Opening Play for Wednesday 10/29

Good Morning Traders!

The pre FOMC rally used up plenty of upside bullets.  It is unlikely there are any shorts left, and the market will need to digest the new buying that came in.  The transports made impressive new all time highs, so there is plenty of residual underlying momentum.  However, any morning push above Wednesday’s high is a shorting opportunity (see shorting zone on chart), and since the market is so short term overbought, the market may put in a lower high.  TO the downside are Buy zones, though, since the first reaction down after such a strong trend day usually finds laggard buyers.  the pit session 5  minute EMA<  as well as the 15 minute EMA are support zones,  as well as the last hour low that comes in around 1970.   The reaction after FOMC results is a wild card and depends  upon how the morning session trades.

Crude has a three bar triangle pattern.  It broke a small descending wedge to the upside on Tuesday. Possible upside levels to play for are marked off on the chart.  Also of interest will be the bonds – the thirty year yield chart shows the interesting level they are at.   A 25,000 contract spread went up  during  the day – shorting 30s, buying 10s….suggesting  a ply on the widening of duration.

Gold will surely see an increase in volatility:  If it takes out Tuesday’s high, a “first cross” buy on the 3/10 oscillator can kick in. A better retest down is also possible.

Nat Gas has both a pinball sell and a 5 SMA trade….however, given the range expansion to the upside, a Z day consolidation  morning is more likely.

For Wednesday morning, dare I put out levels?  (!)  I am looking for it to fill in Friday’s last hour range with two way trading.

Keep your powder dry….





10-28-2014 10-36-37 PM

Tradesheet from Snagit











Markets in BO Mode:
BOs from snagit