What to look for in tommorows US session!

Tomorrow I'm going to be focused on Comex Copper futures! There is a nice trendline setting up on this instruments 4hr chart. What a lot of people don't know is that copper futures are very correlated with Nymex oil, not as much as the swissie and euro but still it is pretty high. Here is the chart of the copper trade and a zoomed out 4hr with both ontop of eachother. If the 4hr trendline breaks, watch for a bull trade in the oil markets.

S&P Makes its move

During the European session the s&p broke the pitchfork! where are we going now? I took the height of the channel added on to the breakout point. the target comes to around 1220 on the s&p. This trade is going to take awhile to develop, perhaps a couple days if we see a lot of volatility.

S&P 500 Has a date with andrews pitchfork.

This is a massive 4hr Andrews pitchfork! Right now we are retested the support line. tomorrow will be an important day for the s&p, it will indicate whether this support will be broken or are we going to see another rally? I'm going to sit on the sidelines and wait until the pits open tomorrow.

COMEX GOLD

This recent down trend in gold has been quite amazing. If this trend line is broken, that AUD/JPY trade probably wont work out. On the other hand if price touches the trend line then continues downward, it would be a legitimate short in my eyes!

Will the aud/jpy continue its spill?

Another beautiful trend line on the aud/jpy 1hr chart. Since im already in the trade its time to talk targets. If we do a fib study of the most recent swing move to the down side, it appears there has been a 50% pullback. Standard fib theory says 50%->138.2% which is at 90.54(the circle) that seems pretty far but however it does overlap with the weekly S2 at 90.59. That target seems like a stretch, but if the dollar rally continues we just might see those levels.

ZNU8 10 YR TNOTE

This is a 1hr US t-note chart, a trend line within a channel is a good indication of when to short at the top. If the steeper trend line is broken the target will be the bottom of the channel. Easy peasy japenesy!

Technical note on bollingers

Bollinger bands measure volatility of the market; good indication that Bollinger himself teaches is what I like to call the Bollinger reversal. This is simply when Bollinger Bands are broken then price makes a double bottom, but the key is that the second bottom is inside the bands rather than outside. To confirm the second bottom is imperative to use stochastics or another indicator in conjunction.

To stretch your brain a bit lets reverse the theory. Since it simple states that price should make a double bottom inside the band, what if the theory is setting up perfectly but support is broken inside the band, hey that sounds like a definition of a continuation, use this idea to identify continuation patterns.

Goldy Locks

Much like the euro the gold futures market is showing a similar picture. A bit of a head and shoulders consolidation before another move down.

Phelps winning like a maniac, Euro Falls

This trend in the euro market has been down down down to china town. Who wants to fight a trend like this and call a bottom? If this trend line breaks maybe we will see an even cheap euro!

Demise of the Euro..or not?

For the first time since 2006 the euro's voracious upwards trend is taking a vacation. Does this mean commodities will do the same? Considering the high correlation of an oil and the euro; we might see prices come down and give us a breather. As of right now Trichet has a neutral stance over at the ECB, however inflation has always been his foray. The market is finally starting to focus on the inflation comments in Bernanke's speeches instead of just sub-prime tobackles. This makes the trend for the Euro and commodities uncertain. If Trichet is going to raise interest rates becuase of hot inflation and bernake doesnt, this will most likey be just a pullback. On the other hand, if trichet was being a tough guy while global banks were slashing interest rates and his exports were getting demolished...the ECB might be singing a differnent tune.