Morning Update for Thursday, December 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: Bearish
Overnight Inventory Change: Net short
Inside Day/Outside Day: Outside
Location of price relative to market profile:Below value area
Notable overnight futures markets changes:
Up: CC (Cocoa), NG (Nat Gas), 6N (New Zealand Dollar), NKD (Nikkei), KC (Cotton) 
Down:SI (Silver), GC (Gold), PA (Palladium), PL (Platinum), CT (Cotton), ZM (Soybean Meal), ZS (Soybeans)



News for the day:

Jobless Claims: 8:30a
Retail Sales: 8:30a
Import & Export Prices: 8:30a
Business Inventories: 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 saw a massive selloff yesterday after news that tapering by the Fed could begin sooner rather than later.  Prices have continued to sell in the premarket with news catalysts upcoming that potentially could provide further directional trading.  Watching the open will be important to see if some profit taking occurs in bringing the trading back into Wednesday's range. Given the wide value area, a high probability trade would be to fade value area low/high.  Any trading below the previous day low of 1779.25 should see further selling as many alogrithmic trading programs are activated during outside days.  At this point, edge to the bears.

Stock of the Day: Nokia (NOK)- Deal with Microsoft

ES Daily Trend: Strongly Bullish

ES Weekly Trend:  Strongly Bullish

ES Monthly Trend:  Strongly Bullish

Morning Update for Wednesday, December 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: Bearish
Overnight Inventory Change: Net short
Inside Day/Outside Day: Inside
Location of price relative to market profile: Below value area
Notable overnight futures markets changes:
Up: ZO (Oats), ZW (Wheat) 
Down: NKD (Nikkei), NG (Nat Gas), 6N (New Zealand Dollar), RB (RBOB Gasoline)



News for the day:

Petroleum Status Report: 10:30a
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:Ever since the positive jobs report on Friday, the S&P has been in a holding pattern the past few days and is currently trading witihin the high volume zone of 1800-1810 which is more indicative of two-sided trading.  The key level to watch if there is a selloff is 1796 as that is the point to begin to fill the gap down to 1792. To the topside, the all-time high of 1812.5 will be important if the offers are lifted.  As they say, never short a dull market....unless it for an intraday scalp trade.  Long term bias is still bullish; intraday bias is neutral/bearish.

Stock of the Day: Blackberry, Inc. (BBRY)

ES Daily Trend: Strongly Bullish

ES Weekly Trend:  Strongly Bullish

ES Monthly Trend:  Strongly Bullish

Morning Update for Tuesday, December 10th

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: Near value area high
Notable overnight futures markets changes:
Up: SI (Silver), CL (Oil), GC (Gold), NG (Nat Gas) 
Down:ZW (Wheat), NKD (Nikkei)



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:The S&P has been selling off in the premarket as prices traded below the value area low of 1807.25, which will be the level to watch at the open together with the previous day low of 1806.25.  Any trading inside of yesterday's range should see more two-sided trading and smaller profit targets should be set as part of the money management strategy.  The market is still within the 1800-1810 high volume range and a breakout of the zone would be needed before taking any directional trades.

Stock of the Day: Twitter (TWTR)

ES Daily Trend: Strongly Bullish

ES Weekly Trend:  Strongly Bullish

ES Monthly Trend:  Strongly Bullish

Morning Update for Monday, December 9th

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: NG (Nat Gas), SB (Sugar), ZM (Soybean Meal), NKD (Nikkei), 6M (Mexican Peso)  
Down: PA (Palladium)



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: After the positive monthly jobs report on Friday, the S&P is trading relatively neutral during the overnight session.  Prices have once again entered the high volume zone between 1800-1810 and the higher probability is for choppy price action until there is more of a directional bias. On an intraday basis, the logical level to watch will be Friday's high of 1806 as the line in the sand for the day.  Trading above should attract more buyers, while prices inside of value should see more two-sided trading activity.  The intraday bias is with the bulls as longer term traders continue to digest the news from Friday.

Stock of the Day: EUR/USD- breakout of cloud

ES Daily Trend: Strongly Bullish

ES Weekly Trend:  Strongly Bullish

ES Monthly Trend:  Strongly Bullish

Cloud Trader Weekend Update 12/8/13

Morning Update for Friday, December 6th

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 long
Inside Day/Outside Day: Inside
Location of price relative to market profile: Above value area high
Notable overnight futures markets changes:
Up: NKD (Nikkei), CC (Cocoa), SB (Sugar), KC (Coffee), RB (Heating Oil) 
Down: PA (Palladium), PL (Platinum), SI (Silver), ZM (Soybean Meal), ZS (Soybeans)



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:Everything hinges on the jobs report this morning.  The expectation is for 180K jobs created with an unemployment rate of 7.2%. Of course, the most important aspect is the market's reaction to the news.  The trading has been neutral to bearish for the past week with the high volume zone still intact from 1800-1810.  Therefore, if the news is bullish then 1800 will be the key level to watch. If there is a selloff after the announcement, then the level of support is at 1778.  There should be significant volatility today so set wider stops and profit targets to account for the larger range. The news should serve as the necessary catalyst for a directional play so the higher probability is to trade with the trend.

