Tuesday, October 31, 2017

FOMC Announcement Trading Strategy | Crude Oil, Emini, Nasdaq, Gold & Euro



"I really don't think life is about the “I-could-have-beens”. Life is only about the “I-tried-to-do”. I don't mind the failure but I can't imagine that I'd forgive myself if I didn't try."

Crude Oil is bullish with a strong spike higher to finish today’s session, so I’m anticipating a Spike & Channel and looking for buying opportunities ahead of tomorrow’s Inventory Report.

S&P is bullish with a weak bull channel ahead of the FOMC Announcement, telling me to wait for the “deep dips” tomorrow morning while avoiding the temptation to chase the move higher.

Nasdaq is bullish and trying to double-top the measured-move target tomorrow morning, and I have a support trend-line on the chart I’m watching for the entry.

Gold is bearish and trying to re-test Friday’s low, but we’ve pulled-back into a key support zone from last night's newsletter, and I have two specific scenarios I’m watching for tomorrow.

Euro is bullish with a Spike & Channel, but the most important clue on the chart is the moving-average, which tells me to watch for a bear-trap for buying opportunities tomorrow morning.


Crude Oil Day Trading Strategy

Crude Oil is bullish ahead of tomorrow’s unpredictable weekly inventory report, and with this “spike” higher this afternoon, im anticipating a Spike & Range or Spike & Channel pattern developing overnight, to be traded tomorrow morning.

I don’t want to forget that we are technically trying to break out of a range, and this most recent push higher would be the '2-Try Rule', but this move is based on NEWS this afternoon, and we all know that NEWS is one of those situations that can successfully break the market out of a range.

Bottom line, the bulls have control, we’re at the high of a potential Spike & Channel, so I don’t want to buy high, im waiting to see if we get a range going sideways overnight and focus on buying below the lows tomorrow morning.

The big variable for tomorrow is the news @ 10:30am EST, so the plan is to grab the trades ahead of 10:15am and then wait for the dust to settle and get back to the action.

Crude Oil Inventory S/R Levels for Wednesday:
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55.73, 55.29, 54.85, 54.41, 53.97, 53.53

E-Mini S&P Day Trading Strategy

E-Mini S&P is bullish with an almost-flat bull channel ahead of the FOMC Announcement tomorrow, which tells me this trend is bullish, but not very strong, so I need to focus on buying opportunities as low as possible tomorrow and avoid the temptation to chase moves higher until something changes.


E-Mini Nasdaq Day Trading Strategy

E-Mini Nasdaq is bullish and trying to re-test the measured-move objective, and my plan is to look for a ‘2-legged pullback’ to the ‘battle zone’ for buying opportunities going back up to re-test the high.

The first thing that stands out on this chart is that (for the second consecutive day) we’re pinned to the previous day’s high.

This tells me that bulls have control, but they are rejecting higher prices, so my plan is to focus on buying the deep pullback into the ‘battle zone’ for a re-test of the high tomorrow.


Gold Day Trading Strategy

Gold is bearish after a collapse sent prices back into the range we discussed in last night's newsletter.

I was expecting a pullback off the highs, but instead we got a big collapse, which tells me I need to be patient for the buyers to regain control tomorrow before I try for a move going back to the high.

My goal is to wait for a strong move higher overnight to give me confidence to buy a ‘2-legged pullback’ to the moving-average and a re-test of yesterday’s high.

I’m also going to keep an eye on the potential for the bottom to fall out of this market as well, ultimately watching for a move higher, into the overhead ‘battle zone’, then watching to see if the sellers react on strength, because if they do, they are hunting for Friday’s low.

I also want to remind you that Gold is the MOST volatile during the FOMC Announcement, and it often trades sideways ahead of the news, so keep your eye on the time and trade carefully.

Euro Day Trading Strategy

Euro is bullish with a Spike & Channel, but the most important clue on today’s chart is this narrow trading-range we spent most of the day trading within.

The bulls have control, and this Trading-Range tells me to focus on failures using the '2-Try Rule' below the range, down in the ‘battle zone’ with a measured-move target tomorrow morning.


Remember, the Euro is highly-affected by the FOMC Announcement tomorrow afternoon, so get to those trades early!

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