Tuesday, May 23, 2017

6 Ways to Trade Wednesday | Crude Oil, Emini, Gold, Euro, FDAX



“What we can or cannot do… what we consider possible or impossible… is rarely a function of our true capability. It is more likely a function of our beliefs about who we are.  Change your beliefs and you change your future.”


Crude Oil is bullish ahead of tomorrow’s Inventory Report, but we’re trading at the high of a Spike & Channel so we’re waiting for rotation back to the lows for the most reliable buying opportunities tomorrow.

S&P is bullish, but trading inside a range is telling us to focus on failures below the range using the ‘battle zone’ support levels tomorrow.

Gold is bearish, but trading at the low of a channel tell us to wait for rotation back to the high and look for selling-opportunities back down to the low tomorrow.

Euro is bearish, but trading at the low of a wide bear channel, telling us to use the mid-line as resistance and look for selling-opportunities up at resistance levels overhead tomorrow.

FDAX is bullish, but trading in the middle of a triangle, telling us to look for buying opportunities at support levels near the lows with a target back to the highs.


Crude Oil Trading Strategy
Crude Oil is bullish and trading at the high of a Spike & Channel, which tells us to look for buying opportunities near the lows of the channel (around the ‘battle zone’) with a target going back up to the high.  Remember, tomorrow is Inventory Day, so the plan is to find those trades before 10:15am, and then sit-on-hands until the dust settles after the news and we can put a new plan together from there.

Crude Oil Inventory Levels for Wednesday:
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52.65, 52.22, 51.79, 51.36, 50.93, 50.50


E-Mini S&P Trading Strategy
E-Mini S&P is bullish and trading inside a range as it tries to re-test the 2400 round number, and possibly the prior week high later this week.  The bulls ended the session unable to re-test the highs, which developed into this range, which tells us to avoid buying the high, and focus on buying the low of the range (near the ‘battle zone’) using failure set-ups tomorrow.

Gold Trading Strategy
Gold is bearish and trading at the low of a steep, narrow channel after the sellers got a perfect opportunity to ‘sell high’ to finish today’s session.  The two big clues on this chart are the slope of this channel, and the recent break above the channel.  The slope of the channel tells us this trend is strong, so we don’t need to wait for much a retracement off these lows to find reliable selling-opportunities.  The big clue, however, is the recent break and re-test of the channel.  When price went above the moving-average earlier today, that gave all the sellers an easy opportunity to ‘sell high’, and now that price collapsed back down again, we assume those sellers will need to see another high price before they get tempted to sell more tomorrow.  The goal for tomorrow is to look for selling-opportunities up at resistance, but focus on traps and failures above the moving-average in order to entice those sellers to patriciate again.

Euro Trading Strategy
Euro is bearish and trading at the low of a wide channel after a strong push lower finally reached the Double-Down target for the bears.  The two big clues on the chart are the wide channel and the strong move to finish the session.  The wide channel tells us we can use the channel mid-line as resistance, and the strong move lower tells us that we don’t need to wait for a full rotation back to the high of the channel to find reliable selling-opportunities tomorrow… we just need to avoid selling into the lows.  The goal will be to look for traps and failures up around the mid-line for a target back to the low.

FDAX Trading Strategy

FDAX is bullish in the middle of a triangle this evening as the buyers try to re-test the highs tomorrow.  It’s easy to see this price-action was all over the place today, but the lack of confirmation from the bears gives the bulls the edge at this point, and the goal is to avoid trading in the middle of this range, so we’re looking for buying opportunities at the low of the range near the ‘battle zone’ tomorrow, while avoiding the temptation to chase this move into the highs as we try to get the measured-move target tomorrow.

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