The November contract appears to be having some problems with an area of resistance at the $84.50 level. With both our long-term monthly and intermediate term Trade Triangles negative, we expect this market to have another push down to test the $80 level and possibly the $78 a barrel level. While this market is presently higher for the week, it is lower for the month and the quarter. Intermediate and Long-term traders should continue to be short the crude oil market.
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Suggested Trading Instruments:
Non Leveraged ETF's: (Long USO) (Short the ETF USO)
Leveraged ETF's: (Long UCO) (Short DTO)
Futures: Contracts are available to trade this market. Contact your broker
Options: Options Contracts are available to trade this market.Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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DOLLAR INDEX
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Monthly Trade Triangles for Long-Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = + 85
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The dollar index happens to be lower for the week as of this writing, however it is higher for the month and also the quarter. In fact, a close around current levels would represent the best close in three quarters for this index. We continue to be long this market based on both weekly and monthly Trade Triangles. However, we would like to see this market begin to gain some upside traction soon, otherwise it is in danger of rolling over and negating the powerful energy field that's below this market. Let's just be patient, and see how this market plays out on Thursday and Friday. This index is coming from a large energy field that is capable of carrying it much higher, possibly up to the 80.00 – 81-00 area. Intermediate and Long-Term traders should maintain long positions with the appropriate money management stops in place.
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Suggested DOLLAR INDEX Trading Instruments:
Non Leveraged ETF's: (Long UUP) (Short UDN)
Leveraged ETF's: (Long) (Short)
Futures: Contracts are available to trade this market. Contact your broker
Options: Options Contracts are available to trade this market.Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.
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REUTERS/JEFFERIES CRB COMMODITY INDEX
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Monthly Trade Triangles for Long-Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trends = Negative
Daily Trade Triangles for Short-Term Trends = Negative
Combined Strength of Trend Score = – 100
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With all three of our Trade Triangles negative, we would not be surprised to see this index pushed down once again and testing the 300 level. It is also possible for this Index to reach our ultimate target zone of 294.47, which represents a 61.8% Fibonacci retracement. The measurement came from the highs that were seen around April 29th and the lows that came in around August 25th of 2010. We are going to rely on our Trade Triangles, as the trend is clearly down in this market. This index is closing down for the month and the quarter. Remember the trend is your friend, and we expect the trend to continue until our Trade Triangles inform us that the trend has changed. Short, Intermediate and Long-Term traders should maintain short positions with the appropriate money management stops in place.
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Suggested REUTERS/JEFFERIES CRB COMMODITY INDEX Trading Instruments:
Non Leveraged ETF's: (Long CRBQ) (Short the ETF CRBQ)
Leveraged ETF's: (Long UCO) (Short CMD)
Futures: Contracts are available to trade this market. Contact your broker
Options: Options Contracts are available to trade this market.Contact your broker
WARNING: Liquidity is some ETFs is very thin. Contact your broker for more information.