Opening Play for Monday 12/8

December 05, 2014

12-7-2014 10-22-46 PM

Good Morning Traders!

SPs made another all time closing high on Friday along with the DOW.  The Sps have an unusually low TP count (on the trade sheet = Trend potential) which is the same thing as saying low volatility point.  If the Russell can continue to lead to the upside as it did on Friday afternoon,  there is no overhead resistance.  However, if the SPs Close back below the 2075 level, it can attract some profit taking as the SP rolls this week and triple expiration is next week.  No longer term indicators are overbought.

 

Gold has had two days high to low and Friday brought a good liquidation flush.  The market held into a prior pocket area.  Monday should be a Buy Day after two days high to low.

 

Nat gas has a pinball sale.  The 120 minute chart above shows what a classic Pinball looks like on the intraday charts…it often comes in the later stages of a daily swing, but the market still demands a retest down after a reaction  up.

 

Pinballs have no long term forcasting value, other than suggesting a high to low day.

Wheat has a  three bar triangle.   The beans rallied sharply after a daily power buy last week. However, wheat struggled to put  together an intraday test back up.

The DAX sums last week up….of course it was ECB, but check out the expanding pattern on the hourly charts – yet Friday was an inside range day.  Lastly,  sometimes weekend are a good time to step back and review weekly and monthly charts.  The higher the time frame the less “noise”.   Look how clean the monthly AD chart has  been(and of course the dollar as well).   There are no compelling mmonthly chart formations on the SPs.   Interestingly,  the monthly Nasdaq has gone parabolic, while the monthly  Russell shows nothing but a blocky, sideways trading range.

Have a great trading day and don’t forget that the Dec SPs will be rolling the end of the week.

🙂  Linda

 

Tradesheet from Snagit

Markets in BO Mode:

BO Mode