Natural Gas has daily buy divergences and brok to the upside from a quasi-descending wedge pattern.  Should have one or two more up days.  Daily chart is shown below.



The broader equity markets did a breakaway gap to the upside on Wednesday leaving an island bottom.  Then, on Thursday the market gapped down, close to Wednesday's low leaving a lot of trapped longs. ...

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The 480 Min chart of Gold has a bullflag that is getting ripe.  So, look for an opportunity to buy it on Thursday using a lower timeframe chart.  Buy Divergences, Tests, Breakouts from sideways lines etc. are all valid setups that you can look for on a lower timeframe to put you in the direction of a LONG trade.



There were many upside breakouts on Thursday - in fact,...

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Wheat had a nice extended run up a few weeks ago and has pulled back nicely.  You can see in the chart below that it spent a bit of time above the overbought level on the CCI.  Usually, this means that the first dip below the oversold level will lead to a retest of the overbought level.  This is what we believe that wheat is trying to accomplish.  Tuesday was the first down day in this leg up - Wednesday should be the second.  But, most times, you only get a day and half of pullback before these things run again.  So, on any further push down, buy and hold for a retest of that CCI to the overbought level.

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PALM is one of those companies I just don't understand.  I think they should be out of business by now.  Still, they're on a tear relatively speaking and a bullflag is forming on the daily charts.  Any further push down is going to set up a buying opportunity for a scalp play.  My instincts say don't overstay your welcome - once it starts to move in your direction, trail a tight stop.  Daily chart is shown below.

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DNA is in the top 10 of the six month relative strength list.  It formed a nice pullback into a support area the last few days and bounced strongly with the market last Friday.  For a long-side play, stick with the relative strength leaders and this is a good a one as any.  The daily chart shown below.



For futures traders, the energies look...

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Bonds broke down below a key support level yesterday and continued down strongly today.  It's been down 3 days in a row and is due for a bounce.  However, any bounce is  a short. Even a bounce to the 15 min or 30 min 20 period EMA is a short.  If you're aggressive you may want to short a small position immediately and hold for a longer term play - just realize that there is a chance you'll have to take some heat before you see continued downside.  If this trade is on the money then the recent highs above 140 should never be taken out again.  The daily chart with broken support level shown below.

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The EC entered an area of support on the daily charts and bounced nicely off it today.  The danger with buying right away though is the weekly charts - the oscillator we use can continue to push down for a few more bars (i.e.: a few more weeks).  So, normally, this blog doesn't give entries and stops - just trade ideas.  But, because this is such a high risk trade, we'll say enter above Wednesday's high (1.3080) and enter a stop below yesterday's low (below 1.2811).  If this trade works out, the target is around 1.3300-1.3400 at the minimum.  The daily and weekly charts are shown below (Daily first then Weekly).

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Buy Cocao - 1/2 now, 1/2 on any pullback. 

Cocao looks like it is finishing an A-B-C correction on the daily charts. It tested the prior low quite nicely and bounced off it strong today.  So it looks like it's time to buy it and play for a multi-day move.  However, since there was a big up-move on Tuesday, we can try to see if we can get a better entry on at least a part of the position.  So, buy some immediately and then,if it pulls back, buy the rest of your position.  This should be good for a multi-day play.  The daily chart is shown below.

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Silver continues to be the relative strength leader in the metals.  It has a 120 minute bull flag that has the potential to make new highs.  The daily oscillators are still correcting up and has room to move up for more than one day. 

This is the 120 min chart - bullflag is highlighted.



This is the daily chart - the daily oscillator is highlighted.  Notice that it still has room to continue to move up.

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The daily oscillator on Feb gold is still rising.  120 Min Chart made new momentum highs and is in the process of forming a bullflag.  Look for buy opportunities on further pullback.  This market can still be played to the upside.