Stock of the Day: Gold Miners Bear 3x Shares (DUST)- Up 7%

ES Daily Trend: Strongly Bullish

ES Weekly Trend:  Strongly Bullish

ES Monthly Trend:  Strongly Bullish

Morning Update for Thursday, December 5th

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: Bearish
Inside Day/Outside Day: Inside
Location of price relative to market profile:Between POC & Value area low
Notable overnight futures markets changes:
Up: OJ (Orange Juice), NG (Nat Gas) 
Down:SI (Silver), GC (Gold), KC (Coffee), NKD (Nikkei), ZW (Wheat), ZC (Corn), PL (Platinum), HG (Copper), ZO (Oats), CC (Cocoa)



News for the day:

GDP: 8:30a
Jobless Claims: 8:30a
Factory Orders: 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:Despite the positive GDP news, the S&P has sold off in the premarket, but is still inside the value area. The value area low (1785) will be the first major level to watch today. If the selloff continues then Wednesday's low of 1777 is the next inflection point. On the other hand, if the offers are lifted, then the POC (1791) & value area high (1796) will be key for the bulls. Given the macro catalyst and the volatility in the premarket, there should be solid opportunities to trade today. Remember the reaction to the news always trumps the news itself and this is even more true when day trading futures. 

Stock of the Day: Conns Inc. (CONN)- Gap up in the premarket

ES Daily Trend: Strongly Bullish

ES Weekly Trend:  Strongly Bullish

ES Monthly Trend:  Strongly Bullish

Morning Update for Wednesday, December 4th

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: Near POC
Notable overnight futures markets changes:
Up: CL (Crude Oil), ZL (Soybean Oil), OJ (Orange Juice) 
Down: CC (Cocoa), 6A (Australian Dollar), 6N (New Zealand Dollar), NKD (Nikkei), GC (Gold)



News for the day:

ADP Employment Report: 8:15a
International Trade: 8:30a
New Home Sales: 10:00a
ISM Non-Mfg Index: 10:00a
Petroleum Status Report: 10:30a
Beige Book: 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 saw the first selloff from the high volume zone of 1800-1810 with minimal volatility during the overnight session.  Part of the reason for the neutral price action could be the monthly jobs report on Friday as longer term traders are on the sidelines until then when there could be more clarity about the fundamentals of the economy. As a result, the key levels for today are the value area high (1795.5) and value area low (1788).  Trading inside value should be more choppy, especially near the POC.  The long term bias is still bullish as there still has not been a major liquidation break and buyers continue to support the market.  On an intraday basis, however, it is a coin toss.

Stock of the Day: J.C. Penney (JCP)

ES Daily Trend: Strongly Bullish

ES Weekly Trend:  Strongly Bullish

ES Monthly Trend:  Strongly Bullish

Morning Update for Tuesday, December 3rd

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: Net short
Inside Day/Outside Day: Outside
Location of price relative to market profile: Below value area
Notable overnight futures markets changes:
Up:6B (British Pound)
Down:NKD (Nikkei), HG (Copper), SI (Silver)



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: The S&P has sold off during the overnight session and are trading outside of yesterday's range which is a bearish sign.  Look for a test of Monday's low of 1797 as the "line in the sand" level for the day.  If the bears protect it, then further selling is likely.  Anything within the 1800-1810 should see more neutral price activity, as the range is both inside the value area as well as the high volume zone on the weekly profile distribution.  Intraday bias is to the short side.

Stock of the Day: Amazon, Inc.

ES Daily Trend: Strongly Bullish

ES Weekly Trend:  Strongly Bullish

ES Monthly Trend:  Strongly Bullish

Morning Update for Monday, December 2nd

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:Below value area
Notable overnight futures markets changes:
Up: CC (Cocoa), ZM (Soybean Meal), 6N (New Zealand Dollar), ZS (Soybeans)  
Down: SI (Silver), GC (Gold), ZO (Oats), ZB (Bonds), OJ (Orange Juice)



News for the day:

Pending Home Sales: 10:00a
Dallas Fed Mfg Survey: 10:30a


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


Projected ES price action for the day:The S&P made fresh all-time highs on Friday before a late selloff which brought prices back into the high volume zone of 1800-1807. As a result, any trading within the range should see more two-sided trading as traders digest the pending home sales news this morning.  The longer term bias is still clearly bullish, but prices are currently trading below the value area. It will be noteworthy to see if buyers can lift the offers back inside value or if there is a liquidation break.  Intraday bias is neutral/short.

Stock of the Day: Apple, Inc. (AAPL)

ES Daily Trend: Strongly Bullish

ES Weekly Trend:  Strongly Bullish

ES Monthly Trend:  Strongly Bullish