Price Reversal on Crude Oil made my day today!

The dollar has dropped from the sideways range on Wednesday

-          We now see the dollar is oversold on the 34range chart, with momentum curling up

-          We expect the dollar index to now rise, giving us selling opportunities on the market we trade most.

-          We see the dollar at the lows of the price channel in pink trend lines and with the big drop, we expect a decent pop back up.

-          Dollar rises = selling opportunities at resistance

830am est

-          Jobless claims come out slightly higher than expected

-          Lets wait and see what the market’s reaction is

-          Don’t forget that ALL the opinions on this news release are expressed in the DOLLAR

840am est

-          We see the gold futures are testing the PHOD

-          The PHOD is a major transitional area

-          Above the PHOD we should see the HOD tested again, buyers are in control

-          Below the PHOD was have to assume the market participants see NO VALUE in higher prices, so the sellers are in control.

-          We looked for a 21r wave long on gold, but the news at 830am and the slow speed made us wait

-          Now 10 mins later the faster timeframes on gold (13r and 4r) and showing flat trigger line, slow speed, and overbought momentum.

-          This tells us that this PHOD is the transition area.

-          Where are we going to go?  Nobody knows!!

920am est

-          Where are we right now?

-          We just finished selling the highs on crude oil for a fast track win and advanced win

-          Now we see the US market open coming around the corner and we wait for the 930am open

-          We’re at the highs of the wedge on crude, look to sell the highs

-          Sell new lows buy shorting retracements, do NOT sell the lows, or sell with oversold momentum

-          Below 106.00 we enter back into the bullish channel.

-          I want to sell the highs of the channel, selling < 106.00

-          106 is a big round number, so this area will be expected to be sloppy

-          I will buy 106.00 first as support, and then sell < 106.00 when it breaks.

-          Look for the lows of the price channel to be the final target.

-          If we get below 105.80, we are now headed down to 104.57 the BMT>

-          Getting in short below 106 may be a challenge with the 34range trigger line at 105.81

-          Patience is key, wait for the 34r trigger line to REALLY break and then take it down to the lows.

950am est

-          We’ve just finished with a wave long on the 21r on crude oil

-          We couldn’t quite get up to the HOD on the wave, the market had a challenge breaking that top of the wedge for a 2^nd time.

-          Now we think the crude oil is transitioning into the sell side.

-          We are at the highs of the wedge, so we want to sell on crude oil

Lets plan our attack on crude oil…

-          As we drop off the highs, im buying 106.00 as support first, this is also the top of the channel, which will support

-          We have the highs of the channel @ 106.00 and we see major trigger line support at 105.93

-          Wait to sell below .93 so we can sell the highs of the channel (50 tick winner!!!!!!)

-          105.50 looks to be the swing highs from earlier this AM, so that will be a great target for this short.

-          The PHOD is another great target for the short sellers. This will act like a price magnet.

-          Swing trade method also signals short when we tested the highs earlier this morning.

-          The key to this swing trade short will be getting in below the major support.

-          34range trigger line is the MOST IMPORTANT issue to watch for this short.