Opening Play for Thursday 4/10

4-9-2014 10-09-03 PM

Good Morning Traders,

SPs gapped higher, setting up an early AM short sale.  The market found support above the Globex lows and spent the rest of the day consolidating in front of the FOMC minutes.  The dollar went into a nose dive upon release of the minutes, triggering a buying spree in stocks, currencies, and metals.  Crude was already holding firm on the day and is poised to assault a key upside pivot after some needed consolidation.

For Tomorrow: The Russell (small caps) has been the weakest sector and has now traded two days low to high.  A sell Short day is indicated on the 2-period ROC.  The SPs are also butting up against a previous resistance level.  A consolidation back to the 15 minute EMA at least is the target.  The DAX closed with a three bar triangle and has a Buy on the Daily OSC.  It can trade higher in the overnight market and does not have a short sale signal on the 2-period ROC yet.  Also, there is morning economic data due out which the market will surely move off.  The bonds have a three bar breakout pattern in anticipation.

Grains formed price rejection spikes on the move  after the crop report.  Corn closed with a Turtle Soup sell and can trade back into the middle of the previous range.

The Canadian Dollar has had 4 days low to high  – watch for consolidation back to the 5 SMA.  (240 minute EMA).  The Yen made new momentum highs and is expected to trade higher still.  The British Pound is the real spotlight grabber though, as it is at major breakout point to the upside on the daily and weekly cash charts.

Silver tested the lower end of its range but closed above the 50%  mark. Gold never tested the PDL when silver did though, and is now knocking on the bottom of a previous daily trading range.  A close back above 1320 can lead to the middle of the range:  1336.   One day at a time with this market though….and 1320 may prove to be good resistance as well.

Have a great trading day!  Linda


Tradesheet from snagit