Market Update and Insights

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Market Update and Insights

by Guest Columnist, Max Larsen, Future Finances, Inc.

This week we welcome Max Larsen, President of Future Finances Inc. to the blog as a guest columnist for a review of the week’s economic news. Max is a professional money manager, with $200 million under management and a long time user of Hawkeye.

1. Weekly Wrap
2. Technically Speaking
3. Business Optimism Goes Stratospheric
4. Inflation is Creeping In
5. Johnny Depp – A Lesson on What Not to Do

Weekly Wrap

The past week was rife with earnings, economic data and commentary from two major central banks, but the market shrugged off the busy event calendar remaining in its range bound ways.

The big news of the week was a decent jobs report with employers adding 227,000 jobs last month according to the Labor Department. This was the biggest gain since September although wage increases were rather modest. This from The Wall Street Journal (weekly summary from Briefing.com):

The backdrop of a steady but unspectacular labor market is likely to keep the Fed cautious about raising interest rates and could prevent the central bank from colliding with President Donald Trump as he aims for faster economic growth.

Indices Weekly Figures

We shouldn’t forget about earnings season. Our very own Brad Huffman chimed in:

In addition to a slew of economic reports, earnings season continued to unfold. These were generally supportive of the current trend. The most significant weakness has come from large multinational companies indicating concerns about overseas activity. Despite those concerns, both earnings and sales growth are poised to expand for the quarter.

Please remember that historically speaking February is one of the weakest return months of the year with the worst part coming towards the end. It may not happen this year. There is a lot of money flowing into stocks right now.

Technically Speaking

I have two charts to share today. The first is from Arthur Hill of StockCharts. He points out that it has now been 79 days since we’ve seen greater than a 1% decline in the S&P 500. Talk about “range bound”…

Just look at the bottom indicator called the ROC or rate-of-change. This is nothing more than how much the S&P 500 changed on a percentage basis on a daily basis. I high-lited the 79 days in blue. It denotes a strong market to me.

S&P 500 Chart

The second chart is one you’re very familiar with. This is the 8-months chart of the S&P 500 (daily prices). Notice how we came into the “Support” zone last week and bounced out on Friday.

S&P 500 Chart

I still contend that we are due for a pullback. It may not happen, but I could envision a minor correction to the “Critical Support” area (red high-lite) which would only be less than a 5% retracement and still well within the upward trend line and above the 200 day moving average. We’ll see…

Business Optimism Goes Stratospheric

We have gotten numerous emails and phone calls on people’s concern for the stock market’s lofty state. Once again here’s Brad Huffman on a nice reply that I had to share:

Thanks for the note. The market is responding to views that tax and regulatory changes from the new administration will help improve economic conditions. We do believe in the short term we will see a slight pullback (maybe 5%), but that would be normal and draw in new investors. The technical and fundamental pictures are pretty healthy right now, but volatility will remain present as it did last year.

We have several positions in the portfolio that help us hedge any market swings so unless we see significant deterioration in the charts, we are comfortable with the moderate risk exposure we have in the portfolio.

Brad is correct. Just take a look at the most recent NFIB Small Business Index.

NFIB Small Business Index Chart

Like its title says – it measures the business optimism on a quarterly basis. This stratospheric 38-point jump in the number of business owners who expect better business conditions is staggering.

Whether you like the President or not – and I know there are many who don’t – it is what it is and we have to live with it. That said, there is little doubt the WSJ’s headline hits it on the head: “Trump Pace Has Heads Spinning.” Many businesses are very encouraged that someone is finally attacking the mind-numbing regulations and restrictions.

Inflation is Creeping In

Consumer Price Index YTD ChartWe’re starting to see the possible resurrection of a little inflation. The Eurozone just reported a 1.8% rise in consumer prices while we’re hitting 2.1% in the U.S. The Wall Street Journal chimed in:

After years of fighting against deflation, the U.S., the eurozone and Japan show glimmerings of life in consumer prices and wages, evidence that an era of exceptionally low inflation is receding from the global economic landscape.

Several factors are behind the move, including a rebound in energy prices, falling unemployment which is reducing slack in some labor markets, and central banks’ low-interest-rate policies that spur lending and economic growth.

To be sure, any economic shocks could reverse this trend. Still, this is important since certain asset classes – like commodities and gold – tend to thrive in this environment. However, those sectors which are bond proxies – like telecom services and utilities – tend to do badly when inflation and interest rates rise. Be forewarned…

Johnny Depp – A Lesson on What Not to Do
Johnny Depp

Johnny Depp is having money problems and is suing his business managers for mishandling his finances. It turns out that it may not be all their fault and are countersuing since the Pirate of the Caribbean star was spending more than $2 million a MONTH to maintain his lifestyle. In spite of repeated warnings he is now having serious money problems. This from CNBC.com:

The lawsuit said Depp paid more than $75 million to buy and maintain 14 homes, including a French chateau and a chain of islands in the Bahamas.

Depp also spent heavily to buy a 150-foot yacht, fly on private jets and cultivate collections of fine art and Hollywood memorabilia requiring 12 storage facilities to maintain, the lawsuit said.

$2 million per month and $75 million in non-income producing assets? What could possibly go wrong? He’s obviously a very talented actor yet it boggles the mind that he could be so inept with his finances – whether he had an advisor or not… You can read the entire article HERE.

That’s more than enough for this week my friends. Congratulations to the New England Patriots. Wow, what a game. Multiple records broken – including the biggest comeback in Super Bowl history. It just goes to show you – never give up. Have a fantastic week!


To learn more about volume and volume spread analysis, and to see more examples and live trade setups be sure to join me in the next free LIVE Hawkeye Demonstration Room held every Wednesday. Open to all. Click this link for more information or to join us in class.

Learn to trade the Hawkeye way.

Good trading,

Randy Lindsey
Hawkeye Traders, LLC

Full Analysis on the S&P

With so much in the news regarding financial meltdown, let’s take a good Hawkeye look at the eMini.

Monthly S&P Chart
Daily S&P

Firstly look at the Hawkeye Volume – three months of no demand and one month of selling volume, giving you the heads up that the dominant uptrend was going to retrace.

Now, look where I have placed the dotted lines on the price. The higher one shows a double top with the two Hawkeye Pivot dots in yellow, the lower dotted line shows where price came to and found support right at the Hawkeye stops (indicated by the green crosses).

6 Ways a Market Moves shows congestion, and if prices rise next month a Hawkeye Pivot low will be printed. However, if the low of this monthly bar closes under the Hawkeye stops, a down trend will be established.

