Trading Volatility the SAFE Way | Crude Oil, Gold, E-mini & Euro Futures 02/02/16

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“I have not failed.  I’ve just found 10,000 ways that won’t
work.  There is no such thing as failure,
only results.”

Notes for Tonight’s Newsletter:

Crude
Oil is bearish but we are sitting on major support
this evening so we expect the sellers to take profit here and wait for price to
correct higher before selling more tomorrow. 
Sellers kept control for the second day in a row today with a bear channel
and a measured-move
down.  Our goal is to sell the highs of
the channel, which tells us to stay patient to sell the highs tomorrow.  Buyers will be looking for a higher-high
and hold the pullback
for a shot at buying back to the channel highs overhead.

E-mini
S&P is also bearish this evening with a completed measured-move
and a spike
& channel telling us the best opportunities will be to sell after a
bullish correction tomorrow.  The
bears took clear control early in the session today with a spike
& channel and finished the session with a measured-move.  Sellers want to see a bullish correction to
sell this at a higher price and they will be watching for buyers to fail on the
pullback.
We know the spike
& channel may correct all the way back to 1920 before the sellers
resume this trend, and the buyers are looking for a new higher-high
and hold a pullback
to have the confidence to get ‘long’ during that correction.

Gold
is bullish and trading inside a megaphone
pattern which will likely send price up to the highs before we see a possible bear-trap
to push higher tomorrow.  Gold has a
bullish-bias to the megaphone
pattern and with three tests of the lows we know this is the move the buyers
want to send it higher.  We expect the
bulls to take profit at the highs of the megaphone,
but we can’t sell the highs with confidence so buyers will be looking for the
bears to fail off the highs for a possible aggressive push up to the measured-move
(1135.0) and major resistance (1136.7) targets overhead.  Sellers need to be careful right now with
this type of pattern, but they will be looking for a lower-low and hold the pullback
to consider selling it short back to the lows of the megaphone.

Euro
is bullish with a spike
& channel and headed to test the highs early tomorrow morning.  The most reliable trades will come at the
lows of the channel, but we may get a chance to trap some sellers at the highs
to complete the measured-move.  We have a multi-day bullish spike
& channel and we are trading higher off the lows this evening.  Our goal is to find buying opportunities on
the way up to the channel highs, take our profit and then look for rotation
back to the channel lows so we can do it again. 
We may see an aggressive opportunity at the channel highs if the sellers
fail which would allow us to get the measured-move
accomplished before heading back lower again. 
Sellers have a challenge right now, they want to wait for the completion
of channel
rotation, ideally completing the measured-move
and then sell after a lower-low
and a hold of the pullback.