And For The Market Of Illegal Goods & Services

And for the market of illegal goods and services one must recognize the major differences that make these two economies separate. For it isn't the fact that the goods and services of the black exchange market are illegal that make it different; that is merely a price exaggerating factor.

The true characteristic which gives the black market it's power to control markets trends is the markets emphasis on products rather than consumers. For in a black market products are controlled by cartel-monopolies(conglomerates of cartels controlling every aspect of an industry)  making competition and more importantly OPTION non existent essentially. That strips away the power for the consumer to choose between different styles of the same good.

So the consumer is no longer distracted by brand choices but more so the utility of the good they are obtaining. ---the sad true fact is that the black market is the last true international trade organization in the world in which an average person, not normally dealing in large quantities to supply a region or space, can trade and exchange a range of goods and services, illegal or legal, to obtain a good or service, illegal or legal, they desire, with cash, being one of many options as a form of payment, or in exchange for other goods and/or services.

So instead of a consumer purchasing demand market you have a consumer dependent upon inventory consistency market, where price is determined by a reversed supply and demand scenario. The consistency of a suppliers inventory dictates the demand of the market and its prices.

Now on another note, we should examine the case of unregulated legal markets with actors doing illegal activities. 

Most Watched Stocks In The Market

This is an analysis on some of the most watched stocks in the U.S. Equity Markets today. You StockTwits kids should love this. I want you all to observe the gaps and trends which could make you a lot of money over the next few days: IF you trade them correctly.
To Start this report off we have SodaStream International Ltd. (SODA): Maker of the machine which gives consumers the ability to make their own soda at home.
From a technical perspective this stock is a bit unappealing other than the fact that it's in a downtrend. The gap that occurred after the weekend didn't excite me. That Just tells me that the market will be retracing soon to take those prices back and who knows when some hedge fund's limit order will be hit. I'd wait until price comes back towards the top of the gap around 27.50 for a short. From there I'd look for a target around 22.60 (bottom of the gap). Below Is a 15min chart which shows us The area which needs to be filled (in blue) and the consolidated trading from yesterday which rolled over into more falling today.

Next up we can take a look at Yum Brands Inc. (YUM) which is a beverage and fast food conglomerate. We see from the 60min chart below that this pair has been dominated by serious traders. Retail kids are getting crushed no doubt. It has ranged in a gap it created back in July of this year. It made some false breakouts and breakdowns the whole way through and currently the price has fallen out of the range.

The chart above gives us a chance to see the falling RSI which is an indicator that the price is ready for some rest. Now on a 15min chart we can see that this pair was seriously congested yesterday (highlighted in lighter blue) and today it whipped the shit out of the retail traders by making a dramatic spike and crashing back down severely. Around 71.15 is the bottom of the gap and the price has been rejected back below it today. That's the area you should be looking to short this stock. 

Let's move right along to Sunesis Pharmaceuticals (SNSS):

Another stock that has gaped down. This company has seen a horrible situation since Monday because it fell more than 50% in value since then. Around 3.85 is the closes resistance for this instrument and it doesn't look like it'll be back to it any time soon. On a 240min chart we can see the price fall heavily and the heavy selling since. 

On a 15min chart we can see the stocks daunting task of recovering towards any price of sustainability which is around 2.00 but it'll have to reach that then sky rocket nearly 100% just to get to the bottom of the gap its created(Highlighted in blue). 

Technically I'd sell all day.

Cree Inc. (CREE) is an LED manufacturer and makes semiconductor products for power and radio-frequency applications. This stock has a couple of gaps it needs to fill and I'm just waiting for the market to come along and sweep up every short trader's money when it does lol. The first gap runs back to August of this year when the price fell a little over $3/share to around 46.00. That gap was never filled. The second gap came recently around the 1st of this month when the price fell from around 39.50 to around 35.90. This gap was never filled either. The 60min chart below tells the story. 

To be honest I only see a sell from what seems to be near term resistance (33.40) but be cautious for the bounce that is to come. And when it comes don't be hard headed. Shoot for the gap fills, you know the markets will punish you for being a rogue trader and thinking trends last forever. The 15min chart below helps us see a more immediate opportunity. 

The first gap to be filled will be gap #2 where it'll probably range between its extremes then on to gap #1 where it'll most like go straight for the top of the gap. 

