Big Profits for day trading Crude Oil and Gold Futures Strategy

Trade room notes 10-07-10

– The dollar index futures tell us a few things:

o Outside day means we have good potential today

o Sideways trading range means we need to bracket the highs and the lows, and simply wait for the break

830am jobless claims news is out

– Very little reaction, this is surprising, let’s stay patient
– Gold futures trading at the highs

o I can trade the breakout above us, or I have to wait for price to break the lows of 52.1 for the best opportunity to sell short

– Crude oil futures are also trading in a sideways range

o We have a wedge pattern

 Buy the breakout above the wedge
 Sell the highs of the wedge
 Buy the lows of the wedge

o Best option is to sell the break below 83.00 with a 2-step reversal pattern

845am

– The dollar index tests it lows, bounces off the lows
– Everything starts to move, speed increases, etc.
– Dollar is dropping, im looking to be a buyer

850am est

– We took our first trades of the day long with the dollar dropping

900am est

– Dollar bounces off the lows
– Dollar rising

o Sell everything else
o Looking for selling opportunities on crude oil and gold futures

1000am

– We took a HUGE winner on the gold for a short when the dollar bounced
– Price is moving fast, lots of movement
– Lets stay focused on the best patterns
– Don’t let this speed in the market affect your decisions, keep to those rules.