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dollar index futures & e-mini russell trading prep
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| Dollar Index Charts |
The dollar index futures are trading at the highs of the
range from Friday, and this tells us that the buyers aren’t quite strong enough
to push new higher-highs, and if the sellers have their way, the PHOD 83.605
will be a reversal point for falling prices.
If prices move higher on the dollar index we look to sell short. If prices move lower on the dollar index we
look for buying opportunities. The most
important thing to remember for the dollar index correlation is that it MUST be
moving with market personality, and if it’s NOT moving well neither will the
markets we trade most.
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| E-Mini Russell Chart |
The E-Mini-Russell futures contract is our favorite e-mini
(we also love the E-Mini S&P) and this morning we clean off the charts and
start preparing the day and week ahead. We
can see a major bullish price channel, and a short term inside day transition
and price wedge. The sellers failed
below the PLOD so we know the buyers are too strong to give up, and this is a
bullish clue at the PLOD.
Our day trading strategy for the E-Mini-Russell is to buyabove the PLOD because when the sellers failed this is a bullish clue, and take
profit at the PHOD. If price moves below
the PLOD we then sell retracements and take profit at 792.3 support. We can see the price wedge has highs above us
and lows below us, so if we get to the highs of the price wedge we sell short,
and if we get to the price wedge lows we will buy the lows.
