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I've watched the June DM grind down for a couple of months now and was a bit
leery of jumping on Monday's inside day setup for a long trade, however
there should be a good chance to get long on a price/time retracement. The
June Dollar contract broke down through a well established bull trendline
this morning so the outlook for foreign currencies should be generally
bullish.
June Live Cattle provided a low risk ($250/contract) opportunity to get
short on Tuesday's outside reversal day for a trade down to next support.
June Corn had an inside day on Friday followed by a very bullish outside
reversal on Monday providing opportunity to enter trade on $175/contract
risk.
Generally, the futures markets are exhibiting a great many major trend
changes which appear to be underway in early stages or pending. Without an
established trend it is often possible to enter position trades with very
tight stops rather than risking thousands per contract. One of the beauties
of the futures market is the ability to diversify across a number of
non-correlated markets - I currently have positions on in 5 different
markets, 3 long and 2 short.
Earl
----- Original Message -----
From: Gitanshu Buch
To: RealTraders Discussion Group
Sent: Wednesday, May 05, 1999 6:56 AM
Subject: FUT: June Crude and Astrology
Night session Crude is down 21 cents ($210 per contract) from Tusday close.
I have a feeling this dump is just beginning.
Congratulations are in order to Norman Winski, who once again has nailed the
turn date (refer his Neptune turns retrograde May 6 email) well in advance -
in this case for Crude oil.
For the non-astrology buffs, in June/July Crude, June/July Heat and July
Gasoline going into 5/5 trading we have:
- an Inside Day
- the narrowest range of the past 4 days
- historical volatility under 50% of mean
Past 3 setups for June Crude, and the resultant price behavior is enclosed
for your research purposes.
This method was taught to us by Larry Connors and Linda Bradford Raschke
across 3 books. For those trading FX, the June/Sep Swiss contracts exploded
out of exactly the same setup yesterday.
This case illustrates yet another time when multiple methods come together
to deliver potentially 2 sigma moves in some direction - as we should see in
a few equities today (SCH, CAT, NKE, HWP) in addition to follow-through in
Crude and Swiss.
Voluntary disclosures:
1. I am a Continuing Education student of astrology, and Mr. Winski is my
teacher. Fellow traders willing to go through a 2+ year learning process
from scratch to understanding to trading should sign up for his services.
For the uninitiated, you will find the going tough. Once it sinks in, it
helps you understand things in a different light. This is not a paid
advertisement, I only have an ongoing student-teacher relationship with him
and this Crude example is happening now.
2. I have positions in the aforementioned commodities and equities.
3. These are NOT trade recommendations.
Regards
Gitanshu
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