Opening Play for Thursday 3/13

March 12, 2014

3-12-2014 11-31-10 PMCommentary:

Good Morning Traders!

A few ideas from chart examples above:

Sell Short day  tens  bonds and bunds after three days low to high.   BP – fully  developed 480 minute  power  buy  (consolidation on the daily charts)

Crude Buy Divergence two period ROC, three days high to low = long liquidation flush.

Canadian Dollar.   Buy div 480 minute charts at lower end of range.  This looks similar to a Gartley butterfly type of formation.   The Australian dollar is already sharply back up off nightly economic data.   IN OTHER WORDS – the dollar is in a well established down trending channel on the daily charts!!! Big picture the weeklies can easily take out the last swing low which would confirm a downside breakout from a 2 year equilibrium  point.  THAT IS A POSSIBILITY.  With a dollar in full devaluation mode,  one can trade just about any commodity with a bullish bias (excepting copper which is a short term aberration) Wait for 2-3 days high to low and I have not yet found anything that is simpler and works better than this.  (Works at least 70% of the time in this type of environment)

SPs:  trading 73 currently in the Globex session. This is the area of the 5 SMA.  Indexes corrected back to their daily EMAs Wednesday morning.  The minimum requirement for the daily sell divergences was met.  Thursday is ROLL DAY – I prefer to trade the March SPs on Roll day but technically, June will be considered “front month”.  Usually there is choppy two way trading, and rarely a trend day on roll day.

Happy trading!

Linda

 

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