While the Cat’s away the Mice will Play

820am est

Lets review the 89range chart on Gold Futures:

– Bullish Price Channel, we are at the highs
– Sideways Range in the white box below us
– Another range inside this trading range, also defined in the white box

Now that we know the best areas, we now use the 34range to zoom in and find the best price levels.

We now use the 34range chart to see the following:

– Strong Bullish Price channel in blue trend lines
– Sideways Range below us in the white box
– Price Wedge inside this range below us in the orange trend lines
– We are at the highs of the larger price channel off the 89range chart

With this information we can plan our attack on gold:

If prices rises:

– Im selling resistance as prices rise
– If prices continue to make new highs I will then buy a pullback
– I will not buy the highs, I will wait for a pullback
– Selling 1534.0, 1535.1, and then selling the highs of the channels above us

If prices drop:

– Im buying support on the way down
– If we keep getting new lower lows I will sell retracements, never selling the lows
– Im buying support at 1529.0, 1526.4, 23.9, 19.2 is major support

Gold is trading at the highs right now, so we expect to see the market drop off the highs, but we simply cant predict.

We see the PHOD and PLOD are below us, which is a bearish sign. We also have the Big Money Trigger Line, a price magnet, below us as well.

All signs point to selling off, but we need to make sure we get the pattern first.

850am est

– We see the news @ 830 comes out and the markets don’t move much
– Now we go through our morning routine and we look at the dollar
– The DX 06-11 contract dropped last night after the FOMC announcement left rates unchanged.
– Now the dollar has been rising off these new lows
– The 34range on the Dollar shows us a wave pattern SHORT.
– Negative correlation on the dollar says this would be a great time for a wave long on the markets we trade.
– 34range on the dollar says that swing traders need to stay long, dollar is falling in the long term
– 34range is a little slow for day traders, lets use a faster timeframe for day traders
– Our 13range chart shows a rising dollar, so we will look for selling opportunities until this changes
– How does this help us make money? We know the dollar is trying to rise, so selling at resistance levels will be considered the highest percentage trades.

930am est

– Its very clear the market personality on crude oil is not something we can avoid
– Very sloppy and lack of conviction on where it wants to go next.
– We have all the trigger lines are flat
– We are trading in the middle of the rang
– We are trading around the BMT’s
– All these red flags tell us….lets be patient.

1010am est

– We’re still seeing very tough price action, so lets plan our attack at the best possible locations today
– If prices Fall im buying the next major support at 112.63
– If prices rises im selling resistance at 113.56
– We will avoid trading around the big round numbers with this poor price action

1045am est

– We see gold and crude continue to lack direction and speed
– We plan our attack on gold
– If prices rises we look to sell the highs of the price channels
– We don’t have any levels above us b/c this is the highest level we’ve seen
– If price falls im buying support at the PHOD and the 34r trigger line around 1530.8