A.M. Look 9/18/13

Commodities…
Gold…1270’s can trap new shorts.
Silver…below 21.40 20.85 is the next Fib zone. The long term point & figure chart shows the possibility of 20.40-60 today with a “Risk On” board late day.
WTI…Crude (Oct)…104.40-60 should bounce the first time down. This is not a level to press direction, rather it is an area to take profits. 106.90 is resistance and the upside pivot.
(X) November is now front month. There is a 55 cent discount from OCT. to November. Trade accordingly.
General Comments or Valuable Insight

Lower metals prices is reflective of  Risk On board. When investors pursue interest bearing instruments ( a return) they shun the non interest bearing assets ( precious metals) and buy Equities ( Interest bearing assets). This is something we’ve been speaking about for months.

I have no idea which currency will lead AUD/JPY today. Yesterday it was the Aussie leading and I was looking to take 1/2 the position off based off the Aussie side of the cross. Today I’ll either get stopped @ break even out after 1:30 CDT or I’ll make a lot of money.

Short Term View…

Today has the potential for big extremes in the Equity Indices and Bonds.

Will it be a high or low for the rest of the week in these instruments? Since I’m not paying 35K a night to dine and rub elbows with the policy makers in D.C. I don’t have a clue.

All I can do is respond to the price action. We’ll write some further thoughts late morning.

Trade instruments off their own technical s

Time Frame Trading.

Trade of the day…

 

Let AUD/JPY ride.
Take profits on 3/4ths of the position @ 94.30

You should have OCO orders working in the cross. ( Sell @ 92.15 Stop or 94.30 OCO) “One Cancels the Other”

This is a Risk On cross. AUD/JPY could go as low as 91.85 and still hold, however the plan is the plan. “Break Even Stop”

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