For the Week of October 28, 2013
The Trade Spotlight advisory service applies the GBE trading methodology (buying or selling commodity contracts based on breakouts of chart formations and technical indicators) to identify one to two trade setups per week.
Highlighting This Week’s Potential Breakouts:
The December 2013 British Pound contract is set up for a breakout to the upside. A close above the twelve month contract high of 1.6252 (10/01/13) will trigger a long entry based on a Hi-Lo Breakout formation. The Trend Seeker (A US Chart Company tool to help identify market trend) is Up with a Weak ranking. Along with the Trend Seeker ranking, various technical indicators reveal a market potentially ready to head lower in price. The MACD, a trend indicator, crossed over bearish above the baseline. Stochastics, a Momentum indicator, is in “over bought” territory. If prices head lower and the Trend Seeker changes to a Down trend, a 1-2-3 Formation is set up to trade this market to the downside. The breakout point of the 1-2-3 Formation is the low of 1.5886 (10/16/13), this is also a trend line breakout. The two other points of the 1-2-3 Formation are the high of 1.6252 (10/01/13, the number one point) and 1.6250 (10/23/13, the number three point).
The December 2013 Natural Gas contract is range bound within a Channel formation. There are touches to the upside near 4.036 (7/10/13), 4.061 (7/18/13), and 4.041 (9/19/13). There are touches to the downside near 3.629 (9/26/13), 3.648 (10/03/13), and 3.660 (10/24/13). The Trend Seeker (a US Chart Company tool to help identify market trend) is Neutral. The MACD, a trend indicator, is also neutral. The 20-day and 50-day Moving Averages are relatively flat. The Stochastic indicator, a Momentum indicator, is near the “over sold” territory. This contract is setup for “writing” options, both calls and puts, to collect premium. December options have 28 days until expiration, January options have 59 days until option expiration. It would be best to be above 4.251 (6/19/13) and below 3.469 (8/08/13).
The January 2014 Feeder Cattle contract made a new twelve month high at 169.425 (10/11/13) and since has been trading sideways. The lows around 165.725 (10/22/13) have setup a support level. A break and close below this level will trigger an entry to the downside. The Trend Seeker (a US Chart Company tool to help identify market trend) is Up, but with a Weak ranking. The MACD, a trend indicator, has crossed over to bearish already. Stochastics, a Momentum indicator, is above the “over sold” territory. A 20-day Exponential Moving Average (166.088) is angling downward. A break below this Moving Average coincides with the break of the support level. A longer-term potential downside target is the low of 155.625 (8/26/13).
THIS MATERIAL IS CONVEYED AS A SOLICITATION FOR ENTERING INTO A DERIVATIVES TRANSACTION.
THIS MATERIAL HAS BEEN PREPARED BY A DANIELS TRADING BROKER WHO PROVIDES RESEARCH MARKET COMMENTARY AND TRADE RECOMMENDATIONS AS PART OF HIS OR HER SOLICITATION FOR ACCOUNTS AND SOLICITATION FOR TRADES; HOWEVER, DANIELS TRADING DOES NOT MAINTAIN A RESEARCH DEPARTMENT AS DEFINED IN CFTC RULE 1.71. DANIELS TRADING, ITS PRINCIPALS, BROKERS AND EMPLOYEES MAY TRADE IN DERIVATIVES FOR THEIR OWN ACCOUNTS OR FOR THE ACCOUNTS OF OTHERS. DUE TO VARIOUS FACTORS (SUCH AS RISK TOLERANCE, MARGIN REQUIREMENTS, TRADING OBJECTIVES, SHORT TERM VS. LONG TERM STRATEGIES, TECHNICAL VS. FUNDAMENTAL MARKET ANALYSIS, AND OTHER FACTORS) SUCH TRADING MAY RESULT IN THE INITIATION OR LIQUIDATION OF POSITIONS THAT ARE DIFFERENT FROM OR CONTRARY TO THE OPINIONS AND RECOMMENDATIONS CONTAINED THEREIN.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE PERFORMANCE. THE RISK OF LOSS IN TRADING FUTURES CONTRACTS OR COMMODITY OPTIONS CAN BE SUBSTANTIAL, AND THEREFORE INVESTORS SHOULD UNDERSTAND THE RISKS INVOLVED IN TAKING LEVERAGED POSITIONS AND MUST ASSUME RESPONSIBILITY FOR THE RISKS ASSOCIATED WITH SUCH INVESTMENTS AND FOR THEIR RESULTS.
TRADE RECOMMENDATIONS AND PROFIT/LOSS CALCULATIONS MAY NOT INCLUDE COMMISSIONS AND FEES. PLEASE CONSULT YOUR BROKER FOR DETAILS BASED ON YOUR TRADING ARRANGEMENT AND COMMISSION SETUP.
YOU SHOULD CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES AND FINANCIAL RESOURCES. YOU SHOULD READ THE "RISK DISCLOSURE" WEBPAGE ACCESSED AT WWW.DANIELSTRADING.COM AT THE BOTTOM OF THE HOMEPAGE. DANIELS TRADING IS NOT AFFILIATED WITH NOR DOES IT ENDORSE ANY TRADING SYSTEM, NEWSLETTER OR OTHER SIMILAR SERVICE. DANIELS TRADING DOES NOT GUARANTEE OR VERIFY ANY PERFORMANCE CLAIMS MADE BY SUCH SYSTEMS OR SERVICE.
GLOBAL ASSET ADVISORS, LLC (“GAA”) (DBA: DANIELS TRADING, TOP THIRD AG MARKETING AND FUTURES ONLINE) IS AN INTRODUCING BROKER TO GAIN CAPITAL GROUP, LLC (GCG) A FUTURES COMMISSION MERCHANT AND RETAIL FOREIGN EXCHANGE DEALER. GAA AND GCG ARE WHOLLY OWNED SUBSIDIARIES OF STONEX GROUP INC. (NASDAQ:SNEX) THE ULTIMATE PARENT COMPANY.