May 6, 2014
- in Uncategorized by schooloftrade
Day Trading Crude Oil, Gold, E-Mini Russell | SchoolOfTrade Newsletter 05/06/14
Click here to download today’s Newsletter Charts & Commentary
“You
cannot change your destination overnight, but with the right plan of action,
you can change your direction right NOW.”
Today’s Newsletter:
· Markets Today: Gold asleep, Crude Oil goes
sideways, Mini-Russell drops
sideways, Mini-Russell drops
· News Today: Strong news from Europe
Manufacturing, US Trade Balance
Manufacturing, US Trade Balance
· News for Tomorrow:
Janet Yellen & Crude Oil Inventories
Janet Yellen & Crude Oil Inventories
· Trading Opportunities: Selling opportunities on Gold, Crude
Oil and Mini-Russell
Oil and Mini-Russell
=========================================================
The Markets Today:
Crude Oil:
 |
| Crude Oil VIP Chart |
Crude Oil opened this morning directly where we closed on
Monday evening, right in the middle of the range from Monday. This was a big clue for us that this market-personality
would most likely trade ‘sideways’ today and that is exactly what happened.
Monday evening, right in the middle of the range from Monday. This was a big clue for us that this market-personality
would most likely trade ‘sideways’ today and that is exactly what happened.
We traded higher towards the end of the morning, only to run
into resistance at the $100/barrel big-round-number and tumbled right back to
where we started the session.
into resistance at the $100/barrel big-round-number and tumbled right back to
where we started the session.
The big clue on this
chart is the closing-print down at the lows of the day and below $100/barrel.
chart is the closing-print down at the lows of the day and below $100/barrel.
Our plan for selling opportunities will continue into Wednesday
with this closing-print.
with this closing-print.
Trade Called Last
Night:
Night:
 |
| Crude Oil Trade Last Night |
Last night we called the trade short at 100.11-100.27 and
that entry short occurred just after lunchtime today. As of writing this, the trade is up over 50-ticks
of profit per contract and we are holding for tomorrow’s push back lower.
that entry short occurred just after lunchtime today. As of writing this, the trade is up over 50-ticks
of profit per contract and we are holding for tomorrow’s push back lower.
=========================================================
Gold:
 |
| Gold VIP Chart |
Gold is trading in a very narrow range this evening after a
pathetic session in the US gave us only 99-ticks of trading opportunities.
pathetic session in the US gave us only 99-ticks of trading opportunities.
This Gold market is clearly waiting on something, and we can
assume the ECB’s Meeting on Thursday is holding us back from getting better price-action.
assume the ECB’s Meeting on Thursday is holding us back from getting better price-action.
Look for selling
opportunities tomorrow below the 1304.4 with a profit-target below at the
1300.4 prior week close.
opportunities tomorrow below the 1304.4 with a profit-target below at the
1300.4 prior week close.
=========================================================
Mini-Russell:
 |
| Mini-Russell VIP Chart |
The Mini-Russell opened the session in the middle of the
range from Monday, chopped around in the middle for the morning and then
collapsed in the afternoon session.
range from Monday, chopped around in the middle for the morning and then
collapsed in the afternoon session.
We got 200-ticks of range today, which is very good, with
most of the range happening in the afternoon session and giving us easy selling
opportunities on the way lower.
most of the range happening in the afternoon session and giving us easy selling
opportunities on the way lower.
Keep a close eye on the
previous week’s low down at 1097.4. We
will use that level as a profit-target for the selling opportunities below the PLOD
at 1103.6.
previous week’s low down at 1097.4. We
will use that level as a profit-target for the selling opportunities below the PLOD
at 1103.6.
Trade Called Last Night:
 |
| Mini-Russell Trade Last Night |
Last night we called the trade LONG on the Mini-Russell at 1113.1
and that trade earned over 70-ticks per contract, depending on your profit-target.
and that trade earned over 70-ticks per contract, depending on your profit-target.
Remember, we call trades LIVE in our
trade room, so come join us tomorrow!
trade room, so come join us tomorrow!
