I look for pullback trade set-ups in trending markets and one helpful tool I use is my trend map. I follow 37 markets and break down each market into 5 categories:
double green (very bullish)(5)
single green (bullish)(4)
yellow (neutral or sideways)(3)
single red (bearish)(2)
double red (very bearish)(1)
Here is my futures markets Trend Zone as of Friday’s close. This past week saw a small decline in bullish markets sporting a 4 or a 5 on the spectrum. They dropped from 26 to 21. This is not surprising given the huge run-up most of these markets have had recently. Now let’s follow-up on last week’s interesting markets, Gold and Sugar. Gold did indeed find stiff resistance between 1851 and 1882. However, it is still closer to the upper range of this zone than the recent lows of 1767.20. Next week could provide some clues on Gold’s next move.
Sugar just chopped sideways this week and looks to be entering consolidation. It currently sits at VAL and VWAP support. However, the alignment of the 8:13:21 EMA’s is currently bearish. This is interesting, given the overall look of its chart. I’m interested to see if this near-term support will hold or if a bigger downwards move is coming.
Finally, this weeks most interesting market is Copper, which has been screaming higher since November 2nd. Longs should be cautious as the COT shows long traders holding record long positions for a second consecutive week. There was only a slight correction last time this occurred in late September. But this market has had a much larger run-up this time around. It wouldn’t hurt to take profits up here. I will be posting an article on Barchart.com this weekend with more details about Copper.
|Very_Bullish (5)||Bullish (4)||Neutral (3)||Bearish (2)||Very_Bearish (1)|