A blog of market direction using technical analysis.
Each week SOM writes a blog entry for each of the categories followed.
Metals - Copper, gold, and silver
Oil & Gas – WTI Crude, Natural Gas
Currencies – US Dollar futures, US30yr T-Bond futures
S&P 500 Futures – The ES mini contract.
While SOM will not send out trade signals, the weekly blog entries will have the trade entry levels, expected profit targets and a stop level. Each trader will use those to make their own decisions at those levels.
The weekly blog entry will describe the trade pressures and evaluate the volume trends. The current trade direction, its entry price and the next expected target level are provided. Each trade will have a specific “stop” level described as a loss control measure. This stop will be adjusted in edits to the blog as the trade progresses.
Each blog entry will have an assessment of the buy and sell pressures on the specific futures contract, up or down. Volumes (net volumes) are described as bearish or bullish. Two time frames are examined, weekly and daily; and, occasionally, the 60 minute chart is made reference to when trying to fine tune an entry. Both time frames will produce support and resistance levels. The weekly charts are used to determine the longer term trade direction. The Daily chart is used to determine the entry levels for a trade.
Each trade will also have a reversal price level calculated. Depending on the trade pressures and volume trends at the time that reversal price is hit, the reversal price will be acted on first as a “stop” or, may actually create a new trade in the opposite direction.
So, generally, every market traded will have a current trade direction, the next target level, and a level where that direction is likely to reverse. Once the rhythm the particular market is established trading becomes much more easily managed.
A list of virtual trades has been kept of the last few years and is updated monthly in Trade Results.
As always, Futures Trading embodies a high degree of risk and uses leverage that could cause you to lose more than you invested. You are responsible for your own trading. You must be aware of the exchange rules.
There is a high degree of risk in trading.
The material presented in this commentary is provided for informational purposes only and is based upon information that is considered to be reliable. However, neither South Ocean Management, Inc. (SOM) nor its affiliates warrant its completeness, accuracy or adequacy and it should not be relied upon as such. Neither SOM nor its affiliates are responsible for any errors or omissions or for results obtained from the use of this information. Past performance, including the tracking of virtual trades and portfolios for educational purposes, is not necessarily indicative of future results. Neither ChasW or anyone related to SOM is a registered financial adviser. They may hold positions in the securities mentioned, which may change at any time without notice.
Do not buy or sell based on anything that is written here; make your own decisions, the risk of loss in trading is great. The authors, the publisher, and all affiliates assume no responsibility for your trading results.
This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument. Securities or other financial instruments mentioned in this material are not suitable for all investors. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only intended at the moment of their issue as conditions quickly change. The information contained herein does not constitute advice on the tax consequences of making any particular investment decision. This material does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation to you of any particular securities, financial instruments or strategies.
Before investing, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
You are responsible for your own trading.