Weekly S&P Chart
Weekly S&P

A congestion break-out to the downside found support where I have started the blue line on price. Now look at Hawkeye Volume – although a major price move was not accompanied by ultra high volume, just high volume, and at the end of the week, Friday Hawkeye Volume shows buying volume. And if next week is up, a Hawkeye Pivot low will be established

Daily S&P Chart
Monthly S&P

Now it gets interesting. Remember what I teach at Hawkeye seminars – “The Tanker Effect”; when the markets are fast and volatile price shoots through the previous support. Look at the lowest price bar. Three days back it straddled both previous lows (shown by the blue lines on the chart), and rallied on buying volume, followed by two days of neutral volume indicating support as shown by the price action.

And now the final piece. 6 Ways a Market Moves. Look at the Trend dot crunching right up, still down so still a trend run. But if Monday is up the dot will go flat indicating congestion entrance.

We demonstrate this and many other methods in our live demonstration room held every Wednesday, and this is open to everyone. Click this link for more information or to join us in class.

Good Fortune,

Nigel Hawkes
Hawkeye Traders

[The cyan arrows and red lines are for illustration only and do not form part of the software]

Are We In Crash Mode? – HAWKEYE Has The Answer

Firstly I do hope you opened the email announcing the International Trading Profits Summit in beautiful, warm Palm Beach, USA in March. I really have assembled a wonderful team of traders to give you the tools and knowledge to make 2016 a fabulous year. Extended to three full days and kept at the same price of $750. So please come along.

Secondly, I wish you a very Happy and Prosperous New Year!

So, lets jump right in and take a look at what the new year is bringing in. All financial letter writers will be talking about the first week of trading, and in particular the stock markets, which have all had nearly a 10% down move from the 2015 highs.

With the markets rallying in the morning session only to be sold off in the afternoon, this the typical thumbprint of a market in crisis, with the bias to the downside. But let’s look at Hawkeye and the charts.

ES Monthly Chart
ES Monthly Chart

You can see where I have placed the yellow dotted line there had been four attempts to break that price, but now we are in congestion. With the Trend dots flat and white, and support off the Hawkeye Zones at 1785, and volume showing no demand and bias to the downside.

ES Weekly Chart
ES Weekly 01-11-16

This makes it all far more visible. Price rejected off the Hawkeye Zones and testing the Hawkeye Zone at 1887. Interestingly, Friday’s volume was normal and close to the bottom of the range which leads me to think that it was an amateur down bar. If the professionals were selling there would have been far more volume.

ES Daily Chart
ES Daily 01-11-16

This really does tell the story – the downtrend on Thursday gave high volume followed by average volume on Friday. Again suggesting amateur selling not professional.

Hawkeye Perspective
This week will tell all. There was good jobs news last week in the USA and the market should have rallied. So let’s see if it finds support off the daily and weekly Zones and rallies.

We certainly don’t want to be long until Hawkeye gives it to us on the daily and weekly. Major support is at hand. But with China in free fall, anything is possible

We demonstrate this and many other methods in our live demonstration room held every Wednesday, and this is open to everyone. Click this link for more information or to join us in class.

Good Fortune,

Nigel Hawkes
Hawkeye Traders

[The red arrows and lines are for illustration only and do not form part of the software]

Classic Commodity Setups and Apple Review

Three charts to look at this week.

Let’s start with America’s most widely held stock, Apple.

Apple Daily Chart

Looking at the daily chart, I have placed a blue line after Apple had a Wide Bar down (first blue arrow) then rallied back up.

There are now six Hawkeye Pivot lows, and the Trend is neutral, indicating congestion. But look at the Hawkeye Volume (last two blue arrows) – classic accumulation volume. So expect a test to 116 area, and if taken out, the commencement of an uptrend.

Now let’s take a look at Coffee.

Coffee

The Wall St Journal said this week that food prices have increased for the first time in 18 months, and the Brazilian Real is showing strength, which is good news for coffee and the charts are starting to support this.

Let’s look at the monthly chart first. It has a Pivot low coming in (indicated by the cyan arrow) if the price continues up. The weekly has phantom Pivot lows and green buying Volume (indicated by the cyan arrows), and the daily is in up Trend with good accumulation volume over the past two weeks

And finally Live Cattle.

Live Cattle

The monthly chart shows the price right down and found support at the Hawkeye stops (indicated by the cyan arrow). The weekly has a Hawkeye Pivot low and green buying Volume (indicated by the cyan arrow). The daily shows a great example of accumulation volume taking place after a considerable down trend (indicated by the cyan arrow).

Hawkeye Perspective
Be patient, a set up is imminent in all three markets.

We teach you how to get the best out of Hawkeye at our London Seminar on October 18/19 2015. You can find out more here

Now, all of this (and much more) is demonstrated in our FREE training room every Wednesday at 9am Eastern, by my colleague Randy Lindsey.

So, I cannot encourage you enough to come along to the Wednesday room.

Click Here To Reserve Your FREE Seat

Good fortune,

Nigel

Please contact us at [email protected] for any questions you might have about using Hawkeye Indicators in your trading!

[The blue, cyan and magenta arrows are included for illustration only and do not form part of the software]

Don’t Get Trapped In False Breakouts

A few weeks ago I did some analysis in the Emini, saying last week would be critical and it was.

So lets take a look at the chart.

ES Chart

Where I have drawn the yellow dotted line showed a double top, the bar prior to the magenta arrow broke though but straddled the price.

So, if you were a rookie trader you could be forgiven for thinking it was a breakout to the upside. WRONG! Resistance areas are not rods of steel but rubber bands, so that bar in fact just stretched the resistance area and then came back.

Look at the bar where the magenta arrow is; no part of the bar is touching the blue support up line, hence that is a break of support/resistance.
Hawkeye Perspective
So, you can see the importance of the Hawkeye rule to wait until no part of the bar is touching support or resistance and the Hawkeye Volume is colored in the direction of the breakout.

Now, all of this (and much more) is demonstrated in our FREE training room every Wednesday at 9am Eastern, by my colleague Randy Lindsey.

So, I cannot encourage you enough to come along to the Wednesday room.

Click Here To Reserve Your FREE Seat

Good fortune,

Nigel

Please contact us at [email protected] for any questions you might have about using Hawkeye Indicators in your trading!

[The magenta arrows are included for illustration only and do not form part of the software]

A Critical Week for the Emini

I have had a few emails over the last two weeks requesting I give you a Hawkeye analysis of the S&P – so here it is.

