Day Trading Strategy for Non-Farm Payroll | Crude Oil, Gold, E-mini & Euro Futures 01/07/16

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“You cannot
change your destination overnight, but you can change your direction
overnight.”

Notes for Tonight’s Newsletter:

Crude
Oil is trading inside a range
this evening which means we will be looking for opportunities to buy lows and
sell highs as we rotate
towards the lows tomorrow.  The selloff that
started the session was quickly reverses on strong buying, but the bulls failed
to break a new high and then immediately turned back lower which suggests the
bulls got out and sellers took back control. 
In the short term we have a bearish wedge
which tells us to expect buyers to make a run back to the highs, and we will be
watching for them to fail so we can sell the highs and finish the move back to
the lows.  If we test the highs we will
be watching for bulls to hold strong and make a possible run at the resistance
zone overhead at 36.00.

E-mini
S&P is bearish with a spike
& channel and trading at the lows of a range
this evening which tells us to look for selling opportunities after a bullish
correction and possible test of the long-term channel
highs.  We have a long-term bear channel
that recently missed a test of the highs which tells us there is ‘unfinished
business’ to do for the bulls.  We
combine that with the low of the range and the bear spike
& channel and this tells us we will likely see buyers in the short-term
but wise traders will be skeptical of the bulls and look for opportunities to
sell into their failures tomorrow.

Gold
is bullish but trading at the highs of a bull channel
and with the completion of a wedge
breakout and re-test we can expect buyers to take profit and look to reload
again after a bearish correction tomorrow morning.  Our goal is to buy the lows of the bull channel
but the completion of the wedge
tells us to expect a fakeout at the lows so we will wait for the sellers to try
and sell it lower and if they fail we will be looking to buy into their stops
for another attempt back to the highs.

Euro
is bullish but trading at the highs of the bull channel
and into the completion of the measured-move
which tells us to look for buying opportunities after a bearish correction off
the highs.  Our plan for tomorrow is to wait
for the correction off the highs and then look for sellers to fail so we can
buy into their stops
with a target up around the round
number of 1.1000.  If the sellers can
hold the next pullback
the bulls will need to let them take control and keep looking for signs of seller-failure
as it pushes lower into additional support levels below.