows. With a conflict happening in Iraq, FOMC meeting and Aunt Janet speaking this week we could see swift moves which could take us out. If that...
The 6J has broken out (minor) to the downside and we are at the go-no go area. Aggressive traders will sell this area. We are being very cautious due to the recent false breaks. We choose to sit this out until we see a better break. What does that look like? If we break 9725 on the down side we will nibble (very small) to the downside. If we break 9920 on...
We are still short GC1! with one target under our belt and stops moved to reduce risk. We are expecting a another leg down. Study the posts on GC1! we placed. We see this type of pattern in a lot of markets and they can pay you big. You have to stay patient...check your emotions at the door and trade your plan.
Target one is in the bag for this nice GC1! trade. We have pulled stops down and now have a "free" trade. PLEASE review our past posts to see how this setup. There are about 3-6 "great" trade opportunities a year in Gold (GC1!) and this is one of them. If you manage these opportunities well then you don't need more than 3-6. Trade well!
Goldilocks is off and running. Per our past posts we had been leaning long but we exited all positions because this coil was getting tighter. The bears won this battle and we are short. We are expecting a fairly large move so we will trim and trail on the way down. One key to successful trading is to push the trade as far as you can. It's hard to do but most...