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 my basket of markets move back to the upper range of where they’ve been the past few weeks. The total bullish markets moved up from 21 to 29. We continue to see a risk on move into years end. A quick follow-up on Gold…last week I mentioned Gold found stiff resistance between 1851 and 1882. But, it was still closer to the upper range of this zone than the recent lows of 1767.20. I thought this week could provide some clues on Gold’s next move. Well, we got a strong upside breakout which stalled into the first of two volume @ price resistance clusters. Check this tweet from yesterday here for more information.
Two markets that could prove interesting into the end of the year are the Euro and Copper. Both are trading inside volume @ price resistance clusters. The Euro cluster goes back two years, while the Copper cluster goes back to 2011. Both could have trouble clearing this range without a big correction.
|Very_Bullish (5)||Bullish (4)||Neutral (3)||Bearish (2)||Very_Bearish (1)|