To set the stage for the Daily chart, let’s look at the monthly and weekly charts and see what they are telling us. The monthly chart has entered into congestion, based on a Pivot high from three months ago. The weekly chart is also in a wide congestion zone, with the high at 2117, and the low at 1821.75. Current price is closing within the previous wide-range bars, which is what we expect to see.

Now to the interesting part.

This week is a big week. Wednesday begins a two-day FOMC meeting, and the markets will be waiting and choppy till the announcement. So lets look at the chart.

S&P Daily Chart

The magenta down arrow shows overhead resistance. The first cyan up arrow shows the Trend line supporting the market. The second cyan up arrow shows the Trend line on the volume, showing a buying volume profile has started over the last three days. The red arrow pointing to the Roadkill indicator, set to three days, shows no demand volume either up or down. The red arrow on price shows the Trend dot is flattish, showing congestion parameters, Wednesday’s pivot high and Thursday’s phantom pivot low.

Hawkeye Perspective

With news later this week, no swing or position trading till that is announced. Remember you are trading risk. However, all will be revealed when the magenta arrow line is broken or when the cyan up arrow line on price is taken out. Volume is showing an upside bias at the moment.

Now, all of this (and much more) is demonstrated in our FREE training room every Wednesday at 9am Eastern, by my colleague Randy Lindsey.

So, I cannot encourage you enough to come along to the Wednesday room.

Click Here To Reserve Your FREE Seat

Good fortune,

Nigel

Please contact us at [email protected] for any questions you might have about using Hawkeye Indicators in your trading!

[The cyan and magenta arrows are included for illustration only and do not form part of the software]

The Next 5 Minutes Could Change Your Trading Results Forever

There is no end to the debates among active traders about the pros and cons of swing trading vs. scalping. And the debate has been going on for years. However, in my opinion, two of the greatest failings of most traders are:

  • They trade on too short of a time frame
  • They fail to hold their trades for the maximum profits.

So, in this week’s article, I will highlight how to resolve these two problems by swing trading with Hawkeye indicators.

Below, I’ve included six charts in different time frames and markets. They span everything from stocks to bonds and commodities to Forex. Frankly, I could have included dozens of charts, because these principles of swing trading apply in any market. And by using Hawkeye indicators, finding extremely profitable entries and exits is easy.

The key thing to remember is to wait for the best entries, when all three time frames are in agreement. To illustrate, on each chart, I’ve marked the point where all time frames are in agreement and we are presented with a safe and easy entry as marked by the red and cyan arrows.

In every case, you can see that by waiting until all three timeframes are in agreement, you can enter a long and profitable trend. Then, by holding the trade until your profit target is hit, or you are stopped out, you can make significant profits without all the flurry of trying to get in and out with scalp trading.

Please take a few minutes to carefully study the charts below.

Stock – (Google)

Stocks - Google

Forex – (AUDNZD)

Forex - AUDNZD

Crude

Crude Oil

US Bonds

US Bonds

Stocks – (BHP)

Stocks - BHP

Forex – (AUDUSD)

Forex - AUDUSD

Now, all of this (and much more) is demonstrated in our Wednesday room by my colleague Randy Lindsey.

So, I cannot encourage you enough to come along to the Wednesday room.

Click Here To Reserve Your Seat

Good fortune,

Nigel

Please contact us at [email protected] for any questions you might have about using Hawkeye Indicators in your trading!

[The red and cyan arrows are included for illustration only and do not form part of the software]

Sick Of Head-Fakes and Other Losing Trades? Here’s The Solution

One of the biggest frustrations for traders is entering a trade, only to see it immediately reverse against them. That’s why I developed the Hawkeye Heatmap indicator. Its purpose is to give an objective indication of the strength of a trend. By entering trades in the direction of a strong trend, Hawkeye traders can significantly boost their profits and reduce their losses.

In this week’s article, I’ll show several examples of how the Heatmap works and how easily it reveals the strength of the underlying trend.

Let’s begin our discussion with this first chart of the E-mini (from July 3, 2015).

Emini Chart

The Heatmap (on the bottom) takes the three variable inputs from the Hawkeye Trend — conservative, normal and aggressive, and shows you visually when all three trends have locked into place. This gives you a clear view of the overall market sentiment and quantifies risk.
Heatmap works in all timeframes and displays four color variations:

  • RED – The markets are in a strong downtrend and bearish
  • GREEN – The markets are in a strong up trend
  • DARK RED OR DARK GREEN – one or two of the trend speeds have locked out of the trend, and the market may be pausing into a congestion area or reversing.

In the example above (where I have the number 1), it shows that the trend is in congestion, as you can see by the white dots.

But, if you look at the Heatmap underneath, it’s in dark red, which is telling us that the bias is to the downside, however, all three trends are not in sync. So, if you want a safer entry, you would wait until point number 2, where the Heatmap goes bright red, and then down it goes.

Similarly, let’s consider the long entry as marked by numbers 3 and 4.

You can see that the trend has gone from bright red to dark red, showing us that the trend is weakening. One or two of the trends have clicked out (hence that’s why it goes to the darker red at point three).

And then, at point 4, the Heatmap goes bright green, and up it goes.

At the number 5, you can see the trend goes flat, the Heatmap goes dark color (telling us that the trend momentum is stalled), and the bias is still to the long side.

Then, at number 6, Heatmap goes bright read and prices immediately drop.

Now, the next example is the weekly chart of Apple, the most widely held stock in America.

Apple Weekly Chart

And again, you can see at point 1, we have two dots of white, and then, the Heatmap goes dark red, followed by bright red. And bang! Down it goes. At the number 2, the Heatmap goes from bright red to dark red, showing that the trend strength is dissipating. And then, it goes bright green and bang! Up it goes. The same for point 3, where you see the Heatmap goes dark red, showing us that we are in a trend pause. We have entered congestion, and at point 3, Bang! The Heatmap goes green, and up it goes.

At point 4, although white dots come in (showing us that the trend is going flat), the Heatmap gives you the confidence to stay in this trend and continue on up, because it is just saying everything is in place.

Lastly, let’s consider the daily chart of Crude.

Crude Daily Chart

You can see that at point 1, we have gone into a trend congestion, and our Heatmap has gone dark red. Then, at point 2, the Heatmap goes bright green, and off we go up to point 3.

At point 3, you can see that the Heatmap has gone dark green, showing us that the strength has gone out of this up move. Although the bias is still to the upside, there is no momentum in this. And the circle that I have drawn around three all the way across to four is something that took me many hours to perfect and find out the answer.

