Tuesday, January 14, 2014

Day Trading Newsletter 01/14/14; SchoolOfTrade.com

“Life isn’t about all the wrong moves you made; life is about the one right move that made ALL the difference.”

Economic News for Tomorrow:
Tomorrow morning we have another day with some big news on the calendar to get the price-action moving well for our trades.

We begin with MAJOR Red-Star news from Producer Price Index.  This will hopefully give us some good volume and volatility to get us making money early in the session.

Later in the session we have important news for Crude Oil traders.  Tuesday evening we saw the 3rd consecutive draw in inventories from the API Report that was released at 4:30pm EST on Tuesday evening.

8:30am EST         Producer Price Index
                            Empire State Manuf Survey

10:30am EST       Crude Oil Inventories

2:00pm EST         Beige Book Report

Day trading plan for Tomorrow:

Crude Oil:

VIP Chart:
Crude Oil has been quite sloppy this week so far, and our VIP chart confirms that for us this evening.

Crude Oil VIP
We can see the multi-day relationship is almost sideways as we trade inside the range from earlier in the month of January.

Today’s trading-range was quite narrow, which suggests we are going to see some fireworks SOON, but we don’t know exactly when.  A narrow trading-range today suggests a wide trading-range tomorrow, so perhaps we will see those fireworks after tomorrow’s news about inventories?

Closing-print was in the middle of the range today, which tells us the buyers and sellers were both in balance.  Closing in the middle tells us that we have buyers and sellers agreeing on this price.

The next step is going to be to analyze tomorrow’s opening-print to see where it comes out in relationship to today’s closing-print.

Anchor Chart:

Crude Oil Anchor 
Crude Oil looks mighty bullish on our anchor chart, which is a big change of pace from the VIP chart.

We are above all the moving-averages and we have higher-highs and higher-lows which tell us we want to buy this market right now using a wave-pattern long.

I can see levels of resistance to use as profit-targets above us at 92.89, 93.00, 93.23, 93.33, and 93.48.

Our goal tonight and tomorrow is to buy using our wave-pattern long and use these levels above us as profit-targets.


VIP Chart:
The Gold VIP Chart is filled with big clues this evening, starting with this multi-day relationship, today’s range and closing-print.

We’ve been pushing new higher-highs for over a week but today we saw those buyers get stuck at new highs, only to tumble HARD all the way down to the lows of the range from Monday. 
Gold VIP

The size of today’s trading-range is very large, which suggests that tomorrow will be a narrower trading-range type of day.

The closing-print today was inside Monday’s range, which suggests that all this chaos on the chart today was nothing more than speculators having some fun.

With the closing-print inside the range from Monday, and a very wide trading-range today, we can assume tomorrow will be a narrow, range-bound market that opens inside today’s range.

Anchor Chart:

Gold Anchor
Gold is moving lower with a slight sideways trend as we go into Wednesday’s trading session.  Gold lost some ground this morning after today’s Retail Sales Report came out higher than expected, suggesting that December’s Holiday Spending was very robust.

We can see a bearish price channel has developed on the anchor chart, and with all the moving-averages above us as resistance we are looking for selling opportunities this evening and tomorrow morning until this changes.

If price rises before it falls lower I am looking for selling opportunities at the 1248.0 sell-zone overhead, along with the 1251.9 sell-zone above that.  If we happen to break these and move higher we then know the sellers have failed and we will begin looking for buying opportunities to take us back to the high of day today at 1254.9 as a profit-target for the buyers.

As price moves lower we are looking for the wave-pattern short to get into the trade, and then we will use the levels of support listed below as profit-targets starting with 1239.0, 1237.3, 1235.4 and the big target of 1232.1


VIP Chart:
The Mini-Russell had a big day today moving back up to the highs of the weekly trading-range.

Russell VIP
We can see the VIP chart shows us that we have been trading ‘inside’ for over a week now, and today we went literally from the bottom ALL the way back up to the top.

We can see a typical trading-range for today, but the BIG CLUE is the closing-print at the highs, which suggests that the buyers had complete control when we finished the session today.

The next step is to look at the opening-bell tomorrow morning and compare that to the closing-print from today.  That will tell us if we are still bullish, or if this is just a sideways-trading-range that we can see at these highs.

Anchor Chart:

Russell Anchor
The Mini-Russell moved higher this morning on a very bullish Retail Sales Report at 830am EST, and it never looked back.

We can see a bullish price channel, green cloud, and we are above all the moving-averages.  All of these clues tell us to look for a wave-pattern long to buy with this 


We can see profit-targets overhead at 1161.4, 1162.7, 1164.5, and 1167.2

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