Thursday, February 9, 2017

5 Winners for Friday | SchoolOfTrade Newsletter 02/09/17

 “The ultimate reason for setting goals is to entice you to become the person it takes to achieve them.”

Crude Oil is bullish, but we have three clues on the chart that tell us the most reliable buying opportunities are most likely NOT going to be until we can get a ‘trap low’ tomorrow.

E-Mini S&P is bullish, and any time we have a ‘runaway’ like we saw today, we know exactly where (and where not) to be looking for the most reliable buying opportunities tomorrow.

Gold is bearish, but one simple clue tells us this market has likely gone ‘too far, too fast’, so we’re looking for a test of the ‘battle zone’ tomorrow.

Euro is bearish and trying to finish off a wedge target, and whenever we see a wedge, we know exactly where to be looking for the correction tomorrow.

FDAX is bullish and trying to finish off the measured-move, but we a ‘No Trade Zone’ overhead and support levels below, telling us exactly where (and where not) to be trading tomorrow.

Crude Oil
Crude Oil is bullish and trying to re-test the high from earlier today, but we’ve already seen the bulls try three times to push through the ‘No Trade Zone’, so our plan is to stay patient and look for buying opportunities down at the rising support trend-lines at the low of this triangle.  Don’t forget, even if we re-test the high, we still need to worry about buying into the measured-move, so the best plan of action is to wait for price to finish this attempt higher, and use those support levels to gain the reliability we need tomorrow.

E-Mini S&P
E-Mini S&P is bullish and went on a big run higher today before finishing the Double-Up target and trading sideways to finish the session.  Whenever we see a market make a run like this we expect to see a trading-range develop on the chart as the market tries to find its balance.  With that said, our goal will be to wait for price to pull back off the highs, hopefully back into the ‘battle zone’, so we can look for entry triggers to buy it back up to the highs again.  If price keeps pushing higher, we will be looking for a strong move through the highs, and then focus on traps and failures to make sure we don’t get caught chasing the move higher tomorrow.

Gold is tumbling lower this evening as it ‘overshoots’ the low of a spike & channel, telling us that this market has likely gone ‘too far, too fast’ and the most reliable selling-opportunities will likely come after a decent-sized correction tomorrow.  The market is clearly bearish, and sellers will be waiting up at resistance levels overhead, but a strong move higher off these lows may give control back to the buyers as they look for an ‘overshoot’ in the opposite direction tomorrow.

Euro is bearish and pushing through a measured-move on the way to reaching its wedge target this evening.  The wedge target is just a few points lower, which tells us that sellers are running out of time to ‘sell high’ and we should be patient to wait for additional selling-opportunities up at resistance levels above us tomorrow.


FDAX is bullish (after the pendulum swing from last night’s newsletter) and trading in the middle of either a wide channel or a bull wedge, and just a few points from reaching the measured-move this evening.  The most important clues on the chart will likely be the measured-move and rising support trend-line.  First, the measured-move is a major objective for the bulls, and it tells us to avoid buying too high, and look for a pullback to an area of support.  Second, that rising trend-line may be the support level that buyers need to give them the chance to participate in this move going higher without having to ‘buy high’.  No matter whether we test the measured-move first, or we pull back before the bulls reach their target, we know that buyers will be waiting for trading opportunities at these support levels with the proper entry trigger tomorrow.

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