Market Personality is Different for Every Futures Market

Crude Oil:

–
Fade-the-breakouts

–
Look
for Fake-out breakout

–
Sell
at the highs and buy at the lows

–
Sell
when price makes a new higher-highs

–
Buy
when price makes a new lower-lows

–
FEAR
and PERCEPTION of Supply
& Demand

E-Mini-Russell:

–
Notorious
for Low Volume moves

–
Ignores
the usual support and resistance levels

–
Professionals
always have a hard time with this market due to this low volume

–
Trades
tend to run from highs to lows

–
Sell
the highs and take profit at the lows of the range

–
Let
the trade Run type of market

Gold futures:

–
Early-morning
market

o
3am
EST – 1pm EST

–
Highly
emotional (fear and greed)

–
3
different types of market personality

o
Very
quiet and slow, moves sideways

o
Very
volatile and fast, moves violently

§ Spread is very wide

§ Spread = difference between the bid
and ask

o
Consistent; moves like it should, not too fast, not too
slow

–
Follows
the dollar index negative correlation

–
Range-bound,
not as bad Crude Oil but still we sell the highs and buy the lows.

–
Our
job on gold futures is to look for clues for today’s market personality

Euro:

–
High
volume, low range

o
Similar
to the E-Mini S&P, 30-yr bonds, FESX

–
Trending,
but high volume, so it takes more of a push to move the price

–
When
the euro DOES start moving, go with the move because it often continues

–
Currency
= tied to the dollar index correlation (strong)

o
When
the dollar index is moving, so is the euro