And, I haven’t seen any other software out there that would run for that length of time just showing congestion. Then, at point 4, the Heatmap goes bright red and Bang! In it comes, and the market starts selling off.

So in summary, the Hawkeye Heatmap solves one of the biggest frustrations for traders. That of entering a trade, only to see it immediately reverse against them. By simply entering trades in the direction of a strong trend, Hawkeye traders can significantly boost their profits and reduce their losses.

Now, all of this (and much more) is demonstrated in our Wednesday room by my colleague Randy Lindsey.

So, I cannot encourage you enough to come along to the Wednesday room.

Click Here To Reserve Your Seat

Good fortune,

Nigel

Please contact us at [email protected] for any questions you might have about using Hawkeye Indicators in your trading!

 

ANNOUNCING: An Exciting New Breakthrough For Intraday Traders

One of the biggest challenges intraday traders face each day is determining what time frame to trade. That’s why I developed Hawkeye’s Gearbox and Gearchanger.

These world-class innovative tools show you, day-in and day-out, the absolute best way to trade the markets using tick charts.

So in this article, I will walk you through how these tools work to give you much greater insight into what’s really going on in the markets and how to trade them more profitably.

On the right hand side of the chart below, notice that there are four labels. First, there’s 5816 which represents the slowest tick speed trade you should currently consider using.

Next, there’s 2908 (marked in yellow), which is the medium time, followed by the blue, which is the fast time. And finally, the cyan is the ultra-fast time frame you should use for scalping.

Emini Gearbox

As an illustration, just as a cyclist has to change gears when they approach a hill, we as traders need to change gears as market conditions change. For example, look at the spikes on the above Gearbox chart. Notice how at one point, it goes up to over eight thousand ticks and then, drops right down to under 5000 ticks.

Obviously, as market conditions change like this, our approach needs to change, because we must trade in harmony with the speed of the market. And that’s what the Gearbox does. It shows us what tick speed to use. And the best part is that this works on all trading instruments including forex, stocks, and commodities.

Now, Gearbox is coupled with a second tool that I call the Gearchanger, which is displayed in the multi-color chart below.

Emini Gearchanger

When the GearChanger is blue, you should be trading in the fast tick speed. When it’s yellow, it tells you to trade the normal speed. And when it’s red, it’s telling you the market has slowed down, so you should trade at a slower speed.

Let’s continue with an example of using Gearbox on the EURUSD currency pair.

EURUSD Gearbox chart

See how the tick speed fluctuates a lot each day? And when we couple this with our EURUSD Gearchanger chart below, you can see how it tells you exactly what tick chart to trade in harmony with the market as it speeds up and slows down. As you learn more about these tools, you’ll come to realize how powerful these two tools can be in your trading.

EURUSD Gearchanger

Also, if you are a stock trader, these two tools can also help your trading. Here’s an example using them on Netflix (NFLX).

NFLX Stocks Gearbox Chart

Notice the amazing amount of volatility on the chart! If you were just trading a time chart, you would have no visibility into what was going on with all this time volatility. Using a 5 minute chart would be far too fast when this is at the top around 900 ticks. And, it would be far too slow when you are at the bottom about 89 ticks.

And next, here is the Gearchanger on NETFLIX which throughout the day would tell you which chart to look at and which chart to trade from:

NFLX Stocks Gearchanger

So, in conclusion you can see how powerful these two tools are. Every day and throughout each day, they reveal what is the best tick speed to trade with. If you haven’t been successful in intraday trading yet, this is the key that you have been looking for, especially when coupled with Hawkeye Volume.

Now, all of this (and much more) is demonstrated in our Wednesday room by my colleague Randy Lindsey.

So, I cannot encourage you enough to come along to the Wednesday room.

Click Here To Reserve Your Seat

Good fortune,

Nigel

Please contact us at [email protected] for any questions you might have about using Hawkeye Indicators in your trading!

 

What Do Apple And The ES Have In Common?

In today’s article, I’ll start with the chart of Apple, because it is so similar to what is happening on the E-mini chart. So first up, notice where I have put the yellow dotted line, where the first red down-arrow is, and how Hawkeye had a phantom isolated high at that point on the 27th of February at a price of 133.60.

Apple Weekly Chart

As you can see from that point, the market has just gone sideways, although the trend dot is slightly rising.

Now, the volume that is displayed on the chart doesn’t show a Hawkeye Volume Radar dot on it, because one wasn’t generated. Which means that although this appears to look like high volume, the fact is that it was just average volume.

And if we look at the range of the bar, it was an average price range bar, which means there was no selling coming into this at that time. It is just in its distribution mode. And if you look at the volume at the bottom, which I have circled, you can see that it is classic cyclical change of trend volume, where you would go red, green, no demand with the whites, etc. You can see that it’s trying to make up its mind in a distribution phase.

And unless it breaks out of the 133.60 range and closes at the end of the week right up above that mark with the rising trend dot, we’re still going to be in our weekly cyclical change of direction. We will still be in our trend pause mode and distribution. We will be in our congestion zone at the top of the market waiting for enough volume to come in to push the market up. But when I show you the ES, you’ll see that it is totally dependent on that chart.

Now, let’s move on to the ES chart.

ES Weekly Chart

As you can see, I have placed a cyan arrow pointing up. That occurred on February 27, and that isolated high, which is been indicated by the yellow dot on the Hawkeye has held all the way since 27 February.

And this week we visited that price, and it hit it and backed off again. As you can see, there are four red arrows, showing you that there have been four attempts to get through there, and all have failed. If you look at the volume, again you can see that is total topping volume going on. It’s not a trend volume, because trend volume would all be green. But you can see that there’s red, green, white no demand, red, green, green, green.

So in the last four weeks, you’ve had green buying volume coming into the ES, but the price hasn’t moved. It really hasn’t gone up, and it achieved a breakout of that high on February 27, and continued a trend run. So this week is a very important week, because it really has to do something.

So, any of the Gann traders who read this, you know that WD Gann said; on the fourth or fifth attempt prices normally go through support and resistance. Well, it backed off on this fourth attempt to get through this resistance.

And this coming week, we’re going to see whether that was a back off, or whether it is going to go back up through the isolated high yellow line that I’ve drawn off the pivot high that occurred on February 27th. So, in fact, if you look at the two charts also, between the ES and the Apple, you can see that time-wise they are both struggling around those price areas, and that were achieved on February 27th.

So, it’s going to be an interesting week coming up, and let’s watch it carefully. It’s going to be absolutely fascinating to see how this plays itself out. At the moment, the market is in total congestion on both markets, and we are waiting to see breakouts occur to the upside this coming week.

