Profiting with the Profile Patiently 10–31–16
NEWS: Despite the small number of news events this week the market couldn’t find any buyers and sold off most of the week. The mudslinging, investigations and allocations are heating up the presidential election here in the US. We have a lot of economic news out this week and we expect the markets to be volatile as we move closer to the Nov. 8th election. Buckle up that seat belt, the ride could be fun.
Here’s what we’re looking for in the coming week:
- In the financials: Nasdaq (NQ) — Price failed after making an all-time high and has closed on a support area. There is a great chance of further selling in the NQ. All we need to do is look at the indices to see why. In the S&P (ES) — the ES touched the risk zone and could have gotten you short. We are not short the ES. One thing to note is the ES never made new highs this week as the NQ did. The Russell (TF) — We are short the TF. Price move into our risk zone and triggered us short. It is a great short. We have taken some off at 1190 and hold some for a test of 1170. If you are short trim and trail. If you missed this trade you can use 1207 to 1216 as a new risk zone for a short. Don’t chase.
- In metals: Gold (GC) — Goldie is still consolidating. This suggests more downside for now. We are short and looking for her to take out the recent lows.
- In currencies: The Euro (6E) — Had a nice bounce this week and is getting close to our risk zone. We will be looking for this area to get short. The area is 1.10248 to 1.10499
- In energy: Crude (CL) — Crude still remains weak and is getting ready to enter our risk zone. We will look for longs in the zone. Wait for the trigger.
- Interest rates: Notes (ZN) — As we mentioned last week. The Notes path of least resistance is to the downside. The ZN made new lows and could find any buyers. Our risk zone is below and we will be watching for a trigger from 129’025 to 128’250. Bonds (ZB) — Like the ZN the ZB is still weak. It touch our risk zone to the tick. We will look for a second test to see if it triggers. With equities selling this week we are expecting a bounce in the Bonds and Notes.
- Grains: Soybeans (ZS) — Beans followed Corn to the upside despite the bearish crop report a week ago. We have a new risk zone for beans from 996 to 988. If we can get long our final target would be the 1055 area. Corn (ZC) — Corn trigger long for us and we covered the position late Friday. Any pullbacks are buyable if price closes below 345 then the zone is gone. If you are long our target is 363.
Last week, we hit the $25K mark after 19 weeks of ideas!!! These are defined risk opportunities. Obviously every trader is responsible for his or her own risk, but we hope you are using these ideas to your advantage. If your trading is benefitting from these weekly plans, we’d love to hear stories!!
Define your risk and trade well!
the MPTA team
ps. Session 3 of our QuickLaunch Workshop is coming November 2!! This session focuses on how to use Auction Theory (using Market Profile and Volume Profile tools) to identify trading opportunities everyday. This session is the capstone and final compliment to the other 2 sessions. After this session, you should be able to approach the market everyday and generate a high probability trading idea for yourself based on reading of the profile. Reminder, these sessions are meant to compliment each other and also work as a standalone.
If you are unsure whether or not the workshop will meet your current development needs, schedule a call with us. We only want you in the workshop if it’s going to move your trading forward….it’s that simple.