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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 08.17.14
Live Trading Monday August 11th
Trying to fade opening move in /ES - Why didn't it work?
Why was PCLN a screaming long at the open?
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 email@example.com
Brad can be reached at firstname.lastname@example.org
Aired on:May 2, 2014 - Interview with Benjamin Lee (Part I). In this first of a two part series, Brad and Peter do a call-in interview with trading psychologist Ben Lee of thinktradethink. Lots of in depth discussion on the psychology of trading and the common pitfalls that we all fall into when playing this most mental of all games. Find out more about Ben at www.thinktradethink.com.
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 Intermediate Confirmation
This week in pip academy, we look at the final of the four signals in this series. This week, we are discussing intermediate confirmation.
The intermediate confirmation trade signal is an add signal, meaning we are adding to an existing position or an established trend. We will discuss the bullish signals here, knowing the bearish are the inverse of what is described. The set up begins with the green or intermediate line rising while above 20 or remaining above 80 regardless of the direction of the line. This indicates a bullish trend. You can go back 3 weeks and read about the posture or trend established by the green line. While the trend is still intact and bullish, we are watching for red line or momentum line to enter into the lower reversal zone. When this occurs, this is an add point for a bullish position. There is no need to wait for the momentum line to cross outside of the 20 level, just a bullish intermediate line and the momentum line entering into the lower-reversal zone.
As you can see in the chart below, we see the green line start to rise and get bullish and each time the momentum line dropped, there is an opportunity to add. This pair had 4 opportunities to add the bullish trend.
The bearish trend also would be in play if the green line was below 80 and falling or remaining below 20. While this trend is bearish, we look for the momentum line to cross above 80 for an opportunity to add short positions to a bearish trend.
This is the last of the signals and is the lowest priority of the signals. We ignore intermediate confirmation when a contrary near-term divergences occur.
ShadowTrader FX Live Call of the Week
The trade of the week is on the NZD/CHF
We set up a trade on the break through trend support. Our trade did drop and continued to move lower for a couple of days where we tightened our stop to the 3 day high. Price bounced and broke through our old support level and stopped us out at our tightened stop level. We expect price to continue to move higher. Price on Friday dropped and fell back to near term support. We may get back into this position on a new break through support.
The stop being triggered was for a very small loss of only 26 pips. If we have to have a loss, the tight stop on a changeup of the price pattern is what is preferred. We liked the set up originally and expect a new set up to appear soon.
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 look at European GDP.
This week was not a good week in the economic data for the eurozone. French GDP did not experience any growth and reported in at 0.0% The Flash GDP for the entire eurozone was also 0.0%. Worse than no growth was German GDP which reported in at-0.2%%. This negative quarter would be enough of a concern but considering this is Germany, the largest of the European economies and the drop for the previous quarters 0.8% to a -0.2%, this is a more significant concern. The ECB is already leaning toward more easing programs. The economic contraction will add to the justification of a change in monetary policy and likely in the near term.
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
Neustar Inc. (NSR) - Long
Entry - 29.96
Stop - 27.44
Target - 35.25 to 36.75 then 41.90
NSR is close to its fourth attempt of trading through horizontal resistance around 29.86.
What makes the forthcoming attempt more bullish beyond the thesis that support and resistance levels are more susceptible to failure as the number of tests increase is the fact that NSR is coming off a higher low (orange arrow) of a two month uptrend.
No doubt, shorts are aware of the stock's recent resilience and have protected their positions with stop loss orders just above current resistance. If NSR trades above this area, these stops will trigger and push the stock into breakout mode.
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
"NEM - ABX"
Newmont Mining - Barrick Gold "Filling Up The Brim With Our Tin Pan!" I'm excited to see this pair looking favorable for a short entry up around the $8.56 price level or so. Sometimes pairs are a combination of ranges and trends within those ranges. As we can see our "NEM-ABX" pair has been in an uptrend since July 22nd. If you believe in cup and handle patterns, or in this case, I will call it "Flling up the brim with our tin pan!".. : )
Technically speaking, the pair has strong correlation of 0.93, and normal range of movement 0.60+ to 0.70+ above the mean. The RSI Wilder is mid-range at 59.2, and needs to grow stronger, as our pair continues up toward resistance. The perfect entry should be around the $8.56 price level. This entry would make for great trade location, & be quite tempting to double up on our position. Let's see what this week brings for our pair.. ; )
"Filling Up Our Pan To The Brim With Gold"
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 email@example.com 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