April 8, 2011
- in Uncategorized by schooloftrade
Day Trading Morning Prep Gold, Crude Oil, Dollar Index, Euro, E-mini Russell Futures
‘We are what we repeatedly do. Excellence, therefore, is not an act, but a habit’ – Aristotle
Our Support teams are working today, please contact us for help!
Let’s begin our morning routine with the economic news for today’s trading session.
8:20 Gold & Currencies OPEN
9:00 Crude Oil OPEN
9:30 US Market OPEN
10:00 Wholesale Trade
11:00 Transition into Lunch
11:30 European Close / Live Webinar in our Trade Room
Looking at the news this morning we already know this has been a sloppy week more than expected. The transition into the 2nd quarter has left traders looking for clues to long term direction and i think they are missing their confidence from earlier in the year.
Today is friday with really no big news. 10am is not very important, other than the end of the morning session today.
The best thing we can do today is remember what the PERFECT pattern looks like and wait patiently for that to come to You, rather than chasing trades.
Lets take a look at the chart’s im watching this morning…
All of this information points to a bullish trend, however, we cant buy these highs, which is why all the people on CNBC arent broadcasting from their private yachts!
We continue to see signs of bullish strength on gold, but we need to pick our spots VERY wisely right now. We all know a big pop UP can easily lead to big drops DOWN.
Gold futures trading at new all-time highs this morning so you know today has sloppy written all over it.
Remember, my mom always warned me about this stuff…‘dont buy the highs on Gold Joey’ and i try to remember that simple rule.
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| 89range Gold |
Open your 89range chart on gold and you can see what I mean.
Bullish Price Wedge
Sideways range above the wedge
Breakout of the sideways range to the up-side
| Gold 34range |
Lets take a look at what day traders are watching this morning, lets move faster to a 34range chart and look for the best price levels on gold.
We also know that the sideways range and the PHOD and PLOD are below us, making this an Outside Trading Day. We know that this means to expect moving markets, which SHOULD result in great trading opportunities, but again, Friday with Gold at all time highs, we will have to read tape and see.
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| dollar dropping |
The Dollar Index Futures Correlation is also in play here today. With the DX 06-11 dropping into the price channel below it the gold market will get a push higher because of this.
My plan of attack will be very simple.
- Im buying at support as price drops
- Im buying pullbacks as price makes new highs
- I will buy the PHOD at 67.5 when price drops back down
- I will keep an eye out to sell below the PHOD if momentum and tape reading confirms.
- If price drops below the PHOD im now selling down to the PLOD as sellers will enter quickly to take profit and try to short the highs.
- Im keeping an eye on the price channels, buying at the lows and using the highs of the pink price channel as final profit targets.
The key today is not getting convinced to buy the highs. If I see a breakout to new highs today I need to make sure that
- Momentum is oversold and curling up on BOTH timeframes
- I have increased speed going THROUGH the highs
- Lack of sellers at the highs, not necesarily big buyers, but more lack of sellers so I know that buying the pullback will be high %
Our trade room is closed for the day, but our sales and support teams are working, and here to help you with your questions, or registering for our membership.
See you in the trade room on Monday @ 745am