Good fortune,

Nigel

We demonstrate this and many other methods in our live demonstration room held every Wednesday, and this is open to everyone. Click this link for more information or to join us in class.

Please contact us at [email protected] for any questions you might have about using Hawkeye Indicators in your trading!

[The red and cyan arrows are for illustration only and do not form part of the software]

Hawkeye’s View of the Dollar, the S&P Emini, and Apple

Let us begin by doing a review of the dollar, because it is in an amazing uptrend.

Dollar Index

There are a variety of fundamental reasons for this. One is that the Fed is expected to tinker with interest rates soon, and many are predicting that it will be in June. Another, because of the conflicts around the world, particularly because of ISIS, money is flowing into safe havens. This is all having a huge effect on the stock market. A lot of exporters are being hit and are losing some of their bottom line because of this high dollar. So, the exporters are feeling the pinch. And, as the dollar continues on this huge trend, expect more.

And now, if we have a look at the ES, there is a critical point, and that is 2110.25.

S&P Emini

This area has a Hawkeye High Pivot. And the weekly has to close above 2110.25 on this Friday to show that is in an uptrend. Otherwise, we are entering congestion on the ES, and we are also in congestion on the daily. We have to take out this area – 2110.25 – with no part of the weekly bar straddling it this coming Friday.

And that will indicate that an uptrend is on its way.

Now, let’s look at Apple. I’ve given you two charts on Apple, both the daily and weekly. And, you can see that where I have circled the Hawkeye volume, we have a typical congestion entrance set up.

Apple Weekly

That is because the volume is not showing continuously green volume. It is showing buying, selling, buying, selling, showing chop. And, where my first red arrow on the weekly is, you can see that I have a phantom high there. And on my second arrow, although I have green volume, the close is in the mid part of the bar. But look at my trend dot, because it is starting to flatten out, showing that the momentum to the upside is stalling, and distribution could be taking place.

Apple Daily Chart

Now, if we go over to the daily, you can see quite clearly that we are already in congestion on Apple, and you can see that I again have circled the volume which goes all the way back to the beginning of March showing typical oversold volume coming into the market. And the market going into its distribution phase. Now, it will probably break out to the downside until fair value is hit, and it will continue in this overall monthly trend to the upside. But, this is a very critical point for us and Apple this week again. We want to see it put in a long trend in the daily to give us any confidence that this is going to the upside. So, all in all, it looks very interesting

Don’t forget, if you haven’t picked up a copy of the Hawkeye Volume Starter Package yet, please CLICK HERE, and get started using Volume to start increasing your profits today!

Great Trading!

Nigel Hawkes

We teach this and many other methods in our live training room held every Wednesday. Click this link for more information or to join us in class.

Please contact us at [email protected] for any questions you might have about using Hawkeye Indicators in your trading!

[The red lines and arrows are for illustration only and do not form part of the software]

Want to profit from Volume? Here’s how.

Apple is the most widely held stock in America.

If you look at the daily chart, you can see it has been in an uptrend for quite some time. There was a brief pull-back in late June, and then, it continued upwards on declining volume.

Apple Daily

However, notice throughout the pullback, it didn’t break the Stop or Crash Barrier indicators (indicated by the green crosses and the solid green line).

Now, notice the point where I’ve marked the chart with a cyan-colored arrow. You can see that when prices began to rise, volume was increasing and how it pushed the market up.

Next, see the large magenta-colored bar on July 8th? That tells us the market will most likely go into a pause (in fact, this Widebar indicator is accurate about 80% of the time).

As I write this weekly newsletter (on Monday, July 14th), you can see that the current bar is pushing out above the magenta bar.

But please remember, if you’re trading is based on daily and weekly charts, I don’t consider there to be a breakout until ALL of the current bar is above the support or resistance.

At the moment, the current bar is straddling the resistance, and you can see this if you draw a line off the top of the magenta bar.

So, I would still say that this market is currently in congestion on neutral volume.

Now, if we look at the weekly chart, you can see that Apple is in a power trend up.

Apple Weekly Chart

And, you’ll also notice, this is happening on green buying volume, with the Hawkeye trend dots moving up in a very orderly manner.

So, all of this points to a market that is being accumulated.

But of course, if you look at lower time-frames (like the daily), you’ll see the whip-lash of the vibration, but it holds firm in this trend.

It appears that this trend will continue its way up, providing the overall index goes up.

So, what is the Hawkeye perspective on Apple?

Apple is in an uptrend, it’s in congestion on the daily, working its way out of the wide bar range, which occurred on the 8th of July, but is in total harmony with the weekly chart.

Good trading!

Nigel Hawkes

 

[The red and cyan arrows are for illustration only and are not part of the software]

 

The ‘Its easy to trade’ gang are out in force..a must see event, and one to watch

This week Mike Smith reports direct from the Hawkeye Options desk.

Here we go again – out from the woodwork they come…
Its earnings season and so out pop the latest plethora of NEW; INNOVATIVE; EASY; PROVEN etc. etc. headlines about a strategy that has been around as long as options have been in existence.

They say straddles and strangles are the way to trade a high volatility market (by definition it isn’t a volatile market by the way – just look at where the VIX is – there is a difference between choppy and volatile – a later discussion perhaps).

They will promise that this new (lol!) innovative strategy, where you buy a call and a put, an each way bet if you like…as THE ONLY way to make money in this market

(AND of course Barracuda at 191% end of day last session in less than 7 months is evidence that this is nonsense).

They will fail to mention that options prices go up pre-earnings – a little thing called implied volatility – (which is in simple terms, a forward looking measure based on how likely something could move from its current position – in an individual option position there is NO time when this is at a temporary high just before an earnings report). So you can pay over the odds for a call and pay over the odds for a put, and the underlying has got to make a massive movement for you just to break even.

Perhaps we will run a session on this, as there are ways to overcome such issues, but we have other fish to fry right now…just be aware.

A happier note…
Onto the happy stuff. As we are in week 1 of earnings season, I have put a blog post up at HawkeyeOptions.com that may be interesting. This explores the reasons why the pessimism pre-earnings (as seen in the recent market pullback) may lead to a continuation of the bull market we are still in (see the weekly trend in the SPY). You can read more here.

And after earnings..?
So, we are in a new quarter and as usual I am going to run a FREE open session, which looks into the crystal ball (which has been on the button the last 6 quarters these have been running).

