'Trading is a process of observing the market's action until such a time you can find and form trading ideas and get involved.'**

Wednesday, August 28, 2013

Better to Trade in the Overnight Session

It's better to trade in the overnight session (for Futures markets) because most of the participants are busy snoring. Not much noise and the market moves are quiet and smooth. And you can capture the big move in the overnight session because that's where the European and the Asian markets are active. Just take a look at the chart below for the Crude and the Gold and see/compare the movement from the overnight session (rectangle area) and the regular open (circled area). Just don't sleep and you can make a decent trade. You can have your decent sleep after you make your trade in the overnight session and let the suckers fight it out in the regular market.

 
 

Tuesday, August 27, 2013

Overnight Crude and Gold Trade Setup

The commodities made a nice run in the overnight session due to concern in Syria. Both the Crude and the Gold made a stunning move upwards. The Gold formed a shallow cup with a handle, while the Crude went up all the way to the hill and still climbing as of this posting. Seems it won't stop going up till the war breaks out.

 

Tuesday's Market Update

The market made an unprecedented move early in the overnight session due to main concern in Syria. The Gold formed a cup (or a double cup?) with a handle pattern as shown from this 15 - minute chart. While the Crude  formed a shallow cup. The Nasdaq made an inverse head and shoulder pattern that was originated from yesterday's session.

 
 
 
 

Monday, August 26, 2013

Monday's Market Update

The market made a different kind of moves today partly because its Monday, the first trading day of the week which is usually a gauging sentiment. The Nasdaq futures drops hard in the middle of the trading day when it move upwards into the open.  The Gold did not do any potential move except that it induce more volatility. Same with the Crude, though it gap up in the overnight open, it struggled for most of the whole trading day.

 
 

Saturday, August 24, 2013

Gold Update

While the main market indices are struggling, the commodities especially the Gold is silently making its move to the upside. As can be seen from the daily chart below, it continues to defy the 'shorters' (the bears) and they are getting squeezed. The way I can see from my crystal ball is that it might reach the 1400 level and might consolidate a bit and then on the way to 1500.

Friday, August 23, 2013

Friday's Crude Trade Setup

A powerful reversal from the Crude market today. Notice that bullish hammer followed by another bullish candle that exactly move up from the hammer candle's closed price. Capturing this kind of move needs a lot of attention from the price action, and you need a wider stop.

Friday's Gold Trade Setup

Gold made a nice run from today's trading. Nice consolidation as shown from the rectangular area. This is where patience in waiting for the right opportunity pays off.

Thursday, August 22, 2013

NASDAQ TO 'NASDARK'

The market was struggling moving upwards today when the Nasdaq (indices) experienced a breakdown around noontime and able to resume its trading activities two or three hours after. It's like a patient who loses its breath in the middle of the bypass surgery and was revive only through resuscitation. The chart below shows how it 'lost its breath'.

Sunday, August 18, 2013

Is Gold On The Way Up?

Showing the daily chart below of the Gold futures market, the way I observe from the technical view seems it's on the way up. It penetrates the trend line and the ema's indicators are pointing upwards. And looks like it formed a shallow cup with a handle pattern. My best guess here is that it might reach or breach the 1400 level (this week?) and might stall from there. Let's find out this week's market.

Saturday, August 17, 2013

Gold Made Another Big Leap

Gold made another stunning leap last Friday's market. It drops (down) early in the open but recovered dramatically. It maintained its thrust till the close. Looks like Gold starts to recover.

Monday, August 12, 2013

Gold Made a Double Leap

Shown is the 15-minute chart from the Gold Futures where it made a two vertical leap, the first from the overnight session and the second from the regular session. Capturing this kind of setup needs a lot of waiting and patience. Able to capture the first leap but missed the second one for I fell asleep, got tired waiting for it (Jesse Livermore says, 'Men who can both be right and sit tight are uncommon. I found it one of the hardest things to learn').

Sunday, August 11, 2013

Sunday's Gold Trade Setup

Able to spot this price action from the Globex market and was quite successful in 'digging' the Gold for a nice opportunity. Got stop out on the first try but due to price action interpretation, tried to come back and capture the big vertical leap from Gold. That's what you called timing the opportunity and as what Jesse Livermore, the famous trader known for, it's the 'sitting that's making me money' (because I've been sitting from my trading table one hour before the Globex market has to open and was imagining/analyzing the market).

Here's the chart and how to be a Gold 'digger'!

Saturday, August 10, 2013

Friday's Market Update

The market indices did not perform on the upside due to Friday's profit taking day. The S&P chart below made a chaotic move, the Crude made a nice upside direction, while the Gold mostly on the sideways. The Crude is the best instrument to make a trade last Friday's market, and the rest are not that quite tradeable. To make a good outcome in trading, you need to have a different instrument to monitor for better trading selection.

