March 8, 2011

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
Live Trade Room is open, come join us!
Click here for helping logging into the Trade Room
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
10:30 E-mini Reversal
11:00 Transition into Lunch
11:30 European Close / Live Webinar in our Trade Room

Looking at the news this morning we dont have much to look for.  With no major news, we listen to the news closely this morning regarding supply of crude oil, and dollar news to affect the Gold Futures.

In the recent week’s we’ve seen the trading day start slow and then give us better moves towards the 11am EST hour, so we will continue to stay patient early and then look for better moves late.

Lets take a look at the charts we’re watching this morning…

Dollar Index Futures
The Dollar index has been dropping for weeks, but today we see the DX 34range chart has broken its  trend line and heads back up.
The Dollar Index Futures Correlation is very powerful, and we will be watching this throughout the day.
With the dollar rising, the best trades will be to the short side, so look to sell retracements at resistance levels on the markets we trade most.
Crude Oil Futures
Crude Oil futures continue to fall off last week’s highs, which shows us three things to watch today
  1. Price wedge
  2. Major Support at 103.33
  3. Previous HOD
We can see the Wedge Pattern in yellow trend lines on this 34range chart.  We want to buy the lows, sell the highs and avoid the middle.
I can see we have the PLOD already broken in the middle of the wedge, and the BMT line (considered the middle of major ranges) in the middle of the wedge also.
Trading this wedge may be tough, the lows are 104.000 big round number and the highs are very choppy around 105.00.  We may have to wait for price to break new highs or lows.
With the dollar index rising, we can wait for price to break new lows and Sell a Retracement at resistance.
Next we need to watch the levels above and below this wedge as buying and selling opportunities.
We see major support at 103.33 from previous swing highs, and then this morning the CL 04-11 tested this level nicely, giving it more support in the future.  Look to buy 103.33 if price drops.
If price rises to new highs im looking to be a seller first at resistance of 105.72, 106.00, all the way up to selling the highs of 107.00
The PHOD is always a major target, and we already filled the PLOD today so we may see crude try and run to the highs again if the dollar helps it.
Remember with rising prices we dont buy the highs.  If price breaks new highs I will  Buy a Pullback at support
Gold Futures
Gold Futures have also tumbled off last week’s highs giving us plenty of trading opportunities today.
The gold will be closely tied to the Dollar Index, so watch the for Price reversals in the dollar to give you opportunities on gold.
I can see three things to watch on this 34range chart of the Gold:
  1. Price Wedge
  2. Previous HOD and Previous LOD
  3. Price Channel
First, Day Traders are always looking at the wedge pattern as the first opportunity for trades.  Buy the lows, sell the highs, and avoid the middle of the price wedge in yellow trend lines.
Buying 1426.1 support is the lows, and selling 1437.8 as resistance at the highs.  Im trading inside the wedge first, trying to avoid the middle, around 1431.5
Next we look at the PHOD and PLOD.  We just broke the PLOD and bounced back up, so this is considered a sign of weakness at the lows.
We also see the PHOD is far from being tested, so this will attract prices like a magnet, but with the rising dollar index today this may be tough to accomplish.  If price rises to the PHOD we will always sell the PHOD first, then If price breaks new highs I will  Buy a Pullback at support.
Im looking to buy the PLOD again if we get the chance.
Lastly,  swing traders will want to watch this price channel in green trend lines.  You can see the lows of this channel around 1426.1, so im looking to buy the lows at support of 1426.1, and even buying 1416.1 with the goal of brining it back up into the channel after the test of the lows.
Looking for a Price reversal pattern around 1426.1 to get us into a long position at the lows of this price channel.
If we break below the major support of 1416.1 we can then assume the trend is broken, and If price breaks new lows I will  Sell a Retracement at resistance.
Euro Currency Futures
The euro is coming off the highs from last week, and we can see signs of support just below us.
We see three things to watch on the euro currency future:
  1. Price Channel
  2. Major Support at 3850
  3. PHOD and PLOD

The price channel is on our mind first, we are at the lows of the channel and im looking to buy at support.  We can see three levels of support to give us a price reversal and entry long.

Those levels are 1.3900, the blue trend line support, and 1.3850 below.  We want to buy these levels of support.  If price breaks through, we can wait for new lows and then sell a retracement.

Im a buyer first as we drop, and a seller second.

With the PLOD at 3954, and we have alreayd broken that low, we can expect the price will try to go back up into that range above it.

If the support holds at 3900, the lows of the channel, we can expect price to enter into the range from Monday.

Buy the lows of the price channel, and hold that position long into the range above 1.3400.

E-mini Russell Futures

We Love Your Feedback!  Read and Post it here J
Live Trade Room is open, come join us!
Click here for helping logging into the Trade Room

Related Posts

Grind-Break Trading Strategy | Crude Oil, Emini, Nasdaq, Gold & Euro

Momentum Channel & Range Strategy | Crude Oil, Emini, Nasdaq, Gold & Euro

Fractal Trading Strategy | Crude Oil, Emini, Nasdaq, Gold & Euro

Head-Fake Trading Strategy | Crude Oil, Emini, Nasdaq, Gold & Euro

Trading with “Context” | Crude Oil, Emini, Nasdaq, Gold & Euro

Stop Missing the Best Trades | Crude Oil, Emini, Nasdaq, Gold & Euro

Earn More with Confirmation | Crude Oil, Emini, Nasdaq, Gold & Euro

4 Ways to Profit from Reversals | Crude Oil, Emini, Nasdaq, Gold & Euro

    schooloftrade

    Click Here to Leave a Comment Below

    Leave a Reply: