The Weekly Call – Trade Setups for the Week of August 23rd

The Weekly Call provides perspective on high-quality setups and trading strategies focused in the Commodity world.. My current performance shows a 430% return since October 2016. The purpose of this blog is to demonstrate how to swing trade futures using our methodology to select high-quality setups and manage the trade with our risk management approach.

This week expect a increase in volatility as the Fed Chair will be speaking on Thursday. If you are a bond trader, mind your risk this week as Powell may be sharing net steps for the Fed.  Commodities in general are in an uptrend due to the devaluation of the USD. Cocoa is set up to rally. Lumber is very extended and about to turn and consolidate. Gold has come off as expected and I am looking to get long this week. We should continue to see commodities head higher in the coming years with the possibility of rising rates and inflation. I am still holding the butterfly in NG which should see $2.25 this week and I am hoping to see this early as expiration is Wednesday. We have already taken the cost out of this trade by rolling up the long calls to 2.10. I am waiting on the pull back to exit.   I am hunting a long entry in Gold this week as a retest of the low is likely. My track record is posted below under Completed Trades. I have modified the track record to reflect 8 lot trades using the information in this Blog assuming $25,000 per lot as the current portfolio is over $200,000. See some of my completed trade videos below.

The Weekly Call can now be auto-traded on Striker.com. Just call Striker Securities and open an account of at least $25,000 and every trade I make here will be made for you automatically there. I am planning to use the same methodology and risk management approach with the auto-traded account at Striker that I have been using here. If you have a Daily Update or Trader Triple Play membership, there is no subscription fee for the auto-traded account at Striker. For more information, call Striker.com and speak with William at (800) 669-8838. For more information, you can also watch this video from our subscriber Q&A HERE.

The trades below are discussed on the Daily Update: Click Here for a FREE Trial

 

Sugar

 

 

7-5 – Sugar made target and has reversed and likely will see $13 next. Looking for this in the next 5-6 trading days. We will see the monthly pivot tested once we have target. After this consolidation, looking for $15 next.

7-12 – Sugar now testing the monthly pivot and the support trend line. It needs a bullish day to follow through and push for $13. Brazil sugar production is up, ethanol production is down which makes for weak price action.

7-19 – Weak price action did develop last week and we have a larger three down into the 100% fib. Likely we should see a retest of the low and a lower low to set up positive
D on RSI. Looking for the next rally into $15 by October.

7-26 – Movement lower last week as expected, still looking for a lower low and a positive D setup on RSI. Still expecting $15 into October. Welcome to the summertime tape.

8-2 – Confirmation of the break out to the upside. Looking for a support test this week, likely the top of W and monthly pivot. Trend line must hold here for the trip up to $15 by October.

8-9 – Nice upside move as expected, looking for trend line support at monthly pivot and higher highs into $15.

8-16 – We are approaching the weekly trend line in Sugar. Once we cross, expect more of a squeeze to the upside. For now a pullback and higher high may get us there. $15 price target is still valid into October.

8-23 – Still expecting the rally in SB, for now pull back as expected into 12.40 or so and next step higher into October and $15 still expected.

 

 

Coffee

 

7-5 – Coffee has turned up directly, and we are on the way to $115s. First step is to retest the monthly pivot and it needs to hold. Any break down and we can make a new low. We should see the retest complete this week.

7-12 – Monthly pivot did not hold last week which means we are now seeking a lower low. This will be a stronger setup when seen with positive D on RSI. We should see $93.xx print.

7-19 – Rally on Friday and a three up which could be wave C of a triangle. I am still leaning lower in Coffee and looking for a lower low to set up a long play. This invalidated on a break of the monthly R1.

7-26 – Invalidation with a break of the R1 and we are now in a retracement pattern higher. Looking into August for the high as we need to set up negative D on RSI, once seen, a lower low into Mid-Sept. is expected.

8-2 – Coffee still has another legg up to complete the pattern. Needs a pull back and higher to set up negative D on RSI. Once seen, the lean is lower to retest the low. We can see $95 again.

8-9 – Coffee has reversed, look for a print in the 100-105 and then move to higher highs. Recovery in Brazil and devaluation of the USD should push this commodity higher.

8-16 – Lower lows expected at least into 107 and we can also see 100 before it is all said and done. Coffee should see wave C to 107 this week.

8-23 – the bear flag is likely going to break down and see lower prices. 107 still the focus as next support. I am waiting for a nice long setup as commodities are bullish with the devaluation of the USD.

 

Live Cattle

 

 

6-28 – With the spread of COVID, if there is a plant shutdown, we should see price collapse here. Be aware of the risk here. My bias is still higher as we need to convert monthly pivot to see the 105 area next. The lean is still higher.

7-5 – Breaking up and looks like we are heading into the next high window of 8-9. I adjust my timing cycles after a sideways consolidation like what we have seen. It tends to move cycles out, so next high early August is expected – resistance 109 then 115.

7-12 – Follow through this week and no change in forecast…. Looking for 109 target then 115. The support trend line must hold.

7-19 – Follow through this week and steady as she goes. Looking for the 110-112 area next – the support trend line must hold into the next cycle high window into August.

7-26 – Watch for the support trend line to hold, if it does, we see 110-111 into early August. This will end a 5 wave sequence and I am expecting a decent retrace then higher into September.

8-2 – A higher high and a negative D setup on RSI which can still go higher. I am expecting a 110-111 target in about a week. This will end the first sequence up and then a retest is in order before the next rally into the 120s.

8-9 – Still needs a higher high and I am waiting for the final legg with a trailer. We have neg D in place in RSI and a retest is coming. My bias is higher high first then pull back then $120. We could see the pull back directly.

8-16 – Live Cattle is topping out in a 5th wave. Negative D on RSI and looking for a pull back into 103 then the next legg higher into 120. Trend line test is coming.

8-23 – Live Cattle pulling back as expected Currently testing the trend line and looking for a break and conversion to signal the wave X is in progress – 105-103 the target area. Still looking for $120s next.

 

 

Gold

 

 

7-5 – Target made on Gold and a reversal as expected. No confirmation yet as we need to break the support trend line next. Targets the 1720-13 area next. This may play out quickly this week.

7-12 – A higher high this week and a reversal is still expected on Gold. We are testing the trend line and weekly pivot, convert and we open monthly pivot. We should see 1745-50 as a retracement area.

7-19 – Retracement pattern should break lower into 82 and then possibly into 45-50. Waiting on the next move and a long setup. I like Gold long into February 2021.

7-26 – The full retrace target was not made, gold has turned and last week completed a 5 up structure with Neg D on RSI. Looking for Gold to retrace into 1900-1910 or so before the next rally which should see 2050. Buy the dips through Feb 2021.

8-2 – Continuation higher and driven mostly by a move lower in the USD. I am still expecting a pull back into 1904ish then more bullish action to the upside. Silver is pulling back and the USD is not in a retracement rally. Gold should pull back and find support and continue higher. Gold rally should continue through February 2021.

8-9 – I have raised the pull back target as the move lower in DX has lifted the price of Gold. Watch 1975 for a buying opportunity then possibly we could see monthly pivot. Stagflation on the horizon, we should see higher highs into 2400s eventually.

8-16 – Nice move last week in Gold and we have made my first price target for the retracement. We should see a lower low or a retest of the low before we see the next rally. A flag has formed and has been broke, lower should play out this week.

8-23 – Nice three back on Gold and now the flag has broken down and a running flat may be putting in a slightly higher low. Watch for a long setup later this week. Powell speaking on Thursday.

 

 

 

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COMPLETED TRADES

Track Record of Completed Trades

The purpose of this blog is to demonstrate how to swing trade futures using our methodology to select high-quality setups and manage the trade with our risk management approach. This track record is based on entries and exits as posted in this blog. I am using 8 lots for the Striker trades which is based on this account being $200,000. Each lot for auto trading at Striker requires $25,000 per lot. See the videos below for more information.

Track Record January 2019 thru December 2019 Click Here.

Track Record January 2018 thru December 2018 Click Here.

Track Record October 2016 – December 2017 Click Here.

*** Trading futures contracts and futures options involves substantial risk of loss, and may not be appropriate for all investors. By reading this web site, you acknowledge and accept that all trading decisions are your sole responsibility. Trading strategies referenced on this web site and associated documents and emails are only suggestions, no representation is being made that they will achieve profits or losses. Past performance is no guarantee of future results.. See our disclaimer here.

Completed trade in Cattle as of November 28th

We expect subscribers to have captured 60% of the swing in live cattle which is over $14,500 in profit using a margin of only $5,115. A great example of using leverage in futures.

Completed Trade in Coffee as of December 12th

The total swing was $37.00 and we expect subscribers to have captured 60% of a wing or $22 in coffee for a profit of over $25,500 using a margin of $8,850. A great example of using leverage in futures. See the video below for the review of the trade.

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