Where you will hear

  • Our predictions for US and global equity markets this quarter.
  • Which strategies may work and which to avoid (as they are likely to rip away huge chunks of your capital).
  • The 5 things you MUST monitor this quarter to ensure you are at the front of the pack when things are likely to change.
  • Our predicted date for the next market correction and the catalyst that may drive it.
  • Where next for precious metals (and this may surprise you)?
  • And we will be revealing 4 stocks that are most likely to outperform the market between now and the end of June.

Although with an equities/options/ETF bias, whatever you trade this is ESSENTIAL information. You can register here.

This is simply a service we offer to all those who have expressed an interest in what we do and is a NO SELL zone session.

Feel free to share this link with others as it IS an open session.

And finally..

Watch YAHOO…yesterday’s earnings attracted some massive buying interest in after hours trading.

As always…trade safe and learn with passion.

Mike Smith

Hawkeye teaches you to Swing!

Apple, the most highly held stock in the USA, is great to swing trade.

Chart 1 - Apple 60-Minute Chart

appl 60 mins

This 60 minute chart shows that the market has entered congestion and the unique Hawkeye Volume indicator is showing accumulation volume (as indicated by the cyan arrow).

Chart 2 - Apple 30-Minute Chart

appl 30

Although the 30-minute trend has been up there is no volume support and the 60-minute trend is flat (as indicated by the cyan arrow). So although the bias was to the long side, volume was not pushing up prices but showing accumulation.

Note: the cyan arrows are placed for illustration only, and are not part of the software.

Hawkeye Perspective

Market bias is to the long side, as shown by the 30 and 60 minute charts, where both are showing accumulation. Even the 120 minute chart (not shown) is showing accumulation. But patience is required - a break above the last pivot high on the 30-minute chart (indicated by the yellow dot) at 530 will show the commencement of the swing trade. So, did we show you how to swing?

Hawkeye Shows One Great Stock.

The markets are correcting and the Dow is in daily and weekly downtrends. The ES is also in a daily downtrend but the weekly charts show congestion. Weak stocks are tumbling. This is the time for stocks that are strong, as they will probably get stronger when the market returns to an uptrend.

Lets look at Facebook as an example.

Chart 1 - Daily

This daily NASDAQ chart shows a new volume buy entry with accumulating volume (indicated by the red arrow).

facebook daily

Chart 2 - Weekly

This weekly NASDAQ chart shows a wide magenta bar indicating twice average true range (indicated by the red arrow). Normally the price will consolidate here and then push up through the high of the wide bar.

facebook weekly

Note: the red arrows are placed for illustration only, and are not part of the software.

Hawkeye Perspective

When prices close higher than the wide bar on the weekly this will indicate strength and an entry to the long side. Warning: if the indices are still falling wait until they turn.  You are trading risk so you need to wait for a low risk entry. NASDAQ rising and Facebook rising – a potentially great trade!

Hawkeye Volume Told You 10 Days Before the Market Sold Off

The Dow (YM) is a classic example of selling distribution volume.

Chart 1 Daily

This shows 10 days of selling volume occurring at the top of the uptrend (indicated by the red arrows), with the Hawkeye trend going white indicating no momentum.

 

dow daily

Chart 2 Weekly

This shows three weeks of neutral volume (indicated by the red arrow) with a Hawkeye pivot (red arrows) to the left so we expect a 3,5,7 bar reversal.

dow  weekly

Note: the red arrows are placed for illustration only, and are not part of the software

Hawkeye Perspective

Until 15,640 is broken on close this is just a pull back in uptrend. If that price level is broken a new weekly downtrend will be in place.

 

 

Hawkeye Volume shows the low interest rate party is over

The party is unwinding on low interest rates so get ready for inflation. Who knows when, but it’s in the pipeline — it’s just a matter of time, so lock in these low rates asap.

On the daily chart

The cyan arrow shows a double bottom (yellow Hawkeye pivot dots on the price) which indicates the market is oversold, so a rally here offers a great opportunity to get short.

bonds daily

On the weekly chart

Downtrend on declining volume again showing a small rally will occur here.

Markets don’t go down on low volume, they either go into congestion or it is the start of accumulation for an up-move.

US Treasury Bonds

On the monthly chart

This is telling the story, after a rally lasting from 2008 the party is over. Look at the red down arrow. All Hawkeye indicators are short:  red monthly selling volume, red trend dot down and solid red Heatmap showing all trends are to the short side.

US Treasury Bonds

The Hawkeye Perspective

Brace yourself; low interest rates are over. It will take some months to come to an end. Any rally to the upside is a great opportunity to get short. But protect you and your family; this could be a huge trade so immerse yourself and study Hawkeye Volume — the only non-lagged indicator.

How to trade Google stock with little risk.

Less than three months after it hit $800, Google ($GOOG) topped $900, and is now on the brink of becoming the first tech stock to hit $1,000 a share. And with a slew of product launches in the works, the company’s reputation is getting a boost as well. Though we’re not ready for the risk of getting behind the wheel of their driverless car, we’ve got some low risk trades to reveal.

Trade of the Week
Google stock was extremely profitable when trading the shorter (daily) timeframe, only in the direction of the long term (monthly/weekly) – and with little downside risk.

Hawkeye has been long since October 2010! As you can see by the cyan arrow on the monthly chart.

The Hawkeye tools have shown a low risk long on GOOG since October 2010!
The Hawkeye tools have shown a low risk long on GOOG since October 2010!

The Hawkeye Perspective
Only take longs on your chosen faster timeframe (daily or weekly) when the price goes against the monthly then returns in the same price direction.

The cyan arrows on both the weekly and daily charts indicate when to enter with a minimum amount of risk.

Want to learn more while you watch Hawkeye live in action? Sign up for our FREE Live Training Room. What have you got to lose?

Don’t fall for the Apple hype… yet.

If you’re fueled by high expectations of Apple stock, Hawkeye is here to deflate the Apple-hype balloon.

While the iPhone maker has seldom reported negative figures in a decade, this week, Apple revealed typical congestion and a pause in downtrend.

For there to be a new weekly uptrend, the stock would have to break above $466. Refer to the following chart for the continued discussion:

$AAPL monthy chart shows narrow bars on low volume - an indication of accumulation.
$AAPL monthy chart shows narrow bars on low volume – an indication of accumulation.

Point 1
On this particular day, the daily shows declining volume which translates to stopping volume in the existing weekly and monthly downtrend.

Also, the daily trend dot is rolling over showing lack of momentum.

Point 2
The weekly trend does not show advancing volume, therefore negating a probable uptrend.

Point 3
The monthly chart shows narrow bars on low volume; this normally indicates accumulation which will manifest on the faster timeframes as it develops.

