Opening Play for Thursday 10/2

October 01, 2014

Good Morning Traders!

ECB DAY!!!!

The downside Breakout in SPs had  good volume and the index  hit the 50% retracement level of the prior  daily upswing. The majority of the move came in the morning session and the rest of the day was spent consolidating the swing down.  The 2-period ROC has a Buy Day setup  and the market has traded two days high to low.  All indexes were able to retrace backup to the 15 minute EMA but  30 minute  Buy Divergences suggest that they may be able to rally back up to the 30 minute EMA (currently at 1949).  An early morning rally will set up a shorting opportunity.  The 60 and 120 minute charts made new  momentum lows and this tends to demand a retest back down.  If the market were to have a first hour sell off,  it would set up a buying opportunity as the market is also oversold short term.

The Dollar index began to correct down on Tuesday and is having downside follow through in the overnight markets.  if currencies have a large gap up basis US opening, do not chase.   There still may bee  room intraday for a long trade but overall upside is most likely limited to the 5 day high area in general.

Gold had a mini bear trap at the lower end of its trading range and can now trade back up  to the upper end of the range.

Wheat has formed a nice rectangular base.  The commercials are the longest they have been in many months.  Should it have an upside breakout from this base, look for it to continue on up an equal distance to the upside.

Bonds –  SHORT  any  rally above Wednesdays high or a lower high.  There will be hourly  grail buys on the first reaction down.

Fourth Quarter came out of the box with ACTION!  Keep in mind that Third quarter was TREND in many markets that can now form a daily trading range  (meaning, 1-2 days up…1-2 days down etc).  Don’t chase if markets get away from you.

NOTE WHERE THE RUSSELL is on the DAILY CHARTS….Right at new lows for the year…..IF YOU DO NOT HAVE ICE, LOOK AT IWM as a proxy.    DO or Die point!

Happy Trading!

Linda

10-1-2014 10-45-52 PM

 

 

Tradesheet from Snagit

 

 

 

 

 

 

 

 

Markets in BO Mode:

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