Looking at the news this morning, its easy to see we will be busy watching our alarm clock with lots of news to keep track of. The biggest news event of the morning is at 9:15am Industrial production, and since today is a Friday its a big variable at this point.

We seem to find ways to always have a good friday, and as always, I’m watching the speed or the orders coming into the market along with average true range (ATR) to find the best times to trade the markets today.

Look for the day to come to an end around 11am EST, and we will then open the floor for questions in our live trade room before we wrap up the week.

Lets look at the futures markets we’re trading today…

Gold Futures

Gold 34Range
SchoolOfTrade.com

Gold Futures are trading back to their highs this morning giving us some easy trading opportunities. Open your 34range chart on GC 06-11 and you can see the following:

Bullish Price Channel(s) in blue trend lines
Sideways Range in the white box
PHOD and PLOD
News to watch today @ 915am

The first thing I see is the strong bullish price channel we can draw with simple trend lines from swing lows. This strong channel tells us which direction will be the highest % today…buys.

Next I see the big sideways range in the white box, and we are at the highs of this range. I can also see a sideways range most recently from the today’s highs of 1480.5 down to 1472.2.

I also want to keep an eye on the PHOD and PLOD because we know those prices will act like magnets, attracting price higher to the PHOD and/or lower to the PLOD. Today we have the price inside the trading range from Thursday, which makes this an Inside Trading Day.

and finally, we have important news @ 915am this morning that will likely impact the dollar index, which will impact gold as well. the biggest issue with trading this news event will be watching the

Dollar Index Futures Correlation after the news comes out.

My plan of attack on Gold will be the following:

Bullish channel tells me to buy pullbacks today as the highest % trades
We are at the highs of the sideways range, so im looking to sell the highs with a price reversal pattern when we see signs of exhaustion at the highs.
Im looking to sell the PHOD when tested as resistance, and will buy the PLOD when tested as support.
If price keeps rising im selling the highs first, but then looking to buy a pullback above 1480.5, keeping an eye on the fact that these are new highs again, and buying the highs is ALWAYS dangerous, so I will use caution.
If price falls im buying support levels at 72.2, 67.3, 63.3, 54.7 all the way down and buy the PLOD at 53.2.
If prices trade through support with speed and size i will then consider selling retracements.
I will not sell the lows, I will see at resistance
I will not buy at the highs, I will buy at support

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