Monday, May 5, 2014

Day Trading Crude Oil, Gold, E-Mini Russell | SchoolOfTrade Newsletter 05/05/14



Click here to download today’s Newsletter Charts & Commentary

Cinco de Mayo Parade
“The meeting of preparation and opportunity generates the offspring we call luck.”




Today’s Newsletter:
·       Markets Today:  Crude Oil tumbles, Gold waits, Mini-Russell goes sideways
·       News Today: China Manufacturing, Non-Farm Payrolls, Violence in Ukraine
·       News for Tomorrow: International Trade, more from Ukraine
·       Trading Opportunities:  Buy lows, sell highs on Mini-Russell, Short on Crude Oil, and Buying on Gold Futures

The Markets Today:

Crude Oil:
Crude Oil VIP Chart
Crude Oil opened the session today in the US right at the highs of Friday’s range but then pushed lower the rest of the session, closing below the key $100/barrel.



We pushed below the previous week’s close at 99.81 and we can see the volume footprint confirms the sellers were indeed in control all session.


Notice the previous week’s low at 98.80 is begging to be tested overnight or tomorrow morning.
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Gold:
Gold VIP Chart
Gold moved Higher overnight in the London session, but once we opened the session for the day here in the US it ran out of momentum and began to collapse off those highs.


Look at the VERY narrow trading-range on Gold this morning, which tells us the traders on Gold are waiting on something. 

What could they be waiting for?  Later this week we have an important ECB meeting on Thursday, which is likely what traders are waiting for at this time.

Notice the previous week’s closing price down at 1300.4 will act like a price-magnet and the previous week’s low down at 1272.0 will also be weighing on the price if these buyers don’t pick up the pressure.
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Mini-Russell:
Mini-Russell VIP Chart
Mini-Russell gapped-down at the opening-bell this morning, tested the 1109.5 support from last Thursday, and then traded sideways for the remainder of the session.



The biggest clue on this chart is where we finished the session today.  We finished the day near the previous week’s closing price, which is also where the most volume was traded today.

The Mini-Russell is completely ‘balanced’ at this time, which tells us to buy-the-lows at support and sell-the-highs at resistance until we find a trend to follow.
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News Today:
The markets got off to a rocky-start this week after a 4th consecutive month of disappointing manufacturing news from China.  This is quickly becoming a VERY big concern for the global economy.

In addition to China, we heard about more violence in Ukraine, which surprisingly didn’t impact Crude Oil Futures too much, which suggests the majority of Crude Oil traders are concerned with China more than the issue in Ukraine.

April’s ISM Non-Manufacturing Index pushed higher again today to 55.2, which is the fastest pace of expansion in eight months here in the US.

Remember that little issue with Target Stores losing MILLIONS of people’s information over the Holiday Season?  Yep…CEO Greg Steinhafel was forced to step down today.

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This Day in History:

Battle of Puebla 
May 5, 1862:  “Cinco de Mayo” is born.  During the French-Mexican War, a poorly supplied and outnumbered Mexican army under General Ignacio Zaragoza defeats a French army attempting to capture Puebla de Los Angeles, a small town in east-central Mexico. Victory at the Battle of Puebla represented a great moral victory for the Mexican government, symbolizing the country's ability to defend its sovereignty against threat by a powerful foreign nation.

Alan Bartlett Shepard Jr. 
May 5, 1961:  The First American goes into Space.   From Cape Canaveral, Florida, Navy Commander Alan Bartlett Shepard Jr. is launched into space aboard the Freedom 7 space capsule, becoming the first American astronaut to travel into space. The suborbital flight, which lasted 15 minutes and reached a height of 116 miles into the atmosphere, was a major triumph for the National Aeronautics and Space Administration (NASA).



Cy Young
May 5, 1904:  Cy Young throws perfect game.  Boston Red Sox pitcher Cy Young throws a perfect game against the Detroit Tigers, who had fellow future Hall of Fame pitcher Rube Waddell on the mound. This was the first perfect game of the modern era; the last had been thrown by John Montgomery Ward in 1880. It was the second of three no-hitters that Young would throw, and the only perfect game.



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News Tomorrow:
News for Tomorrow
Tomorrow’s (Tuesday) economic news begins in Australia overnight and then moves into Europe and later into the US morning session.



We have a TON of important Red-Star News on the calendar, so we are expecting to see some awesome trading opportunities tomorrow.

In Europe, we have a lot of news on the schedule, but the most important will be the Retail Sales at 5:00am EST.

In the US, we have Red-Star News at 8:30am EST to get us moving quickly after we open our Live Trade Room at 8:00am EST.

12:30am EST:           (AU) RBA Announcement
3:50am EST:             (FR) Manufacturing
3:55am EST:             (DE) Manufacturing
4:00am EST:             (EU) Manufacturing
4:30am EST:             (GB) Manufacturing
5:00am EST:             (EU) Retail Sales
8:30am EST:             (US) International Trade
10:00am EST:           (CAD) Ivey Manufacturing

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Day Trading Opportunities for Tomorrow:

Crude Oil:

Crude Oil Anchor Chart:
Crude Oil Anchor Chart
Crude Oil is pushing lower this evening after a down-trend in today’s trading session pushed prices back below the $100/barrel big-round-number.



Our day trading strategy for Crude Oil is to sell short using the Wave Pattern around the sell-zones overhead at 100.11 and 100.47.

We have profit-targets below us at 98.74, the lows of the price channel, 97.70 and all the way down at 96.99.

Short-Term Trading & Scalping:  Please join us tomorrow in our Live Trade Room for short-term trades called with exact entry and exit information.

Gold:

Gold Anchor Chart:
Gold Anchor Chart
Gold pushed higher this morning in the London trading session and then has been pulling back all day today in the US session.




We can clearly see a bullish trend on Gold, which means our day trading strategy, will be to look for buying opportunities as this price moves into the buy-zones below us at 1307.6, 1302.9, and even down to 1293.9.

Furthermore, we can see a trend-line acting as support to use for buying opportunities as this price pulls back as well.

Another thing to remember is that if these buyers don’t keep this price-action above the 1298.5 key moving-averages we will be able to sell short down to 1293.9 and then look for another buying opportunity tomorrow morning.

We have a profit-target overhead at the 1317.9 sell-zone and we will be patiently waiting for trading opportunities this evening and into tomorrow morning.

Short-Term Trading & Scalping:  Please join us tomorrow in our Live Trade Room for short-term trades called with exact entry and exit information.

Mini-Russell :

Mini-Russell Anchor Chart:
Mini-Russell Anchor Chart
The Mini-Russell is trading in a price wedge this evening after trading in a narrow trading-range for most of the US session today.

We are in the middle of this trading-range right now, and if you look closely you can see all the key moving-averages are flat and right on top of us.

Our day trading strategy for the Mini-Russell is to be patient and wait for price to move to the LOWS so we can buy the lows using the buy-zones at 1115.0, 1113.1, 1105.7, and even down at 1097.4.

In addition to buying the lows, we will also be looking for selling opportunities at the highs of this range at 1130.4, 1133.1, 1136.4, and the major highs at 1153.5.

Short-Term Trading & Scalping:  Please join us tomorrow in our Live Trade Room for short-term trades called with exact entry and exit information.

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