February 4, 2014
- in Uncategorized by schooloftrade
Range-Bound Markets set-up for big moves Wednesday |Newsletter 02/04/14; SchoolOfTrade.com
While this video is uploading to YouTube…You can also watch this video here.
“You are now at a crossroads. This is your
opportunity to make the most important decision you will ever make. Forget your
past. Who are you now? Who have you decided you really are now? Don’t think
about who you have been. Who are you now? Who have you decided to become? Make
this decision consciously. Make it carefully. Make it powerfully.”
Reflections from Today:
·
As
expected, markets trade ‘inside’ Monday’s range
As
expected, markets trade ‘inside’ Monday’s range
·
Equities
seen as a ‘bargain’ and now find support
Equities
seen as a ‘bargain’ and now find support
·
Factory Orders came
in “less-weak-than expected”
Factory Orders came
in “less-weak-than expected”
·
Crude
Oil ends the day flat (-0.03% @ 97.73)
Crude
Oil ends the day flat (-0.03% @ 97.73)
·
Gold
ends the day flat (-0.05% @ 1253.5)
Gold
ends the day flat (-0.05% @ 1253.5)
·
Mini-Russell
ends the day flat (0.00% @ 1095.6)
Mini-Russell
ends the day flat (0.00% @ 1095.6)
·
Copper
Futures show all-time biggest drop in 2014 on soft demand
Copper
Futures show all-time biggest drop in 2014 on soft demand
·
Politicians
in Washington bargaining over the ‘debt-ceiling’
with Keystone Pipeline & Affordable Care Act…does anyone care?
Politicians
in Washington bargaining over the ‘debt-ceiling’
with Keystone Pipeline & Affordable Care Act…does anyone care?
·
Feb
4, 1789 George Washington elected as our first President, John Adams as Vice
President
Feb
4, 1789 George Washington elected as our first President, John Adams as Vice
President
·
Tomorrow
we shift focus to Friday’s Non-Farm
Payroll Report
Tomorrow
we shift focus to Friday’s Non-Farm
Payroll Report
·
Crude
Oil Inventories tomorrow @ 10:30am EST
Crude
Oil Inventories tomorrow @ 10:30am EST
Economic News for Tomorrow:
Wednesdays are
all about Crude Oil Futures and tomorrow we are watching Crude Oil closely
ahead of the Inventory news at 10:30am EST.
all about Crude Oil Futures and tomorrow we are watching Crude Oil closely
ahead of the Inventory news at 10:30am EST.
 |
| News Worksheet |
At 4:30pm EST
on Tuesday evening we hear from the API report, which shows a 3rd
consecutive weekly build in inventories, which suggests lower prices on
Wednesday due to higher inventories. We won’t
predict, but this is a very important clue going into Wednesday’s trading
session for Crude Oil traders.
on Tuesday evening we hear from the API report, which shows a 3rd
consecutive weekly build in inventories, which suggests lower prices on
Wednesday due to higher inventories. We won’t
predict, but this is a very important clue going into Wednesday’s trading
session for Crude Oil traders.
Early tomorrow
we see the ADP Employment report, which is never that important, but it WILL
give us some clues heading into Friday’s Non-Farm Payroll report.
we see the ADP Employment report, which is never that important, but it WILL
give us some clues heading into Friday’s Non-Farm Payroll report.
Later in the
session we hear from ISM Non-Manufacturing Index has been falling the last few
months because NEW ORDERS have been dropping due to bad weather and poor
economic news. We are anxious to see if
this downward trend will continue tomorrow.
session we hear from ISM Non-Manufacturing Index has been falling the last few
months because NEW ORDERS have been dropping due to bad weather and poor
economic news. We are anxious to see if
this downward trend will continue tomorrow.
8:15am EST ADP
Employment Report
Employment Report
10:00am EST ISM
Non-Manufacturing Report
Non-Manufacturing Report
10:30am EST Crude
Oil Inventories
Oil Inventories
Day trading plan for Tomorrow:
Crude Oil:
VIP Chart:
 |
| Crude Oil VIP Chart |
Just as we expected, Crude Oil opening inside the range from
Monday, giving us easy clues that told us to buy lows, sell highs, and avoid
the middle today.
