September 5, 2013
- in Uncategorized by schooloftrade
Crude Oil Day trading strategy; Morning Prep 09/05/13
News coming out of London Overnight:
News coming out of London was nothing
but bullish this morning as we prepare for the opening-bell here in the United
States. We have a day filled with
important news to watch today.
but bullish this morning as we prepare for the opening-bell here in the United
States. We have a day filled with
important news to watch today.
With the September FOMC Meeting on
September 17th, we know that Friday’s Non-Farm Payroll news is going
to be a pivotal part of the decision to begin the discussion on ‘tapering’. Today we have four (4) separate news reports
that will all be used in Friday’s Non-Farm Payroll report. We will be watching today’s news very closely
for clues to see what Friday’s report will look like.
September 17th, we know that Friday’s Non-Farm Payroll news is going
to be a pivotal part of the decision to begin the discussion on ‘tapering’. Today we have four (4) separate news reports
that will all be used in Friday’s Non-Farm Payroll report. We will be watching today’s news very closely
for clues to see what Friday’s report will look like.
2013 Members Summit & Trading Seminar
Focal Points this morning:
· G20 Meeting begins
in Russia
in Russia
· Confidence is building in the EU this
morning as recent
news has been very positive
morning as recent
news has been very positive
· Spain sells record number of 5 and
10-year bonds, at their lowest yields since 2010
10-year bonds, at their lowest yields since 2010
· Upcoming Central Bank meetings at the
Bank of England and the ECB
Bank of England and the ECB
· US Auto Sales show strength, same
goes for Europe
goes for Europe
· September Fed Meeting is Sept 17-18th
· Friday is Non-Farm Payroll Report,
highly anticipated
highly anticipated
Economic News on the schedule today:
 |
| Crude Oil News |
8:15am ADP
Employment Report
8:30am Jobless
Claims | Productivity
& Costs
Claims | Productivity
& Costs
10:00am Factory
Orders | ISM
Non-Mfg Index
Orders | ISM
Non-Mfg Index
10:30am Natural
Gas Inventories [minor news]
Gas Inventories [minor news]
11:00am Crude
Oil Inventories
Oil Inventories
 |
| Crude Oil Inventories |
Last night’s Crude Oil API
Inventory Report showed a draw for inventories, which is bullish for Crude Oil as we
go into the opening-bell in the US today.
We will be watching for reaction to this news at 11:00am EST today with
the EIA Inventory report.
Inventory Report showed a draw for inventories, which is bullish for Crude Oil as we
go into the opening-bell in the US today.
We will be watching for reaction to this news at 11:00am EST today with
the EIA Inventory report.
Crude Oil Analysis:
Anchor Charts:
 |
| Crude Oil Anchor Chart 1 |
Crude Oil continues to trade just off the highs of the major price-wedge
in between the support at 107.14 and the resistance at 108.23 on the 5400-tick
anchor chart. We have been trading in
this range for the majority of the week, and today we will continue to use
these support and resistance levels as big clues for price-reversal
locations. We can see a trend moving
lower on this anchor chart, with the red cloud and the lower-lows however we
will need to see what the current market personality looks like on a faster
timeframe before we begin selling short this morning.
 |
| Crude Oil anchor chart 2 |
The same is true on the 1800-tick anchor chart this
morning. We can see very similar
examples of support and resistance levels, with some added levels at 106.52,
105.97, 105.20 and 104.74 to use as support for our short trades today.
morning. We can see very similar
examples of support and resistance levels, with some added levels at 106.52,
105.97, 105.20 and 104.74 to use as support for our short trades today.
 |
| Crude Oil VIP Chart |
Crude Oil is trading in the middle of the range from
Wednesday on our 30-minute VIP Chart. We
can see a relatively-average trading-range coming out of London, moving just
short of $1.00 from 3am EST. This trading-range
tells us to expect some good trading opportunities this morning because the
range will lead to increased volatility for us to use in our trades.
Wednesday on our 30-minute VIP Chart. We
can see a relatively-average trading-range coming out of London, moving just
short of $1.00 from 3am EST. This trading-range
tells us to expect some good trading opportunities this morning because the
range will lead to increased volatility for us to use in our trades.
Entry Chart:
 |
| Crude Oil Entry Chart |
Our 600-tick entry chart shows us an easy clue to get us
selling short this morning. Remember,
the anchor charts are showing bearish market sentiment so we look for this bear
price-channel to provide resistance at the highs and we will be looking to sell
these highs using our wave-pattern-short with a profit-target down at 106.80
later in the session.
selling short this morning. Remember,
the anchor charts are showing bearish market sentiment so we look for this bear
price-channel to provide resistance at the highs and we will be looking to sell
these highs using our wave-pattern-short with a profit-target down at 106.80
later in the session.
 |
| Crude Oil PIT Session Levels |
Crude Oil PIT Session Price levels show us a nice wide trading range that we will look forward to trading today.
