Charts to keep an eye on

Posted: 29 Oct 2012 07:15 AM PDT All chart analysis and commentary are shared with subscribers in detail with the morning and weekend updates. With Hurricane Sandy arriving, here are some charts to keep an eye should the East Coast lose power.   The Dollar Index is at a Major point of resistance in the midst of a bearish "head and shoulders" pattern on the daily chart. (Click on all charts to expand) Gold has support at $1700. Bulls want to see the bullish channel being developed on the 3o minute chart either hold or breakout to the upside.  Bears want to see a breakdown, and follow through $1700 to the downside. Treasury Bonds look bearish on the daily charts, but bullish on the 30 minute chart.  The trading service will reveals key reference areas in both time frames to work with. There is potential for a trade with an extreme multiple of reward to risk on the horizon.  Bulls are in a bad spot on The Nasdaq 100 and need to regain the 30 minute trend line (left side), or get a confirmation of the bullish "Hammer" from Friday's session in order to take some pressure off the long side of open interest.   Wheat is building an enourmous amount of energy, and the last place in the world I would want to be from a trading perspective is on the wrong side of the open interest when it makes the "initiative" move. Any favorable trade locations, calculations for risk management, position sizing, and money management, along with the trade management are shared with subscribers in advance. Twitter/ScottPluschau Comments are welcome Contact ScottPluschau@gmail.com Subscription: http://scottpluschau.blogspot.com/p/subscription.html

Model Portfolio Update Posted: 29 Oct 2012 06:51 AM PDT The markets have been in a state I call "volatile noise" on the 30 minute charts lately.  They are reversing on a dime and going on a tear in one direction, only to reverse on a dime and head back in the other direction, without much of a reversal signal that would allow my methodology an opportunity to capitalize on a favorable trade location in regards to probabilities, and a multiple of reward to risk.  I believe it has been a good idea to preserve capital and wait it out from a "swing trading" perspective.  There has been only one trade in the model portfolio over the past two weeks which I am outlining below.  The S&P 500 formed a balance area on the 30 minute chart over a few days, and when it failed to break out of this rectangle formation on the 30 minute chart it setup the "responsive" trade, (first blue oval).  What made this trade attractive wsa considering the structure of the larger degree timeframe trading beneath resistance of a larger degree balance area.  The target was the opposite side of the balance area (second blue oval) and the model portfolio went short 5 contracts at 1411.00 and covered 4 contracts at 1401.00 for a profit of $2,000.  There is one contract that remains as a trailer and there has been an adjustment to the open position with trade management.  Everything was laid out to subscribers in advance.  The S&P is flirting with a breakdown of minor horizontal support and the remaining contract will offer high multiple of reward to risk in that scenario. (Click on chart to expand) Twitter/ScottPluschau Comments are welcome Contact ScottPluschau@gmail.com Subscription: http://scottpluschau.blogspot.com/p/subscription.html