Monday, giving us easy clues that told us to buy lows, sell highs, and avoid
the middle today.
Today’s narrow range tells us that tomorrow may be a very
active day after traders took a ‘siesta’ on Tuesday.
active day after traders took a ‘siesta’ on Tuesday.
I am looking for an opening-print
above 97.71 to begin buying, or below 96.78 to begin selling tomorrow morning.
above 97.71 to begin buying, or below 96.78 to begin selling tomorrow morning.
Anchor Chart:
 |
| Crude Oil 34 Anchor Chart |
Crude Oil is trading at the highs of the price wedge on the
(34) anchor chart. We can see resistance
above us at 98.82 and support below us at 94.97. This chart is very important for longer-term
traders who are looking for a longer term position in Crude Oil this week. I would be VERY concerned trying to buy right
now if you want to hold this position into end of the week, we see too much resistance
overhead and the market-personality is overall bearish.
(34) anchor chart. We can see resistance
above us at 98.82 and support below us at 94.97. This chart is very important for longer-term
traders who are looking for a longer term position in Crude Oil this week. I would be VERY concerned trying to buy right
now if you want to hold this position into end of the week, we see too much resistance
overhead and the market-personality is overall bearish.
 |
| Crude Oil 21 Anchor Chart |
The (21) anchor chart of Crude Oil shows us trading in a price
wedge with overhead resistance at 98.09 along with a trend-line at the highs of
the price wedge. These clues tell us to
be careful buying this evening, and to look for a price-reversal at the 98.00 big-round-number
overnight.
wedge with overhead resistance at 98.09 along with a trend-line at the highs of
the price wedge. These clues tell us to
be careful buying this evening, and to look for a price-reversal at the 98.00 big-round-number
overnight.
 |
| Crude Oil 13 Anchor Chart |
The (13) anchor is the fastest of the anchor charts, and this
chart looks very bullish as we go into the Asian trading session. We have a green light to buy in the short term;
however we don’t want to buy too close to the 98.00 resistance overhead. The only problem we see NOW is the need to
buy this market at a discount, so stay patient and buy the next pullback with a
profit-target at 98.00, 98.44, and 98.84.
chart looks very bullish as we go into the Asian trading session. We have a green light to buy in the short term;
however we don’t want to buy too close to the 98.00 resistance overhead. The only problem we see NOW is the need to
buy this market at a discount, so stay patient and buy the next pullback with a
profit-target at 98.00, 98.44, and 98.84.
Gold:
VIP Chart:
 |
| Gold VIP Chart |
Gold is showing us some very important clues this evening on
the VIP chart. we had a very narrow trading-range
this morning and we closed the session smack in the middle of today’s
range.
the VIP chart. we had a very narrow trading-range
this morning and we closed the session smack in the middle of today’s
range.
The narrow trading-range tells us tomorrow may be a very big
day of volatility and with Non-Farm Payroll news around the corner we can
assume we won’t need to wait very long to see this price-action start to move.
day of volatility and with Non-Farm Payroll news around the corner we can
assume we won’t need to wait very long to see this price-action start to move.
I am buying with an opening-print
above 1253.6, and selling with an opening-print below 1246.8.
above 1253.6, and selling with an opening-print below 1246.8.
Anchor Chart:
 |
| Gold 34 Anchor Chart |
Gold is trapped between major support and resistance on the
(34) anchor chart this evening, so if you’re looking for a long-term play on
gold you need to wait for this consolidation to get cleared up first.
(34) anchor chart this evening, so if you’re looking for a long-term play on
gold you need to wait for this consolidation to get cleared up first.
 |
| Gold 21 Anchor Chart |
We are very narrow and consolidated on the (21) anchor chart
for Gold this evening. I can see trend-lines
above and below which makes the price wedge and tells us that we need to buy-the-lows
at support and sell-the-highs at resistance during this time. I can see an opportunity to sell short at
1263.9 and also to buy long at 1243.9.
for Gold this evening. I can see trend-lines
above and below which makes the price wedge and tells us that we need to buy-the-lows
at support and sell-the-highs at resistance during this time. I can see an opportunity to sell short at
1263.9 and also to buy long at 1243.9.
