One Market That Will Explode And Several More To Follow

Welcome back, gang. One market that is definitely due for another major move is the Euro. The Euro has been coiling up the last three days in a row. You’ll notice that today is an inside bar of yesterday, and yesterday is an inside bar of the previous day. The last time we had something like that, was back here a week and a half ago. It doesn’t happy very often, but it did happen a week and a half ago. That led to a 200 tick rise – that’s about $2,500 per contract rise – back into my falling resistance area. Before now, it’s been playing this yoyo thing back and forth. Well, here we are after the yoyo. We are right back up in the consolidation area and here we are in a very unusual situation having this back to back 3 bars where we have inside bars. That is a big deal. So, we are going to be watching the Euro in particular going into tomorrow. Of course, we have all sorts of things that can make the Euro move. We have the whole Greece/Germany/Euro situation – that is certainly the singular best thing that could make the market move. You have the Ukraine situation, you have the US vs ISIS and the president looking for some ground troops. You have different things going on here in different places that can cause the dollar, hence the Euro, to move there. You recall the dollar has been on a meteor crises, I’ve been pointing that out to you guys for a while. We are still steady as she goes, still focused on short side trades as the preferred trade of choice in the Euro for now – until we back get above the channel, pullback within the channel, and start to take back off from it. That will show us that the spine is kind of broken on that. But look gang, we’ve been looking for that kind of activity now for months and months here. You can see that it has been breaking down through key support lines of mine all through this process and those were very instrumental on the way down. And here we are, months and months later, we still have to break that channel. So, pretty cool stuff.

A couple other ones that are worth noting – the euro is certainly a favorite – but gold… I was talking with the gold guys here that work in the offices next door – they come over and get my ideas regularly. I told them about the buy side over here and right up here I told l them about the sell side. So now here we are, we have come all the way back down below the original buy side over here. No, what next? The next thing that I’m looking for is if we can break down below the 1217 area. Getting back down below the 1217 could lead to some pretty healthy retracements back to the downside here. Certainly I’m going to be watching 1217, what I’d like to do there, is I’d like to push through 1217, pullback up, show me that is resistant, start to roll back over from  it, and start looking for short side trades. In order to take long side trades, we’ve got some serious work to do. That’s not going to happen until we get back above the 1260 area.

As far as crude oil is concerned, we had the inventory report that came out today. It didn’t really do a whole lot for us here, my key levels, as you recall, were $50 for sell side and $54 for long sides. So, we did get down below that $50 mark leading to about a 200 tick drop, so about $200 a contract. It did come well come back off those lows though after the inventory report settled in there. But nonetheless, it did drop a couple thousand dollars a contract after breaking down there below the $50 level we told you about. Going into tomorrow, we are going to see if we can get below the roughly the $47 area or back above the $54 mark. Which, $54 is kind of a stretch into tomorrow but if it works its way up there over the next couple days, $54 could be back in place. So $54 is a key number to the upside. $47 now is going to be another one to watch on the downside and a lot of people have their eyes on crude oil and so should you if you are trading these US markets.

Let’s look at the DAX this evening. The DAX is basically in a situation where we are holding above some key supports. We closed right at some key numbers today though with my speed lines right on top of each other. Going into tomorrow, we would like to push right above those speed lines, open up, and start to take off to the upside. Basically today, we knew the stochastics were going to be a problem on the US Stock Index Futures. But same thing with the DAX, the DAX was kind of pointing up here today with the stochastic – meaning the next bar is usually down- in this case, it was sideways. So, the market did push down and then closed right back up here. What I love is, since the sell didn’t really sell that much, that’s a great sign if we can start taking off tomorrow at all, that could make for a really fun market.

AS we look at the Four Stock Index Futures here, that is really great stuff. You’ll notice that today I told you about the stochastics here. We mentioned that the stochastics were kind of on sells, right? So, look at what they did, really held them down most of the day, we opened up, we ultimately traded down there right back into the gobbly-guk support level. By the end of the day, especially the NASDAQ, it closed the strongest there today, but the other ones came back off their lows. So, in the end, we did get some sell in today, but the sells didn’t sell really hard. So, what I would like to see tomorrow is have it become more like a W pattern, buy, and start taking up to the upside – that would be great. Especially because the euro is in such tight consolidation right now, I’d like to see the euro and the dollar get moving. Therefore, getting the US market exploding as well. It’s had enough of a consolidation here so I am ready to see that really start to take off again. That will make a lot of people really happy really fast.

Those are a couple of the key things that we are watching. The euro most likely to be a mover, given the inside bar of the inside bar coiling up like that. Then, the stock index futures- if they could just hold their ground that they gained back here late in the session that could bode really well for tomorrow. As long as they stay above those speed lines I will be looking very much so for longs, if they fall back below those speed line, then it’s kind of game over and we will be back looking for shorts. As far as the other stock and options, I gave my thoughts tonight in the Premium Swing Trading Video, so we will leave it at that for tonight – this is already a 7 minute video here this video. So we will hit stocks and options in this video here in the next day or so. You guys have a fantastic night. I look forward to great trading with you tomorrow morning in the live trading room or in tomorrow night’s videos. Take care everyone. Have a great evening.

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