Wednesday, September 3, 2014

6 Ways to Trade a Sideways Market | SchoolOfTrade Newsletter 09/03/14



“If you don’t pay appropriate attention to what has your attention, it will take more of your attention than it deserves.” - David Allen
Notes for Tonight’s Newsletter:

Misc:
·       Another exciting session filled with trading opportunities!
·       Markets settled into sideways-trading-ranges today, likely ahead of tomorrow’s highly-anticipated ECB report @ 7:45am EST.
·       Russia/Ukraine introduces a ‘7-Point Peace Plan’
·       Factory Orders show additional strength to the US manufacturing sector
·       Beige Book Report says job growth and economic conditions are moderately expanding in the US… nothing new.
·       Gold edges higher to $1,270
·       Crude Oil got a boost back up to $95 as sellers wait for the next trading opportunity.
·       Mini-Russell collapses back to the lows of the range
·       Summer is over & Fall has officially begun, which is always the BEST season of the year for professional traders.
·       ECB’s Meeting is this Thursday @ 7:45am EST
·       Non-Farm Payroll Report is released this Friday @ 8:30am EST


Gold:
·       Long-Term Direction Bias = SHORT
·       Short-Term Directional Bias = SHORT / NEUTRAL
·       Gold will be waiting for Thursday’s ECB Report @ 745am EST
·       Fundamentals:  a strong US Dollar-index, bullish news from the US economy, and less fear of violence in the Middle East are pushing Gold futures lower.
·       Daily Chart:  We are sitting at the lows of the price wedge on top of the 1265.8 buy-zone which is acting as major support.
·       32-Anchor Chart:  price-action is trading sideways just below our next sell-zones overhead, we wait patiently for a selling opportunities at 1273.4 and 1279.8
·       16-Anchor Chart: price-action tested the sell-zone at 1271.1 and we are looking for entry patterns to get short.
·       Profit-targets below @ 1261.9, 1254.4, 1246.7, 1242.2, 1232.9

Crude Oil:
·       Long-Term Direction Bias = SHORT
·       Short-Term Directional Bias = SHORT / NEUTRAL
·       Fundamentals:  Strong US Dollar, weakening demand for the Crude Oil after the summer has ended, and less violence in the Middle East are weighing down Crude Oil futures.
·       Daily Chart:  we returned right back to $95.00 today after moving down to $93.00 yesterday… this tells us we are ‘in balance’ at this level between $95-$93
·       32-Anchor Chart:  we are officially inside a consolidating range, or price wedge as we like to call it.  We will sell highs (long-term-trend is down) and buy lows, staying clear of the middle of this range around $94.50.
·       16-Anchor Chart:  we are selling the highs and buying the lows until something breaks this price wedge.  Use the levels in the middle for targets on the sell off the highs, and remember to beware the fake-out breakout.
·       Profit-targets above @ 96.00, 96.59, 97.18
·       Profit-targets below @ 94.67, 94.26, 93.88, 93.35, 92.50

Mini-Russell:
·       Long-Term Direction Bias = LONG
·       Short-Term Directional Bias = LONG / NEUTRAL
·       Fundamentals:  Strong US Dollar, Weak Gold, Weak Euro, and bullish US economic news has been pushing prices higher on the equity markets.
·       Daily Chart:  we have tested the highs of the range @ 1187.7, barely reaching the sell-zone overhead, and today’s candlestick was BEARISH which shows how little conviction there was at those highs.  We have now added a target down at the lows @ 1121.5
·       32-Anchor Chart:  price-action pulled back to the lows of the long term bullish price channel and we are looking for buying opportunities at the 1166.6 buy-zone.  Look closely, you can see multiple levels of symmetry down at 1163.0 and again at 1157.0 which makes for easy buying opportunities.
·       16-Anchor Chart: we see price-action at the lows of the bullish price channel, so we are looking for buying opportunities at this time.  We have an additional buy-zone down at 1166.6 and 1163.9.

·       Profit-targets above @ 1178.3, 1180.5, 1183.8, 1187.9, 1194.5, 1203.6

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