Waiting for Monday’s Catch of the Day….Commentary/Tradesheet Mon 1/13

Good Morning Traders!

Economic data sent the $ lower and Bonds higher from breakout chart formations.  The Russel had a steady rally while cross current selling in some of the big cap blule chips made for a choppy trade.   The Rus and SPs made higher highs,  the the DOW and NAZ put in lower highs.   The ticks had the lowest high in the past 4 days – usually a loss of momentum. Volume was also on the light side on Friday’s rally.  Big picture, some of the over bought big caps can be consolidating to their daily EMA (IBM, V are examples).  On the other hand, rotation has led to good upside momentum in other shares – the DJTransports made new highs, with strength in the airlines and an upside breakout in JBHT.    The market can remain in a consoldiation mode for up to 10 days after new  momentum highs on the daily 3/10 oscillator.  Friday was day 7.  At that point, 10 day sell divergences can hit (10 days +/- 2 days) or, a continuation pattern can resolve in the direction of the trend.

EC, AD, US, GC, HG –  z day consoldiation after range exapnsion can lead to buying opportunities on 30/60 minute grails.CD has had = length swings down on the daily charts now –  watch the 5 SMA on an upside reaction.  Wheat had a bit of a selling climax.   (range exapnsion, increase in volume at the end of a  swing) and Cron had a classic bear trap formation – flush below 20 day lows, now back up into the middle of the daily range. Good chance it can now test the upper end – see chart examples!

1-12-2014 9-17-29 PMDaily Tradesheet, new website