Day Trading the Head & Shoulders | Crude Oil, Gold, E-mini & Euro Futures 03/02/16

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“Once you have mastered time, you will understand how true it is
that most people overestimate what they can accomplish in a year – and
underestimate what they can achieve in a decade!”

Notes for Tonight’s Newsletter:

Crude
Oil is bullish but hanging by a thread this evening after the sellers
failed to reverse the news which gives the bulls an opportunity to hit some
targets overhead, but they better not fail because sellers will be waiting.  We have a trading-range,
bull channel,
inventory
news, and a measured-move
to work with this evening.  The trading
range tells us to expect rotation
from high to low using the ‘2-try rule’
with the next level at 35.02.  The bull
channel can be used as support right now for the buyers, but if the buyers fail
the sellers will try to use the channel low as resistance and a reason to sell
off the highs.  The move off the
inventory news tells us the buyers took control and we see the sellers tried
hard to reverse the move but they failed, and their stops are likely still
sitting up at the news highs, which means the bulls have a window to run this
higher, but they better do it fast before this move ‘runs out of gas’.  Lastly, the measured-move gives the bulls a
big target to work with if they can hold off these sellers tomorrow.

E-mini
S&P is bullish this evening but the bulls completed their measured-move
just inches away from the channel
highs which gives the potential for an undershoot
and a big correction
lower before we get another buying opportunity tomorrow.  We have a bull channel, inverted
head & shoulders, and a measured-move to work with this evening.  The bull channel tells us to buy the lows and
take profit at the highs and we see the highs are only inches away which tells
us this market is too expensive for a buy right now and it may ‘undershoot’ the
highs which tells us to look for an overshoot of the lows.  The measured-move was just completed which
tells the buyers to take profit and wait for a 2-legged
correction off the highs, followed by seller-failure
to buy more tomorrow.  The inverted head
& shoulders gives the bulls a target overhead, as well as the sellers now
have a place to look for a likely reversal if we can get their tomorrow.

Gold
is bullish but trading at the highs of a multi-day channel which tells us to
look for buyer-failure
for a sell off the highs tomorrow, but we have to wait for the proper trigger
for entry.  We have a multi-day bear channel,
a bull channel from today’s session, inverted
head & shoulders, and a triple
measured-move this evening.  The
multi-day channel tells us to look for selling opportunities at the highs with
a target back at channel lows.  The bull
channel from today tells us the buyers have control so we need to wait for
PROOF that the buyers have failed or that they achieve their target overhead
before we sell this short.  The Inverted head
& shoulders gives the buyers a target and the sellers an idea of where
they might look for a sell, and the triple measured-move lines up perfectly
with the H&S target which tells the sellers to look for a double-top
in that area to sell off the highs.

Euro
is bullish after the sellers tried twice and failed at the range lows which
tells us to look for rotation back to range highs before looking for a sell off
the highs.  We have a trading-range,
seller-failure,
and a trend-line
to work with this evening.  The range
tells us to buy the lows and sell the highs using failure patterns, along with rotation
from low to the high.  The sellers tried
twice and failed at the lows which tells us to expect a move back to the highs
and possibly a continuation up to the range-expansion
levels above at 1.09128 and 1.09375. 
Lastly, we have a trend
line acting as resistance right now, which means buyers will either look
for a deep pullback
to get enough room to buy or they will wait for a close above the trend line
and use it as support on the opposite side to get back to the highs.