Tuesday, August 1, 2017

2-Legged Trading Strategy | Crude Oil, Emini, Gold, Euro, FDAX



“Your time is limited; don’t waste it living someone else’s life. Don’t let the noise of other’s opinion drowned your own inner voice. And most important, have the courage to follow your heart and intuition, they somehow already know what you truly want to become. Everything else is secondary.” –Steve Jobs


Crude Oil is bearish and trying to re-test today’s low, but we’re too low to sell at this point, which tells the sellers to focus on traps, and gives the buyers a window to change directions ahead of tomorrow’s big news report.

S&P is range-bound once again, telling us to buy the low, sell the high, avoid the middle, and focus on failures with the '2-Try Rule' tomorrow.

Gold is bearish after the bulls failed to re-test today’s high, and a strong push lower tells us to use a key reversal-line for the most reliable selling-opportunities tomorrow.

Euro started the session bullish, but after two failed attempts to re-test yesterday’s high, we’re now looking for buyer-failures to sell of the highs on Wednesday.

FDAX is bullish and a recent overshoot of a channel tells us to look for a ‘2-legged pullback’ into the ‘battle zone’ for buying opportunities tomorrow.


Crude Oil Trading Strategy
Crude Oil is bearish ahead of tomorrow’s weekly Inventory Report, and we have a bear channel, a strong move lower, and a possible rising support trend-line for tomorrow.

The bear channel tells us to expect a pullback and a re-test of the low, which you can see has almost been accomplished with this recent spike lower.  The key will be avoiding the temptation to “chase” this move lower, while staying patient for traps to “Sell high” tomorrow.

One thing to remember for tomorrow is that often see a full trend reversal ahead of the news, so while the trend is bearish now, it may not be this way tomorrow morning when the opening-bell rings.

Crude Oil Inventory S/R Levels for Wednesday:
50.55, 49.89, 49.23, 48.57, 47.91, 47.25

E-Mini S&P Trading Strategy
E-Mini S&P is range-bound once again, which tells us to buy the low, sell the high, avoid the middle, and focus on failures using the '2-Try Rule' tomorrow.

Remember to focus on the edges of the range, staying patient to avoid the middle and looking for the '2-Try Rule' to confirm the failures.

Gold Trading Strategy
Gold is bearish after the buyers tried and failed to re-test today’s “spike” highs, and we have a strong move lower, combined with a reversal-line to work with tomorrow.

This strong move lower tells us we will most likely see a 2nd leg down for the sellers, so buyers should avoid trying to “catch this falling knife”, while the reversal-line at 77.4 makes for an excellent place to sell at resistance for a target going back to the 68.4 low.

Euro Trading Strategy
Euro is bearish after buyers tried and failed twice to re-test yesterday’s high.  We have a bear channel and Trading-Range to work with tomorrow.

The bear channel tells us to focus on selling up around the highs, and the Trading-Range reminds us to focus on failures for our entry triggers.

The biggest challenge tomorrow will be if price collapses.  We don’t want to chase anything lower, so if the bottom falls out of this, the plan is to focus on selling with traps on the way back to yesterday’s low.

FDAX Trading Strategy
FDAX is bullish with channel, Double-Up, and ‘battle zone’ to work with tomorrow.

The bull channel tells us to look for a deep pullback and a re-test of the high tomorrow, and a recent overshoot of the high tells us to expect an overshoot of the low before we make our back to the high tomorrow.

The Double-Up is a major objective for the bulls, and in most situations, when we reach an objective we then see a ‘2-legged pullback’ before we return back to the highs tomorrow.


Last, but certainly not least, the ‘battle zone’ makes for a great support area where we can expect buyers to be interested in buying the ‘2-legged pullback’ with a target going back to re-test the high.

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