Trading Range Strategy | Crude Oil, Gold, E-mini & Euro Futures 03/01/16

Click here to download today’s charts

“Most people have no idea of the giant capacity we can
immediately command when we focus all of our resources on mastering a single
area of our lives.”

Notes for Tonight’s Newsletter:

Crude
Oil is bullish trading inside a range
and at the lows of a bull channel
this evening which tells us to look for buying opportunities using bear-traps
at the lows tomorrow.  We have a trading
range, bull channel and the API
news candle to work with this evening. 
The range tells us to look for rotation
from low to high and to use the 2-try-rule
for bear-traps at the lows.  The bull
channel tells us to use rotation from the low to the highs looking for buying
opportunities at the lows, and the API# which came out at 4:30pm EST this
afternoon was a strong bear candle which tells us this will be resistance as
those sellers have stops located just above and they will likely defend that
area when it comes back to test it tomorrow.

E-mini
S&P is bullish this evening but with three
legs higher and a completed ‘double-up’
off today’s opening range we see this market way too expensive to buy and we
will wait for a 2-legged
correction back to support before we buy more.  We have an un-proven bull channel, a spike
& channel, double-up and a triple measured-move
to work with this evening.  The un-proven
bull channel doesn’t look great, but will give us some much-needed support
levels to work with tomorrow.  The spike
& channel tells us to wait for a 2-legged correction back to the base of
the channel.  The ‘double-up’ tells us
just how over-extended this price really is based on the opening range this
morning, and the triple measured-move gives the bulls something to shoot for if
they want to keep this price moving higher.

Gold
is range-bound
this evening and the bears have a successful breakout which tells us to look
for range-rotation
and use the ‘2-try
rule’ for the most reliable trades tomorrow.  We have a trading-range,
bear channel, and bull channel
to work with this evening.  The
trading-range is most important clue, and will be used as a price-magnet
tomorrow using the 2-try rule for range-rotation back and forth between the range
levels.  The bear-channel helps provide
support and resistance levels both above and below, and with a recent test of
the channel lows we now expect rotation back to the highs.  The short-term bull channel is the big
obstacle right now for both buyers and sellers, and it will act as important
support and resistance on both sides.

Euro
is range-bound
and trading off the lows on the way to test the highs this evening which tells
us to buy the lows, sell the highs, and look for failed breakouts
tomorrow.  We have two separate ranges on
the chart this evening which have been combined into one larger range to make
things a little more interesting tomorrow. 
Trading
ranges tell us to use rotation from high to low and back to high, with the
most reliable trades always being FAILURES.  We will use the ‘2 try
rule’ to qualify the breakouts to expansion levels above and below and use
the original range as a price magnet tomorrow.