Erich's Support and Resistance Trades

A Sample of Erich's Trades

Erich is renowned for his extremely detailed trade analysis...he gives you everything you need - initial analysis, entries, profit targets, he even shows you exactly what he would tell his broker and what orders to use. If the printed word isn't enough, he also records the whole thing on video for your convenience.

It's rare in this day and age to find someone who goes to the lengths Erich does to educate his students. Take a look at the example below and see for yourself!

Traders Helping Traders E-zine for September 16th, 2007 - Part One

Shooting the Breeze!

This last week was quite possibly one of the greatest weeks of my life. No kidding. Ever since the birth of our grandson Griffin I've been on cloud nine. The sun just seems to shine a little brighter and the birds sing a little louder and my heart is busting with emotion and love. I know they say that the birth of a child changes you, but until you go through it you just don't believe it can affect you so deeply, but it does.

And I'm not the only one who's changed. Someone must have flipped the "Mommy" switch in our daughter because she has become and instant mom. Women have nine months to prepare for their baby's birth, but even so I think the actual event is much more dramatic then even they expect it to be. Our daughter has developed the sixth sense that all mothers seem to have and even though Griffin is barely a week old she already seems to know exactly what he needs.

"Grandma" has probably had the toughest week as she's taken the brunt of the chores helping to spell off our daughter who is still recovering from the birth. Since their house is under renovation my wife has had to commute to the city every day, which is exhausting in itself. By the time she gets home she has just enough energy to lie down on the sofa to fall asleep in front of the TV.

Now that it's the weekend I'll be able to spell both of them off a bit and as you can probably guess I'm looking forward to it!

I hope you enjoy this issue...

erich@tradershelpingtraders.net

Currencies

Currencies Overview

To see the video clip covering this week's Currencies trades, click the link below:
http://www.supportandresistance.com/sample_movies/CurrenciesSeptember14.wmv

The Currency markets have caught fire lately and are all moving. Better yet they seem to be trending which is exactly what we want to see so that we can enter our trades with a greater level of predictability. While many of the markets are still mid-trend, meaning we're on hold until we see support/resistance form, there are a couple of possible trades shaping up for early this week.

Australian Dollar

BUY September Australian Dollar at 8446 Exit Order: 8365 Approximate Risk Exposure: $810 per contract Profit Target: 8497 Approximate Potential Profit: $510 per contract Degree of Risk: Moderate to HIGH

I would inform the broker as follows:
If September Australian Dollar opens at or below 8440:
BUY one (1) September Australian Dollar at 8446 (stop)(day)

If filled: Protective stop: SELL one (1) September Australian Dollar at 8364 (stop) (GTC)
Profit order: SELL one (1) September Australian Dollar at 8497 (limit) (GTC)
***whichever order fills first cancels the other order***

Australian Dollar Chart

The charts in this publication are all made using Gecko's Track 'n Trade charting software. You can get a demo for free here.

Financials / Indices

Financials/Indices Overview

The Stock Market continues to be a mess and is a definite "hands off" for any position trades; however the big ranges have been very exciting to day trade as we're getting lots of movement and momentum in spite of the choppy looking daily chart. It's no mystery that the market is having such a difficult time choosing a trend since we're trading right in the midst of our moving average lines.

The Financial markets are a little better off, but not much. The Eurodollar continues to hold the support at 954600 as the market continues to close above it. Friday's session was indecisive as the market finished the day where it began showing traders' reluctance to commit to a position before the weekend. The market could literally go either way from here, but if we see the bulls return to drive the market higher on Monday then I'll definitely be a buyer for Tuesday.

September Bonds are looking a little weaker than the March ED, although both these markets tend to move in sync. T-Bonds look like they might slide to 111-24 support before recovering. This divergence between support in Bonds and the ED is another reason I'm holding off committing to a position for the moment.

FLAT Financials and Indices

The charts in this publication are all made using Gecko's Track 'n Trade charting software. You can get a demo for free here.

Grains

Grains Overview

To see the video clip covering this week's Grains trades, click the link below:
http://www.supportandresistance.com/sample_movies/GrainsSeptember14.wmv

What a mess. The Grain Complex doesn't know what it wants to do! Corn put in some downright awful ranges last week finishing the week pretty darn close to where it began. Overall I think Corn's setting up for a rally, but that's pure speculation right now. All this choppy trading is making for a nice triangle formation however, so we could have something tradable here very soon.

Oats are a tempting buy, but not until we get a pullback first, ditto for the Bean complex which has been on a tear higher for the last month or so. Give me a day or two of attempts at selling and we'll have a good idea if there are any takers to the downside.

This is exactly where we have Wheat right now as the market made a good attempt at a pullback last week. Friday saw the bulls try to rally the market again so we have our confirmed support level and a chance to buy a bounce.

Wheat

BUY December Wheat at 864 3/4 Exit Order: 844 3/4 Approximate Risk Exposure: $1000 per contract Profit Target: 874 3/4 Approximate Potential Profit: $500 per contract Degree of Risk: Moderate to HIGH

I would inform the broker as follows:
If December Wheat opens at or below 864: BUY one (1) December Wheat at 864 3/4 (stop)(day)

If filled: Protective stop: SELL one (1) December Wheat at 844 3/4 (stop)(GTC)
Profit order: SELL one (1) December Wheat at 874 3/4 (limit)(GTC)
***whichever order fills first cancels the other order***

Wheat chart

The charts in this publication are all made using Gecko's Track 'n Trade charting software. You can get a demo for free here.

