Wednesday, May 7, 2014

Day Trading Crude Oil, Gold, E-Mini Russell | SchoolOfTrade Newsletter 05/07/14

“Learn how to separate the majors and the minors. A lot of people don’t succeed because they major in minor things.”

Today’s Newsletter:

·       Markets Today:  Crude Oil reversal, Gold tumbles, Mini-Russell drops then pops!
·       News Today:  Janet Yellen shakes things up, Tensions ease in Ukraine, Crude Oil Inventories drop.
·       News for Tomorrow:  ECB Announcement, Jobless Claims in the US, and Janet Yellen testimony.
·       Trading Opportunities:  Short-Selling on Gold and Mini-Russell, scrap the selling on Crude Oil and get to buying!


The Markets Today:

Crude Oil:
Day trading Crude Oil
Crude Oil VIP Chart
We began the session on Crude Oil looking for selling opportunities this morning, but that didn’t last long when we saw the opening-print at the highs of the range from Tuesday.  This BIG clue told us to scarp the short-selling and get ready for buying opportunities today.

We got a boost at 1030am EST from Crude Oil Inventories, which came out with lower inventories and higher demand, so we were looking in the right direction from the opening-bell today.

Look closely at this chart and you can see we closed above the highs from Tuesday (big clue for buyers) and we have two easy profit-targets above us at the previous week’s open (101.17) and high (102.20) if these buyers continue to push this price-action higher into Thursday.

Trade Called Last Night:
We scrapped the selling opportunities today when we saw the opening-print at the highs of the range from Tuesday, which told us that something had ‘changed’ in the overnight session.


Day trading Gold
Gold VIP Chart
Just as we projected last night, Gold tumbled lower in today’s session, reacting to comments from Janet Yellen (we assume) and ending the session well below the previous week’s highs and on the way lower to last week’s lows down at 1272.0.

We notice that the volume profile suggests the most trading was done at 1297.6, which means overnight we are likely to see a short-covering rally back to test this area before trying to go lower.

Trade Called Last Night:

Day trading Gold
Day trading Gold 
Last night we called the trade SHORT below 1301.3, with a profit-target down at 1293.9. 

This trade earned over $800 per contract traded, and was EASY money if you were with us from last night.


Day Trading Mini-Russell
Mini-Russell VIP Chart
Mini-Russell pushed lower this morning, only to reverse at the end of the morning session which gave us buying and selling opportunities in the same trading day…very exciting stuff!

Look closely and you can see the Mini-Russell pushed below the lows from last week at 1097.4 and the volume shows just about that level at 1099.5, so we know that the big-round-number at 1100.00 is likely the price-magnet this evening and into tomorrow.

Trade Called Last Night:
Day Trading Mini-Russell
Day Trading Mini-Russell

Last night we talked about selling opportunities on Mini-Russell if we made new lower-lows, and that’s exactly what happened. 

We saw lower-lows below the 1101.4 from last night’s chart, and found easy selling opportunities down to the profit-target at 1097.4. 

This trading opportunity earned over $400 per contract traded!


News Today:
day trading with Janet Yellen
Janet Yellen
All eyes were on Janet Yellen and Crude Oil Inventories this morning in our Live Trade Room, and these two news events gave us plenty of trading opportunities to work with all day long.

Janet Yellen made very ‘dovish’ comments this morning, which sparked the late-morning rally on the e-mini’s and sent Gold pushing lower.

One very interesting thing about Janet Yellen’s testimony this morning was that she not satisfied with the quality of the jobs, and that she discounted the surprisingly-higher Non-Farm Payroll report last Friday.

The comments from Janet Yellen were very bullish for Crude Oil and the Mini-Russell, and bearish for Gold Futures.

Later in the session we heard from Crude Oil Inventories, which came out much lower than expected, with a spike higher in DEMAND.  Combine the lower inventories with easing of tensions in Ukraine and you have some happy Crude Oil traders buying to new highs.


News Tomorrow:
day trading the news
Economic news for Thursday
Thursday morning will be another day filled with trading opportunities, beginning this evening in Australia and China, then moving into Europe and the US tomorrow morning.

We begin with news from Australia and China this evening.  We have Employment numbers being released at 9:30pm EST tonight in OZ, and then early tomorrow morning we have Trade Balance from China, which will be a very important news event for traders in Europe tomorrow morning.

We have European news starting at 3:00am EST but the BIG NEWS will be from the ECB Announcement tomorrow morning at 7:45am EST and a Press Conference following 30-minutes later.

In the US session we have Jobless Claims at 8:30am, and then we hear from Janet Yellen once again at 9:30am EST as she testifies before the Budget Committee in Washington DC.

9:30pm:        (AU) Labour Force Survey
2:00am:         (CN) Trade Balance
3:15am:         (CH) Consumer Prices
7:00am:         (GB) BOE Announcement
7:45am:        (EU) ECB Announcement
8:15am:        (EU) Press Conference following the Announcement
8:15am:         (CA) Housing Starts
8:30am:       (US) Jobless Claims
9:30am:       (US) Janet Yellen Speaks
10:30am:      (US) Natural Gas Inventories

Day Trading Opportunities for Tomorrow:

Crude Oil:
Crude Oil Anchor Chart
Crude Oil Anchor Chart
Crude Oil has completely changed its trend in the last 24 hours from bearish now to bullish as we go into Wednesday evening and Thursday morning.

We are above all the key moving-averages and we are making new higher-highs at this time so we are ready to get long at the buy-zone of 100.39 or with any new higher-highs.

Our day trading plan for Crude Oil is to buy pullbacks with each new higher-high overnight and use the price channel highs and 101.40 as our profit-targets.

If the buyers happen to fail, we are looking for selling opportunities back below 99.79 tomorrow morning with a profit-target for the sellers down at 98.74.

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 Anchor Chart
Gold Anchor Chart
Gold tumbled lower today and this evening we find our favorite ‘yellow metal’ trading at a discounted price (@ Lows) so we are looking for selling opportunities to go with this down-trend but we’re waiting for the price to move into the sell-zones overhead or make new lower-lows before we can start getting short again.

Our day trading plan on Gold is to sell short with new lower-lows or at the zones above us at 1293.2, 1297.0, and 1300.8.  We have profit-targets below us at the lows of the price channel, along with 1281.4 and 1272.0.

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
Mini-Russell is pushing higher this evening; however, we are still in a bearish down-trend on the anchor chart so we are going to be looking for selling opportunities until we can get above the 1112.0 resistance zone overhead.

Our day trading plan for Mini-Russell is to sell short in the range from 1107.5 up to 1112.0 and use the support levels below for profit-targets at 1098.0 and 1088.5.

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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