Tuesday, June 13, 2017

FOMC Trading Strategy | Crude Oil, Emini, Gold, Euro, FDAX

“You gain strength, courage and confidence by every experience in which you stop to look fear in the face.”  - Eleanor Roosevelt

Crude Oil is bearish ahead of the Inventory Report tomorrow and a strong ‘spike’ lower is telling us to be ready for one of four possible scenarios tomorrow.

S&P is bullish with a wide channel, which tells us to use the ‘mid-line’ as support and look for a ‘2-legged pullback’ off the highs on Wednesday.

Gold is bullish with a channel, but we’re getting too close to the measured-move target, so the plan is to look for traps in the ‘battle zone’ tomorrow.

Euro is range-bound with a triangle this evening, which tells us to buy the low, sell the high, and focus on failures tomorrow.

FDAX is bullish with an overshoot of a Spike & Channel, which tells us to look for a ‘2-legged pullback’ to avoiding chasing this move on Wednesday.

E-Mini S&P Trading Strategy
E-Mini S&P is bullish with a wide bull channel and running into measured-move resistance, which tells us to look for a ‘2-legged pullback’ and ‘traps’ below prior swings to avoid buying too close to this level of resistance tomorrow. 

Crude Oil Trading Strategy
Crude Oil is bearish after this afternoon API Report quickly erased all the gains from the bulls this afternoon and this strong ‘spike’ lower tells us to be looking for a Spike & Channel, Spike & Wedge, Spike & Range, or Flag pattern and a target going back down to the lows.  Keep in mind, tomorrow is ‘inventory day’ for Crude Oil, so the plan is to get to our trades before the news hits, avoiding the temptation to gamble on the news at 10:30am EST tomorrow.

Crude Oil Inventory Levels for Wednesday:
47.65, 47.07, 46.49, 45.91, 45.33, 44.75

Gold Trading Strategy
Gold is bullish with a channel and measured-move targets, which tells us to look for channel ‘rotation’ back to the low of the channel using ‘traps’ or a ‘2-legged pullback’ into the ‘battle zone’ tomorrow. 

Euro Trading Strategy
Euro is range-bound inside a triangle, which tells us to sell the high, avoid the middle, and buy the low using failures and the '2-Try Rule' tomorrow.  The most important part of trading with a range is to wait for the market to over-extend outside the range, then look for the ‘snap back’ into the range when you see the failure.  The hardest part of trading a range is avoiding the middle, so stay patient.

FDAX Trading Strategy

FDAX is bullish with an overshoot of a Spike & Channel, which tells us to look for a ‘2-legged pullback’ to support near the low of the channel for the most reliable buying opportunities tomorrow.  If price continues to push higher, we assume the bulls are hunting for prior week/month highs, and we will look for ‘traps’ to avoid buying too high tomorrow.

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