Futures and options trading contain substantial risk of loss and may not be suitable for all investors.
We realize we haven’t sent a tweet or posted a blog all week and there is an explanation. We will be taking a hiatus for awhile from our brokerage business and our commentaries. It’s been a great deal of fun and we have met a number of good people along the way. We appreciate everyone’s participation and the encouragement we have received.
Good trading and the very best to all.
Futures and options trading contain substantial risk of loss and may not be suitable for all investors.
We are taking a quick look at the Crude Oil market today as a level of support stood out rather easily. We are wondering, and thought we would provide, what a possible level of resistance might now be consistent with the Fibonacci retracement price barometer.
On the fall from the 8445 high in the March Crude of January 11 it has stopped so far at 7401. The .618 Fibonacci support using the 6746 low of September 25 we have calculated as 6395.
If this low should hold and a recovery ensues the half way back or .500 Fibonacci resistance comes to 7923 according to our math. This may be a reasonable price level to expect resistance to form. If it proceeds higher the .618 retracement, using the parameters of 8445 high and 7401 low, comes to 8046.
Weather at least here in the Midwest is expected to become colder during the course of the week. This had been an excuse for the last leg of the rally and perhaps will serve the same purpose now.
As always there are different ways to utilize trading tools. We always suggest using them in a way with which you are most comfortable.
Good trading to all!!
Jeff
CB&S
Futures and options trading contain substantial risk of loss and may not be suitable for all investors.
Yesterday we looked at the Dow Jones Industrials and today we are highlighting the cash S&P 500. The reasons are obvious. The stock market has sold off considerably from its high and this usually draws a great deal of interest and concern from most all investors as well as those who don’t even invest. In the grander scheme of things there may be consequences felt by everyone when there are significant moves made in the stock market.
The chart above illustrates that the major uptrend line connecting the March and July lows had already been broken some time ago. We showed previously that this had just occurred in the Dow Jones. The S&P 500 has now also closed beneath its 50 day moving average, another barometer to gauge the market.
We have displayed a set of Fibonacci retracement levels which show that the price has reached a .500 mark at approximately 109030 with the .618 at approximately107600. This particular retracement level lined up with what looks to us to be a minor line of support. This may provide a price from where at least a “dead cat” bounce will take place. And possibly it will turn out to be more. But our stronger feeling is that momentum has turned to the downside and that this set of Fibonacci retracements will eventually all be exceeded and we will find lower levels to pursue. We will do our best to be timely in providing where these are.
Our Trade Focus has seen the first of suggested short entry approaches initiated with more to come if the downward move continues. Let us know if you are interested.
Good trading to all!!
Jeff
CB&S
Futures and options trading contain substantial risk of loss and may not be suitable for all investors.
This is a redo of the previous blog but with the correct chart. There isn't much difference and our point remains the same however we felt more comfortable with the chart we had prepared for this blog spot.
It looks to us that today is a very important day for the technical condition of the stock market. We provide above the daily chart of the cash Dow Jones Industrials. We don’t think it necessary to go too far into detail. We believe that there are a few points of major significance that simply need to be noted.
The 50 day moving average at yesterday’s close we show as 10445.80. A key low in the Dow was made December 31 at 10423.10. And finally the major up trend beginning with the March low and joined with the July low comes in today at approximately 10570.00. The Dow, currently at 10415.70 as we write, puts all these key levels in jeopardy.
We’d be very interested in additional thoughts, comments, observations and approaches to this UNFOLDING market situation.
Good trading to all
Jeff
CB&S
Futures and options trading contain substantial risk of loss and may not be suitable for all investors.
It looks to us that today is a very important day for the technical condition of the stock market. We provide above the daily chart of the cash Dow Jones Industrials. We don’t think it necessary to go too far into detail. We believe that there are a few points of major significance that simply need to be noted.
The 50 day moving average at yesterday’s close we show as 10445.80. A key low in the Dow was made December 31 at 10423.10. And finally the major up trend beginning with the March low and joined with the July low comes in today at approximately 10570.00. The Dow, currently at 10415.70 as we write, puts all these key levels in jeopardy.
We’d be very interested in additional thoughts, comments, observations and approaches to this UNFOLDING market situation.
Good trading to all
Jeff
CB&S
