Friday Update – Opportunities and Unaligned Trades

On this website, Jack and I attempt to position what we call “aligned trades” – or more simply put, when everything lines up (price, structure and time) you have an edge and a heck of a trade. Not all trades are aligned and sometimes you have conflicting signals, like today. Cycle charts and other time based methods say bears are out of time. But divergences, the VIX and other tools are calling for downside. This is a setup for two sided action and day trading, not the best setup for swing trading. More in the Video:

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SPX – At resistance as mentioned yesterday. Same in the Russell, Same in the Emini, Same In Dow. Big day tomorrow. Possible marginal new high as discussed then downside. Nice divergences, Would like to see a full test of the monthly pivot on SPX. Keep in mind tomorrow is a summer Friday so movement to the monthly could take us into next week easily.

DX – Appears that the X wave is in and we are headed lower. Watch the monthly R1. A break there invalidated the current structure.

CL – Oil in the 5th leg of 5 to 46-45.56. Watch the declining resistance trend line — a significant break up and the low is done and we head to 53’s. This would be seen early tomorrow as we may have just finished a 3 wave move downward.? If 54’s not broken by the bulls as I have said in the past, we have more downside in Oil.

GC – Gold in a retracement and appears to be a flat – Upside tomorrow to two target areas 1113 or 1133. I favor the later. More downsize coming.

SB – Covered in the video sugar and very nice long term setup. Last legg down to 10.25-35 with possible early support at 10.63.

Have a GREAT WEEKEND!!!

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Good Luck tomorrow 🙂

Written by:

Stan Nabozny

Stan is a 20 year retail trading veteran and Co-Founder of The Art of Chart. His specialties include using futures and options to trade Energies, Precious Metals, Equities, Currencies, Bonds, Softs, Grains and other commodities. Stan believes that Risk Management and Trader Psychology are more important that technical analysis and spends his time teaching and coaching other traders on these topics. Stan uses various trading systems and technical analysis approaches that integrate time and price in his work. See his latest articles here and www.huffingtonpost.com.

30th Jul 2015

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