Tuesday, June 6, 2017

Avoiding "Traps" on Wednesday | Crude Oil, Emini, Gold, Euro, FDAX

"When popular opinion is nearly unanimous, contrary thinking tends to be most profitable.  The reason is that once the crowd takes a position, it creates a short-term, self-fulfilling prophecy. But when a change occurs, everyone seems to change their mind at once."

Crude Oil is bullish with a Spike & Channel ahead of tomorrow’s inventory report…so we’re looking for a ‘2-legged pullback’ to support levels for the most reliable buying opportunities on Wednesday.

S&P is range-bound and trading sideways tonight…telling us to focus on failures, buy the low, sell the high, and use the '2-Try Rule' tomorrow.

Gold is bullish as it tries to finish the move to 1300…but we have a Trading-Range telling us to wait for traps or a successful breakout-pullback tomorrow.

Euro is bullish with a Spike & Range…and we have two resistance levels overhead that are telling us to avoid the breakout, and focus on traps in Wednesday’s Session.

FDAX is bearish with a Spike & Channel…which tells us to use the ‘battle zone’ resistance for traps and failures tomorrow.

Crude Oil Trading Strategy
Crude Oil is bullish ahead of tomorrow’s Inventory Report, and this Spike & Channel tells us to look for traps and failures after a ‘2-legged pullback’ off these recent highs.  The most important thing to remember is that price-action will be the best ahead of 10:00am EST, so get to it early tomorrow.

Crude Oil Inventory Levels for Wednesday
49.25, 48.81, 48.37, 47.93, 47.49, 47.05

E-Mini S&P Trading Strategy
E-Mini S&P is range-bound and sideways ahead of contract-rollover later this week, telling us to use range ‘rotation’ to buy the lows, sell the highs, and avoid the middle while we focus on failures tomorrow.  The sellers recently tried to break out of this range, so this is a great time to look for the '2-Try Rule' and seller-failure to buy back to the highs.  We would love to see a trap below this recent swing-low… or a strong move back into the range that we can buy the dip.

Gold Trading Strategy
Gold is bullish with a Spike & Range as the buyers try to reach 1300 round number tomorrow, but we’re trading at the high of this range, which is a horrible location to start buying.  The most reliable trading opportunities tomorrow will likely come down at the low of the range using failures and traps…but if we continue to push higher, we’re looking for a successful breakout-pullback on STRENGTH and a possible quadruple-up target for tomorrow.

Euro Trading Strategy
Euro is bullish with a Spike & Range and trying to break higher, but this Double-Up resistance appears to be standing in the way.  The Spike & Range tells us to look for traps and failures below the low of the range…or wait for a successful breakout-pullback to new highs.  The big concern going higher are the resistance levels overhead…so the plan is to look for ‘traps’ after a bullish breakout with a target up at the triple-up target waiting overhead.

FDAX Trading Strategy

FDAX is bearish with a Spike & Channel… possibly a Spike & Wedge this evening as sellers try to return back to last week’s low before contract-rollover later this week.  The Spike & Channel (as well as the wedge) both tell us to avoid chasing the move lower, and look for the most reliable selling-opportunities using traps and failures up around resistance levels overhead.

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