February 1, 2011
- in Uncategorized by schooloftrade
Day Trading Morning Prep Gold, Crude Oil, Dollar Index, Euro, E-mini Russell Futures
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 Construction Spending
10:00 ISM Mfg Index
11:00 Transition into Lunch
11:30 European Close / Live Webinar in our Trade Room
Looking at the news today we can see only the most important info at 10am. Im going to set my alarm 5 minutes before the news and 5 mins after the news to wait for the market’s reaction.
The dollar index is trading in a tight, narrow wedge pattern, and more specifically we can see the DX 03-11 trading into the lower portion of the wedge, making this a very challenging area on the dollar charts.
I will expect the dollar to do possibly three things here:
1. go sideways and choppy
2. rise off these lows back up into the wedge
3. fall to new lows and test the 77.245.
Remember the Dollar Index Futures Correlation when considering what to do next. If the dollar falls we look for rising prices, and vase versa, so we will watch the dollar closely this morning.
Crude Oil Futures
We can see crude oil futures trading at new highs from monday and now in a bullish price channel.
Buy the lows and sell the highs of the price channel, we can also see a sideways range from 92.84 down to 91.00 so we will use this as our range to begin with today.
Remember the simple approach…buy at support and sell at resistance. we will follow this today day trading crude oil.
we can see the gold futures still trading in a very narrow Wedge Pattern.
The more narrow this wedge gets the more challenging we expect this price action to be. Looking at this price pattern we need to be careful here.
Look for the dollar to lead the GC 04-11 today. if the dollar breaks its wedge look for the gold to follow closely behind.
E-mini Russell Futures
