Day Trading Gold Futures for record-breaking profits

Veteran’s day on Thursday there is NO NEWS tomorrow, but the markets are open, we are open as well, and all the news for Thursday is now today, Wednesday

815am est

Lets start our day with the dollar.

– Fundamental correlation
– Everything settles in the dollar
– World reserve currency
– If I buy crude contracts I give you the dollar and you give me crude

o Im short the dollar
o Im long the crude

Check the dollar index first, this will give us clues as to what to expect later today:

– Trending up market
– Inside day compared to Tuesday
– Narrow trading range (BIG CONCERN)
– Top of the wedge (sell the highs)

o Downside potential on the dollar
o Upside potential on markets we trade

– Divergence at the highs of the wedge, to sell short

– Slow speed of the tape

o Pace of tape indicator to tell us that

– Average true range does NOT look too bad

o Its not at the lows
o Its not at the highs either
o We will watch this ATR reading

This tells us that the narrow trading range and the slow speed on the dollar will likely keep the rest of our favorite markets from moving very much right now.

Look for better speed and a wider trading range for the rest of our markets to begin to move.

820am est

– Crude oil futures are trading sideways again after leaving the bullish price channel

– Price tested the 85.48 and then returned to its sideways chop.

– Sideways trading means we can trade either direction

o Buy the lows of the range
o Sell the highs of the range
o Buy support
o Sell resistance
o Stay away from the MIDDLE of the trading range

830am est

– Jobless claims came out lower than expected

900am est

– We’ve taken 5 gold trades and all 5 were winners

o 3 first trades were all 3 target winners
o Last 2 trades were both 2 target winners
o What a great day on gold!

– Divergence shows up at the highs on gold 21 and 13 range charts, and we’re at the highs of the wedge pattern

– So looking to sell these highs on the gold and work with the market, rather than trying to buy these highs.

1045am est

– We’ve continued to take winner after winner on the gold
– Now the crude oil inventories are behind us (1030) we can look at trading crude
– Average true range is rising, which is good for a trade
– But we cant seem to get any consistency in the moves right here
– Looking to sell the highs of the wedge
– Support below the highs of the wedge keeps this price from dropping the way it appears it should.

1100am est

– Crude oil inventories came out LOWER than expected at 1030 this morning
– If crude inventories are LOW, why would price be falling? Shouldn’t there be more demand?

o We see the past 3 weeks have had HIGHER than expected crude oil inventories

o If you see rising inventories for 3 weeks…you are likely going to stop production

o The next report will now likely be lower than expected because the producers of crude didn’t produce more because of the HIGH readings from before.

Every Wednesday we can look for this trade:

– If we see 2+ weeks of back to back higher/lower inventories numbers, look for the reaction of the next news event to be a fake-out, and sell/buy the highs/lows

– Example:

o Last 2 weeks inventories were HIGHER than expected

o If we see LOWER than expected THIS week the market will likely react to that by pushing new highs

o We will be waiting to sell those highs b/c we know the reason why inventories came in low (lack of production)

– Prep for this trade:

o Tuesday night look at the crude inventories
o Looking for back to back weeks of higher or lower than expected
o That will set us up for the fade trade
o Then we need to see an opposite direction for the news release.
o Then look for the market to trade first in the wrong direction, and we will be waiting to trade the reversal.