Dollar index correlation helped earn +100 ticks day trading Euro & crude oil futures

We used another simple trading
strategy this morning in our live trade room to earn over 150 ticks of
profit in a somewhat challenging session from 800am to 1230pm EST.

The day began with
jobless claims news at 830am EST which came out lower than expectations and
from that news we saw very little movement from the dollar index.  The crude oil market reacts bullishly as we
expected, which caused some trouble at the highs of the price channel we were
trading within on the 89-range chart.

The biggest clue we
used for our day trading strategy this morning was the dollar index, which
was trading in a very narrow price wedge inside the range from Wednesday.  This is seen as a BIG RED FLAG when the dollar
index is trading inside the middle of a price wedge, and when that also happens
to be inside the range from yesterday…watch out for very sloppy price action on
the markets we trade most.

Our trading strategy
for crude oil futures was quite simple this morning; sell the highs of the price
channel.  We got bullish news at 830am EST
which made selling the highs more difficult, and the best selling opportunity
we had (the cleanest pattern at the best location) occurred right on top of the
830am EST news, so we had no choice but to skip the trade and wait for
something to fit inside our trading plan, which tells us NOT to trade at the
same time major news is being released. 
We kept trying to sell the highs on crude oil this morning but the news
at 830am EST made it very difficult to get the buyers to give up and let the
sellers take it back down (is what we did on Wednesday to earn 200 ticks).

The big story this
morning was our day trading strategy for the Euro futures.  We know the dollar index was in a price wedge
and we know the market personality for the dollar index wasn’t that great today
either so we expected to see ‘fake-out breakouts’ with the dollar index which
means we need to look for the same on the Euro futures, and that’s exactly what
we got.  We did a great job this morning
waiting patiently to sell the highs of the price wedge on the Euro futures and
we used the dollar index to help trigger the entries because it too was its
extremes and ready to move higher when the euro was ready to drop off the
highs.

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We’re going to wrap
up another profitable week of trading Friday morning @ 730am EST so don’t miss
another chance to learn and earn along with me tomorrow!  See you then!