SP500 Simply Slams the Rising 20 Day EMA Target Again

Nov 9, 2017: 1:28 PM CST

Like Lucy and the football with Charlie Brown – always frustrating him at the last minute – the Market fell rapidly to the rising 20 day EMA target for a third time.

Will bears be able to break through it this time and kick the football?

Or will buyers pull the football away from the bears, leaving bears frustrated once again?

Gold

From the August 2017 reversal low, price retraced toward – and then reversed up away from – the rising 20 day EMA (green) three times.

Today’s major sell session – which we should compare to October 25th – collapsed the market straight toward the key rising EMA.

We’ll monitor what happens NOW but then, buyers rushed in to buy the dip and create a V-Spike intraday reversal up away from the EMA target, resulting in a continuation of the ongoing bull market.

Whatever strategy – intraday or swing trading – you’re using, pay close attention to how today’s session closes and whether or not we trade up away from the moving average once again.

Either way, frame your short-term trades in terms of the immediate departure from the 20 day EMA line which trades near 2,575’s critical bull/bear short-term pivot.

Stay tuned as we continue to give you more daily updates and market commentaries!

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The Bullish Turn and Range Action in Gold Nov 7

Nov 7, 2017: 11:36 AM CST

We posted about a Bullish Surge in Crude Oil this morning, and we’ll now combine that with a bullish reversal into a rising range environment for Gold.

What does that mean and what’s the planning levels right now?

Gold

Let’s start with the hourly (intraday) chart on the left.

We have Gold (@GC) falling from a resistance high – on negative divergences – from the $1,305 level.

A downtrend took price toward the active support target near $1,265 on positive divergences.

I drew an “Arc Trendline” pattern to connect the swing lows and highs – note the reversal higher.

Now, on the right chart, we see the 15-min chart forming a Rising Range pattern with volatile gap-action throwing price from range high to range low.

Frame your trades in terms of the movement between these rising trendlines and use them as stop and entry parameters on your chart.

Stay tuned as we continue to give you more daily updates and market commentaries!

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The Crude Oil CL Surge November 7

Nov 7, 2017: 11:28 AM CST

It’s the Crude Oil Surge and Breakout!

Price reversed up off a key inflection point on positive divergences to set the stage for a bullish rally.

Let’s chart the course and update the levels for Crude Oil:

Chipotle CMG

In our weekly membership, we called for a bullish reversal up off the $45.00 pivot level as the beginning of a possible bullish rally phase.

We’re seeing that rally continue into the present with a series of higher highs and higher lows for Crude Oil along with price recently breaking firmly above the falling 200 day (red) SMA.

The initial targets (yellow highlight) of the prior two swing highs in price have been achieved as Oil continues to trade even higher in a new bullish phase.

Take a moment to review higher timeframe levels in the context of this new multi-month bullish swing in price and plan your trades accordingly.

Stay tuned as we continue to give you more daily updates and market commentaries!

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Once again Market Hangs Out at the Highs to begin November

Nov 1, 2017: 2:34 PM CST

Will we get our expected retracement?

Let’s chart the course and update the plan for the S&P 500 right now:

Chipotle CMG

With price extending to a new all time high on this morning’s gap-up, we have a clear scenario.

Traditional odds do favor a pullback/retracement “down away from” the upper Bollinger Band “back toward” the rising 20 day EMA like we saw in late October.

However, our alternate thesis is the ongoing “bullish short-squeeze” without a retracement which would trigger on a firm breakout beyond 2,580.

In the alternate scenario case, we must ignore all aspects that keeps us logically cautious and bearish – and play the market up toward 2,600’s target.

Take a closer look at the intraday activity and plan your next trade(s) in terms of the departure from the upper Bollinger Band and 2,580 price pivot.

Stay tuned as we continue to give you more daily updates and market commentaries!

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Failed Reversal Takes us to New Lows for Chipotle CMG

Oct 30, 2017: 1:12 PM CST

Almost but not quite!

Chipotle (CMG) shares plunged to new lows today after failing to break resistance into a bullish breakout from support.

What’s the level and what’s the play from here?

Chipotle CMG

After another lengthy sell-off in shares, price (buyers) found support at the $300 level recently.

Positive divergences set the stage for a possible bullish reversal off this support level, and thus some traders logically bought into this key pivot.

Price did push up $35 higher toward the target of the falling 50 day EMA (blue) but buyers weren’t strong enough to generate a breakout and thus a bullish trend reversal.

The next move was yet another gap lower, shattering support as a new liquidation phase continued.

Chipotle (CMG) reminds us that trends tend to continue and surprises – via failed reversals – often come IN the direction of a prevailing price trend.

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