Last but not least we have Lakeland Industries Inc. (LAKE) who manufactures & sells safety garments & accessories. This stock has been fun recently. It has recently broken to important resistance levels and has risen well above its bullish trendline. The first resistance level was broken at around 8.00 and from there the price elevated to around 9.78 where it broke though yesterday and met some heavy resistance which we can observe from out 60min chart below.

 This gave me the idea to buy but then I kept going with my analysis. I observed that the reversal candle was a bit bearish and a bit engulfing lol. So then I considered the RSI...It was bearishly diverging from what the price was doing. On The 15min chart below we can see the divergence much clearer and we can also see the near term support we are testing today: If this doesn't hold I'm looking at a sell from around 9.83 back down to 9.00 then 8.00 if that doesn't hold. 

Coming Soon: For Those Who Are Serious About Trading

Coming Soon...

So it's Official Now! I'm happy to announce the Newest and Most Useful Trading Service On The Internet: Signal House is a full service signal service for Forex Traders and will be available to US. Equity Traders shortly after. The official web address will be www.tradesignalhouse.com . 

This website and service will be designed to help traders and investors make sound financial decisions based on a variety of Sell Side Analysis and reports, along with signals and alerts to help traders mitigate risk. 

Please Subscribe to this blog to stay updated on the progress of the site. Submit Your email at the top of the right side bar on any page of this blog! 

The services will be available to subscribers and will feature educational tools, trade signals & alerts, live trade webinars, trading videos, and post+pre trade reports & analysis. Hopefully it is a service you can use to optimize your portfolio and if you're a professional trader we welcome you to participate in our affiliates program. 

We look forward to the subscribers we attract and then seeing the growth of their portfolios using our services.

The ECB Effect

So the ECB posted its rate announcement today and it was...to say the least; BORING. They didn't change anything actually but there was a reaction. Lets go over how the most relevant currency pairs reacted. Highlighted in blue is a two-day view of the pairs price along with its High and Low between the two days.

EURUSD

Has been falling steadily for over 30 days straight pretty much but yesterday it was pretty much congested and stuck in a range just before the end of the day when it consolidated; which is expected before news. What Most people didn't expect and what I predicted was the bounce in this pair. Contrary to the downtrend the market turned to the upside today. I know that banks and institutions use news for reasons to instigate sentiment and direction. This is what they did today. They sent the price all the way up to 1.26908 approx. 108 pips from yesterday's low of 1.25828. If we get a close above today's high/resistance(1.26650); we should see this pair turn to the upside for an extended period. The 60min chart below shows us what I'm talking about. Observe the RSI above 50 today... 

EURJPY

This pair has been on a downtrend as well but there is no rest for the weary when it comes to the Yen. Traders have been relentless in their pursuit to acquire yen for exchange for European Currencies. Monetary policies have created this atmosphere. Yesterdays high was met by a shooting start at 138.799. Towards the end of the day yesterday we saw our support of 138.00 broken, the pair slid into the London Session saw a new low of 136.947 and the price became congested around the time of the ECB Rate News; Leading me to believe the bank traders were simply trying to confuse the retail markets as well as get customer orders in before the price got away from them. Below on a 60min chart we can observe this behavior. 

EURGBP

So yesterday this pair fell but managed to pick itself up during the Asian Session and end the day just barely higher than it opened. Today was a completely different story. I wasn't sure when but I know there would be a bounce in this pair and boy oh boy did it bounce today. I knew this because of the consolidation without range I noticed on the 60min chart. Below on that same chart we can see the pair test a low of .77660 yesterday AND the day before that without breaking down. From there the pair used the new to bolster itself up to a high of .78497; passed the .78277 intra-week resistance. I see the tide turning for this pair and more positive days in its future. Below we can observe the RSI moving from below 50 to overbought in just 48 hours. Interesting. 

EURAUD

The Australian traders are giving the markets hell right now (lol). If you don't know anything about the Aussie traders and pairs I'll give you a bit of advice: Be early, because they move fast and often. This pair took a nice ladder up over the past few weeks and ended up going haywire in a realm of congestion just as it met new highs. Yesterday the pair failed to make a higher high (1.45609) and ended up falling dramatically. It ended the yesterday near its opening price and  roamed into today falling below its medium term support (1.44500) which looks like it could now serve a resistance. Today it has successfully made a lower low at 1.43447 and has began to retrace towards the aforementioned resistance test. Below we can observe the pair's RSI just above 50 but that seems to be the signal for the bears to come in and take control. 