In conclusion, there is too much risk to take a new long till increased buying volume occurs on the weekly chart.

Wait for a low risk entry when the daily and weekly indicate a new uptrend or short when the daily resumes in the direction of the weekly and monthly trend, both low-risk entries.

Three smart ways to exit a trade.

Do you stay with your profitable trades as long as possible hoping for the trend to continue to make your profits even larger? Do you tense up when you have to exit a profitable trade?

Here are three exit strategies to help you exit your trades with ease:

  1. Stops (waiting till the Hawkeye stop is touched or crash barrier breached)
  2. Levels ATR (average true range)
  3. Grabba (for fixed profit targets)

Where to exit is more important than where to enter, but the majority of traders in my experience don’t pay enough attention to exits as they should. Hawkeye Traders has not only developed precise entry methods, but also unique and well defined exit strategies.

AAPL weekly Chart with ATR Levels
Chart 1: $AAPL weekly chart showing ATR Levels management rules.

Using the Hawkeye Levels ATR on weekly stocks are phenomenal. Here are the indicator settings used for Chart 1: set the look back period to 14 and the ATR profit and stop factor to 1.5. The rules are that once the bar has closed above (if long) or below (if short) any level, the exit is a close, NOT TOUCH, of the previous level, or a touch of 2 levels back. This covers sudden reversals, so as Chart 1 illustrates, there was no time following a close below any level where there was a corresponding close above the previous level or a touch of 2 levels back. But now at the point labeled “1”, we have price trying to close above level 5, after closing below level 6… if at the end of this week it does close above level 5, the exit would have taken 5 ATR out of the market.

$AAPL weekly chart 2
Chart 2: $AAPL weekly chart showing Levels ATR management rules.

In Chart 2, I show a “losing” trade… but it demonstrates 2 methods to exit.  The first exit method you can see at the point labeled “1”, where there is a close under the zero line (the entry point) after previously closing above level 1. The second exit method is the Hawkeye stop… you could have exited the trade when price closed below the “+” mark 2 bars back from point 1. But please note it was nearly a scratch trade… the Hawkeye methodology protected you at either exit point you could have selected.

Intraday $ES tick chart
Chart 3: Intraday $ES tick chart showing Hawkeye Levels ATR management.

For intraday $ES trading (Chart 3), I set my Levels ATR to a period of 14 and a profit/stop factor of 1.25. See how this enabled you to take 3 ATRs from this move, as it closed above level 4, then closed below level 3, as shown at the point labeled “1” Chart 3.

$ES intraday tick chart with Hawkeye Grabba
Chart 4: $ES intraday tick chart using the Hawkeye Grabba trade management rules.

Using the Hawkeye Grabba allows you to set the levels at fixed price points. For example, say you want levels at every 1 point on the $ES (Chart 4)… so the Grabba settings are 4 ticks ($ES moves in .25 so 4 = 1 full point), and I set the stop multiplier to 1.25 (exactly the same rules as Levels ATR). To exit, follow the same exit rules described for the Levels ATR, or exit at predetermined profit levels as your trading plan dictates. Like the Levels ATR, the Grabba graphically shows you profit targets and exit levels for your specific exit strategy.

While there is no perfect exit strategy, the Hawkeye Method enables you to exit in strength and reduce the risk that the trade will turn against you if you are in a winning position.

Catch the bigger part of the trend with the Hawkeye Levels ATR, or the Hawkeye Grabba!

Duke energy continues in bearish tone on daily chart

day trading stock chart for Duke Energy using hawkeye indicators
Duke Energy – daily chart using Hawkeye

Duke energy shares continued to move lower on Friday, closing the US trading session at $64.78, and adding further pressure to the move lower. The sell off in the stock was given additional momentum following the news that one of Duke Energies subsidiary companies in Florida, Progress Energy Florida, has recently filed requests to reduce customer bills which if approved would see the average household utility bill fall by approximately 6% from the first billing cycle in the new year.

From a technical perspective, Hawkeye delivered an early entry signal to the short side, with a conservative trend Roadkill signal on the 21st August with the stock trading at $66.87, as it finally broke below a short term area of price congestion. Since then both the volume on the daily chart and the 3 day chart have remained firmly bearish, although it is important to note that the daily volumes are light. However this could merely be reflecting the summer period, and a general lack of volumes in all markets, as with the US labor day now ahead we can expect to see a return to more normal volumes as traders return from their summer holidays.

With a red Heatmap and red trend in both timeframes, the stock now looks set to break lower, and indeed on Friday Hawkeye delivered a further confirming signal with a volume Roadkill re-entry signal, suggesting that the current bearish trend has some way to go. The key level now is defined by the Hawkeye pivot in the $64 region, and if this is breached, then we can expect to see this stock move lower to test the $62 – $63 level in due course.

If you would like to see Hawkeye in action, simply click the link below to join one of our Free Live Training Rooms where we trade using the full suite of tools and indicators across all the markets.

Apple stock fails to rise following victory over Samsung

Apple on the daily chart
Apple ($APPL) – daily chart using Hawkeye

Apple’s recent patent victory over Samsung appears to have little impact on its share price, which hit a high of $680 on Monday before ending the week lower at $665.24.

This temporary pullback was signaled on the daily chart with two Hawkeye isolated pivot highs, the first on Monday and the second on Wednesday with the share price moving lower as a result. Despite this, however, the overall picture for Apple remains bullish with the chart displaying a bright green Heatmap and a green Trend on the daily and three day chart.

However, it is important to note that over the last two weeks we have seen volume on the daily chart declining and, in addition, this has also appeared as no demand volume, i.e. white, perhaps giving us an early warning signal of a potential reversal for the stock. Indeed on Friday, on the daily chart, we also saw selling volume appearing for the first time since early August adding further weight to this view. This pullback may be only temporary in the longer term bullish trend, but once again Hawkeye is giving an early warning signal of a possible reversal for the stock in due course.

If you would like to see Hawkeye in action, simply click the link below to join one of our Free Live Training Rooms where we trade using the full suite of tools and indicators across all the markets.

Citigroup shares continue to grind higher

daily stock chart for citigroup on the us stock markets
Citigroup ( $C ) – daily stock chart

Despite the recent bullish momentum in equity markets in general, Citigroup shares have remained relatively flat over the last few weeks, and closed Friday’s US trading session at $29.71 having traded in a narrow range for much of the day. The price is now consolidating into a pennant formation on the daily chart, with the Hawkeye pivots once again defining the congestion area, with both pivot highs and pivot lows in much the same way as in early August, which duly saw the stock break out from a narrow trading range.

