4 Traps to Avoid Thursday | Crude Oil, Gold, E-mini & Euro Futures 06/29/16

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“Strength
does not come from winning. Your struggles develop your strengths. When you go
through hardships and decide not to surrender, that is strength.” –Arnold Schwarzenegger

Notes for Tonight’s Newsletter:

Markets
are trending
well going into tomorrow’s session and we continue to see more signs of opportunities
post-Brexit and pre-holiday weekend; Crude Oil, S&P, Euro and Gold are all
looking bullish
this evening which means something’s gotta give and we have the plan to watch
for Thursday’s
session.

Crude
Oil is bullish and trying to re-test the highs after today’s inventory report
sent prices racing back to $50/barrel; As expected, the bulls had control for the
entire session today with a bull spike & channel that ‘trapped-low’ before
shooting through the highs all the way up to the price-magnet at $50.  We can see that buyers took their profit at
the $50 and sellers appear to have aggressively sold as well which finished the
session with a strong bear leg down that we assume will give the sellers a reason
to try a second leg back to the ‘battle zone’ down at $49.  The buyers want to go back to $50 and the
most reliable trade will be with seller-failure after this strong move lower.  The sellers need to hold this next pullback
and will be hunting for the $49 level below where we assume more buyers will be
waiting.

E-mini
S&P is bullish after completing a bull wedge on the way back to its pre-Brexit
levels from last week; The bulls had firm control for the entire session today
with an aggressive bull wedge that successfully achieved its objective and
pushed right through the target with what appears to be an exhaustive end of
the session today.  The bulls need to be
careful not to buy the high right now but with such a strong move today we
assume there will be buyers waiting at all levels of support below which tells
them to be patient for a pullback before buying more tomorrow.  Ideally the buyers want to look for
opportunities below prior swings as counter-trend sellers try to catch a
reversal.  Sellers need to be careful and
resist the temptation to try and call a top and wait for a lower-low to hold a
pullback before they can safely sell this market tomorrow.

Gold
is bullish and pulling back into the spike & channel correction zone with
buyers trying to re-test the highs; The bulls had control for most of the
session today with a somewhat lazy spike & channel and finished the session
with a strong move from the bears that will likely have the bulls thinking
twice before they buy this market tomorrow. 
As with all spike & channels, the bulls want to see seller-failure
after this pullback but the strength of this recent move combined with the
resistance trend-line overhead gives the buyers a challenge they need to work
around tomorrow.  Sellers will be looking
for the next pullback to hold at the trend-line for a target at 17.4 and 13.3
or they can look for buyer-failure above the trend-line for an even better
entry price back down again.

Euro
is bullish with a lazy channel trending higher which tells the buyers to focus
on buying low tomorrow because sellers will be waiting at the highs; The bulls had
control all morning but it’s easy to see that every time price made a new high
it was followed by selling into deep pullbacks which tells us that both the bulls
and the bears can make money in this market and the bulls will need to be
careful not to buy the highs.  The bulls
will be focused on buying pullbacks at previous swings for the most reliable
trading tomorrow while the aggressive sellers will continue to look to ‘fade’
the highs as it grinds higher until they can get a new lower-low that hold a
pullback and sellers take control.