Tuesday's Trade Setup

A nice triangle formation from the 15-minute chart of the Gold futures contract in today's market. Spotting this kind of setup or formation needs keen understanding of the price action as well as the bars formation relative to multiple time frame. This is where pattern recognition in trading the market is a must for discretionary traders.

Labor Market

No market today for it's holiday, but the futures markets are open because it operates electronically. The indices (Nasdaq, NQ) were all gap up today, but the Crude and the Gold were gap down. The Nasdaq formed  a deep cup with a handle pattern. The Crude formed a small double cup but minus the handle (not able to sustain the load and it bends). While the Gold made a reversal forming a 'u' pattern like. All are in 15 - minute chart frame.

 

 

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.

 

 

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'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.

 

 

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.