Monday, August 25, 2014

6 Trades for Tuesday | SchoolOfTrade Newsletter 08/25/14

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“Opportunity is where you find it; it doesn’t find you.” – Joseph James
Notes for Tonight’s Newsletter:

·       Last week of August, last week of Summer trading begins ahead of the Labor Day Holiday weekend in the US
·       Trading volume 20% below 3-month averages
·       More bad news from Europe = Euro Lower
·       Bullish news in the US = dollar-index moves higher
·       Fear-mongering (Middle East) continues over the weekend… and Gold goes lower???
·       E-mini S&P hits 2,000 for the first time, while Mini-Russell keeps trying to play catch-up!

·       Long-Term Direction Bias = SHORT
·       Short-Term Directional Bias = SHORT / NEUTRAL
·       Fundamentals:  Violence &Fear appear to be contained in the Middle East, which is adding downward pressure to Gold futures.
·       Daily Chart:  below the key moving-averages, but still in the middle of the trading-range on the daily chart.  Next target will be 1265.8 as price-action pushes lower.
·       32-Anchor Chart:  lower-lows from last week have been replaced with a range-bound market with higher-lows and lower-highs, telling us traders are waiting on something before we continue to the buy-zone down at 1265.0.  We will continue to look for the next retracement to a sell-zone for selling opportunities on our way to the targets below.
·       16-Anchor Chart:  trading sideways with higher-lows and lower-highs which tell us this market-personality has stalled to the downside.  Trend is still bearish, so we look for selling opportunities at resistance levels overhead, or with new lower-lows below 1273.4
·       Profit-targets below @ 1268.7, 1265.0, 1264.5, 1260.8, 1254.4

Crude Oil:
·       Long-Term Direction Bias = SHORT
·       Short-Term Directional Bias = SHORT / NEUTRAL
·       Fundamentals:  Europe is struggling, which is pushing the Euro lower, and the Dollar-index higher.  A strong dollar means lower prices on ALL commodities, especially for Crude Oil futures.  This pressure is pushing Crude Oil Futures lower even as violence lingers in the Middle East.
·       Daily Chart:  price-action is struggling to push below the $93.00 level with support levels below at 92.15 and $90.00.
·       32-Anchor Chart: Lower-lows and lower-highs tell us the trend is bearish, so we are looking for selling opportunities at resistance zones overhead.
·       16-Anchor Chart:  price-action trading sideways, with lower-highs and higher-lows as we consolidate around $93.50.  Bearish long-term-trend still tells us to sell at resistance levels overhead, but we clearly need to stay patient.
·       Profit-targets below @ 92.15, 91.51, 90.72, 90.72, 89.70

·       Long-Term Direction Bias = LONG
·       Short-Term Directional Bias = LONG
·       Fundamentals:  Bad news in Europe pushes the Dollar-index higher, and a strong dollar means cheap equities in-comparison so buying is easy.  Also, the US equities are the ONLY game in town for long-term investors who don’t want to risk Asia or Europe.
·       Daily Chart:  grinding higher, slowly, in the middle of the daily trading-range, and next resistance level overhead is 1169.7.
·       32-Anchor Chart:  higher-highs and higher-lows tell us to stay patient to buy pullbacks to support levels below us.  We noticed a possible short-term price channel (yellow) which we will use for buying opportunities on the next pullback.
·       16-Anchor Chart:  higher-highs and higher-lows tell us to buy this recent pullback to the lows of the short-term price channel.

·       Profit-targets above @ highs of the price channel, 1168.0, 1170.5, 1175.3, 1177.8, 1178.8, 1183.0

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