Down Hard Goes the Dollar as Up Quickly Go Gold and Oil

Jul 28, 2017: 11:23 AM CST

Of the recent intermarket price swings, the most interesting development has been the ongoing slow collapse of the US Dollar Index.

It’s set the stage for recent bullish rallies in both Gold and Oil – commodities priced in Dollars.

Let’s see what’s happening in the intraday intermarket grid:

US Dollar Inex Gold Intermarket

Crude Oil @CL

I sandwiched the falling US Dollar Index between the rising Gold (top) and Oil (bottom) charts.

I wanted to highlight the quick correlation between these two major commodities and the Dollar, namely as the Dollar continues its slow slide with minimal retracements.

Put your trades within the broader context of money flow between major markets.

We’ll discuss this and much more with members in a special report this weekend. Join us! Continue Reading…

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The NASDAQ Snap Pullback July 28

Jul 28, 2017: 11:06 AM CST

The Big News yesterday was the snap-collapse of the NASDAQ and leading tech companies mid-day.

The result – so far – has been a sharp drop and bounce today off the first Fibonacci Target.

Here’s the NASDAQ – @NQ futures – and the new Fibonacci Grid in Play:

A sudden sell swing swept the market and shocked traders as price collapsed from the 6,000 index level.

When the dust settled, the @NQ collapsed 150 points toward 5,850.

Look closely to see that this level – 5,842 – is the 38.2% Fibonacci Retracement as drawn.

Active traders can continue playing price swings toward and away from this key pivot – and of course the prior high.

If you’re new to this style of simple level trading, welcome aboard and keep checking back or get more details beyond just the @ES (stock scans, money flow, education) by becoming a member!

Continue Reading…

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Well Look, a New Updated Fibonacci Grid for the Emini July 28

Jul 28, 2017: 10:35 AM CST

After a series of new all-time highs – at which point we really can’t draw a Fibonacci Grid to target pullbacks – we ARE seeing a decent pullback today to a key “first Fibonacci” target.

Here’s today’s updated Emini (@ES) trading levels for your trades:

A big rally emerged on July 6th off the 2,410 level that sent price surging toward 2,480.

However, a persistent negative momentum (and volume) divergence set the stage for risky conditions for the bulls … and the market snapped yesterday.

The selling (liquidation) was particularly powerful in tech names in the NASDAQ index though the Dow and S&P 500 were spared most of the collapse-style price movement.

Nevertheless, here we are, trading into – and possibly bouncing “up away from” – the 23.6% Fibonacci Pivot just above 2,460.

Use this as your short/term and intraday “bull/bear” pivot price as highlighted.

If you’re new to this style of simple level trading, welcome aboard and keep checking back or get more details beyond just the @ES (stock scans, money flow, education) by becoming a member!

Continue Reading…

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A Double Day Breakout in Technology XLK

Jul 27, 2017: 9:16 AM CST

While you’re watching the big bullish breakout in Facebook (FB) this morning – along with a smaller breakout in Amazon (AMZN) – let’s pull the perspective back to the broader Technology ETF – XLK.

How’s it doing?

XLK Technology ETF

It’s doing very well, thank you very much.

Yesterday saw a slightly weak breakout to new all-time price highs for XLK on the strength of larger technology companies in the sector.

Today gives us a gap-up and stronger breakout as big leader Facebook (FB) shoots to new all-time highs above $175 per share.

After a false breakdown – just an “ABC” Retracement – into positive momentum divergences at the beginning of July, buyers aggressively flooded the technology sector with buy orders, resulting in the current non-stop rally that set the foundation for today’s new high.

Continue watching this group – and stock-specific leadership within the sector – as the stock market continues its bullish march higher. Continue Reading…

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Studying the Rounded Reversal Breakdown Setup in Ford

Jul 26, 2017: 9:42 AM CST

Ford (F) gives us plenty of educational examples of how a market sets up a trend reversal and the stages price goes through ahead of these excellent opportunities, especially for swing and even intraday traders.

Let’s take a moment to study this perfect progression for our educational resources:

Ford F Intraday Reversal Stages

Before we step inside this chart, take a look at this morning’s post on Ford’s Bear Flag.

Pay close attention to the rally UP into the falling 200 day SMA which was near the $11.85 level.

Here’s the main point – price (in a downtrend) rallies UP toward a critical resistance target on a HIGHER timeframe.

That’s sufficient for a short-sale set-up and trade – nothing else needs mentioning.

However, if you want extra confirmation or are nervous about taking a trade, you can always step into a LOWER time frame to see what’s happening there.

As it turns out, Ford was forming a perfect reversal set-up on the lower frame – seen here in the 30-min chart – at the same time it triggered a bearish short-sale into resistance trade on the Daily (higher) frame.

Here’s the progression as exemplified by Ford on the lower frame: Continue Reading…

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