October 25th, 2013 - Issue #708
In This Issue
1. Learn to Spot a Head & Shoulders Pattern in Your Charts (Video)
2. Hot Market Review - Soybean Bulls Gain Some Upside Technical Momentum
3. Economic Calendar
1. Learn to Spot a Head & Shoulders Pattern in Your Charts
From our friends www.elliottwave.com
A Trading Lesson from Elliott Wave International's Jeffrey Kennedy
By Elliott Wave International
Senior Analyst Jeffrey Kennedy is the editor of our Elliott Wave Junctures trader education service and one of our most popular instructors. Jeffrey's primary analytical method is the Elliott Wave Principle, but he also uses several other technical tools to supplement his analysis.
You can apply these methods across any market and any timeframe.
My primary tool as a technical analyst is, of course, the Wave Principle. Even so, I find great value in other forms of technical analysis, such as candlesticks and indicators. With this in mind, let's review one of my favorite old-school chart patterns -- Head-and-Shoulders.
Spotting a Head & Shoulders Pattern
This formation was popularized by Edwards and Magee in their seminal work Technical Analysis of Stock Trends. It is a reversal pattern and consists of a left shoulder, a head and a right shoulder.
A trendline drawn between the price extremes of the left shoulder and head and head and right shoulder is referred to as the neckline. The neckline is important for two reasons -- the first being that a parallel of the neckline drawn against the extreme of the left shoulder can identify the extent of the formation of the right shoulder.
The second important aspect of the neckline is that it can provide a high probability target for the subsequent breakout. If prices decisively penetrate the neckline, the distance between that point and the head is often a reliable objective for the ensuing price move. Watch this 4-minute video where I explain more:
Please click on the following link to see the video, Learn to Spot a Head & Shoulders Pattern in Your Charts!
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2. Hot Market Review - Soybean Bulls Gain Some Upside Technical Momentum
From our friend Jim Wyckoff
Jim has an excellent daily newsletter where he reviews different markets, alerts you for potential trades and much more. Included is his great bi-weekly newsletter with charts and a little longer term outlook. We recommend checking out his website, educational CDROM, and services at www.jimwyckoff.com click on image below to enlarge
The soybean bulls have gained upside near-term technical momentum recently, including negating a downtrend on the daily bar chart. Prices Wednesday hit a fresh three-week high. Bulls have more work to do in the near term to suggest a price uptrend can be sustained. A move above chart resistance at $13.25 in January soybeans would provide the bulls with better upside technical momentum, to then suggest prices can continue to trend sideways to higher in the near term.
3. Economic Calendar
Source: Moore Research Center, Inc.
| Date | Reports | Expiration & Notice Dates |
| 10/28 Mon |
8:15 AM CDT - Industrial Prod & Capacity Util(Sep) 9:00 AM CDT - Pending Home Sales(Sep) |
LT: Nov Copper Options(CMX) Nov Gold Options(CMX) Nov Silver Options(CMX) Nov Heating Oil Options(NYM) Nov RBOB Gasoline Options(NYM) Nov Natural Gas Options(NYM) |
| 10/29 Tues |
7:30 AM CDT - Core PPI & PPI(Sep) 7:30 AM CDT - Retail Sales(Sep) 8:00 AM CDT - Case-Shiller 20-City Index(Aug) 9:00 AM CDT - Business Inventories(Aug) 9:00 AM CDT - Consumer Confidence(Oct) FOMC Meeting |
LT: Oct Butter(CME) Oct Milk(CME) Oct Copper(CMX) Oct Silver(CMX) Oct Gold(CMX) Oct Platinum(NYM) Oct Palladium(NYM) Nov Natural Gas(NYM) Oct Butter Options(CME) Oct Milk Options(CME) |
| 10/30 Wed |
6:00 AM CDT - MBA Mortgage Purchase Index 7:15 AM CDT - ADP Employment Change(Oct) 7:30 AM CDT - Core CPI & CPI(Sep) 9:30 AM CDT - API & DOE Energy Stats 1:15 PM CDT - FOMC Rate Decision(Oct) 3:00 PM CDT - Dairy Products Sales |
FN: Nov Natural Gas(NYM) |
| 10/31 Thurs |
6:30 AM CDT - Challenger Job Cuts(Oct) 7:30 AM CDT - USDA Weekly Export Sales 7:30 AM CDT - Initial Claims-Weekly 8:45 AM CDT - Chicago PMI(Oct) 9:30 AM CDT - EIA Gas Storage 2:00 PM CDT - Cattle On Feed 2:00 PM CDT - Cold Storage 2:00 PM CDT - Cotton Ginnings 3:30 PM CDT - Money Supply |
FN: Nov Copper(CMX) Nov Gold(CMX) Nov Silver(CMX) Nov Platinum(NYM) Nov Palladium(NYM) Nov Rough Rice(CBT) Nov Soybeans(CBT) LT: Oct Feeder Cattle(CME) Oct Live Cattle(CME) Oct Fed Funds(CME) Nov Heating Oil(NYM) Nov RBOB Gasoline(NYM) Oct Feeder Cattle Options(CME) Oct Fed Funds Options(CME) Nov Lumber Options(CME) |
| 11/1 Fri |
9:00 AM CDT - ISM Index(Oct) 1:00 PM CDT - Auto & Truck Sales(Oct) 2:00 PM CDT - Milk Production |
FN: Nov Orange Juice(ICE) LT: Nov Live Cattle Options(CME) Dec Cocoa Options(ICE) |
| 11/04 Mon |
9:00 AM CST - Factory Orders(Aug) 9:00 AM CST - Factory Orders(Sep) |
FN: Nov Heating Oil(NYM) Nov RBOB Gasoline(NYM) |
* Please note that the information contained in this letter is intended for clients, prospective clients, and audiences who have a basic understanding, familiarity, and interest in the futures markets.
** The material contained in this letter is of opinion only and does not guarantee any profits. These are risky markets and only risk capital should be used. Past performances are not necessarily indicative of future results.
*** This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts herein contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgment in trading!
