By InTheMoneyStocks on July 11th, 2010 5:12pm Eastern Time
What a week it was for the Dow Jones Industrial Average (INDEX: DJI). The highly followed index gained 512.00 points from the close of last week. In the previous Weekly Market Report I pointed out the 96.00 area as a support and mentioned that the market will rarely rollover when everyone is expecting it to do so. This week the head and shoulders top formation that was in place and being viewed by everyone is now a failed pattern which can often lead to a large move in the opposite direction. This is exactly what occurred last week. This coming trading week is also an options expiration week which is usually very choppy and volatile. Something interesting to take note of is that the only two corrections prior to the April 2010 top were for about 7-8 percent each and this recent correction was for around 15 percent from peak to trough before this week's bounce. Symmetry anyone?
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All similarish on H4 and Daily for E$ when compared to Cable (see my Cable post), except on this occasion we have a bearish rising wedge pattern showing a failure on H4. 1.2480 is T1 - swing low of 6th July, and bold blue line is T2 - so practically the same level.
Daily: looking for PA signal to get long around bold blue line area, or if not, signs of failure and get short :) Simples really. It's worth mentioning that there's a nice TL intersection on the daily at this current level of price activity - see arrow to the TL I mean.
I do not usually trade FX but have recently started to look into them with greater interest...none the less, I do not post videos on these often. Last time I posted a video on this pair was over a month ago..Have a look at what I said, and have a look at what it's done and be the judge for yourself :)
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H4 Cable: Price became range bound whilst testing the BRN 1.52 area. Price broke the range on Friday. I'm now looking for PA setup to print a trigger pin bar or bearish engulfing for short entry, with targets of T1 and T2. T1 is the recent H4 swing low of 1st July, T2 is swing high of 2nd May (bold blue line). T1 and T2 are also fib retraces of the recent Daily swing north. MACD H4 shows divergence.
Daily: Bearish engulfing bar. If price breaks down in the short term as suggested above, then subject to PA signals I'll be looking to go long from 1.4775 area (bold blue line), with potential trade back upto 1.52, and possibly 1.55 area.The other scenario: this recent move north from May was corrective, and may now be complete - price will break down through the bold blue line, break recent lows, and a new rally down to 1.35 could unfold.All this is very speculative though, so lets see how the PA works out, and if the signals materialise, but for now I favour a small correction, and then more upside on the Daily.
By Gareth Soloway on July 9th, 2010 1:11pm Eastern Time
A massive rally has taken place this week. Indexes are up five percent on a four day trading week. The leaders without a doubt are commodity stocks which have soared. As the fear of a massive double dip global recession have diminished, perceived demand for commodities has inched higher again. The big winners this week and today are Chevron Corporation (NYSE:CVX), AK Steel Holding Corporation (NYSE:AKS), United States Steel Corporation (NYSE:X) and Southern Copper Corporation (USA) (NYSE:SCCO).
Just last Friday, Chevron closed at $67.31. Today, it hit a high of $71.69. Commodities are back in vogue and this company is one of the biggest, reaping the rewards. This past Tuesday, the first day back after the holiday July 4th weekend, AK Steel closed at $11.52. Today it hit a high of $13.25. This is almost a 15% gain. U.S Steel is much the same and Southern Copper is just as astounding. As of last Friday, Southern Copper closed at $26.44. The stock has soared since then hitting a high of $30.43 today. A big gain of 15% as well.
As the commodity plays have jumped, so have the markets. These stocks may need to pause early next week and even pull back slightly. Should this consolidation take place, it is possible to see them continue higher. To get entries on swing trades, market guidance, analysis and education, join the Research Center.
Gareth Soloway
Chief Market Strategist
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In this CNBC interview, Warren Buffett was asked to identify the single most important economic statistic he would choose if stranded on a desert island for a month and could only get one set of economic numbers. Buffett reported that his favorite “desert island indicator” would be freight car loadingshttp://blog.american.com/?p=16755Read more…
STELLAR CANADIAN JOBS REPORT as June unemployment unexpectedly drops to a 14-month low of 7.9% from 8.1%, with the payrolls rocketing by 93K from 24K vs forecasts of 15K. OUR FOLLOWERS ON TWITTER were told of the 1.0340 target (61.8% retracement) in the event of a robust report. Over the past week, weve lauded the Canadian dollar based on its favourable fundamentals and favourable treatment for foreign investors (compared to the US). Downside risk from a double-dip in the US remains an evident red flag, but in the meantime, CAD should be among the top performers in each and every round or risk bounce. EURCAD EYES 1.2980. GBPCAD eyes 1.5560. Twitter followers were warned of falling GBP after negative trade figures and PPI, calling for $1.5130 prelim target. FOLLOW US ON TWITTER http://twitter.com/alaidiRead more…
This is what I see as a wedge on the 60 min Dow daily chart:
Yesterday NQ futs failed to break 1800. The Dow futs failed to break 10100.Oil has been struggling to break $76 and guess what someone said on 6th July about oil? Up to $76 then down to $60: Wave TimesFTSE has made a double top at around 5140.The wedge on the chart could be a wave "B" in an ABC correction where wave A was about 1000 pips on the dow so we could be headed for 9100 if this is the turning point.
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