Morning Update for Tuesday, November 19th

Major Support/Resistance Levels- ES

*Highlighted regions denote strong areas of support (green)/resistance (red) & mid-range level (brown)

Daily Outlook

Prior Day Market Sentiment: Bearish
Overnight Inventory Change: Neutral
Inside Day/Outside Day: Inside
Location of price relative to market profile:Below value area
Notable overnight futures markets changes:
Up: ZW (Wheat), ZO (Oats), NG (Nat Gas), 6A (Aussie Dollar)
Down:--



News for the day:

Employment Cost Index: 8:30a


*Red highlight means the news is a market moving event;
yellow highlight means the news merits attention


Projected ES price action for the day:Yesterday was the first bearish day we've seen in what seems like a long time.  The late afternoon liquidation break saw the bulls do some profit taking and the bears riding the wave of the selloff.  As a result, the point of reference for today will be Monday's low of 1784.75. If prices can clear and hold then there is room to run to the previous week's high. On the other hand, if the bulls can keep the market within Monday's range, then there should be more choppy action, particularly if prices climb back into the value area.  Longterm edge clearly still is with the bulls, but the path of least resistance on an intraday basis is with the bears.

Stock of the Day: Salesforce.com (CRM)

ES Daily Trend: Strongly Bullish

ES Weekly Trend:  Strongly Bullish

ES Monthly Trend:  Strongly Bullish

Morning Update for Monday, November 18th

Major Support/Resistance Levels- ES

*Highlighted regions denote strong areas of support (green)/resistance (red) & mid-range level (brown)

Daily Outlook

Prior Day Market Sentiment: Bullish
Overnight Inventory Change: Net long
Inside Day/Outside Day: Inside
Location of price relative to market profile:Above value area
Notable overnight futures markets changes:
Up: SB (Sugar), NG (Nat Gas)
Down:ZC (Corn), RB (Heating Oil), SI (Silver), ZO (Oats), PL (Palatium), NKD (Nikkei), HO (Heating Oil), GC (Gold), CL (Crude Oil)



News for the day:

Treasury International Capital: 9:00a
Housing Market Index: 10:00a


*Red highlight means the news is a market moving event;
yellow highlight means the news merits attention


Projected ES price action for the day:The S&P is poised to open near Friday's high and once again made a new all-time high during the overnight session. This type of price action is very bullish because it is indicative that traders overseas are finding value in the markets and are lifting offers even before the US markets open for business. Similar to Friday, the previous day high of 1796 will be the line in the sand. If prices hold above, then continued buying pressure should be expected. Bears, tread carefully. Edge to the bulls.

Stock of the Day: Boeing Co. (BA)- New buy orders by Middle Eastern companies

ES Daily Trend: Strongly Bullish

ES Weekly Trend:  Strongly Bullish

ES Monthly Trend:  Strongly Bullish

Cloud Trader Weekend Update 11/17/13

A review of the week that was in the markets and a preview of the week ahead.

Morning Update for Friday, November 15th

Major Support/Resistance Levels- ES

*Highlighted regions denote strong areas of support (green)/resistance (red) & mid-range level (brown)

Daily Outlook

Prior Day Market Sentiment:Bullish
Overnight Inventory Change: Net long
Inside Day/Outside Day: Outside
Location of price relative to market profile:Above value area
Notable overnight futures markets changes:
Up: KC (Coffee), NKD (Nikkei), CT(Cotton), 6N (New Zealand Dollar)
Down:SB (Sugar), PA (Palladium), ZM (Soybean Meal)



News for the day:

Empire State Mfg Survey: 8:30a
Import & Export Prices: 8:30a
Industrial Production: 9:15a


*Red highlight means the news is a market moving event;
yellow highlight means the news merits attention


Projected ES price action for the day: The bias continue to be to the top side as prices have made another all-time high during the overnight session. As a result, the key level of support will be the previous day high of 1789. If there is any selling at the open and buyers prop prices above the level, then continued buying should be expected.  Prices typically don't make highs during the European session, so the higher probability is at least a test of the price point. At this point, the bears will look to get prices within yesterday's range, but they have their work cut out for them. Edge to the bulls.

Stock of the Day:Exxon Mobil (XOM)- Warren Buffett purchased large stake in company

ES Daily Trend: Strongly Bullish

ES Weekly Trend:  Strongly Bullish

ES Monthly Trend:  Strongly Bullish

Morning Update for Thursday, November 14th

Major Support/Resistance Levels- ES

*Highlighted regions denote strong areas of support (green)/resistance (red) & mid-range level (brown)

Daily Outlook

Prior Day Market Sentiment: Bullish
Overnight Inventory Change: Net long
Inside Day/Outside Day: Outside
Location of price relative to market profile: Above value area
Notable overnight futures markets changes:
Up: NKD (Nikkei), PL (Palatium), SI (Silver), GC (Gold), OJ (Orange Juice), ZW (Wheat)
Down:NG (Nat Gas), CL (Oil), 6J (Yen)



News for the day:

International Trade: 8:30a
Jobless Claims: 8:30a
Productivity & Costs: 8:30a
Petroleum Status Reports: 11:00a


*Red highlight means the news is a market moving event;
yellow highlight means the news merits attention


Projected ES price action for the day:
The trend continues to remain bullish as the S&P made all-time highs yesterday after a late afternoon buying spree.  There are two noticeable points to analyze: 1) The majority of the buying occurred in the afternoon. Typically, the most momentum is generated during the AM session as that is when the majority of institutional investors place their trades. 2) A new all-time high was made during the overnight session. Usually, a new high is made during Regular Trading Hours so at this point, the signs are pointing for at least a test of the overnight high.  If bears can get prices back inside yesterday's range then there could be some choppy action, but higher probability is for further buying when the market opens.

