295 Ticks Today Short the Russell when the Dollar Index Breaks Resistance

We saw 2 things that made us money on Crude Oil today…

– Trading inside a wedge pattern
– Trading inside the trading range from yesterday

Crude Oil gave us two easy trades when it broke out before 900am EST today and our morning prep made it all possible.

The Dollar Index also helped us out today when it broke its overhead resistance and gave us a HUGE winner on the Mini Russell just before we finished the day.

800am EST

Crude Oil Futures are trading sideways just below 77.00

– Slow timeframe shows a wedge pattern and we are trading in the middle of the trading range

– Fast timeframes shows us even more concerning information…we are trading inside the narrow trading range from yesterday

o We have not tested the highs or the lows of yesterday’s trading range, so expect that to be required first.

– We checked our 13 and 21 range charts and we don’t have any patterns setting up at this time, but we placed our price alert to make us aware of when this market breaks out for us.

915am EST

Gold Futures are still looking for direction after trading sideways all week at the lows from may

– Slow timeframe shows a dramatic bearish wedge pattern
– Fast timeframe shows us trading flat and at the lows

o Trying to break the down trend line to look for a 2-step pattern reversal off the lows, but the speed is so darn slow, its hard to tell when this market is going to move.

– We looked for patterns across the board on gold futures and we still need more

o We added alerts to price levels when it breaks out of this chop

1030am EST

Gold Futures are trading sideways, we made money buying the lows of the wedge, and now we’re looking to sell the highs of the wedge, however, we notice that ALL 3 trigger lines are the same price, and they are all flat.

– 34 range = 62.3
– Medium Blue = 62.3
– Medium Green = 62.3
– Fast Chart 4range = 62.3
– When we see FLAT and sideways trigger lines that tells us to be careful, but when we see ALL of the trigger lines flat, and ALL are the SAME PRICE, we now need to sit on those hands.
– 3 things im watching

o Slope of the trigger lines
o Red, Slow pace of tape (slow speed)
o Wedge pattern, in the middle

1035am EST

Nat gas inventories are out, and we don’t see any volume to show for it.
All the markets are falling asleep, and it feels like the eye of the storm where we had lots of great action leading into 10am EST, but now here we have to wait for more speed and size on the tape.
Gold 2-step short setting up, but the market is slow and so flat im concerned we may be playing with fire.
The correlation between Durable Goods, Jobless Claims, and Natural Gas Inventories

– Durable goods are an excellent leading indicator for the economy
– Use this with the jobs report and the Nat Gas inventories and this can be a very depending leading indicator.

– The markets should rise if…

o Durable goods are rising week/week (Tuesday)
o Jobless Claims are falling week/week (Thursday)
o Natural gas Inventories are falling week/week (Thursday)

1100am EST

– Dollar breaks overhead resistance and the Russell futures are testing new lows, lets look short on the Russell below 45.