Daily Swing Trading Worksheet
REVERSAL DATES FOR THE WEEK of June 8-12, 2009
MONDAY -- Heating Oil, S&P, Dow Jones
TUESDAY -- Cattle, Eurocurrency
WEDNESDAY -- Crude Oil, Gold, Dollar Index, Japanese Yen
THURSDAY -- T-Bonds
FRIDAY -- Soybeans, British Pound, Coffee
CURRENT RECOMMENDED POSITION
MARKETS TO WATCH:
1-July Soybeans - Long from $12.31 - TC - $12.32 1/2 - Hold the long position, with the protective stop at $12.14, with the target price at $12.63. The cycle remains bullish into the June 12th reversal date.
2-July Soy Meal
- Long from $399.00 - TC - $401.70 - The bullish swing pattern formed above the centerline support and the 20-day MA and the market closed above the previous swing point high. Hold the long position, with the protective stop at $390.10 and a target at $426.10. -- The next reversal date is due on June 19.
3-June Japanese Yen
- The sell was triggered at 1.0351. The Yen continued lower throughout Friday, reaching a low of 1.012 before closing at 1.0161 on Monday. The next reversal day is due on Wednesday, so I think the market may rebound into that day. Therefore, if you are still holding short positions, I recommend covering and waiting for the next swing pattern signal.
4-July Copper - A new reaction swing has formed above the continuation pattern and the 20-day MA. -- Buy Copper at 233.50 stop, with a protective stop at 222.90.
5-July Heating Oil -There is a pattern inside the recent consolidation I like to call a strong advance pattern. It triggered, Heating Oil could see a quick run to the centerline at 1.900. -- Buy the Heating Oil at 1.8145 stop, with a protective stop at 1.7390.
*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
ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES.
