Crude Oil News earns easy profit with Dollar Correlation and Gold Futures

We have an expectedly-slow Monday morning for a few main reasons

– Halloween last night here in the US
– Super Tuesday elections tomorrow
– Monday’s are always a little slower at the open
– The dollar index futures are confirming the concerns over trading this morning

o Inside day
o Narrow trading range
o Slow speed of the tape
o Low average true range

900am est

– Gold futures are trading sideways at the highs of the wedge pattern

o We want to sell the highs of the wedge
o Be careful about the support trend lines that are keeping us from dropping back down
o We look at the 21-range chart and see the price is in the middle of the range from 64.2 down to 54.7

 We need to focus on avoiding the middle and selling the highs and buying the lows.

930am

– We took 4 trades on crude oil this morning before the US open when the news chatter came out about the prices on crude oil

– 3 winners and 1 loss and we have our day pretty well made so far

– Now we follow our rules to make sure we don’t get overconfident

– Crude oil futures have made a HUGE move up

– Dollar index futures have remained the same sideways trading range

– We’re looking closely for an opportunity to sell these new highs on crude oil as it comes back down b/c the dollar has NOT moved to support the new highs.

1045am est

– Crude oil futures struggling to tell us where they want to go next
– The big jump above 83.00 and trying to hold and the sellers are looking to pull it back down
– We have two opportunities for trading:

o To buy the break back into the range above 52
o To sell the highs with a 2-step pattern entry below 20

1115am est

– The Russell futures fell from the highs of the wedge pattern and our members know to always look to sell those highs

– Now we are at the lows of the trading range (704.0) and im looking to buy the lows.
– Entry long for this reversal pattern will be above 704.8 and the final target is the trend line overhead.