Each market's coverage contains a narrative that provides context, describing relevant price action for the previous trading day and recent trading history. A chart depicting price action through the prior week's close shows support and resistance levels as well as current price parameters. When an entry parameter has been signaled on a closing basis, its stop and target(s) are adjusted as the trade develops.
"Swing trader": This strategy tends to ignore entry parameters and stops touched intraday, honoring them only when certain they will be triggered on a closing basis. "Short-term trader": This strategy would honor entry parameters and stops touched intraday, ready to exit or to re-enter the position if certain that either will hold on a closing basis. Intraday updates are published when warranted by price action. Ideally, trades should be done as a minimum of 2 contracts. We set multiple price targets and unless specified otherwise, traders should trade out of half of the trade at Target 1. When Target 2 is reached, we recommend trading out of the position or repositioning the stop to just below or just above trading support and resistance. Stops will be updated as we continue to trade the position.
HOW DO WE GET PRICING –
We determine trading opportunities that have favorable reward to risk characteristics with an investing style that utilizes a mix of short-term momentum and short-term countertrend techniques. The techniques used to analyze the markets included Fibonacci retracements, momentum and sentiment analysis as well as Elliott Wave and Cycle analysis.
The TECHNICAL TRADING ADVANTAGE
There is a risk of loss in futures trading. Past performance is not necessarily indicative of future results.
January 21, 2007
Indices – S&P 500 We were basically unchanged on the stock indices last week and we continue to see that as a move in preparation for a correction. We would like to see a close below 1422.50 in the S&P as well as a close of below 12450 in the Dow Industrial futures to confirm that we are turning down on the mid-term. We are going to sell any bounces early in the week and adjust targets for later in the week. We are Bearish on the short and medium term, and neutral on the long term.
The TECHNICAL TRADING ADVANTAGE
There is a risk of loss in futures trading. Past performance is not necessarily indicative of future results.
January 21, 2007
Indices – Nasdaq 100 While not reaching or Medium term upside target of 1890 last week, we did see a new high and a reversal. With a close below 1800, we would be looking to sell bounces in the Nasdaq as well. A 25% retracement would take us to 1765 and a 38% retracement would take us to 1711. We continue to be Bearish on the short and medium term, and neutral on the Long term.
The TECHNICAL TRADING ADVANTAGE
There is a risk of loss in futures trading. Past performance is not necessarily indicative of future results.
January 21, 2007
Financials – T-Bonds T-Bonds continue to consolidate in the 110-16 to 111-08 area and we are seeing this as the potential for a move higher. Again, we would be looking for a close above 111-12 and then for a test of 112 into the beginning of February. So, although we are in a downtrend, we would be taking short trade profits and looking for a bounce to sell into by the first week of Feb. We are neutral on the short-term, medium and long term.
The TECHNICAL TRADING ADVANTAGE
There is a risk of loss in futures trading. Past performance is not necessarily indicative of future results.
January 21, 2007
Energy – Crude Oil Crude Oil has been consolidating after February options expiration around $52. We continue to see bounces limited to $56 to $58 in the near term and a test of 45 by April. We will be looking to sell upside as we trade over $56 in the next 2 weeks. We are neutral with a bearish bias on the short term and Bearish on the medium term time frame, while neutral on the Long term.
The TECHNICAL TRADING ADVANTAGE
There is a risk of loss in futures trading. Past performance is not necessarily indicative of future results.
January 21, 2007
Metals - Gold Gold is moving closer to the downtrend around 640 to 642. We are sellers for a move back to 615 for the near term and will adjust with a break to the upside. With a close below 630, we would add to a short position for the short-term. We are moving to bearish on the short term and neutral on all other time frames.
The TECHNICAL TRADING ADVANTAGE
There is a risk of loss in futures trading. Past performance is not necessarily indicative of future results.