 
 

Wednesday, August 7, 2013

NQ's 'W' Trade Setup

The market drops hard in the open today only to make a reversal a couple of hours thereafter. It made a 'w' pattern that shows a double support as shown from the 5-min chart below. Timing the reversal and riding the sloping ema's upwards is the best opportunity to make a trade in today's market.

Tuesday, August 6, 2013

So What Now With The Market

Nothing, do nothing, if you don't know what's going on with the market do nothing, as what Jim Rogers professed. The broad indices are topping out, including the Crude, and the Gold is struggling too. So what now in the market for traders, either take a break, watch the market price action, learn, go over with the mistakes, find something to do, or hibernate for a while. The market seems exhausted from this observer's point of view. It's time to make a break for the market participants, month of August and September in the market is a bit slow. Most participants are going on a holiday/vacation. The charts below shows how the market is up to.

 
 

Crude Wrong Setup

This refers to my earlier post regarding 'Crude Bullish Cup?'. Was wrong with my observation and got stopped at 106 as shown below. That's how the market is, it's all about probabilities, we cannot predict the market movement. All we have to do is admit we are wrong and  move on. Wait for the next trade or look for other opportunities, or might as well reverse the trade. That's how to be in the market, ready to change/adapt. In this chart, the bullish cup with a handle pattern failed.

Crude Bullish Cup?

Shown in here is the 5-hour chart from the Crude (WTI) which is forming a bullish cup with a handle pattern from the technical view of this observer. The handle is forming due to its double support from the 106 range level. While the cup was firmly/flatly supported at 103 range level. I guess it is time to put a long position at the current level with stop at the support, 106.

Monday, August 5, 2013

Monday's 'Autistic' Market

Today's market was confusing and sorry for that title word, no offense please, it's just for 'figure of speech' describing today's market environment. As everybody knows who are in the market, it moves more than that. Anyway, today's market is for the quants or the HFT's, not for the discretionary traders. Just look at the charts below, isn't these charts are all confused?

 
 

Saturday, August 3, 2013

Market's Random Thoughts

It's a weekend and was summarizing the market activities the past week or so, and considering the news and the Calendar events that was scheduled, the market still made an uptrend move. Unless you are a short term participants as compared with the long 'termers', you will experienced a nerve wracking emotional pulse because of the market's up and down swing. Well, that's how the market is, if the market doesn't move in a pulsating manner, there is no market at all, the market is like a human being.

The market is topping up, it might consolidate or will move sideways within the coming days or possibly weeks. Profiteers are readying their wide basket to catch any (abrupt) potential drop of green bucks anytime. Let's get ready to 'rumble' (or ruckus) as the famous Michael Buffer always voiced out.

Anyway, better for the short term participants to make a break in the coming days or possibly weeks. Time to reflect something outside our comfort zone once in a while and have something enjoy a quiet environment.

Been a while studying/observing the market in our humble ways and it's important to have some break once in a while and think/do something different. Get some exercise possibly, do some painting, read some motivational books or whatever that can inspire us in our lives will do good. Set some goals, have more dreams, as they said, 'if you feel that your life is closer to average than you desire, you need to do more dreaming'.

From Malcom Gladwell's book Outliers, to master a craft in any field, one needs around 10,000 hours of practice in order to become used to it or become successful. That's a lot of hard work, and that's what we've been trying to practice in the market, we need continuous learning in the market. When dealing with the market, one need to be adaptable, because the market is an ever changing environment.

But we need to be balanced, not only in our life but in any of our endeavor. Also we need to continue in our learning and to continue to prepare, because when there is a chance or opportunity, we are ready to grab it. That we can apply in the market, we need to be always ready and timing is important in the market.

Friday, August 2, 2013

Vertical Leap From Gold

Quite messy in the market today especially in the regular session and also a choppy move in the Globex market earlier. Likewise the indices (S&P, Nasdaq, and the Dow), the Crude is on the profit taking mode (partly because it's Friday, most participants will enjoy their loot in the bar?), while the Gold partly recovered when it made a very heavy leap as shown below. Gold made a Darvas 'box' consolidation below the support (S3, from real platform) until it burst like a rocket powered by a high octane fuel. Have a nice weekend fellow traders, enjoy your $!

Thursday, August 1, 2013

Market Update

Market indices continues to move upside for the FOMC (per reports yesterday) continues to purchase notes to augment the economy. The Crude bounced back from yesterday's positive employment report coupled with the jobless claims in today's favorable result. The Gold is still struggling, it continues to move sideways. Trading today is quite tricky for most of the big moves happened in the overnight session, if you are not quite fast enough to trade in the regular session, all you can have is the dust in your face for you are late in riding the bus, just wait for the next bus to arrive.