Waiting to Fade the Correction | Crude Oil, Gold, E-mini & Euro Futures 02/01/16

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“Opportunity
is missed by most people because it is dressed in overalls and looks like hard
work.”

Notes for Tonight’s Newsletter:

Crude
Oil is bearish with three legs down and a spike
& channel this evening which tells us to look for the next selling
opportunity after a bullish correction
off the lows.  Crude Oil feels
‘heavy’ this evening, even after three legs lower the sellers appear to have
all intentions to keep pushing lower tomorrow. 
Our goal is to sell ‘high’ rather than selling ‘low’ so the most
reliable trades will come after we get this price up above the moving
average and sell into the buyers stops, but if we don’t get that chance we
will be looking to sell the highs of the spike
& channel with a target down at the third measured-move
at 31.00 and possibly down to major support at 30.38.  Buyers have to wait for a new higher-high
and hold a pullback before they can even consider trying to buy this market
right now.

E-mini
S&P is bullish this evening but after a measured-move
and overshoot
of the channel-high we expect a correction back to support levels before the
next leg higher.  The E-mini pulled a
‘U-turn’ this morning after 10am news was released and completed a channel-rotation
fit for a post-card.  Buyers want to see
this correction completed, followed by sellers failing at the moving-average
for the first clue to go higher.  The
most reliable buying opportunities will come after a new higher-high
and a pullback
to the moving-average.  Sellers want to wait for this correction and
then look for buyers to fail on the next pullback to get ‘short’ back to
1918.50 and 1912.50 tomorrow.

Gold
pushed higher aggressively today and appeared to want to complete a third leg
higher but the close of today’s session looks pathetic so wise buyers will wait
for a ‘trap
low’ before looking for the next leg up tomorrow.  Gold had no trouble completing the measured-move
this morning and then it held strong on the pullback
around noon and shot higher into the close today, but the closing candle leaves
the buyers wondering if this move is over for the short-term.  It is likely that buyers will see this price
as too expensive to buy, so they will wait for a ‘trap
low’ just below the 1125.0 support and look to buy into seller-failures.  Sellers can look to get ‘short’ into
buyer-failures at these highs, with a target at the 1125.0 but they need to be
careful because this is a bullish market.

Euro
is bullish inside a range
this evening after three legs higher today which tells us to look for ‘bear
traps’ at the lows of the range for the most reliable buying opportunities
tomorrow.  We can easily see this market is
bullish a major channel
and three measured legs today which ended in a range.  Using range-rotation
we just came off the highs (dramatically) so the next stop should be the lows,
and with a measured-correction
just below the range lows we know what will be where the buyers want to get
long again tomorrow and all we need to do is wait patiently.  Sellers have a challenge ahead of them
tomorrow because there are a LOT of support levels waiting below without much
open-space to play with.