Day trading course – consolidation – showing weakness
Day trading course looking at consolidation in the market and the weakness as large money is not in the market.
As mentioned in our day trading course and in numerous posts, the market makers make direction in the market. We are looking for where the market makers are committed to buy. The CFTC or the Commodity Futures Trading commission releases the composition of open interests for Futures Markets. I normally do not rely on Data from the CFTC but it shows that the Long positions in the market place are held by small speculators. This is not an encouraging sign for the Market as there is a decreasing number of Net Long positions held by Institutional traders. (BUYER BEWARE) Normally the fast innovators in the market playing against Distribution in the consolidation phase will be fished out as investors are normally late into the selling and will sell into the momentum of a short term head fake (to the downside), as Market makers are putting in their next buys into the market.
Remember the saying, “Go away in May.” Well, this could be the start of a declining market as light volume in this top side consolidation bounces off of lower highs. Contrarily, we are in a bullish trend, this could be an area of Consolidation where the market makers are distributing after a long run up, where a correction could be the next buying opportunity. Watch out for sell offs in this light volume and always use a stop. If you are not experienced trading this type of low volume, stay out of the market until you get direction.
This is a classic pattern in Harmonics, with a tendency to continue in the direction of the major Trend. Our major trend is bullish. However, this is also revealing a topping pattern with higher lows. I have set out the areas or control for both the bulls and the bears. There are many traps in this chart with an open gap remaining at 1370. If there is momentum into this area then we might see it break through the support at 1350-54. This is a really dangerous zone for the net long positions as the market could sell off. Distribution to 1383 with a continuation to 1372.50 is possible. Probably out of more bad news with Spain and the pressure on the Euro.
You can see that this is a critical price range as the previous break of support for the move down to the swing lows was from 1391.75. If sellers sell from these levels, watch for the previously mentioned support. If the support holds at this level, then another attempt at 1400 and continuation to 1417.25 could be the next move.
An interesting note on Shale and Natural Gas, it seems that the US demand for foreign oil has decreased, the Glut of Natural Gas has the US in the exporting mode and there could be a demand shift. This has reduced the net call on world oil by almost half. If this is the case, then there is about a 20% speculators premium in Oil and we could see a squeeze on longs come about.
Trade what you see and never listen to the so called experts. If you can’t see the direction of the market and don’t understand how to use a stop, then don’t trade. Never take stock tips, and if it is on the TV as a hot pick, it is too late.
Day trading course focusing on the S&P500 emini futures support and resistance and efficient market hypothesis which states that stock market prices are essentially unpredictable. Be responsible for your trades, do your own work and never rely on others. When searching for a Day trading course, be sure you understand the risks involved in trading.
Day trading course looks at price and direction, the support and resistance and the direction of the market.
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We normally have a Montreal Day trading course, a Calgary Day trading course, and a New Smyrna Beach Day trading course.
The S&P500 emini futures is one of the largest professionally day traded markets in the world. Our Day trading course focuses on training you on how to see price and direction in the marketplace and how to leverage your strengths to take a profit out of the market.
Disclaimer: day trading is high risk, do your own work : The efficacy of both technical analysis and fundamental analysis is disputed by efficient market hypothesis which states that stock market prices are essentially unpredictable. Be responsible for your trades, do your own work and never rely on others. When searching for a Day trading course, be sure you understand the risks involved in day trading.
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