 |
| Gold 13 Anchor Chart |
We look very bearish on the (13) anchor chart of Gold this
evening, which agrees with the long-term-trend on the (34) anchor we saw
already. The ideal scenario is to get
short around the sell-zone at 1256.5 as we are in a downtrend. If the price-action doesn’t move higher, all
I need is to get below the moving-averages (below 1252.0) and we have wide-open-space
going to a profit-target down at 1243.9
evening, which agrees with the long-term-trend on the (34) anchor we saw
already. The ideal scenario is to get
short around the sell-zone at 1256.5 as we are in a downtrend. If the price-action doesn’t move higher, all
I need is to get below the moving-averages (below 1252.0) and we have wide-open-space
going to a profit-target down at 1243.9
Mini-Russell:
VIP Chart:
 |
| Mini Russell VIP Chart |
The Mini-Russell traded higher this morning in a very narrow trading-range
inside the same range from Monday. If
you recall, we anticipated that price-action may get stuck around the 1100.00 big-round-number
and it certainly did.
inside the same range from Monday. If
you recall, we anticipated that price-action may get stuck around the 1100.00 big-round-number
and it certainly did.
A sideways day, with a narrow trading-range, and a closing-print
in the middle tells me that this market-personality is completely ‘balanced’
which tells us that we must stay patient to wait for this price-action to find
a reason to move going into the overnight session.
in the middle tells me that this market-personality is completely ‘balanced’
which tells us that we must stay patient to wait for this price-action to find
a reason to move going into the overnight session.
I am selling short with
an opening-print below 1086.6 and buying long with an opening-print above
1104.9.
an opening-print below 1086.6 and buying long with an opening-print above
1104.9.
Anchor Chart:
 |
| Mini Russell 34 Anchor |
The Mini-Russell (34) anchor chart shows us exactly what’s happening
right now in the long-term. We can
clearly see the bullish price channel was broken and price-action tumbled
directly to the buy-zone (support) at 1090.5 where we have no stabilized. This is a KEY support level on the Mini-Russell
because if the buyers fail to hold this support we have a big drop down to
1038.6 from here.
right now in the long-term. We can
clearly see the bullish price channel was broken and price-action tumbled
directly to the buy-zone (support) at 1090.5 where we have no stabilized. This is a KEY support level on the Mini-Russell
because if the buyers fail to hold this support we have a big drop down to
1038.6 from here.
 |
| Mini Russell 21 Anchor |
We open the (21) anchor chart to get a better look at the price-action
around the major buy-zone (1090.5) as it bounced off this key support and began
to trade sideways with a slightly bullish tone.
We can see a trend-line overhead as resistance along with a support level
below at 1081.0.
around the major buy-zone (1090.5) as it bounced off this key support and began
to trade sideways with a slightly bullish tone.
We can see a trend-line overhead as resistance along with a support level
below at 1081.0.
 |
| Mini Russell 13 Anchor |
Last, but certainly not least, we see the (13) anchor shows
us this short term bullish trend has developed.
The market-personality feels very flat and balanced, and when I see
there is NO slope to the moving-averages and there is no ‘cloud’ green or red
we are definitely in-balance and need to wait patiently for SOMETHING to come
along and give this market-personality a push in one direction or the other.
us this short term bullish trend has developed.
The market-personality feels very flat and balanced, and when I see
there is NO slope to the moving-averages and there is no ‘cloud’ green or red
we are definitely in-balance and need to wait patiently for SOMETHING to come
along and give this market-personality a push in one direction or the other.
===========================================================
Want to see us trade LIVE?
Click here to register for the
Free Trial!
Click here to register for the
Free Trial!
Automated Trading Strategy; Let the
Computer do the trading
Computer do the trading
Are you a Crude Oil Trader? Click here to
trade Crude Oil
trade Crude Oil
Are you a Euro Trader? Click here to
trade Euro
trade Euro
Are you an E-Mini Russell Trader? Click here to trade
E-Mini Russell
E-Mini Russell
Are you a Gold Trader? Click here to trade
Gold
Gold
Join the Premier Live trade-room as an Advanced Member
