Charts of the day – August 14, 2013 (Hogs, Cotton)

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The nearby continuation chart in Cotton completed a 4+ month continuation triangle on August 7. The December contract completed a continuaition congestion on August 12, confirmed on August 13. Many traders fear buying a market that has already broken out — instead, they often get chopped up within a trading range attempting to get positioned before the breakout, then they miss the move when it happpens. Any period of weakness in a strong advancing trend is a buying opportunity.

8.14_CT57_daily

8.14_CTZ_daily

 

The October Live Hog chart is attempting today to complete a 7-week rectangle. A strong close today would complete this pattern and serve as a buy signal. However, the failure of the market to breakout convincingly would be a cause for concern for long position holders.

8.14_HEV_daily

$HE_F, $CT_F

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Apple and a history of head and shoulder patterns

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The H&S pattern has served an important role in the turning points of $AAPL in recent years

The H&S pattern — when properly identified — is the most reliable of all classical chart patterns. Unfortunately novice market analysts are way to quick to mislabel market action as a H&S configuration.

The H&S pattern has served as the key turning point in $AAPL since the March 2009 low. The first chart below shows the classic H&S bottom completed in March 2009. This pattern launched a $600 rally.

8.13_AAPL_2009

The late 2012 top took the form of a small H&S top. It is not unusual for H&S tops to be brief, whereas H&S bottom patterns tend to be much longer in duration.

8.13_AAPL_Oct12

The rally in AAPL today confirmed a 6-month H&S bottom. It appears as though the long-term bull trend in AAPL has re-emerged. The intial target of this pattern is $545. A close below $425 would negate this interpretation.

8.13_AAPL

 

$AAPL

 

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My opinion of current futures markets (as of August 7, 2013)

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Next leg of Euro Currency bull trend against the British Pound begins

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Massive triangle in Pound should lead to 1.3500

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Some hopefully final comments on Silver bulls

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Why I am a $65 bear in Crude Oil

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I am predicting $65 Crude Oil

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Energy charts are a disaster waiting to happen

I have a crazy busy week ahead and am not sure I will have time for blogging. I am or may not be able to post more charts — I have many Icould show, Crude Oil, Brent, Gas, Heat. But I will show UGA charts (the ETF) for you stock folks. I have no time to elaborate, but do NOT be long energy — unless, of course, some silver bull gives you trading power of attorney.

6.22_UGA_daily

 

6.22_USG_weekly

$UGA

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Is the Canadian Dollar about to get cross checked?

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