6 Trades for Tuesday | Crude Oil, Gold, E-mini & Euro Futures 08/01/16

Click here to download today’s charts

“Life does not get better by chance. It gets better by
change.”  – Joseph James

We
have some strong
trends and some choppy
ranges heading into Tuesday’s session; Crude Oil, S&P and Euro are
bearish while the Gold is bullish as we crack-open the first
week of the month of August.

Crude
Oil is bearish and trading
sideways after the sellers reached their double-down target today; The trend is
clearly bearish so we will be looking for selling opportunities until the
buyers can prove otherwise tomorrow but the most important clue this evening is
that we’ve reached the target for the sellers, which tells us to avoid ‘selling
low’ and to wait for traps and failures at resistance levels overhead for the
most reliable selling opportunities tomorrow. 
The buyers need to be careful here, waiting for a higher-high that can
hold a pullback before trying to call a reversal tomorrow. 

E-mini
S&P is bearish and trading inside a wedge
as it struggles to complete the double-down target this evening; The first thing
that stands out from today’s session is that the bears weren’t able to be any
targets reached, with both the measured-move and the double-down targets still
left outstanding.  The second big clue we
see is that the best moves happened after a ‘trap high’ which is telling us that
the sellers are interested, just not interested in selling the lows.  With those two important clues we know to
keep looking for selling opportunities with traps and failures above the prior
highs and use the double-down and measured-move targets waiting below.  On the other hand, buyers need to be careful
not to get too aggressive with new higher-highs because we already know that
sellers are using them to get into larger moves back to the lows.

Gold
is bullish but struggling to re-test last Friday’s high in what may become a range-bound
session tomorrow; The first thing that stands out on this chart is the ‘trap
low’ that occurred mid-way through the US session which was clearly the spark
that sent price up to new highs.  The
second thing that stands out is the lack of follow-through at the highs with
big wicks and no closes above the 61.1 swing. 
Considering these two important clues it is easy for us to see that
buyers are interested at the lows but not interested at the highs which means
all we need is to see buyers fail off the highs for price to move back down to
the lows again tomorrow.  Buyers need to
be careful with this pullback, waiting for a ‘trap low’ below the spike &
channel.  Sellers just need to wait for
the buyers to fail on the next pullback and then look for selling back down to
the lows.

Euro
is bearish and sloppy as buyers appear to have rejected
higher prices after last week’s big run higher; The first thing
that stands out on this chart is ‘YUCK, this is sloppy’.  With such little price-action on today’s
chart we look back a few days and we can easily see a strong push higher has
apparently run out of momentum and now buyers are waiting for a lower price to
buy more this week.  The short-term bear
channel tells us there is a target back at the lows and we still have a
measured-move and double-down target waiting as well.  Looking back a few days we can also see an
area of interest that we assume will act as a price-magnet for the bears and a
long-term buying opportunity for the bulls tomorrow.