For the Week of April 21, 2014
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:
Euro FX
The June 2014 Euro FX contract established a 1-2-3 Top Formation. The number one point is the twelve-month contract high of 1.3966 (3/13/14). The number two point is the 4/04/14 low of 1.3669. The contract rallied to 1.3903 (4/11/14), setting up the number three point of the formation. A break through the number two point triggers an entry to the downside. An aggressive short entry, using the Momentum Entry Technique (M.E.T.), is a break of the 1.3787 low (4/15/14). The MACD, a trend indicator, is above the baseline and slightly bearish. The Trend Seeker (a U.S. Chart Company tool to help identify market trend) is currently neutral, with a neutral ranking. A 1-2-3 Formation is a trend reversal formation though. Stochastics, a Momentum indicator, is strong to the downside well above the “over sold” territory. A 20-day Exponential Moving Average and a 50-day Moving Average are converging. A crossover of these Moving Averages, which should occur above the number two point, is a bearish indicator. A downside target is the 1.3482 low (1/31/14).
Chicago Wheat
The July 2014 Chicago Wheat contract is setup for an entry to the downside using the Momentum Entry Technique (M.E.T.). An entry would be a break of the 663’6 low (4/11/14). The MACD, a trend indicator, is bearish above the baseline. The Trend Seeker (a U.S. Chart Company tool to help identify market trend) is currently up though. Stochastics, a Momentum indicator, is strong to the downside above the “over sold” territory. A 20-day Exponential Moving Average and a 50-day Moving Average are converging. A crossover of these Moving Averages, which should occur above the number two point, is a bearish indicator. A downside target is a support level near the 624’2 high (2/26/14). A potential stop loss can be placed above the 718’2 (4/16/14) high or just the 7.00 price level.
Feeder Cattle
The August 2014 Feeder Cattle is grinding along a lower trend line while potentially formed a top at 183.000 (4/14/14). The touches on the lower trend line are 169.825 (2/06/14), 174.100 (3/05/14), 177.900 (4/01/14), and so far today’s low of 180.900. A close below the lower trend line would trigger a short entry opportunity. The MACD, a trend indicator, is above the baseline and slightly bearish. The Trend Seeker (a US Chart Company tool to help identify market trend) is currently up, with a weak ranking. The Trend Seeker should be down for a short entry confirmation. Stochastics, a Momentum indicator, is strong to the downside well above the “over sold” territory. A 20-day Exponential Moving Average is angling down, but a 50-day Moving Average is angling up. A crossover of these Moving Averages, which should occur above the number two point, is a bearish indicator though. A downside target is a support level near the 170.500 level. A potential stop loss can be placed above the twelve-month contract high of 183.000.
Risk Disclosure
STOP ORDERS DO NOT NECESSARILY LIMIT YOUR LOSS TO THE STOP PRICE BECAUSE STOP ORDERS, IF THE PRICE IS HIT, BECOME MARKET ORDERS AND, DEPENDING ON MARKET CONDITIONS, THE ACTUAL FILL PRICE CAN BE DIFFERENT FROM THE STOP PRICE. IF A MARKET REACHED ITS DAILY PRICE FLUCTUATION LIMIT, A "LIMIT MOVE", IT MAY BE IMPOSSIBLE TO EXECUTE A STOP LOSS ORDER.
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.
