Tuesday, January 26, 2016

FOMC Day Trading Strategy | Crude Oil, Gold, E-mini & Euro Futures 01/26/16

“I learned at a very early age, that if you worked harder than your current pay-level you would soon be promoted and paid at the level you are working and wish to be paid.  The secret is simple, just apply the effort and be ready for the opportunity.”

Notes for Tonight’s Newsletter:
Crude Oil is bearish after collapsing off today's highs which tells us to look for the next pullback to hold for the bears to have confidence going back to the $29 lows today.  The bulls had control the entire session today with a channel, three pushes higher into a measured-move before the API# was released at 4:30pm EST and price collapsed with some SERIOUS strength to it, telling us the bulls walked away with their profit from today and the sellers are left to finish the move back to $29.00.  Sellers will look for the next test of the moving-average to hold while the buyers will be looking for the sellers to fail at the next pullback to make an attempt back to re-test today's 32.41 highs.

E-mini S&P is bullish but today's session ended with a trading-range which tells us to look for bear-traps at the highs and lows of the range for the most reliable opportunities tomorrow.  Today's spike & channel kept the buyers in control all day today, now the smart bulls are waiting for a bearish correction to buy into seller-failures tomorrow to complete the measured-move up around 1910.00 ahead of the FOMC Announcement at 2:00pm EST.

Gold is bullish and pulling-back after a successful test of the channel highs which tells the buyers to wait for 'rotation' back to the lows to fill a GAP before pushing higher again.  We can see the measured-move and channel rotation higher which will have most of the bulls taking profit and waiting for a cheaper price to buy more tomorrow.  The bulls only needed 2 pushes to complete the measured-move today so a 3rd push may be coming before we get the correction lower and we need to keep an eye out for a possible 'runaway' up to a price-magnet at 1136.2 if the buyers really want to push it.  The most reliable buying opportunities will come back at channel lows.

Euro is bullish after the buyers bought the correction off yesterday’s highs and now we will look for profit-taking at today's highs before the next opportunities tomorrow.  Just as expected, the buyers got 'long' after the head-fake at 8400 and now we see the target at range-highs is almost tested which should result in profit-taking before the next leg higher.  Buyers will look for a 2-legged-correction after we test the resistance overhead before buying more, and sellers need to see a lower-low and hold a pullback to even consider selling this market.

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