Tradesheet, chart examples and opening play – April 14

4-13-2014 10-06-18 PM4-13-2014 7-12-59 PM

GOOD MORNING TRADER~!

Don’t forget this week is a shortened trading week with Easter Holiday Friday.  Indexes have sold off two days high to low  setting up another Buy Day.  Since the 2-period ROC made new momentum lows, it is a Buy Day Scalp Only.   If the market opens down, Friday’s low is the main pivot.  (1807.25)   Any morning rally will setup a short sale, much as it did on Friday. The SPs closed with 30 minute Buy Divergences.  Thus, the 20 EMA on the 30 minute chart is a good benchmark to watch.   (1821,75 as of Fridays close but this will quickly drop on down).

Copper has consolidated 11 trading days.  This often marks the end of a low volatility period and sets up a breakout.  This is also the same time window that Buy or Sell divergences form, indicating low volatility loss of momentum.  Copper can move in either direction but it closed with a three bar triangle as well as an NR4.

Crude is testing a key pivot on the daily charts.  The up trending channel on the weeklies remains firmly intact and this market is on an extended run to the upside.

Have a great day!   Linda