June 7, 2012
- in Uncategorized by schooloftrade
We check the Heat Map on our morning prep:
The dollar
index correlation is in play with the heat map saying -0.2% on the DOLLAR INDEX. This tells us we can use this strong
correlation, and if we have to chose, the BUY-SIDE will be the high-percentage
trades with a falling dollar index.
index correlation is in play with the heat map saying -0.2% on the DOLLAR INDEX. This tells us we can use this strong
correlation, and if we have to chose, the BUY-SIDE will be the high-percentage
trades with a falling dollar index.
We can also
see that Crude Oil futures are the biggest mover, moving HIGHER (green) on the
heat map. This tells me this is a MOVING
market, so I may be looking to buy pullbacks to continue with the current
up-trend, OR I may be looking for a price reversal, considering the Crude Oil market
has gone higher today, perhaps it will reverse off these highs?
see that Crude Oil futures are the biggest mover, moving HIGHER (green) on the
heat map. This tells me this is a MOVING
market, so I may be looking to buy pullbacks to continue with the current
up-trend, OR I may be looking for a price reversal, considering the Crude Oil market
has gone higher today, perhaps it will reverse off these highs?
We can also
see that while the dollar index is falling, so is gold futures. This tells us the market sentiment is
bullish! BIG CLUE! We know that when people sell the dollar
index and buy the euros that is a confidence trade, and when gold futures tumble
along with the dollar index we have confirmation that whatever happened
overnight has given people confidence.
see that while the dollar index is falling, so is gold futures. This tells us the market sentiment is
bullish! BIG CLUE! We know that when people sell the dollar
index and buy the euros that is a confidence trade, and when gold futures tumble
along with the dollar index we have confirmation that whatever happened
overnight has given people confidence.
Confidence says more people fill up the gas
tanks, start a new business, buy equities, more demand on Crude Oil , natural
gas, other commodities and currencies.
