Feb. 1, 2013 - Issue #671
In This Issue
1. Moving Averages Can Identify a Trade - FREE Lesson
2. Hot Market Review - Bullish Ascending Triangle in Comex Gold
3. Economic Calendar
1. Moving Averages Can Identify a Trade - FREE Lesson
These 3 charts help you understand how moving averages work
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By Elliott Wave International
Moving averages are a popular tool for technical traders because they can "smooth" price fluctuations in any chart. EWI Senior Analyst Jeffrey Kennedy gives a clear definition:
"A moving average is simply the average value of data over a specified time period, and it is used to figure out whether the price of a stock or commodity is trending up or down... one way to think of a moving average is that it's an automated trend line."
Moving averages are both easy to create and extraordinarily dynamic. You can choose which time frame to study as well as which data points to use (open, high, low, close or midpoint of a trading range).
If you trade with Elliott, you may use supporting indicators in your analysis of the markets. Here's a brief lesson that shows you three ways that moving averages can help you determine the market trend. Read more.
2. Hot Market Review - Bullish Ascending Triangle in Comex Gold
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
See on the daily bar chart for April Comex gold futures that recent price action has formed a bullish ascending triangle pattern. However, the bulls need to show some fresh power very soon to produce the upside "breakout" from the triangle that would provide the bulls with fresh upside near-term technical momentum.
3. Economic Calendar
Source: Moore Research Center, Inc.
| Date | Reports | Expiration & Notice Dates |
| 02/04 Mon |
9:00 AM CST - Factory Orders(Dec) | LT: Feb Live Cattle Options(CME) Mar Cocoa Options(ICE) |
| 02/05 Tues |
9:00 AM CST - Factory Orders(Dec) | |
| 02/06 Wed |
6:00 AM CST - MBA Mortgage Purchase Index
8:00 AM CST - FHFA Housing Price Index(Nov) 2:00 PM CST - Milk Production |
|
| 02/07 Thurs |
7:30 AM CST - Initial Claims-Weekly 7:30 AM CST - USDA Weekly Export Sales 7:30 AM CST - Productivity-Prel(Q4) 7:30 AM CST - Unit Labor Costs(Q4) 9:30 AM CST - EIA Gas Storage 2:00 PM CST - Consumer Credit 3:30 PM CST - Money Supply |
|
| 02/08 Fri |
7:30 AM CST - Trade Balance(Dec) 9:00 AM CST - Wholesale Inventories(Dec) 10:00 AM CST - WASDE Report & Crop Production |
LT: Mar Sugar-16(ICE) Feb Canadian Dollar Options(CME) Feb Currencies Options(CME) Feb US Dollar Index Options(ICE) Mar Cotton Options(NYM) Mar Coffee Options(ICE) |
| 02/09 Mon |
FN: Mar Sugar-16(ICE) ) |
* 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!
