The Weekly Call – Trade Setups for the Week of October 30th

The Weekly Call provides perspective on high quality setups and trading strategies for the coming week. We carefully select these setups due to their quality and profit potential and report back on results. This week we review Live Cattle, Gold and point out another high potential trade in coffee.

Live Cattle follow up

Bigger picture in Live Cattle, we have been hunting a big turn at a 18 month cycle low.

So far here is what we have done:

— 10-03 – We have a profit potential of $3.80 on 1/3 of a position from the turn on 10/03, we were stopped out on the next move lower to a new low

— 10-16 – We recommended getting long again on the great setup at the Monthly S1 which was near the 100% fib at 95.70 AND at the declining resistance trend line.So far we have a profit potential of $7.90 from this entry. We encourage everyone to take off 2/3 of your position here and place your stop an even for a risk free position.

— This week we are five waves up and looking for a significant backtest into the monthly pivot at 102.625. If the bulls can create support and not break the channel, live cattle continues to go higher into 109.50-110. If this level break we open a full retest and possible new lows to $92.

— We expect subscribers to have captured 60% of swings we suggest. So far we are up $11.70 in one month which for Live Cattle is a max profit of $4,680 per lot. ( one lot is $1,980 in margin )

We cannot confirm the low and we cannot confirm a trend change. If the monthly pivot breaks and we are stopped out, we get to do it all over again. We call this process of managing risk in swing trading making money even when you are wrong. We will be buyers at $92 if seen.

We may have just seen the 18 month cycle low which means we may have a potential trend change in November.

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Cycle Chart for Live Cattle showing cycle alignment

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Gold Support Test This Week

We are hunting a low window in Gold and looking for a 60 handle trade to the upside. So far :

10-16 – We recommended a long in Gold on a higher low setup at 1252. So far we have $32.00 of profit potential.

Currently – We recommend taking 2/3 of your position in profit and setting your stop to even for a risk free position. We expect subscribers to have captured 60% of this swing. So far in gold we have $3,200 in max profit.

This formation appears to be a bear flag and may break 1260 and head to a new low at 1235. If it does we will be stopped out and we will start the process all over again. BUT, if Gold finds support at 1260 or higher, we can break to 1300 or 1326.

The Cycle High Window calls price higher into early November.  The trendline may come into play next week.

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Cycle Chart for Gold showing cycle alignment

 

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 Coffee showing a counter trend setup

Coffee this week is setting up for a significant backtest. We called the turn in coffee back in February and called a trend change in June. We have a nice rounded bottom in Coffee on the Daily chart. Five up into the larger degree W means we have a significant backtest brewing. Likely we test the low window at the end of November. 167.30 monthly R2 and 168.25 100 fibs are possible resistance. High window ends at the end of this week.

NOTE – this is a counter trend trade and represents greater risk, on a trade below 163, take off 1/3 and put your stop to even to create a risk free position.

 

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Have a GREAT trading week!!!

 

 

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