Study: Fracking and Quakes in the Markets

 Because I have quite a few different instruments to update you all on I wont spent too much time on the salutations. Just as an overview we will be covering EURUSD, USDCAD, USDJPY, NZDUSD, GBPUSD, AMAG, and C.

First lets start with NZDUSD; looks to me like the pair has found some support (and a good place to take profits) at .81223. I believe this small retracement will only last until previous support is met at around .82477. From this level traders will most likely see the price fall dramatically over the next 7-14 days. Below shows the daily chart for this pair and my lines should help my story.

Next up we have EURUSD which is making me so happy I cant believe it's not butter. This pair has been on a slippery slope for the past 2-3 weeks and has finally found some support around our entry of 1.296...exactly where I thought it would seeing as how this is the 61.8% retracement level on the weekly chart and historical support going back to 2013 and 2012. For this pair I see small buying at first to shake up the shorts and get them to offer up more EUROs at lower prices just so the big boys can come in and carry the price right back to our 1.32-1.33 range. From there I'm looking for my target at 1.37 to be hit...Now that's swing trading at its finest if this works out. as of now this all looks like it could work out. Below in the first chart is the weekly chart and after is the daily chart I included to give you a closer look at the situation. 

GBPUSD has been a stubborn old man recently, giving traders no reason to want to participate in its action. The price has been hella volatile and I'm sure amateur traders are pulling their hair out trying to guess the next move. I believe, and believe me, the 1.60 level might be hit just to destroy the longs, confuse the shorts, and pick up pending orders. If not, the move higher is set. My entry was around 1.62 and my target is around 1.64. Another possibility is the pair moving to 1.64 as a resistance test only to let the thing drop heavy through the 50% retracement level 1.60, right on to the 61.8% level 1.57. The weekly chart shows a bit of a hammer candle but the daily just shows a doji supported by some strong positive candles but nothing too major yet. Observe the language...a lot of price action going on here. Below is a daily chart which shows us what I'm talking about. 

Lets look back to USDCAD and remember that last week we saw a triangle/bullish flag, a bearish divergence, AND a resistance level approaching.  Here we are today dealing with those sings and signals. From 1.11 the price has fallen sharply and given me confirmation that my signals and indicators (tho they're delayed) did not steer me in the wrong direction. My next move in this pair is to sell support turned resistance at around 1.10 and my first target is 1.09 and my second is 1.08 just to warm myself up lol. Below is a chart of the daily candles of this pair and you can clearly see what I'm hunting for and why.

And last but certainly not least for the FOREX section USDJPY. I've had this pair bought at 104.90 and held it for over 2 weeks now. It's been highly successful and profitable. From its current level is 107.03 as I write this post and has posted a doji from yesterdays lackluster day. My first target is still 110.00. Basically if it works don't mess with it. My initial position is working so no need to manage anything right now. Patience grasshopper. 

Let's direct our attention towards the U.S. Equity Markets. Yesterday I mentioned two instruments I had my eyes on. The first being AMAG, it has been showing me exactly what I want to see. My 22.99 resistance sell order has been respected but hasn't done much more which leaves me a bit cautious. Today the pair ranged between 22.99 and support 22.79. My target is around 21.50 or the nearest resistance level from the move up. Below is a 15 min chart showing the inactivity in the stock and my entry prices along with my targets. 

Now completely last on today's analysis report, or whatever you want to call this long ass chart hall, is  C. Here, we're literally trading against or with the bank traders lol. Yesterday I mentioned this stock because it showed some promising movement to the downside based on its technical performance. So far this stock has only flirted with my entry which is a stop-limit short sell; because I'm looking to be carried with momentum downwards towards the bottom of its range instead of being jerked up in down for three days only to be stopped out if the market decides to turn around and go home. 51.90 and below is all I'm interested in. For now I'm waiting for orders to be filled but I still feel the same way about this stock as I did yesterday.Below is a 60min chart which shows us todays ranging and my entry price level and my intial target. 

I'm not interested in hearing about you losing your money because you tried to copy any of these trades so do yourself a favor and study your own research and analysis or email me so you can pay me for my complete ideas. Other than that youre on your own lol. 

