Trading Success Ep 3

Chris: Good morning, everyone, and welcome back to Trading Success With Cam Buchanan. Hi Cam, good morning, welcome.

Cam: Good morning, Chris. How are you going?

Chris: Good, thank you. How was your long weekend?

Cam: Well, I avoided as many chocolate Easter eggs as possible. But we’ll see what the aftermath is that but hanging out with two small girls, grandchildren, was hectic this weekend so I’m I need a holiday I think.

Chris: I bet they didn’t they didn’t stay away from the chocolates, little kids, they love it.

Cam: Let’s get into it. I know everyone probably needs a bit of a pump up after the weekend and firing up. So let’s get right into it because we’ve got lots to cover, and I don’t want to go over time.

But this week, I just want to run through the news that we’ve got on this week. Because last week was a pretty quiet week leading up to Easter the volumes were fairly low. So that was to be expected. However the trading rooms did exceptionally well, considering the low volatility.

So, we had Chinese news on Sunday that manufacturing news was up slightly, which is good. China showed good numbers. U.S. had their PMI news last night, their manufacturing news, last night. One part was the ISN, which is another PMI that comes out. So one of the PMI figures came out last night, and that was kind of mixed. So there was a lower number than expected, just slightly, and one of the other numbers was up, which is good. If PMI is over 50 It’s typically a good sign that the manufacturing side of of a country is going well.

So those numbers both in the US and China over 50. So the numbers were good. US wasn’t as high as what they expected on one of the numbers, that’s still good. So this week, we’ve got a lot of manufacturing news coming out tonight, Tuesday, manufacturing news in Europe. There’s also jobs news tonight, job openings coming out tonight in the U.S.

Then tomorrow we’ve got non-farm employment change, sorry, Wednesday, we’ve got non farm employment change, which is tomorrow. And also, we’ve got Chairman Powell speaking early Thursday morning, two o’clock, so it shouldn’t affect many of our traders.

Thursday night, we’ve got unemployment in the US. So at 10:30 in the pre-market. And then Friday night, we’ve got the non farm employment, which is generally a bigger news. So non-farm employment tends to affect the gold market a little more than any any of those other numbers. That seems to be one of the numbers that seems to affect gold for some reason.

So I said last week, we’ll talk about going into gold and showing you what’s been happening with the gold market. So this week, we should see the volumes pick up a little bit. It was quiet last night with the markets opening. We weren’t expecting a lot of activity. But let’s have a look at the charts.

So guys, let’s have a look at the U.S. indexes to start with. So this is the S&P500. Key level for this week will be this number here, five 3000. So if we can hold above five 3000, we can see this rally. I think continuing if we can get below five 3000, and we hold below that level, I think we may go down and fill these gaps in what I showed you last week. There was a few gaps that have been filled in this one is that most recent gaps that may get filled in so we may see some weakness.

Also, we’ve come out of the lunar eclipse, we’re coming up to the solar eclipse on Friday, so I’m expecting some fireworks in the market this week. I’m expecting some volatility, particularly with jobs numbers and things like that.

So you can see last week the volume had dropped off quite considerably, whereas the volume leading in those last few weeks before had picked up so we’ve come up to some all time highs. We hit all time highs actually last week In the U.S. so last night was a pretty quiet night. And you can see we’re just holding below that five that 5300 number. So that’s the s&p 500.

Let’s have a look at the NASDAQ, which is next favorite index
so the NASDAQ. I can see here, I’ve got 18,500. I feel that’s the number that’s really important here. If we can get back above that number, I think we’re gonna see this rally continuing next week. If we struggle around 18,500, we can see we’re actually moving down a little bit. Today, we this is the the open, we’ve opened here, because the the markets just trading down a little bit lower. But you can see last week, how choppy it was. And we did so well. Trading in these horrendous conditions, very choppy markets. So hopefully, we’ll get some nice trends this week. Particularly for the market holes under 18,500. I think we can go down and fill these gaps down here, which I think we showed you last week, the market was looking to fill these gaps.

So let’s see last week was quite an indecisive week, low volumes once again, and dropped off. So.
So look for Support Resistance around those numbers. So 80,500 on the NASDAQ and 5300 on the S&P. Now, let’s talk a little bit about gold because we we mentioned gold last week, and gold had an absolute tear last week. Let’s have a look at the gold market. So this is the gold daily chart. So the gold daily chart hit all time highs. On
what time was that? Yesterday, I believe we hit all time highs.

