Thursday, September 15, 2016

5 Trades for Friday | SchoolOfTrade Newsletter 09/15/16

"Confidence comes not from always being right but not fearing to be wrong."
Notes for Tonight’s Newsletter:
We're getting ready to wrap-up the week of Quadruple witching with some great opportunities for tomorrow. Crude Oil and Euro are both trading inside of ranges this evening while Gold is bearish coming off the highs of a channel and the S&P is bullish but giving the bears a big window to take price lower tomorrow.

Crude Oil is range-bound and trying to complete rotation back to the low of the range tomorrow.  The big concern right now is that we're trading in the middle of the range which means the price-action will be choppy, so the best option for tomorrow is to stick to the edges of the range, selling the high with buyer-failures, buying the low with seller-failures, and using the pendulum swing to plan for targets until we see a breakout that can hold and keep going.

E-mini S&P is bullish and trying to re-test the highs tomorrow but the buyers aren’t showing us much interest and there is resistance in the way which is likely going to give the sellers the short-term window they need to make a run back to test some important areas of interest tomorrow.  The buyers have control but the resistance trend-line gives the sellers a shot at holding the next pullback and sending prices down to 2130 and possibly 2116 tomorrow.  Buyers need to have a strong breakout-pullback above the double-up at 2141 or they need to wait through this pullback and grab it as it attempts to re-test the highs tomorrow.

Gold is bearish and trying to re-test the lows of the range tomorrow after the buyers were given two opportunities to take control and both of them failed.  Sellers need to hold this pullback for a move back to the lows and possibly a measured-move target tomorrow, whereas the buyers are going to need a strong push up to new highs and then hold a pullback for a move back to re-test the highs from the beginning of today's session.

Euro is trading inside a range and trying to rotate back to the lows after the buyers tried twice and failed earlier today.  Once again, our focus is to buy the lows, sell the highs and avoid the middle of the range which means the sellers are already in short off the highs and will be holding targets at the lows.  Buyers will be looking for seller-failures at the lows to buy the lows and sellers will be looking for buyer-failures at the highs to sell back down again.  One thing to notice is the pendulum swing after today's failed breakout while likely give the sellers a little more push outside the range so buyers will want to stay patient.

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