WINNER WINNER CHICKEN DINNER

So it seems like my Australian friends love me after all. I shorted the AUDUSD September 2 & 4 at .93 & .94, and held those shorts until today and bought out of my positions at .92 for a profit of $13,460. That's 500,000 lots each position. It required nearly $850,000 in equity. Of course with 50:1 margin that's actually  $17,000 in real equity. That's roughly a 79.18% return...in 7 days. This is just a small example of whats to come from my new signal service. Stay tuned and look forward to a website dedicated to making money.

Later on in the week I will reveal some other trades That I've already made profits trading using my own strategies and indicators. For now I'm listening to Tiesto's Club life 365 while I'm still underground, lol. 

Low Volatility= Swing Trades pt1: Before the Trade

In these times of low volatility and ranging markets in the Forex markets (outside of the recent GBP strength) we are presented with a great opportunity to create beautiful swing positions  in the some currency pairs! As some of us may know, volatility refers to the amount of uncertainty or risk about the size of changes in a security's value. A higher volatility means that a security's value can potentially be spread out over a larger range of values. This means that the price of the security can change dramatically over a short time period in either direction. A lower volatility means that a security's value does not fluctuate dramatically, but changes in value at a steady pace over a period of time. Thanks Investopedia lol. So basically swing positions need low volatility to perform optimally. This is because they depend on time market participants to cohesively move the instrument lower steadily as to not touch stop-loss orders and trailing stops. Dramatic price swings in volatile markets reach to touch these orders which upsets the entire position. 

PAIR AVAILABLE FOR SWING TRADE:

EUR/USD is the perfect pair to stalk for the next week or two because it's been loosing lots of volume and volatility moving towards it's 2014 low. As of now the pair is testing it's previous price of 1.35 which was most recently supported Friday (July 18) and before that June 5. Right now the pair's RSI on a daily chart shows bullish divergence from May 28th where price was 1.35864 and the RSI was at 27.1. Most recently (July 18th) the price has moved lower to 1.34903 with a higher RSI of 36.55!! This gives me the impression price wants to move higher but the pair isn't trading in that fashion which tells us to wait a bit. 

From 1.2744 the pair has seen a high of 1.39928 which is now the swing high.  The price 1.35 is around the 38.2% retracement of this swing while 1.33 is the nearest round price to the 50% retracement of this swing. With the 50% Fibonacci level being the most often tested price level along with the lack of upward momentum off 1.35, leads me to believe there's more room to the downside for this pair. 

The ATR is around 43 pips daily which we can say will lead us to our entry target at 1.33 by the end of the week or the beginning of next week. By the 28th of July the ascend towards 1.38 should begin. 

      1.38 is our most recent resistance  which was support for the upswing in April and May. Our first target should be reached by around August 11th or 12 days or so. Our next target of 1.400 (just above our swing high looking for new high) should be reached around 5 trading days later which would be around August 18th.

 

#  Beware of Wednesday July 30th as the US Fed. Bank announced it's fed fund rate. I think you know how important this is so try to already be locked into profits (at least +43 pip). By now price could be around 1.34 and if price retraces to 1.33 and holds I would look for an opportunity to increase my position size.

#  The next day to fear is Wednesday August 6 when the ECB announces it's EURO minimum bid rate which essentially the same as what the US fed bank will be doing in July. On this day you can look for a pull back to a previous resistance that may turn into a new support for another opportunity to increase your position size.  

With an entry of 1.33 we can safely set our stop/loss at 1.32 or -100 pips. From a 4-hour chart  view we can see the last downtrend from September 2013 was the next resistance level on the 4th and 5th which can now act as our 1.33 buy support on our way up this 2014 August. [That's almost perfect market symmetry, off by maybe 20 days lol.] Below 1.32 the next support we can assume is 1.28 which would disrupt any risk tolerant trades. From 1.33 to our target 1.40 we are pretending a 700 pip profit. From 1.33 to the next EXTREME support 1.28 we pretend to assume a 500 pip loss. Even if we took this trade our risk reward:ratio would be 1:1.4. Our trade isn't so risky as we are setting our stop/loss -100 pips away. That gives our trade a 1:7 risk:reward ratio, WITH confluence in indicators and price & volume. 

With respect to the law don't copy this idea lose money and try to blame it on me. If I trade this plan I'll make money because I know my strategies and plans. If you want to trade and make analysis like me let me know. And don't say I never gave you any ideas.  

PS: IM IN FLORIDA RIGHT NOW