Opening Play for Wednesday 4/2

April 01, 2014

Good Morning Traders! April Fools day indeed!

The Dow Futures made contract highs  but the Dow industrial averages just fell (short though the whole world was watching).   SPs on the other hand made new closing highs.  The short term summation tick indicator is not yet overbought ( see chart example) so the market can still go higher.  The Russell has had two strong days low to high so any early rally can be shorted for a scalp.  However, the 2-period ROC made new highs and this tends to lead to higher prices yet over the next few days…..   There is the ECB meeting this week.  Wednesday may well be a classic consolidation day.  (ECB is Thursday morning and this often is a major market mover day.)

Bonds and Tens continue to look toppy on the daily oscillators.  The bunds also have three pushes up.  Everything priced in for Thursday regardless of the news?  May well be…..can’t imagine any shorts left in this market and the last swing high left a price rejection tail at the top.  Cows have a Buy Day on the 2-period ROC.  Not so many new compelling trade initiation setups in front of ECB.   Crude had a downside breakout from the three bar triangle  and any early morning reaction up will set up  grail sales for a retest back down.  Gold and silver will probably remain in consolidation mode in front of ECB.  Gold has resistance in the 1288 – 12 94 area.  (see chart example) . Beans continue to be  relative strength leaders….Price of protein is going up –  hogs,  beef and tofu….

OK!   lets look forward to a great trading day on Wednesday!

Linda

 

4-1-2014 11-29-34 PM

Tradesheet from snagit