Stock of the Day: Cisco Systems, Inc. (CSCO)

ES Daily Trend: Strongly Bullish

ES Weekly Trend:  Strongly Bullish

ES Monthly Trend:  Strongly Bullish

Morning Update for Wednesday, November 13th

Major Support/Resistance Levels- ES

*Highlighted regions denote strong areas of support (green)/resistance (red) & mid-range level (brown)

Daily Outlook

Prior Day Market Sentiment:Bearish
Overnight Inventory Change: Net short
Inside Day/Outside Day: Inside
Location of price relative to market profile: Between POC & value area low
Notable overnight futures markets changes:
Up: HO (Heating Oil), CT (Cotton), NG (Nat Gas), ZL (Soybean Oil)  
Down: HG (Copper), OJ (Orange Juice)



News for the day:

Treasury Budget: 2:00p


*Red highlight means the news is a market moving event;
yellow highlight means the news merits attention


Projected ES price action for the day: The S&P has been in a basing pattern for the past two weeks on relatively lower volume, even after the monthly jobs report. There have been mostly small size bodied candles with wicks, which is indicative of two-sided trading. While the momentum has slowed, the price action is still bullish since any horizontal trading is a sign that buyers are supporting the market until proven otherwise. The market looks to open inside of the value area so value area high (1766.5) and value area low (1761.5) will be the key levels to watch for any directional trades.

Stock of the Day:Sina Corp. (SINA)- Earnings last night

ES Daily Trend: Strongly Bullish

ES Weekly Trend:  Strongly Bullish

ES Monthly Trend:  Strongly Bullish

Morning Update for Tuesday, November 12th

Major Support/Resistance Levels- ES

*Highlighted regions denote strong areas of support (green)/resistance (red) & mid-range level (brown)

Daily Outlook

Prior Day Market Sentiment: Neutral
Overnight Inventory Change: Neutral
Inside Day/Outside Day: Inside
Location of price relative to market profile: Below value area
Notable overnight futures markets changes:
Up: NKD (Nikkei), ZL (Soybean Oil), NG (Nat Gas), ZC (Corn), CT (Cotton), CC (Cocoa), KC (Coffee), ZW (Wheat) 
Down:SI (Silver), 6B (Pound), HG (Copper)



News for the day:

NONE


*Red highlight means the news is a market moving event;
yellow highlight means the news merits attention


Projected ES price action for the day: Yesterday's profile showed an extremely normalized distribution with prices trading in a narrow range due to the holiday. As a result, the previous day's high (1770.25) & low (1764) serve as strong reference points for today's trading. Anything above 1770.25 and edge to the bulls as the market once again approaches all-time highs.  Anything below 1764 and the bears will look to push prices lower to the VPOC at 1760.75. There is no major news announcements, so if there is any directional movement, it likely will be done by short-term traders.

Stock of the Day: NQ Mobile- Large volume in the stock

ES Daily Trend: Strongly Bullish

ES Weekly Trend:  Strongly Bullish

ES Monthly Trend:  Strongly Bullish

Morning Update for Monday, November 11th

Major Support/Resistance Levels- ES

*Highlighted regions denote strong areas of support (green)/resistance (red) & mid-range level (brown)

Daily Outlook

Prior Day Market Sentiment: Bullish
Overnight Inventory Change: Neutral
Inside Day/Outside Day: Inside
Location of price relative to market profile: Near value area high
Notable overnight futures markets changes:
Up: ZC (Corn), CT (Cotton), ZW (Wheat)  
Down: PA (Palladium), PL (Platinum)



News for the day:

Veteran's Day: Stock market open; bond market closed


*Red highlight means the news is a market moving event;
yellow highlight means the news merits attention


Projected ES price action for the day: With today being Veteran's Day and the bond market closed, the higher probability is for more range bound price activity. The S&P and bond futures are levered together and when one of the markets is closed, it is more difficult to sustain intraday momentum.  Given the large value area on Friday after the jobs report, the likelihood is for prices to trade within the zone. Typically, on holidays when the markets are still open, there is significantly less volume and market makers establish a wide 5 minute opening range and trade within it for most of the day. The better play for today is to fade support/resistance levels, especially when the pace of the tape slows.

Stock of the Day: Tesla, Inc. (TSLA)- Bearish cloud break

ES Daily Trend: Strongly Bullish

ES Weekly Trend:  Strongly Bullish

ES Monthly Trend:  Strongly Bullish

Cloud Trader Weekend Update 11/10/13

A review of the week that was and a preview of the week ahead.

Morning Update for Friday, November 8th

Major Support/Resistance Levels- ES

*Highlighted regions denote strong areas of support (green)/resistance (red) & mid-range level (brown)

Daily Outlook

Prior Day Market Sentiment: Bearish
Overnight Inventory Change: Bearish
Inside Day/Outside Day: Outside
Location of price relative to market profile:Below value area



News for the day:

Employment Situation: 8:30a
Personal Income & Outlays: 8:30a
Consumer Sentiment: 9:55a


*Red highlight means the news is a market moving event;
yellow highlight means the news merits attention

Projected ES price action for the day: Despite the fluctuation in prices after the jobs report, prices have pulled back inside the value, near the POC.  This is indicative of two-sided action and clearance of value area high would be edge to the bulls or value area low would be edge to the bears.

Stock of the Day:Groupon (GRPN)- Earnings after the bell last night

ES Daily Trend: Strongly Bullish

ES Weekly Trend:  Strongly Bullish

ES Monthly Trend:  Strongly Bullish