Thursday, January 7, 2016

Day Trading Strategy for Non-Farm Payroll | Crude Oil, Gold, E-mini & Euro Futures 01/07/16

“You cannot change your destination overnight, but you can change your direction overnight.”

Notes for Tonight’s Newsletter:
Crude Oil is trading inside a range this evening which means we will be looking for opportunities to buy lows and sell highs as we rotate towards the lows tomorrow.  The selloff that started the session was quickly reverses on strong buying, but the bulls failed to break a new high and then immediately turned back lower which suggests the bulls got out and sellers took back control.  In the short term we have a bearish wedge which tells us to expect buyers to make a run back to the highs, and we will be watching for them to fail so we can sell the highs and finish the move back to the lows.  If we test the highs we will be watching for bulls to hold strong and make a possible run at the resistance zone overhead at 36.00.

E-mini S&P is bearish with a spike & channel and trading at the lows of a range this evening which tells us to look for selling opportunities after a bullish correction and possible test of the long-term channel highs.  We have a long-term bear channel that recently missed a test of the highs which tells us there is 'unfinished business' to do for the bulls.  We combine that with the low of the range and the bear spike & channel and this tells us we will likely see buyers in the short-term but wise traders will be skeptical of the bulls and look for opportunities to sell into their failures tomorrow.

Gold is bullish but trading at the highs of a bull channel and with the completion of a wedge breakout and re-test we can expect buyers to take profit and look to reload again after a bearish correction tomorrow morning.  Our goal is to buy the lows of the bull channel but the completion of the wedge tells us to expect a fakeout at the lows so we will wait for the sellers to try and sell it lower and if they fail we will be looking to buy into their stops for another attempt back to the highs.

Euro is bullish but trading at the highs of the bull channel and into the completion of the measured-move which tells us to look for buying opportunities after a bearish correction off the highs.  Our plan for tomorrow is to wait for the correction off the highs and then look for sellers to fail so we can buy into their stops with a target up around the round number of 1.1000.  If the sellers can hold the next pullback the bulls will need to let them take control and keep looking for signs of seller-failure as it pushes lower into additional support levels below.

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