These Markets Are Poised For Some Big Moves!

Welcome back, gang. Jordon with you again here tonight. I want to talk to you about how some of these markets have been playing out with this key directional analysis. First, starting off with the bond here, what you’ll notice right away is what we’ve been talking about with these higher highs and the support and resistance levels that we have been running into and bouncing between. Now, with this higher high, we’ve produced a lower high in indications – giving us that negative divergence that we talk a lot about. So, that’s been playing out a bit in the bond which is right now at the 20EMA and starting to bounce off. Now, unless this bond actually bounces off and starts making higher highs and is able to break through this negative divergence, it’s going to be tough to take longs before that because as it rolls over, it may want to play out deeper and deeper. As it stands, we are not really looking for longs in the bond. This is what we need to see in order to look for longs. Here is out divergence, we want to see some of these blue bars start to break above the trend lines, at the same time, producing higher highs in the price.

Moving right along, here we have oil. Oil also had some divergence and is playing that out now. We talked about it holding the 5020 level which it did in the 20 and then kind of moving through these daily channels. It popped above the daily channel but it didn’t actually close above. So, now that it’s come down, its actually resting right on top of this speed line so it could still show the speed line and support and start making new highs still as it plays out these divergence. We will be looking for if this divergence eventually gets broken and some of these red lines start breaking through these and making lower lows – we will be looking to take oil lower. But right now, because of the positive divergence, we will looking for highs above yesterday’s candle – in which case, we would like to look for oil long at that point.

Gold has been in a kill zone still. Just beep-bopping around between the speed lines and the 20EMA. We actually had some questions in the room on gold and no sooner did I answer the question about it still being in the kill zone in the daily. They are saying, “Well, there is some kind of range that you could still try to play.” But it is going to be risky because as the price moves up over the speed lines it still has to contend with this momentum shifts bar, that’s also an inventory retracement bar meaning there are some sellers that have bringing the price down. No sooner did I say that, a few minutes later, this was falling out of bed coming back to the 20. So, we will be staying away from gold for longs and shorts at this point until we really break out of this formation.

The Euro has also been doing its thing. It recently popped off of the speed lines into the 20 and we have another inside bar. Until we really push over the 20 and show it some support and it gets a chance to lift off, we won’t be doing anything with this one. We just need to get over this falling resistance first. When we can get over the bar and falling resistance, then we will be looking to take it around the dollar 50-60 area.

As far as the stock index futures are concerned, what you’ll notice right away is that we are still right in the middle of the gobbly-guk. We kind of came down in the day. I was looking for the stock index futures to come above of the high from the day before. But as you can see, thse are some really wide range bars to contend with. I think the market must have gotten a little tired and decided to take a rest which often happens after big bar days.

We have big news coming out tomorrow. We have unemployment numbers that should move the market as it typically does. Then, maybe if it is enough, it could push us past the high of today in which case, we would be looking to take some of these markets long once again. Those are some of the things that we are seeing right now.

Rob is still in Orlando making some big deals, really getting ready to make the room even bigger and better for 2015. I know he is going to look forward to come back and seeing you since he will be back on Monday in the videos and in the live trading room. I look forward to seeing you in the live trading room tomorrow where we will do some more small lot trading and learning some great lessons or in tomorrow night’s videos. Take Care.

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Key Directional Analysis That Is Playing Out

Hey gang! Welcome back, this is Jordon here with you tonight. I wanted to talk to you about some key...