July 14, 2011
- in Uncategorized by schooloftrade
Inside Day on Crude Oil gave easy clues; Divergence at the Highs made us our daily profit goal
We get our first clue this morning from the dollar, we see the 89range BMT is right on top of our price. This means price action on other markets will be sloppier than normal until we get further away from the BMT.
US Dollar index is trading sideways in the short term trend, which tells us to be patient, and use the sideways ranges we are currently in.
Buy the lows, sell the highs of the range we’re in on gold, crude, euro, Russell.
830am est
News comes out dollar bullish (crude/gold/euro bearish)
· Retail sales higher (consumer spending)
· Jobless Claims Lower (More jobs)
· PPI Lower (lower costs, lower inflation)
All signs point to US dollar should rise off this. Remember, they don’t ask my advice, so I need to get confirmation from the market.
We should be BEARISH on Crude, Gold, Euro, Russell.
We shall see if that assumption is correct…
835am est
The markets don’t go very far after the 830am bearish news for crude and gold, so we wait patiently.
Crude Oil 89range chart shows me…
– Bull Price Channel
– Bull Price Wedge
– Sideways Range(s)
We can see the highest % trades will be buying at support as price drops or as price makes new higher highs.
Clue from crude = bullish price channel.
34range chart on crude oil shows me…
– Inside day = sell PHOD, buy the PLOD, and sell the highs overhead, buy the lows below us, avoid fake-out breakouts.
– Price Wedge = concerning, so be patient and wait to break out of this narrow range.
– Bull Price Channel = buying at support and buying pullbacks will be the high % trade today (until we break the lows/support of the channel) roughly below 96.53
1005am est
News come out higher than expected for business inventories
The dollar continues to trade sideways and sloppy
Crude Oil has been slow and lacking personality all morning.
Gold is at the highs of the major range and trading sideways at the PHOD.
Gold 89range chart shows me…
– Highs of the Price Channel Bull
– Strong Bull Channel that recently formed off the lows
– Trading sideways at the highs
1035am est
Another set of fast track winners
I hit my daily goal for the day selling the highs on crude.
Its been EASY, the inside day, and the weak price action have made reversals very easy to trade today.
Now price drops off the highs on crude down the lows of the bull price channel and we look to buy at these lows/support.
1050am est
We now have EVERYONE making money with us today in the trade room.
We tried to buy at support as price fell off the highs on crude but the sellers were too strong so we then reversed and sold with a wave short and took a HUGE winning trade.
Now price action is sloppy around the OPEN, and we will use the OPEN as the price magnet if price action stay slow.
Think of the OPEN the same way you think of the BMT….a great place to take profit, but NOT a great place to enter.
1100am est
The personality changes, now we have very little consistency.
We see all buyers, then all sellers, then all buyers, and price goes nowhere.
