Coffee on the Inertia Watch List Markets with high energy reading are in motion and have typically been in motion for a few days or weeks. When we combine high energy (inertia) with strong existing trends ... trading opportunities arise to take full advantage of the trend. Coffee (KC) is on the list so our [...]
Gold running into short-term resistance levels This watch list focuses on markets that are close to support or resistance levels. These markets are likely to reverse course over the short-term and present possible trading opportunities. Gold, as an example, is modestly overbought and running into various levels of resistance. When a market shows up on this list [...]
Lean Hogs is a Focus Market that's been added to Watch List #6. This list centers on markets that are experiencing increased energy combined with continued tracking of established trends. Lean Hogs recently broke above key resistance levels which generated buy signals. As with most breakouts, the thrust will retrace which will present NEW trading opportunities. [...]
A number of the grain markets are currently in oversold territory according to our Elastic Level (EL) indicator. Corn, in particular, is strongly oversold with a current reading of -8.25 as of Friday's close. As technicians know ... a market that is oversold can remain in oversold territory for extended periods. For this reason we use [...]
System traders funnel all of their technical indicators into specific buy and sell signals. They then test those systems for stability. The more stable the systems performance is over time, the higher its ranking. If you test enough systems that follow multiple trading styles (trend, momentum & pattern) and time frames (30/45/60/90/120/EOD & EOW), you can [...]
When you review the performance of a market, you typically focus on Percent Return or Point Value Change. We all do it because we have been trained to look at leaderboards to find out which markets made the biggest moves up or down. The problem with these lists is that they focus on absolute moves [...]
Percent Profitable is not an evaluation metric … it’s a perspective tool. In the real world, Percent Profitable provides no worth when reviewing the performance of a system. Think about it, a friend, colleague, newsletter writer or system vendor tells you they are 90% accurate in their trade selections. You think WOW, they must really [...]
Wheat (W) has been very quiet for a number months. Once this consolidation phase ends we could see a big move with increased volatility. There are many ways to define volatility. For this analysis we are using an eight week standard deviation of percent return data and then calculation extreme upper/lower levels based on dynamic [...]
The Ten Year Notes (TY) have been on a tear since the beginning of the year. Fact is, the Ten Years Notes, are up 2.31% for the month and recently hit a weekly high watermark on our Underwater Volume Index chart (see Chart 1 below). This surge to new highs has our Energy Level indicator [...]
Futures trading runs 24 hours a day from Sunday night until Friday's close. It can be done with a dedicated team of employees working in shifts or with a slew of computers following automated systems. Either way, running a trading desk, is obviously a full time job. In this blog post I thought I'd show a snap shot [...]
