6 Trades for Wednesday | Crude Oil, Gold, E-mini & Euro Futures 07/05/16

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“Would you like me to give you a
formula for success? It’s quite simple…Double your rate of failure. You are
thinking of failure as the enemy of success. But it isn’t at all. You can be
discouraged by failure or you can learn from it, so go ahead and make mistakes.
Make all you can. Because remember that’s where you will find success.” -Thomas J. Watson 

Notes for Tonight’s Newsletter:

We’re
back from the holiday and we have some great trading
opportunities going into tomorrow’s session; Crude Oil, S&P
and Euro are bearish
while the Gold is bullish
going into Wednesday.

Crude
Oil is bearish with a spike & channel down this evening; The bears had
control of this market from the very first candle of today’s session and sent
price tumbling lower inside a narrow spike & channel before completing the
measured-move and double-down targets and ending the session inside a range.  The spike & channel tells us to look for
traps above prior swings because we can assume that trend-following sellers
will be waiting to scale into a large position to re-test the lows while the
trading range tells us to look for selling opportunities at the highs using buyer-failures
with a target back at the low as well. 
Sellers would love to sell at a higher price so keep an eye on the
resistance levels overhead and don’t forget about the rising support trend-line
for a short-term target on the way back to the lows.  Buyers will be looking for a
breakout-pullback above the range-highs or a ‘2-try reversal’ off the
range-lows for the most reliable counter-trend opportunities tomorrow.

E-mini
S&P is bearish with a spike & channel this evening; The bears opened
the week with a strong push lower which widened-out into a spike & channel
until sellers took profit and allowed the buyers to correct higher into the
closing bell this afternoon.  The spike
& channel tells us to look for traps above previous resistance levels
overhead and to look for buyer-failure at the correction zone for a re-test of
the 2072.50 low tomorrow.  The bulls look
relatively strong going into the close this evening which tells us to expect
buyers to be hunting for a 2nd leg higher and the sellers will be waiting
patiently for them to fail around the correction zone for an opportunity to
re-test the lows again.

Gold
is bullish and trading at the highs of a major bull channel with a short-term
spike & channel this evening; The session started with a strong push
lower but the bears couldn’t hold the pullback and the buyers quickly took
control just before the US session began this morning and finished the session
with a spike & channel into the measured-move target this afternoon.  The measured-move is resistance and tells the
buyers to wait for a 2-legged correction off the highs for another re-test
after seller-failure, which may line up perfectly with the 1355.4 correction
zone from the spike & channel.  The
buyers would love to buy the lows of the large bull channel but the way this
market is closing tells them they may not get the chance so they need to be
watching closely during the next pullback. 
Sellers have a tough job right now because they need to wait for a new
lower-low and then hold a pullback before this market is reliable to be sold
again and that won’t like give them enough space to sell until they can get and
STAY below the battle zone and channel low below 47.7.

Euro
is bearish and trading at the low of a channel this evening after reaching the
double-down target; The session began going sideways with a triangle this
morning that eventually collapsed into a strong move for the bears which
tumbled all the way to the double-down target and now appears to be setting-up
for either a large bear channel or a short-term spike & channel as we go
into tomorrow’s session.  The move lower
was quite strong and the sellers didn’t even wait for a test of the
moving-average before selling it back to the lows again which suggests that
this may be a spike & channel trying to form right now.  The double-down target was tested twice which
means the sellers got their target and now they are free to let it correct
higher before selling it again tomorrow. 
Sellers will be looking for failure opportunities to sell above the
correction zone at 11300 or higher at the battle zone of 11538 and the high of
the bear channel tomorrow.  Buyers need
to be patient tomorrow, waiting for a breakout-pullback that can hold above the
correction zone will give them a window to buy up to the high of the bear
channel and then again above the triangle resistance will be their next
opportunity with a target back at the high.