Crude Trade Setup

Showing here a 1-minute chart from the Crude where this market observer able to spot the triangle pattern for a precise trade execution. Spotting this kind of pattern one need to be focused and price action should be observed keenly for the market make its move in a fast pace environment.

Bonus Stock Tip - YRCW

Introducing my free Stock Tip as a gesture for some investors/traders who follow this humble market observer (if there are). I am inclined to recommend this trucking firm as a buy between $28 to $30 with stop at $24. It might reach a sell at $40. But know your risk tolerance and study carefully the company before investing/trading. But from the technical view of this observer, there is a potential to the upside, but that's not a guarantee. Trade/invest at your own risk. 

 

Crude is 'leaking'?

Seems the Crude is on the way to the drain from this daily chart. It is forming a head and shoulder pattern with its left (?) shoulder already lowering, a sign that a bearish sentiment is in the offing. That's what the interpretation of this 'self-proclaimed' technical observer. Well, as everybody in the market (and other pundits) has its own interpretation in the market, and we all ended up on the wrong side of the market. But that's how in the market, we can make our own opinion since nobody knows what the market will do next. The market is an exercise of human behavior, and all human make drastic action at any given moment. But I guess the Crude market right now is on the way down or it might turn sideways. The sentiment this  week in the market is of 'indecision' because of the weekly calendar events. Participants are gauging each others throat what the next move might/will be. But according the Art Cashin, CNBC contributor, we're going to expect some fireworks this week. Let's see what that fireworks would be. Also, Prince Khalid Al Waleed of Saudi Arabia caution the OPEC last week that Crude oil is not much going to be in-demand in the US for sometime because of the continuous exploration of  domestic 'fracking'.

A Climatic 'V' Position

A very powerful reversal happened this Friday's market, especially for the Dow and the S&P as shown from this 15-minute chart. Notice the  hard drop (catching the falling knife) that originates from the Globex (overnight session) till the first hour or so from the open. A powerful 'v' (position???) formation emerge that turn the tide to the bull side. Catching this kind of trade is the best opportunity even in the middle portion of the trade. You don't need to catch or buy the low (deep) and sell at the top, just trade the middle portion is the best trade to make a gain, as the famous Bernard Baruch profess, 'I made my money selling early'. Just ride the 4ema (the blue line) and you will not go anywhere except to the bank!

Is Gold 'Digging' Up?

Was looking up at the Gold Futures the past week and seems it's starts to rise up from the 'dead'? With the daily chart below, the July contract is forming a small 'cup with a handle' pattern, a sign of a bullish trend. And it formed a 'w' pattern, with a double support. I guess John Paulson starts to have a sigh of relief, for his position in the Gold had been battered for almost a year on the bear side. Ready to 'dig' for the Gold?, I guess it will be good now for the 'gold diggers'!

 

Visa (V) - A Classic Example of Long Term Investment

Showing here a monthly and weekly chart of Visa since its IPO in the latter part of 2009. The monthly chart shows the classic cup with a handle pattern, a bullish sign. And the other is the weekly chart showing its unprecedented upward movement. This is the kind of Warren Buffet/Peter Lynch classic example of long term investment, buy the business and sleep/or a 'buy what you know' thing.

 

 

 

Is the 80/20 Pareto Principle Applies to Trading?

Been examining the Pareto Principle of 80/20 if applies to trading, but I guess it applies so. The 20% should focus on the number of trades, that is, be selective with the days or the time to place/make a trade, not just trade here and there that leads to overtrading and incur more costs in commission. The 80% should be concentrated upon the probability of the trade setup that has the highest percent outcome.

 

 

Turning to trading Futures Crude for a change

Started to trade futures crude lately and kinda' like trading it, though it's quite volatile. Trading the crude one need to be nimble, cannot trade in a longer time frame unless you have a longer 'rope' to spread. I find trading crude is best to participate in the Globex market, the overnight session. And to capitalize on its move, scalping is the best method I find applicable.

The crude rallied the past two or three days because of the on-going events in Egypt. The chart below shows the daily move of the crude.