September Dow Jones
-U.S. stocks dropped early in the sessions, after regulators raised the number of problem banks to a 15-year high. This put the markets on the defensive, as the
market seemed to see reasons to move higher. That all changed as energies recovered from earlier losses and began to rally.
The Dow Jones futures has reached a new high on the August 21st reversal date and closed at the high of the daily range. Typically, this is a reversal pattern, but the trail day (the day following the projected reversal date) closed higher than the opening price instead. This is considered a continuation pattern and suggests the upward trend is still intact. Based on the TC-pattern projections, the Dow Jones futures should continue to trade toward the reaction line target objective (red line), as it approaches the next reversal date, projected for September 9.
September Japanese yen -Long from 1.0710 - Last price @ 1.0712 - After reaching the downward sloping (red) median line support on the August 6th reversal swing date, the Sept Yen reversed and traded up to the downward sloping (red) reaction line, where the market formed a bullish reaction swing pattern. The new reaction swing is the final segment of the longer-term TR pattern that follows a 5-wave continuation pattern. Hold the long position, with the protective stop at 1.0560.
October Crude oil -All energies were trading under pressure through most of Thursday's trading session, after Wednesday's EIA report showed crude supplies were higher than expected. Gasoline futures were also under pressure after it was projected that gasoline demand would decline during the Labor Day holiday. Apparently, everybody changed their mind and decided to drive at the last minute, causing energy prices to surge into the close. October Crude oil found support at the lower parallel action line and rebounded sharply during the final hour of trading, closing at the 20-day SMA. The daily range shows a strong close, with good separation from the lower parallel action line, indicating buyers were in control. Buy Crude oil at 72.95 stop, with a protective stop at 69.80.
September Corn - Long from $3.35 ¼ - Last trade @ $3.23 - Thursday was the projected swing trade date (reversal day) for the September Corn. The market dipped early, trading below the prior day's low (coming within 1 cent of the stop loss) before trading above the prior day's high. Hold the long position, with the protective stop at $3.14.
December Cocoa - Long from 2925 -December Cocoa reached a new high and failed to find any follow-through buyers. The breakout failed and the market retraced quickly. The stop loss was triggered, closing the long position at 2895.
September Dollar Index - Long from 78.52 - Last price @ 78.10 - The long September Dollar index could not overcome resistance at the 20-day SMA. The market was held in check most the trading session, but the last session rally in energies and currencies knocked the dollar down to the lower parallel action line support. Keep the stop loss at 77.80.
September Canadian dollar - Short from 9198 - The Canadian dollar rebounded after touching 9072-the lowest level this week-after energies reversed and surged in the last hour of trading. The short position was closed at 9185 for a slight gain.
December Hogs - It looks like the long-term down trend in live Hogs may be coming to an end. So far, the swing low that occurred on the August 14th reversal date is looking like a major low. The market rallied off the swing low and reached the 20-day SMA, where it has formed a bullish reaction swing and a potential TR pattern. Buy December Hogs at 47.62 stop, with a stop loss at 43.05.
If you have questions on any of the swing trade recommendations, call me at 800-521-0705 or email at firstname.lastname@example.org. For updates throughout the day, you can go to www.reversaltracker.com/blogs or www.tradersnetwork.com.
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Reversal Dates for the week of August 24 - August 28, 2009.
Monday - Soybean oil
Tuesday - Cocoa
Wednesday - Soy meal, Heating oil, S&P, Coffee
Thursday - Cocoa, Gold, Eurocurrency
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