For the Week of January 12, 2015
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 March 2015 mini Nasdaq contract setup a 1-2-3 Top Formation. This is a trend reversal formation. The #1 point is the twelve-month contract high of 4,345.25 (11/28/14). The #2 point is the low of 4,080.75 (12/16/14). The #3 point is the high of 4,322.00 (12/26/14). This high was made on a rally from the #2 point but did not surpass the twelve month contract high. Additionally, the market sold-off to 4082.00 (1/06/15) but did not break the #2 point. A break of the #2 point triggers a short entry opportunity. The Trend Seeker (a U.S. Chart Company tool to help identify market trend) is down, providing the short entry trade confirmation. The MACD, a trend indicator, agrees with Trend Seeker as it’s bearish. The Stochastic, a Momentum indicator, is bearish but relatively flat. A 20-day Moving Average just crossed over a 50-day Moving Average. That is a bearish signal. A downside target is the potential support level at 4,000.00.
The March 2015 Soybeans contract is setup in a Flat Top Triangle Formation. There are touches on the relatively flat upper trend line at 1068’2 (12/29/14), 1066’6 (12/10/14), and 1066’2 (10/30/14). There are touches on the lower trend line at 1015’4 (01/12/15), 1006’2 (1/05/15), 1007’0 (1/02/15), 932’2 (10/13/14), and 920’6 (10/01/14). A close below the lower trend line triggers a short entry opportunity. The Trend Seeker (a U.S. Chart Company tool to help identify market trend) is neutral. For trade confirmation to the downside the trend must be down. The MACD, a trend indicator is already bearish. The Stochastic, a Momentum indicator, is bearish but relatively flat. A 20-day Moving Average is nearing a cross over of a 50-day Moving Average. A cross over of these two averages is a bearish signal. A downside target is the 920’6 (10/01/14) twelve month contract low.
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.