Monday, January 13, 2014

Day Trading Newsletter 01/13/14;

“In warfare there are no constant conditions.  He who can modify his tactics in relation to his opponent will succeed and WIN.” – Sun Tzu – The Art of War.

Reflections from Today:
The markets were stuck in neutral today for most of the session, which was somewhat typical for the first Monday after Non-Farm Payroll Friday.

Not only did we have a Monday without any major news on the schedule, we know that most professional traders don't trade Non-Farm Payroll news last Friday, which means that today was the first day where we saw traders taking action after this important report.

Friday’s Non-Farm Payroll was very different than they expected, which means the reaction to that report would be a little sloppy this morning, and that’s exactly what we got from most of the markets we trade every day.

Economic News for Tomorrow:
8:30am EST:             Retail Sales & Import Export Prices
10:00am EST:           Business Inventories

Tomorrow we have a lot more action to be expected, starting with major Red-
Star news at 8:30am EST from Retail Sales.

Tomorrow we will learn more about how the holiday shopping season ended here in the US when we see the Retail Sales Report at 8:30am EST.

Remember, whenever we see Red-Star news events on our schedule we always want to be ready for BIG MOVES in the price-action so be ready to hold that final profit-target as a runner and extend those winning trades on days with Red-Star news event.

Later in the session we will see Business Inventories at 10:00am EST, which isn’t considered to be Red-Star news; however, it is still something we will be watching closely tomorrow.

Day trading plan for Tomorrow:

Crude Oil:
VIP Chart:  Closed at the lows of the range, suggesting bearish market sentiment going into tomorrow.  We are trading inside Friday’s Non-Farm Payroll news range down to 91.24.

Zones Chart:  trend is lower, telling us to sell the resistance zone above us on this chart.  We can see a great level to sell at 91.91 right now.

Anchor Chart:  we’re making new lower-lows, below the moving-averages and the cloud is red.  This is telling us to sell all retracements off these now lows, and we are looking for Wave patterns.

VIP Chart:  Closing-print is at the highs of a very narrow trading-range, which suggests the buyers are in control going into Tuesday and we should expect a much wider trading-range tomorrow.

Zones Chart:  we are buying at support zones as we get pullbacks during this uptrend moving higher.  We can see easy places to buy at 1251.2, 1250.0, and way down at 1244.7.

Anchor Chart:  we are trending higher, above the moving-averages with targets above us right now.  We are buying at support levels below us when we get a pullback during this bullish trend higher.  We can see a profit-target at 1254.7, 1256.2, 1258.1

VIP Chart:  MONSTER range today means tomorrow will likely be a narrow range scenario.  Short-covering-rally occurred at the end of the session, which caused price to close off the lows, which suggests we may see bearish market sentiment tomorrow but we have to wait now for confirmation.

Zones Chart:   we want to sell short at resistance zones above us in a downtrend.  Look for selling-opportunities at 1150.3, 1152.5, and 1155.2.

Anchor Chart:  the big move down today resulted in a short-covering-rally that almost broke above the key resistance at 1149.6.  We are looking for price to move lower so we can resume selling short, or move above the resistance overhead so we can buy it back into the range above us.

VIP Chart:  bullish 2-day relationship, narrow trading-range today, closing print at the highs suggests the bulls are in control going into tomorrow and we will likely see a very side range on Tuesday.

Zones Chart:  we are buying the support zones below us in an uptrend

Anchor Chart:  price-action is moving higher, above the moving-averages and headed to targets above us.

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