Good Morning Traders! Monday’s holiday session was quiet in all markets. The DAX formed a bull flag, and in the evening, US futures rallied with Japan’s positive opening. They can still have more upside since the 2-period ROC is poised for a first flip back up (Buy Day – see chart below of SP cash). Main level is Friday’s highs, and eventually 20 day highs for all indexes can come into play. Friday’s expiration session was filled with cross currents: AXP and V up big but assorted selling in Naz shares, including AAPL. Not much damage was done anywhere. This market wants to go higher.
Bonds made a higher high, the 10 year Notes did not. There is a Sell Short day setup on the 2-period ROC, as well as sell divergences on the intraday charts.
EC has 120 and 240 minute grail sales and the Yen is on a Sell short day. Silver is still in a large chart formation and did not confirm Gold’s close at new 20-day highs. Gold should have a Z day on Tuesday but this is tricky because it did trade on Monday’s session. If it continues to hold Tuesday, 1267.5 is a significant data point. 1245 is pocket support and 1233 would be a breakdown over the coming week.
Coffee closed on Friday with a three bar triangle breakout pattern. A freezing cold forecast for the remainder of the week can keep a bid under nat gas…… it is snowing outside and the high tomorrrow where I am is forecast to be 12….. brrrrrrrr
Let’s trade up a storm and generate some heat! Linda