Tuesday, September 2, 2014

3 Short-Trades for Wednesday | SchoolOfTrade Newsletter 09/02/14



“Knowledge has to be improved, challenged, and increased constantly, or it vanishes.” - Peter Drucker
Notes for Tonight’s Newsletter:

Misc:
·       Another exciting session today, filled with trading opportunities!
·       Traders return to their desks after a long, holiday weekend in the US
·       Early morning (US) was slow, but quickly picked-up the pace after 10:30am EST
·       Manufacturing news in the US registers another milestone, new orders hitting new 10-year highs
·       Geo-political impacts appear to have been forgotten today!
·       Saudi Arabia arrested 88 people today as they were plotting attacks… and Crude Oil goes lower? 
·       Gold tumbles $20 to test the $1265 level
·       Crude Oil tumbles $3.00 lower to test the $93.00 level
·       US Equities continue to stay strong as we kick-off the Fall trading season!
·       Summer is over & Fall has officially begun, which is always the BEST season of the year for professional traders.
·       ECB’s Meeting is this Thursday @ 7:45am EST
·       Non-Farm Payroll Report is released this Friday @ 8:30am EST

Simple WAVE Trading The E-Mini Russell Futures; SchoolOfTrade.com



Selling the Russell this morning allowed us to bank 69 ticks on a Simple WAVE Short!

In today's video we see the Russell rejecting the highs and dropping very aggressively lower with selling pressure.


This gave us an opportunity to sell the Simple WAVE Pattern short to profit up $690 on a picture perfect pattern!

E-Mini Russell Futures Day Trading Strategy; Buying the WAVE to new highs

Russell 6JJBar
The Russell has caught a nice bit of buying pushing it into a new high and on to its 9th wave.

I am waiting for price to pullback a bit to buy from 1176.1-1175.1 right back up to new highs.

The first target will be near the high at 1179.4 with the final projection target above at 1182.7.

Make sure you sign up for our trial to the Live Trade Room so you don't miss this trade! You will be able to follow along with us as we take it LIVE in the room!

Gold Futures Day Trading Strategy; Selling resistance back to new lows

Gold 6JJBar
Gold dropped lower into a fake-break low and is now failing back higher now.

I am waiting for price to rise higher to sell at 1268.3 as well as 1270.3 back to new lows.

The first target will be structure in the middle of the move at 1266.3 with the final target at 1263.1.

Make sure you sign up for our trial to the Live Trade Room so you don't miss this trade! You will be able to follow along with us as we take it LIVE in the room!

Crude Oil Futures Day Trading Strategy; Selling the WAVE to continued lows

Crude 6JJBar
Crude Oil has been catching a strong sell down after the holiday weekend into an 11th wave down.

I am waiting for price to retrace back to sell from 94.57-94.63 back to new lows again.

The first target will be at 94.34 with the final target below at 94.11 and possibly lower for a runner.

Make sure you sign up for our trial to the Live Trade Room so you don't miss this trade! You will be able to follow along with us as we take it LIVE in the room!

Euro Currency Futures Day Trading Strategy; Selling the WAVE to new lows

Euro 6JJBar
The Euro has been falling once again to new lows and resetting into a new 123 reversal pattern.

I am waiting for price to retrace back up to sell again at 1.3157-1.3166 back to new lows.

The first target will be near the lows at 1.3125 with the final target below at 1.3092.

Make sure you sign up for our trial to the Live Trade Room so you don't miss this trade! You will be able to follow along with us as we take it LIVE in the room!

Automated Trading Strategy Review - E-Mini Russell Futures

Russell Auto Trader
The Russell has had a bit of a slow week overall as it was stuck in a bit of a sideways and choppy range for most of the week. We are now seeing a break to a new high giving some extra legs to a trendy environment.

Even with a sideways choppy type week, the TREND Auto Trader still pulled in a profit for us of $240 before the holiday weekend!


Sunday, August 31, 2014

Weekly Recap: Summer Finale ends with Fireworks!






We’re almost finished with the Summer… Labor Day Weekend is upon us… and we’re excited for September and new trading opportunities!

We had an incredible week in our Live Trade Room this week, lots of action and opportunity in every market.  If you missed the action, here’s your weekly trading recap!
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- US stocks began the week on another strong note aided by sentiment out of Europe. The S&P crossed 2000 for the first time ever during Monday's session.

Weekend analysis of Mario Draghi's Jackson Hole speech suggested the ECB may be even closer to enacting more stimulus measures. In that speech he noted that market based inflation expectations fell strongly in August, which opened the door to speculation the ECB was ready to act perhaps as early as next week's meeting. European government bond yields plunged to fresh record lows on hopes a healthy dose of QE is just around the corner. Only solidifying those expectations was more tepid economic data from Germany, leaving many to wonder if the Russian sanctions have caused Europe's growth engine to stall.

August European CPI readings showed some stabilization at what are already low levels while readings in Belgium and Spain indicated acceleration to the downside. The 10-year Bund yield dropped below 0.90% to a new lifetime low. By Thursday the EONIA fix settled in negative territory for the first time. Despite what was a generally a rosy picture painted by the US data, the 10-year Treasury yield hit 2.32% which was only a few basis points from fresh lows for the year.


For the week, the S&P500 gained 0.7%, the DJIA added 0.6%, and the Nasdaq rose 0.9%.

Friday, August 29, 2014

In memory of our friend, Lee Gazelle

Today we remember a dear friend of the SchoolOfTrade community, Lee Gazelle.

Lee was one of the original members of our community, but most of all... he was an AMAZING person.

He was a person who grabbed life by the horns and took every opportunity to seize the moment.  

He loved to travel with his wife Marty.  As he traveled he loved to record video of his travels, along with fun music for everyone to watch at home.  Lee shared these videos with us and they will forever be our memories of our dear friend.


Thursday, August 28, 2014

Math is FUN when you make MONEY with it - Probability Model Boston Museum of Science



This exhibit at the Boston Museum of Science shows proof that although we cannot determine the outcome of every trade we take, there is a statistical reliability over a long period of trades, which allows us to make profit in the markets we trade.

This illustrates the importance of risk/reward in day trading.  

In order to reap the benefits of this 'bell curve' you need to stay alive long enough to see the statistical reliability actually work for you.

Keep those stops small, and those winners large, and consistently executing your trades and you will be successful!

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Sideways Range Trading The S&P500 Futures; SchoolOfTrade.com



Buying the S&P 500 range lows allowed us to bank 2.25 points on an easy trade this morning!

In today's video we have the S&P 500 beginning to get VERY range bound and sideways.


This gave us an opportunity to buy the lows of consolidation and bank a solid profit of $450!

E-Mini Russell Futures Day Trading Strategy; Selling the Last Chance to new lows

Russell 6JJBar
The Russell has rejected the BMT and is now coming back to test it again.

I am looking to sell it from 1166.2-1167.3 right back down to the lows for another rejection.

The first target will be near the lows at 1162.8 with the final projection target sitting down at 1160.8.

Make sure you sign up for our trial to the Live Trade Room so you don't miss this trade! You will be able to follow along with us as we take it LIVE in the room!

Gold Futures Day Trading Strategy; Selling the WAVE to new lows

Gold 6JJBar
Gold has firmly dropped below the BMT's and into a 456 continuation WAVE lower.

I am looking to sell when price retraces back to 1290.8-1291.4 right back to new lows.

The first target will be near the lows at 1288.7 with the final projection target below at 1286.5.

Make sure you sign up for our trial to the Live Trade Room so you don't miss this trade! You will be able to follow along with us as we take it LIVE in the room!