Here is a chart that highlights yesterdays move which we are now testing the Monthly R2 and yesterdays close in the doji candle formation could signal some resistance to the US Equity markets. September has seen us rally off the Yearly Pivot and Monthly S1 to where we are now putting the test on Monthly R2.
Good trading and stick to your stops
KT
Today the floor session of the ES closed in the Doji candlestick formation. No matter what time scale you are watching the Doji Candle needs to be recognized and respected particularly after a long trend. Yes we have had a trend move in September where we have moved from lows of 986.50’s to yesterday’s highs of 1071.50 . Cautious needs to be had at taking longs because by all measures the daily and weekly TA suggests its time for a breather.
Good Trading and Stick to your Stops
KT
This is the weekly chart of the EURUSD which seems to be respecting the Yearly Pivots. We bounced off YR S1 and then bounced off the Yearly Pivot which was also the 38.2% Fib retracement before resuming the uptrend. Today we broke out of that 2 week sideways range (1.4200 to 1.4400) to see a continuation of the uptrend.
Next target if the uptrend continues would be the 1.4702 - previous highs 1.4720’s and then we could likely set up for a test to R1 1.5083. Traders this is the macro view.
Good Trading and stick to your stops
KT
As we approach the -23.6% this is a rerun of a chart I posted earlier in August 2009 (08/07) of some targets that I was watching on the DX Anchor Chart. Highlighting that the -61.8% extn lines up with the double bottom and the April and July lows / double bottom.
Watch for more down side as we now are seeing a continuation to the down trend.
Good trading and stick to your stops
KT
Ambush Short is in play on the 60min chart.
Good Trading and stick to your stops
KT
For those Pairs traders its time to think about reversing some long term pairs positions on GC vs SI as this chart highlights that that GC vs SI pair is coming back to the long term mean of 59 on the ratio trade. Those that set position at +3 Standard Deviation or greater nice trade!
Current Ratio on close of Friday was 61.20 with Long term mean 58.81 while +/-3SD is at 82.75 to 34.87 on the chart from Oct ‘08 through to Dec ‘08 positions were set above 75.
Now to watch for the unwinding of positions buying GC and Selling SI on the unwind.
Good Trading and stick to your stops
KT
EURUSD has been range bound for the past two week between 1.4400 to 1.4200. There needs to be a break to this sideways channel to give us some clear directions to the EUR. Wednesday and Thursday may see some action to the EUR on Wed the US Fed Beige book and some German Economic data and then on Thurs you have some important Economic numbers from France (Manufacturing and wage data) and Italy (Trade Balance and GDP numbers).
Eur at the moment on swing trades is a wait and see until we get a break to this range.
Good Trading and stick to your stops.
KT
