Major Market Ranges for the Week of Aug. 20: Bulls Enter...

August 17, 2018 01:30 PM

The coming week of Aug. 24, 2018, sets up trending pivot math in the Japanese yen, a potential rangebound pivot breakout higher in soybeans, and bulls entering many markets. The S&P 500 appears near highs for next week, but the monthly Camarilla pivot at the 2,867 level seems to make sense to me, so I projected next week’s new high at 2,865 or higher.

It may go sideways or drop thereafter. I am bullish on many markets at my projected low ranges for this week that are flashing bullish candlesticks and volume spikes/surges. This does not mean they can’t snap-it down on traders, though.

Bullish on the soybeans for the quarter from the monthly chart, I note that next week’s pivots are inside and slightly higher than this week’s, setting up a Soybeans breakout upside next week. Bitcoin has a weekly-chart green hammer candlestick and I am bullish on that for one month. The Eurodollar hammer candle on the weekly 200-moving average is bullish, although some downside technical exist. Gold for next week gives us a red hammer on the daily chart bullishly, but I have been wrong about this for two weeks causing me to want to state gold goes lower- my gold wrongness may conjure up a rally! I am even guardedly bullish for the yen. I am even bullish on the crude oil as a range trade. Short put spreads can profit from time decay as well as price, and the sideways markets may be appropo for those (crude oil, euro, soybeans). If the S&P 500 flashes some sell signals, a short call spread might work next week, should that occur, because sideways pivot and range math exist. 

My best prediction for this closing week was the Eurdollar turning upside, except the extra waves down did happen, and I was a day early. It is now a trade.
 

List/Tracking of Open Option Spread Trade Ideas:

ZN (10-year Treasury Notes) Long- monthly chart 121’00; 120’17 hit, close options trade win into Sept.

Gold Long- Open monthly options trade into Sept Loss presently, EOM (monthly Sept.) expiration.

Eurodollar- Long weekly hammer candle into Sept. end due to monthly ranges, extreme valuation.

Crude, Soybeans, Gold, Bitcoin- watch for long entries next week, choppiness expected (short put spreads) from sideways pivot math and range status on these.

 

Predicted Ranges for the week ending Aug. 24

S&P 500

High: 2867/Low: 2820       

Japanese yen

High: 9107/Low: 9026                 

Eurodollar

High:1.1520/Low: 1.137

Gold

High: $1,207/Low:$1,169

Crude oil

High:$67.02/ Low: $64.19              

Soybeans

High:$9.25/Low: $8.65

Bitcoin (XBT)

High:$6,875/ Low: $6,175       

     

Projected & Actual Ranges for the Week’s Ending Aug. 17 (as of Friday morning)

S&P 500 

High:2860/Low: 2828. Actual 2851-2803

Japanese yen

High:9084/Low: 9027; Actual 9103-8993      

Euro

High:1.1628/Low: 1.1520, Actual  1.146-1.132

Gold

High:$1,233/Low:$1,215, Actual: $1,221-$1,167

Crude oil

High: $68.04/ Low: $65.55, Actual: $68.37-$64.4

Soybeans

High: $9.16/Low: $8.88, Actual $8.99-$8.51

Bitcoin (XTB)

High: $6,725/Low: $6,200; Actual: $6,605-$5,855

About the Author

Trevor Smith is a registered commodity trading advisor who holds four degrees across multiple disciplines. His study of financial markets led to his beliefs that investors can be self-directed and that market moves could be predicted using a variety of technical indicators and mathematics. His website is www.trevorsmithfnp.com. @TrevorSmithCTA