Tradable Patterns

Trading liquid global markets

Netflix (NFLX) Double Top In Progress

Netflix (NFLX) Weekly/Daily/4hr/Hourly/30min/5min

NFLX’s slide yesterday puts it back into the spotlight, as it can be seen breaking below an uptrend support line drawn in my 4hr chart. Significantly, on the daily, you can see as well how the RSI and Stochastics are both turning down. The lagging daily MACD is also close to a negative crossover. I will look to go short today in the 475-480 range as NFLX continues forming its double top.

Netflix (Wkly/Dly/4hr/Hrly/30min/5min) Charts

Silver (CME SI Dec14) Weekly/Daily/4hr/Hourly/30min/5min

SI had a quick dip to the 19.35 level yesterday followed by a V shaped recovery. The daily RSI, Stochastics and MACD all appear to be turning higher. I will be looking to buy today in the 19.4-19.5 range and exit in the 19.7-19.8 range. Note that I’m now profiling the December contract as the rollover from September is now progressing.

Silver (Wkly/Dly/4hr/Hrly/30min/5min) Charts

Arabica Coffee (ICE KC Dec14) Weekly/Daily/4hr/Hourly/30min/5min

KC had a minor pullback yesterday early in the session and bounced higher as expected, before retracing again towards the close. As can be seen in the hourly chart, it is now sitting at channel support. I’ll remain cautious early in today’s session as the hourly MACD is beginning to negatively crossover. I will look to enter longs in the 1.97-1.98 range once the hourly MACD is more neutral, as the 4hr, daily and weekly charts suggest we are simply digesting Monday’s rally, before resuming the march higher.

Coffee (Wkly/Dly/4hr/Hrly/30min/5min) Charts

Wheat (CME ZW Sep14) Weekly/Daily/4hr/Hourly/30min/5min

ZW’s signals across its weekly, daily and 4hr charts are aligned fairly bullishly now, and I will look to buy today in the 553-557 range.

Wheat (Wkly/Dly/4hr/Hrly/30min/5min) Charts

VIX (CFE VIX Sep14) Weekly/Daily/4hr/Hourly/30min/5min

The VIX continues coiling for its rally as seen by the daily MACD positive crossover that’s in the early stages of forming, along with the bottoming action on even the weekly RSI, Stochastics. VIX continues to be an interesting buy in the 13.25-13.45 range.

VIX (Wkly/Dly/4hr/Hrly/30min/5min) Charts

Nasdaq100 (CME NQ Sep14) Weekly/Daily/4hr/Hourly/30min/5min

The NQ’s beginning to trade sideways outside of the channel support as seen in my 4hr chart. Together with the 4hr RSI, Stochastics and MACD turning down, profittaking is bound to pick up steam. The number of recent Dojis in the daily chart should be a warning to those who are still going long at this point. I will wait for the daily MACD to flatten before initiating shorts.

Nasdaq100 (Wkly/Dly/4hr/Hrly/30min/5min) Charts

S&P500 (CME ES Sep14) Weekly/Daily/4hr/Hourly/30min/5min

The ES can be seen in the 4hr chart drifting towards a channel support line, which remains purely hypothetical given that there hasn’t been any support found along this line. I’ve drawn it simply by taking a line parallel to the existing uptrend resistance line and extending it from the bottom of the current rally. As the daily MACD is still pointing up, I’m going to wait patiently for it to flatten before going short.

S&P500 (Wkly/Dly/4hr/Hrly/30min/5min) Charts

Corn (CME ZC Dec14) Weekly/Daily/4hr/Hourly/30min/5min

ZC continues to underperform ZW, with its weekly RSI, Stochastics and daily Stochastics and MACD green line pointing slightly down. I will remain flat ZC until these indicators show signs of turning up again, despite the initially seemingly successful test of the triple bottom line seen in the 4hr chart.

Corn (Wkly/Dly/4hr/Hrly/30min/5min) Charts

Gold (CME GC Dec14) Weekly/Daily/4hr/Hourly/30min/5min

I’m less drawn to GC as it continues to have a bit of gap between its current level and triangle support as seen in the weekly chart. As seen though the daily chart, GC no longer sits that near downward channel support, and in the 4hr chart, it is right at an upward sloping channel support line. This channel of course could simply be a pennnant, presaging a continuation of the downtrend seen in the daily chart. I will hold off on taking a position today favouring the above trade ideas.

Gold (Wkly/Dly/4hr/Hrly/30min/5min) Charts

Cotton (ICE CT Dec14) Weekly/Daily/4hr/Hourly/30min/5min

I missed a bit more upside on CT yesterday, but that’s fine, as it appears to have finally hit resistance as seen by the horizontal line drawn on the daily chart. I will wait for this one to pullback before entertaining longs in the .65 to .655 range.

Cotton (Wkly/Dly/4hr/Hrly/30min/5min) Charts

Tesla (TSLA) Weekly/Daily/4hr/Hourly/30min/5min

TSLA appears a bit further off than NFLX in putting in a double top. Its daily and 4hr RSI, Stochastics and NACD are indeed tiring, which suggests TSLA is vulnerable to a drop today. Until there are several consecutive days of sustained selling, the weekly MACD will likely remain pointing up.

Tesla (Wkly/Dly/4hr/Hrly/30min/5min) Charts

Natural Gas (CME NG Oct14) Weekly/Daily/4hr/Hourly/30min/5min

Although the weekly and daily RSI, Stochastics and MACD are all turning up, nearer term, NG has become increasingly tired and may pullback on Thursday’s inventory figures. I will remain flat for the balance of the week. Note the change in contract month to the Oct given the rollover taking place.

Natural Gas (Wkly/Dly/4hr/Hrly/30min/5min) Charts

BUXL (Eurex GBX Sep14) Weekly/Daily/4hr/Hourly/30min/5min

The GBX continues sitting off my radar until it hits its all-time April 2012 high. I will then watch for its weekly MACD to stop rising and begin falling, and for its weekly RSI and Stochastics to begin rolling over.

Buxl (Wkly/Dly/4hr/Hrly/30min/5min) Charts

Note the daily reshuffling of the charts. As mentioned, they’re ordered by how favourable the risk:reward of the trade idea appears based on my analysis for each day.

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