Tuesday, February 11, 2014

Preparing for BIG MOVES in the Futures Markets | SchoolOfTrade Newsletter 02/11/14

“Most people have no idea of the giant capacity we can immediately command when we focus all of our resources on mastering a single area of our lives.”

Reflections from Today:
·       Gold Trading:  2 targets hit @ 1285.0 & 1291.4
·       Mini-Russell : 3 targets hit @ 1118.4, 1122.1, 1126.9
·       Crude Oil:  1 target reached @ 100.41
·       Sloppy markets once again today; No Major News, Janet Yellen Speaks
·       Janet Yellen Speaks!  Continue Tapering, 6.5% Unemployment rate target, Very Dovish
·       US House of Rep passes debt ceiling extension through Mar ‘15
·       Crude Oil went higher +0.40% @ 100.41
·       Gold went higher +1.25% @ 1290.6
·       Mini-Russell went higher +0.90% @ 1125.1
·       Tonight:  Chinese Trade Balance & Eurozone Industrial Production
·       Tomorrow:  Crude Oil Inventories 10:30am EST; API tonight showed 4th consecutive build (+2.1M)
·       Tomorrow; Treasury budget @ 2:00pm EST
·       Feb 11th 1847; Thomas Alva Edison was born (invented the ticker tape, phonograph, light bulb, motion picture)
·       Feb 11th 1956; Korean Stock Exchange is born!

Economic News for Tomorrow:
We finally get some big news to trade with starting overnight this evening and heading into tomorrow morning’s trading session.

We begin this evening with important news from China at 3:15am EST, Consumer Price Index, which is certain to get Gold and other markets moving in the overnight Asian-session.

After we hear from China we move to Europe where we have a very important Industrial Product report due to be released at 5:00am EST.  Just like the news from China, this news is also expected to have the markets moving well going into the US morning session.

Tomorrow in the US session we have Crude Oil Inventories to work with at 10:30am EST, which means we must be careful forcing trades tomorrow on Crude Oil if we don’t see the market-personality giving us any movement ahead of the news. 

Remember to sit-on-hands tomorrow 15-minutes before and after this news is released so you don’t get caught up in the messy price-action that usually shows up before the news is released.

Wednesday Economic News
3:15am EST:             (CH) Consumer Price Index
5:00am EST:             (EUR) Industrial Production
10:30am EST:          (US) Crude Oil Inventories
2:00pm EST:             (US) Treasury Budget

Day trading plan for Tomorrow:

Crude Oil:

VIP Chart:

Crude Oil VIP Chart
The VIP Chart of Crude Oil shows another session of sideways trading because it wasn’t until after the closing-bell that Crude Oil started to push higher up to our target at 100.41 from last night. 

This narrow trading-range, closing-print in the middle, and sitting on top of the previous week’s highs all tell me that something BIG is on the way for Crude Oil traders!

Anchor Chart:
Crude Oil Anchor Chart
Crude Oil looks mighty bullish on this evening’s anchor chart.  We are above the previous week’s highs in the overnight trading session and with Red-Star News to be released in China in just a few hours we may have a big move on our hands before we even wake up in the US on Wednesday.

My plan is to buy the support zone at 100.10 or 99.81 this evening and into tomorrow with a profit-target up at the overhead resistance levels at 100.65, 100.90 and 101.06.  In addition, I’m selling short if these levels FAIL below the 99.60 support with a profit-target below us at 99.11.


VIP Chart:

Gold VIP Chart
Gold traded in a VERY wide range in today’s session after it ‘gapped up’ in the overnight session.  We see a wide trading-range, a closing-print near the highs, and bullish 2-day relationship, but the biggest clues we see are the two volume spikes around 1286.5 and 1279.0.

Anchor Chart:
Gold Anchor Chart
Gold is trending higher this evening on the anchor chart on its way to the big-round-number of 1300.  We have some important news coming out overnight in China which could easily push us into this 1300 area so we are on red-alert this evening for buying opportunities.

My plan for Gold is to buy the support zone below us at 1285.2 and 1279.9 and use the overhead resistance levels as profit-targets at 1295.4, 1297.4, and 1299.8.  If we get below the 1278.0 I will then move to selling short down to 1274.5.


VIP Chart:

Mini Russell VIP Chart
The Mini-Russell pushed higher today and finished the session up around the previous highs from last week at 1127.7.  Today we saw a bullish 2-day relationship, a typical trading-range, and a closing-print near the highs.

These clues tell me that we are bullish on Mini-Russell and if we can get above the previous week’s highs of 1127.7 and an opening-print tomorrow above the 1128.9 we are going to be buying on Wednesday up to the 1144.0 highs from 2 weeks ago.

Anchor Chart:
Mini Russell Anchor Chart
The anchor chart of the Mini-Russell is VERY bullish going into the overnight session, which has us looking for more buying opportunities going into Wednesday. 

My goal this evening is to buy the support zones at 1121.4 and 1117.0 on the way up to the profit-targets above us at 1131.3, 1136.0 and 1142.1.  If we get below the 1115.5 the sellers will take control and I’m selling short down to a profit-target at 1105.0

Want to see us trade LIVE?  
Click here to register for the Free Trial!
Automated Trading Strategy; Let the Computer do the trading
Are you a Crude Oil Trader? Click here to trade Crude Oil
Are you a Euro Trader? Click here to trade Euro
Are you an E-Mini Russell Trader? Click here to trade E-Mini Russell
Are you a Gold Trader? Click here to trade Gold
Join the Premier Live trade-room as an Advanced Member

No comments:

Post a Comment

Thank you for your comment! Your comment will be reviewed and posted asap, thank you for your patience.