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ShadowTrader Video Weekly
The video below is produced by ShadowTrader.net founder, Peter Reznicek. Each video contains a look ahead at what the market is going to do next week, along with what sectors/stocks are about to move, and specific trading ideas for the coming week ahead.
At ShadowTrader.net we believe that every investor's success begins with a good trading plan. For maximum benefit, please review the enclosed video prior to start of your trading week.
Grab some popcorn and enjoy!
Shadow Trader Video Weekly 08.10.14
Reversal ahead of trendline spots, ugh!
Value in profile still not markedly higher
Trade Ideas: AAPL, CMG, ISRG, PCLN reporting
tastytrade Clip of the Week
In case you haven't heard, there's a new financial network out there from the creators of thinkorswim called tastytrade. It's a funky mixture of options education, comedy, and sage trading advice. Brad and Peter of ShadowTrader have their own show for an hour each day called ShadowTrader Uncovered where they update viewers on the state of the markets, dissect the market profile, check out unusual options activity, walk through a few live trades, and field emails and calls live on the air. It's happening daily at 2pm EST on tastytrade.com. thinkorswim account holders can watch and trade at the same time by turning on Trader TV in the gadgets panel on the left side of the platform.
Each week, we'll rummage through the archives to find a great clip and post it here....Enjoy.
Peter takes questions at firstname.lastname@example.org
Brad can be reached at email@example.com
Aired on:August 5, 2014 - Predicting the Completion of the Profile. Can you use the developing shape of the market profile distribution to predict where the market will go before the day ends? Peter thinks you can! Watch this clip to see an example of what happens when a distribution is "incomplete" and needs to work it's way to symmetry before 4pm...
ShadowTrader Weekly FX Recap
ShadowTrader Weekly FX Recap is your weekly scoop on all things Forex, with fresh content catering to both the experienced FX trader and those just starting to get their feet wet. ShadowTrader Pip Academy is a weekly online lesson where traders will learn the basics of the Forex market, technical analysis, and fundamental analysis as it applies to trading currency. ShadowTraderPro FX Trader Live Call of the Week will highlight as actual trade taken in the newsletter over the past week and recap the setup and successful execution of the trade from start to finish. Things You Should Give a Pip About is a look at ahead at the news and markets that you should be paying attention to in the coming week to improve your chances of success in the currency markets.
ShadowTrader Pip Academy
Market Forecast Divergences
This week in pip academy, the near-term divergences.
By near-term divergences, we are referring to the divergence between the blue near-term line on the Market Forecast and price action. A traditional divergence occurs when price makes higher highs and the oscillator makes lower highs indicating price overbought and due a correction. This is a bearish divergence. When price makes lower lows and the oscillator makes higher lows, price is oversold and looking for a move higher or correction from the bearish trend. This is a bullish divergence.
Many traders look at the divergence as an indication of a reversal but it has been my experience that they are not a reversal but an indication of price being over extended and prepared to pull back and retest a previous barrier. We can identify this level by looking at the peaks and valleys on the blue line between the divergence and matching those peaks and valleys to price. In a bullish divergence, you can find the peak between the divergence and this will generally act as resistance and a target.
If there is a bearish divergence, we look for the valley between the divergence and match the price as potential support and a bearish target, If price breaks through either of these barriers, then we have a reversal otherwise it is a short term swing trade and not a reversal.
Note in the chart how these areas do indicate price as overextended and price does hit the support and resistance levels initially followed by one breaking through and confirming a reversal.
ShadowTrader FX Live Call of the Week
The trade of the week is on the NZD/CHF
We shorted this pair on a break of trend support. When price broke through it rallied and closed near the breakout area. Price put in a lower high and we are tightening or stop as price is dropping. We will look to tighten our stop into profitability if we close lower next week. We entered the trade at 0.7685 and our expected move is down to r anticipated move is 0.7550. If we hit our target, we will profit 135 pips on two contracts.
To get daily FX analysis of major pairs, economic data, and live, real-time trades on currencies every day, follow the ShadowTraderPro FX Trader on MyTrade. This service is now available for FREE. All you have to do is click on "Tools" tab on your TOS platform or go to www.MyTrade.com and "follow" ShadowTraderPro FX Trader.
Things You Should Give A Pip About
In things you should give a pip about, we discuss the Russia and Ukraine situation.
This week the Russian Defense Ministry announced that they would be moving troops away from the southern boarder. Moving troops away from the area closest to Ukraine gave the world the impression that Russia will not be supporting the rebels and provided some removed some of the geopolitical uncertainty. With less uncertainty, investors were willing to set back into the markets from the sidelines which drove U.S. equities and the euro higher.