Meats

Meats Overview

To see the video clip covering this week's Meats trades, click the link below:
http://www.supportandresistance.com/sample_movies/MeatsSeptember14.wmv

"Feeders are Bleeders" is all I can think about as I contemplate shorting the market again this week. The set up is nearly perfect and too good to resist. The challenge here will be finding the appropriate entry and exit levels to avoid getting whipsawed and bled.

While Live Cattle should follow Feeders lead (they're also "Leaders") the setup for Cattle is not nearly as convincing as what we're seeing in the Feeder market. Lean Hogs are still a write off as the market continues to chop and make small ranges.

Feeder Cattle

SELL October Feeder Cattle at 115.90 Exit Order: 117.10 Approximate Risk Exposure: $600 per contract Profit Target: 115.05 Approximate Potential Profit: $425 per contract Degree of Risk: Moderate

I would inform the broker as follows:
If October Feeder Cattle opens at or above 116.00: SELL one (1) October Feeder Cattle at 115.90 (stop)(day)

If filled: Protective stop: BUY one (1) October Feeder Cattle at 117.10 (stop)(GTC)
Profit order: BUY one (1) October Feeder Cattle at 115.05 (limit)(GTC)
***whichever order fills first cancels the other order***

Feeder Chart

The charts in this publication are all made using Gecko's Track 'n Trade charting software. You can get a demo for free here.

Metals

Metals Market Overview

Nothing tradable here I'm afraid. Copper prices are trying to decide their overall trend whereas Gold and Silver look like they're ready to reverse and head lower. I don't trust the thought of shorting either in the wake of such a strong rally but the option is there to try it if you dare - just don't say I didn't warn you.

FLAT Metal Complex

The charts in this publication are all made using Gecko's Track 'n Trade charting software. You can get a demo for free here.

Softs

Softs Overview

To see the video clip covering this week's Softs trades, click the link below:
http://www.supportandresistance.com/sample_movies/SoftsSeptember14.wmv

I've been toying with the notion of buying Cocoa but the weekly chart is out of sync with the daily and that's been keeping those plans on hold. Coffee is currently without trend and Cotton gave us a bigger pullback than expected so it's too late to buy the rally now. OJ looks like it's setting up to rally for the short term which leaves Sugar....

Sugar

SELL October Sugar at 917
Exit Stop: 941
Approximate Risk: $268 per contract
Profit Target: 891
Approximate Potential Profit: $291 per contract
Degree of Risk: Moderate to HIGH

I would inform the broker as follows:
If October Sugar opens at or above 920: SELL one (1) October Sugar at 917 (stop)(day)

If filled: Protective Stop: BUY one (1) October Sugar at 941 (stop)(GTC)
Profit Target: BUY one (1) October Sugar at 891 (limit)(GTC)
***whichever order fills first cancels the other order***

Sugar Chart

The charts in this publication are all made using Gecko's Track 'n Trade charting software. You can get a demo for free here.

Pick of the Letter

Pick #3 - SELL October Feeder Cattle

Feeders are up against extremely hard long term resistance which is likely to send the market spiraling lower again. Well, at least it did so the last three times prices traded this high! There are no guarantees but overall it looks like we're going to see prices head lower.

Pick #2 - BUY December Wheat

I'm not convinced that Wheat's current support will hold for the long term; however I think it will be enough to hold the market for a short term rally early this week.

Pick #1 - BUY September Australian Dollar

The Aussie Dollar has technically moved into a bullish posture and formed good resistance before the weekend. A breakout through here should see a poke to the next resistance at 8500.

Lesson du Jour

To see the video clip covering this week's Lesson, click the link below:
http://www.supportandresistance.com/sample_movies/LessonSeptember14.wmv

Got a question that needs answering like an itch you can't scratch? Send it along to Erich@tradershelpingtraders.net and I'll be happy to try and clear things up for you.

Futures Trading is Risky! Never trade with money you cannot afford to lose!

Nothing in this publication is either a solicitation to trade or a recommendation of any strategy. Always consult your broker or advisor before attempting any trade. Commodity trading involves substantial risk of loss.

OUR RESULTS ARE NOT TYPICAL! Most traders LOSE money trading!

THE DATA CONTAINED HERE IN ARE BELIEVED TO BE RELIABLE BUT CANNOT BE GUARANTEED AS TO RELIABILITY, ACCURACY OR COMPLETENESS; AND AS SUCH ARE SUBJECT TO CHANGE WITHOUT NOTICE. TRADERS HELPING TRADERS AND IT'S ASSOCIATES WILL NOT BE RESPONSIBLE FOR ANYTHING WHICH MAY RESULT FROM RELIANCE ON THIS DATA OR THE OPINIONS EXPRESSED HEREIN.

DISCLOSURE OF RISK: THE RISK OF LOSS IN TRADING FUTURES AND OPTIONS CAN BE SUBSTANTIAL; THEREFORE, ONLY GENUINE RISK FUNDS SHOULD BE USED. FUTURES AND OPTIONS MAY NOT BE SUITABLE INVESTMENTS FOR ALL INDIVIDUALS, AND INDIVIDUALS SHOULD CAREFULLY CONSIDER THEIR FINANCIAL CONDITION IN DECIDING WHETHER TO TRADE. OPTION TRADERS SHOULD BE AWARE THAT THE EXERCISE OF A LONG OPTION WOULD RESULT IN A FUTURES POSITION.

NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL, OR IS LIKELY TO, ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.

HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW.

ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM, IN SPITE OF TRADING LOSSES, ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS, IN GENERAL, OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.

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