So last week was a fairly quiet week, but we could see it building. We had this big volume -big sell-down on Friday. Volume wise, we had increased volume, but the market really didn’t move. So we’d say probably two weeks of solid consolidation around this box here. And you can see, we look at that sort of box. We broke out of that last night, and we hit all time highs. Now we’ve pulled back this morning, and it’s interesting to see if this rally can continue higher. So there’s gold for you. It’s really moving. It’s 3300. Looks like we’re not too far away from that round number up there.

Chris: So a lot of round numbers this week, whether or not the long weekend and a quiet week.

Cam: Yeah, and particularly with this solar eclipse coming up on the eighth, we could see some crazy market movement and gold could be one of those. So Non Farm Payroll coming up Friday, for all tends to move around that announcement, and the volume seems to pick up. So you can see the last time we had Non Farm Payroll back in March, early March, you could see the volatility in the market, we had an increase in volume and the markets really rallied from around about 2100 where the market had been consolidating for quite some time, though, that real big breakout so it could be looking for some upside there in the gold market.

This is the four hour chart. So you can see the four hour chart last night really rallied. Yesterday really rallied in the Asian session. And we sold off a little bit. And this is where we’re currently trading right now. The gold market is moving up and also silver for some people that maybe want to try and get their hands in the silver market.

This is the silver trading at the moment. So it was a little bit behind gold. But we can see, Silver has been rallying in March. I’ll look at the daily charts, probably a good way to look at it. You can see Silver’s in a lot more of a range than what gold has been, gold is definitely trending. So silver is lagging behind gold. So you know if gold moves, silver you would expect so we’ll follow that.

So Gold seems to be a little bit more bullish. And I have heard that the Chinese central banks have been buying gold big time as well. So that could be a reason why the prices are pushing up higher. But you can see this, you know, we haven’t hit anywhere near all time highs with silver. Or recent highs anyway, that that high back in in March last year was around $27. So we’re seeing a $20.60. So we’re still well behind that number.

So it looks if you look at the stair stepping the way this market swing up, every day swing up, the silver market is looking like definitely a market to play. Just be mindful of silver volume is very, very low. We don’t get as much volume as we do on gold. I believe there is a micro silver market, and it’s called SLO525 is the current contract. The E Mini contract is the Qi. So if you want to have a look at that, and maybe use a micro contract, go and check out what the margins are a quote, totally off the top of my head what the overnight margins are. But it could be something to look for as a longer term play if you’re looking to hold a position in these markets.

Remember, this is general advice as well, definitely anything can happen in these financial markets. But the market is looking like it does want to train higher, particularly in those commodities. And we are in the in the back end of a commodity cycle. So we should see commodities start to move a bit higher. Even the oil markets been moving very strongly recently, as well. So oil is up around about $84. Or I think it might have hit $84 A barrel last night. So it’s good to see that there’s some money to be made in the commodities as well.

Chris: It’s interesting when you just look at that snapshot. Everything’s sort of, you know, approaching all time highs, hitting round numbers after a quiet week, and a lot going on this week in the markets as well. So it’s all sort of coming together for as you say, potentially a lot of volatility.

Cam: Yeah, so I think that’s it for this week, just a quick snapshot. But I think maybe a slight correction in the indexes. If those markets hold one of those round numbers. But you know, you can’t be shorting too long these days against the bulls, we might get some fast corrections. And that’s why the futures markets and day trading is so powerful.

So we can take advantage of these big corrections that come into the market and profit from those. So once again, watch the volumes coming into the market, we see increasing volumes, and some really big red candles on those smaller timeframes, like the 15 minute timeframe, that five minute timeframe, then, particularly in those those those us close hours or those even those Asia open markets, we can take advantage of some of those hard and sharp moves.

I think the US market sold off quite heavily actually in the in the in the U.S. market last night was quite a strong correction in the market. So if that’s, you know, if the Asian market wants to follow what happened in the U.S. then Europe may continue, maybe a day of selling so we’ll see how we go.

Chris: Fantastic. Excellent.

Cam: Setting up at 11 o’clock, so I better go and see if we can get a trade on.

Chris: Best of luck. Thank you very much again for the update. And yeah, I look forward to speaking again next week.

Cam: Thanks, Chris. Bye, guys.

To listen to more of “Successful Trading with Cam Buchanan” you can find the series on Spotify, and you can also find all of the episodes of Successful Trading with Cam Buchanan on YouTube.