If Russia backs away and the region can stabilize, we will likely see more stability in all of the eurozone and we could look for a bullish move in the euro. If Draghi and the ECB become more accommodative, we will expect the long term bearish trend to continue with an opportunity to short at a better price.
ShadowTrader Free Weekly Trade Idea
Each week Peter and his minions scour the markets to find the best equity and forex setups for the followers of the Swing Trader and FX Trader. Premium subscribers get 2-5 of these daily. Every weekend we present one trade idea from either the equity or the forex side here. Note: Free weekly trade ideas are strictly DIY (do it yourself!) and are not actively managed or updated once presented and may or may not be stocks that are currently in play in our newsletters. For a more "full service" feel, with real-time email alerts and updates, please check out the ShadowTraderPro Swing Trader and ShadowTraderPro FX Trader
Chesapeake Energy Corp. (CHK) - Long
Entry - 26.77
Stop - 25.27
Target - 30.80
Independent Oil & Gas stocks were among the top performers on Friday setting up several for potential breakouts this week. CHK is one of these stocks.
The Fibonacci retracement study illustrated on the chart above shows CHK found support at the 61.8% level last week. A break over the descending trendline (magenta) this week will be an important technical event signaling the beginning of a move back higher by the stock.
For an average of 2-5 trade ideas like this every day along with daily market analysis and trading guidance, follow the the ShadowTraderPro Swing Trader. This service is now available for FREE. All you have to do is click on "Tools" tab on your TOS platform or go to www.MyTrade.com and "follow" ShadowTraderPro Swing Trader.
ShadowTrader Pairs Trading Corner
"WLP - UNH"
Wellpoint, Inc - United Health Group This healthcare pair, has been in the pairs spotlight before, and we have been waiting to see the pair come back from no correlation up its current 0.91, and now making some consolidation with playable ranges. As we can see on our chart, the most recent play was for a long entry around the $27.50 price level, but also the pair will likely continue its climb up to the mean of $29.10 or so.. .. : )
Technically speaking, the pair has strong correlation of 0.91, and range of movement 1.50- below the mean. The RSI Wilder is low at 38.2, but continuing to grow stronger as our pair works back up toward the mean. The perfect entry would have been around the $27.50 price level, but there is still plenty of upside movement. Let's see what this week brings for our pair.. ; )
Want to know more!, check us out at ShadowTrader.net and go to the pairs archives for viewing and reviewing. As always, catch us at the "Pairs Hour Show" at 4:15 - 5:15 EST every Thursday.
Be sure to look for any new pending trades coming out (Sunday) evening for (Monday's) Newsletter..
For the newbies:, Peter has created this short video to get you started. You can watch it here.
Any questions, email us at firstname.lastname@example.org and Tom Cook will get back to you with a reply.
The Pairs Hour with Tom "The Southern Gentleman" Cook is happening on Thursdays at 4:15pm EST in the ShadowTrader chatroom on the TOS platform. Last week's show is archived here. We enjoy and encourage everyone to bring your suggestions, comments and questions to us each week during this program.
You can get real-time text messages sent to your phone every time we trade or post a new newsletter. Just text "follow st_pairs" (without the quotes) to 40404 on your cellphone. No twitter account is needed. Enjoy.
What's New at ShadowTrader.net
ShadowTrader Uncovered is live on tastytrade every weekday from 2 to 3pm. Tune in to watch Brad and Peter give their unique spin on the markets.
James Dalton ShadowTrader Webinar James Dalton recently did a market profile webinar during our tastytrade show on Monday, December 30th, 2013. A recording of the webinar is HERE.
ShadowTraderPro Pairs Hour with Tom "the Southern Gentleman" Cook - Thursdays, live on the TOS platform. A 1 hour program on the basics of pairs trading. Tune into the ShadowTrader chatroom under the Support/Chat tab on your platform at 4:15pm EST.
ShadowTraderFX Hour with Blake Young - Tuesdays, live on the TOS platform, Blake is hosting a 1 hour program on all things Forex. Tune into the ShadowTrader chatroom under the Support/Chat tab on your platform at 4:15pm EST.
Twitter & Facebook - Did you know you can get real-time tweets when ShadowTrader advisories send out newsletters or trades? Just text the following (without the quote marks) to 40404 on your cellphone. Twitter account not necessary.
For Swing Trader text "follow st_swing"
For FX Trader text "follow st_fx"
For Pairs Trader text "follow st_pairs"
For Weekend Update text "follow st_weekend"
ShadowTrader is also on FaceBook at the link below