Despite the flattening of the Hawkeye trend dots on the daily chart, the three day trend continues to remain firmly bullish supported by strongly bullish volume, and a bright green Heatmap, all suggesting a breakout to the upside is imminent. The price action in the current area is also significant with a series of higher lows over the last few days, suggesting that we should see the stock break higher in due course. With the strong platform of support in the $28 price area, this should provide a springboard for a move higher for the stock in due course with a test of the resistance in the $32.50 region now looking likely as volumes increase following the end of the summer holiday period.

If you would like to see Hawkeye in action, simply click the link below to join one of our Free Live Training Rooms where we trade using the full suite of tools and indicators across all the markets.

 

This Week’s Market Forecast – Risk On Returns!

Last week was the worst Thanksgiving week on Wall Street since 1941. Traders and investors reeled from the problems in Europe, as well as the collapse of the US budget deficit talks. The S&P 500 fell almost 5% on the week, closing just below the key 1160 level. The Dow was also down almost 5% over the week, and the Nasdaq was down by 5.1%.

The selloff really took place following the disastrous German bond auction which saw demand for the 10 year Bund at its lowest since the euro was created. Investors rushed to safety but redefined safety to exclude Bunds, moving instead into US Treasuries, UK Gilts, and Nordic Bonds.

With investors shunning German Bunds, the euro duly collapsed, particularly against the US dollar as the EURUSD tested the 1.32 level before moving back higher. As one commentator has said, this now appears to be the “apocalypse” trade – if German bonds cannot attract investors, and are no longer considered a safe haven, surely it’s now all over for the euro?

As always, nothing is quite as it seems and this may be a hasty conclusion – at least for this week!! The German 10 year bond auction may have gone badly but short dated German debt, known as Bubills, have never been in such high demand even with yields turning negative. In other words, if investors are willing to PAY to lend to the German government, it is hardly a sign of deep fear about Germany or even the euro.

Germany is not under threat – yet – but traders and investors are increasingly trading the euro and Germany together. Since September, the value of the euro against the US dollar has moved almost inversely to German credit default swaps. For those of you who may not know, a credit default swap is a measure of how likely a country is to default on its debt. In other words, traders and investors now care far more about whether they will get their money back than how much they can earn. This also makes them super-sensitive to any hint of danger which leads to much greater market volatility.

The start to this week’s trading has seen the market determined to shake off last week’s doom and gloom by seizing on record Black Friday retail sales and reports that French officials are pushing for a deal on Eurozone fiscal union. This has helped to reverse some of last week’s heavy losses with the US markets having their best days so far in November, with the S&P moving almost 3% higher, while on Monday all the DOW 30 stocks ended higher too.

It remains to be seen whether this swing higher will be maintained, not least because the $VIX – although managed to close lower on Monday – which is positive for equities, is still above 30. If the $VIX does manage to breakdown and move back towards the mid-20s then we could see a rally moving forward into December.

What is also interesting is that according to the latest CFTC data, net euro shorts have also fallen to 85k from last week’s 100k plus. In other words, we could be seeing a short term bounce higher for markets and even the start of a “Santa Claus” rally.

However, with this week’s fundamental news focusing on employment with the non-farm payroll (NFP) release, due on Friday, traders and investors need to take care. The first big number traders (and investors) should watch is the ADP release on Wednesday, a precursor to the NFP. Over a few months this once reliable release, which is based on payroll figures, has become a little less accurate in forecasting the NFP data two days later. Previously, it had always given traders a “heads up” on the Friday data but recently has become increasingly inaccurate in these volatile markets.

Wednesday’s forecast is for a number at 131k, up slightly from last month’s 110k. This is followed by Canadian GDP which is forecast to come in flat at 0.3%.

Thursday’s big number comes from China with the PMI, which is forecast to show a decline from last month’s 50.4 down to 49.8. So expect to see this reflected overnight in the Asian trading session should this number come in wildly at the odds with the forecast.

Thursday sees the unemployment figures in the US, which are forecast to come in flat but we also have the ISM data – an equivalent of the Chinese PMI. Traders and investors watch the ISM as it is considered a leading indicator of the economy because it is based on a large survey of purchasing managers of major companies. Any number above 50 indicates an economy that is expanding and below 50 suggests an economy that is contracting – so this is a very important number.

The week ends, of course, with the general razzamatazz of the NFP – a release which will affect all markets. The forecast is for an increase from 80k last time to 119k this time. This release always causes markets to over-react and traders should wait for any volatility to die down before entering any trade.

Hawkeye users can, of course, trade these markets with confidence because Hawkeye has been designed:

  1. To give traders the edge needed to succeed, as it gets them onto the right side of the market time and time again.
  2. To help traders control their emotions by giving them the confidence to stay in.
  3. To help traders control their risk by giving them clear signals of when to stay in and when to get out, thereby protecting your equity.

All of these things are vital in difficult and turbulent markets such as these! But how is Hawkeye able to do this?

Because Hawkeye has been created to exploit the power of the only leading indicator that traders and investors need, which is VOLUME. This is the foundation stone of Hawkeye on which all the indicators are built. So regardless of whether you are a day trader, position trader, swing trader, scalper, or any other kind of trader, VOLUME should lie at the heart of your trading.

As an example of why volume is such a powerful indicator, Nigel was discussing the gold price in Friday’s trading room. As many of you know, gold has recently had a significant pullback with many questioning whether the recent bull run has now ended for the precious metal.

Indeed in last week’s trading room, the monthly chart was showing some significant resistance as the volume has started to change from green to white (or neutral). In addition, the Hawkeye Heatmap on the weekly chart is also turning dark red – all signals suggesting we can expect to see a further pullback for gold. The daily chart also confirms this view with the short term trend now also turning red, selling volume clearly evident over the last week and any break and hold below the $1600 per ounce level could see a further decline for the metal in due course.

If you would like to see Hawkeye in action and how we use these tools ourselves, then simply sign up for one of the FREE Live Training Rooms! Become the trader you deserve to be!

Nigel Hawkes’ training room covers the commodity markets, where he explains his latest trades and how to select low risk, high probability trades before moving onto the day trader’s favorite instrument – the e-mini. Here you will be able to see the genius that is Hawkeye as Nigel uses the Hawkeye GearBox and GearChanger, two unique indicators to Hawkeye, which ensure we trade at the right speed and in harmony with the market.

To register for our Free Live Training Room each Thursday, Register Here! Forex begins at 8:00am, and Futures/Equities begins at 9:30am, Eastern US time.