REVERSAL DATES FOR THE WEEK of December 10, 2007
MONDAY -- Gold, Bonds, Canadian Dollar, Euro Currency, J-Yen, Swiss franc, Coffee
TUESDAY -- Cocoa
WEDNESDAY --
THURSDAY -- Soybeans, Soy meal, S&P, Dow
FRIDAY -- Hogs
CURRENT RECOMMENDED POSITION
MARKETS TO WATCH:
MARCH JAPANESE YEN - The Yen traded through the 9096-trigger price, confirming the reaction swing and the longer-term TR pattern in the process. The new reverse/forward count projects a minor reversal date slated for December 10, followed by the major reversal date on December 18 with a projected target of 8880.
MARCH WHEAT - Heavy buying entered the market early and continued throughout the session. The $9.12 trigger price was breeched early in the session, confirming the reaction swing and buy signal. The major reversal date is due on December 12th with a target price of $9.55.
DECEMBER DOW JONES - The Dow Jones has been following the bullish reaction cycle that will end on the December 13 reversal date. The market is currently trading inside the sell window, but appears poised to test the topside of the window at 13925 before December 13.
FEBRUARY GOLD - I like the price action in Gold today. Last night’s low was on the Reaction line support and the fact that the market turned on the line is a positive indicator and closed above the $813.00 trigger price. This price action confirmed a longer-term A-B-C continuation pattern that marks the beginning of another bullish reaction cycle.
MARCH T-BONDS - A bearish TR pattern was confirmed on December 5 and continues to pressure the market with heavy selling. This pattern could mean a significant top in the T-Bonds, but I would like to see a corrective rally before stepping in at this level.
JANUARY SOYBEAN OIL - The Soybean oil has formed a three-day reaction swing underneath the 20-day SMA. This is a potential bearish pattern that, if confirmed, would suggest a significant downside run. The market needs a trade below 4470 to confirm the sell pattern.
MARCH COCOA – The market traded above the pivot high and confirmed the new bullish reaction swing. This price action confirms a continuation of the bullish reaction cycle into the December 24 reversal date with a projected price target of 2230.
*Due to the volatility of the markets, all trade recommendations are subject to change without notice.
How to use the Reversal Dates
Every good trading signal needs three key elements to be considered a successful signal. Time, Price and Pattern. When these three come together, great things can happen. If you can improve your timing or price entry, it can enhance any trading method. That is what the Reversal Dates can do for you. They will identify when the market should react, and at what price level the market needs to be for this to happen. They will even tell you what the market has to do to confirm the trade. The first thing I do is, identify Time.
TIME
The Reversal Date Indicator consists of three parts. The first is Time. This is identified by the projected Reversal date and will indicate which markets are ready to react and when the reaction should occur. The most common misconception about the Reversal dates is the idea that the market must reverse on every signal date, which is not true. Instead, The Reversal Date itself helps to identify the market's reaction. A high percentage of the time, the market will reverse the current trend, but not always. A smaller percentage of the time, the market will form a "continuation pattern," indicating the market will likely continue in the same direction as the prevailing trend. Often this
will occur during a consolidation or after a very small correction.
PRICE
Once the Reversal date has been identified, the next thing to do is monitor the price. If the market is making a new high/low, or if it is trading inside a buy/sell window, then the second component of a trade signal is in place. You now have Time and Price working together. For most traders, that will be enough, but the Reversal Date Indicator takes it one step further.
PATTERN
After extensive research into price patterns, I have identified specific price patterns, which occur during reversal timing. These patterns can be used to confirm the market reversals or market continuations. When, and only when, these three components are all working together, will there be a trade signal generated.
Traders Market Views is a product of Traders Network and all statements herein reflect Traders Network's market research. Traders Network and/or its principals, brokers and employees may or may not have established positions in part or all of the markets herein mentioned. It is possible that some of those positions, if any, are in direct conflict with the market commentary herewith.
THE RISK OF LOSS IN TRADING COMMODITY CONTRACTS CAN BE SUBSTANTIAL. YOU SHOULD, THEREFORE, CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER OR OVER-COMPENSATED FOR THE IMPACT IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT
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