6 Trades for Thursday | SchoolOfTrade Newsletter 01/18/17

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Crude Oil is bearish and trying to finish off a measured-move target this evening, but after such a strong move lower today we can assume that sellers will be patiently waiting for a higher price to sell tomorrow ahead of the Inventory Report.

E-Mini S&P is trading inside a range this evening, which means our plan remains the same; buy low, sell high, avoid the middle, using the ‘2-Try Rule’ to fade the breakouts of the range.

Gold is bearish after price collapsed just after lunch this afternoon, and the move lower was so large that we assume sellers will be weary of selling this low and will look for selling-opportunities up at higher prices tomorrow. 

Euro is bearish and trading just below the low of a bear channel this evening, which tells the sellers to look for a successful breakout-pullback below the Double-Down or wait for a correction up in the ‘battle zone’ tomorrow. 

FDAX is bullish and trying to finish rotation to the high of a bull channel after a perfect pullback to the ‘battle zone’ from last night’s newsletter sent prices soaring higher to finish the session. 

Crude Oil

Crude Oil is bearish and trying to finish off a measured-move target this evening, but after such a strong move lower today we can assume that sellers have already made their money and will be patiently waiting for a higher price to sell tomorrow.  The plan is to look for traps and failures up at resistance levels overhead, which will allow the bears to ‘sell high’ and look for a target back down at the measured-move.  If we don’t get the correction higher, we need to avoid chasing the move lower and focus on ‘traps’, so stay patient and focus on selling high tomorrow.

E-Mini S&P

E-Mini S&P is once again trading inside a range this evening, which means our plan remains the same; buy low, sell high, avoid the middle and use the ‘2-Try Rule’ to fade the breakouts of the range.  The only real challenge tomorrow is going to be the support and resistance trend-lines from the triangle; we don’t want to sell into support or buy into resistance, so make sure you navigate around those and be skeptical of all breakouts until one of them can give us a successful breakout-pullback.

Gold

Gold is bearish after price collapsed just after lunch this afternoon, and the move lower was so large that we assume sellers will be weary of selling this low and will look for selling-opportunities up at higher prices tomorrow.  It looks like the goal is to get back to the round number of 1200 tomorrow, and our goal will be to avoid chasing this move lower and focus on selling high using failures and traps tomorrow.   

Euro

Euro is bearish and trading just below the low of a bear channel this evening, which tells the sellers to look for a successful breakout-pullback below the Double-Down or wait for a correction up in the ‘battle zone’ tomorrow.  The bears have control, but unlike Gold, the Euro hasn’t quite given us enough proof below the low of the channel, which means even the smallest of pullbacks will put us back inside the channel, which is NOT where we want to be selling.  Sellers should look for continued strength going lower and a pullback to the Double-Down, or wait for the correction and sell the move back down again, making sure not to sell into the low of the channel.

FDAX

FDAX is bullish and trying to finish rotation to the high of a bull channel after a perfect pullback to the ‘battle zone’ from last night’s newsletter sent prices soaring higher to finish the session.  The bulls look quite strong, so we want to buy, but the last two bull candles look quite exhaustive, so the plan will be to stay patient and wait for a pullback to fill the gap, or even better, testing the new ‘battle zone’ to allow the bulls to ‘buy low’ on the way up to a measured-move and possibly the high from last week.