=========================================================
News Today:
Overall, economic news
was very strong in Europe and the US on Tuesday, with continued news from
Ukraine and a surprise from Twitter.
was very strong in Europe and the US on Tuesday, with continued news from
Ukraine and a surprise from Twitter.
Global News:
In Europe we got strong manufacturing from most
countries in the EU, and in the US we had another strong Trade Balance report,
suggesting that the global market is still very strong amid a slowdown in
China.
countries in the EU, and in the US we had another strong Trade Balance report,
suggesting that the global market is still very strong amid a slowdown in
China.
UKRAINE:
The pressure
continues to build in Ukraine as fighting gets worse and there are more
talks about civil war and military confrontation. Although this should be affecting Crude Oil we
have not seen much buying pressure as a result of these developments today.
continues to build in Ukraine as fighting gets worse and there are more
talks about civil war and military confrontation. Although this should be affecting Crude Oil we
have not seen much buying pressure as a result of these developments today.
EQUITIES:
IN equity markets, Twitter
tumbled to record-lows after the 3-month ban on insider-selling
expired. By the end of the session ‘TWTR’
had lost 18% of its value, and sunk the other e-mini futures markets in the
process.
tumbled to record-lows after the 3-month ban on insider-selling
expired. By the end of the session ‘TWTR’
had lost 18% of its value, and sunk the other e-mini futures markets in the
process.
This issue with Twitter re-opened the
debate over the value of Social Media Companies while inside-sellers got RICH
in the process.
debate over the value of Social Media Companies while inside-sellers got RICH
in the process.
CRUDE OIL:
Later in the day
(4:30pm EST) we heard from the API Crude Oil Inventory report, which will correlate to the EIA
Inventory Report tomorrow at 10:30am EST.
(4:30pm EST) we heard from the API Crude Oil Inventory report, which will correlate to the EIA
Inventory Report tomorrow at 10:30am EST.
The API Inventory report shows the first build in
inventories in the last 5 weeks of reports, suggesting that supply and
demand are slowly coming back into balance after the harsh winter weather
interrupted the demand of gasoline.
inventories in the last 5 weeks of reports, suggesting that supply and
demand are slowly coming back into balance after the harsh winter weather
interrupted the demand of gasoline.
=========================================================
This Day in History:
May 6,
1937: Hindenburg
Explodes in New Jersey
 |
| Hindenburg Explosion |
On this day in 1937, the German airship Hindenburg, the
largest dirigible ever built, explodes as it arrives in Lakehurst, New Jersey.
Thirty-six people died in the fiery accident that has since become iconic, in
part because of the live radio broadcast of the disaster.
largest dirigible ever built, explodes as it arrives in Lakehurst, New Jersey.
Thirty-six people died in the fiery accident that has since become iconic, in
part because of the live radio broadcast of the disaster.
May 6,
1954: First “Four-Minute
Mile”
1954: First “Four-Minute
Mile”
 |
| Roger Bannister |
In Oxford, England, 25-year-old medical student Roger Bannister cracks
track and field’s most notorious barrier: the four-minute mile. Bannister, who was running for the Amateur
Athletic Association against his alma mater, Oxford University, won the mile
race with a time of 3 minutes and 59.4 seconds.
track and field’s most notorious barrier: the four-minute mile. Bannister, who was running for the Amateur
Athletic Association against his alma mater, Oxford University, won the mile
race with a time of 3 minutes and 59.4 seconds.
Fun
Fact: This new world record lasted only 46 days,
and Roger almost NEVER trained for the event!
Fact: This new world record lasted only 46 days,
and Roger almost NEVER trained for the event!
May 6, 1994: The
‘Chunnel’ Opens
‘Chunnel’ Opens
 |
| The ‘Chunnel’ |
In a ceremony presided over by England’s Queen Elizabeth
II and French President Francois Mitterand, a rail tunnel under the English
Channel was officially opened, connecting Britain and the European mainland for
the first time since the Ice Age.
II and French President Francois Mitterand, a rail tunnel under the English
Channel was officially opened, connecting Britain and the European mainland for
the first time since the Ice Age.
The channel tunnel, or “Chunnel,” connects Folkstone, England, with Sangatte, France,
31 miles away. The Chunnel cut travel
time between England and France to a swift 35 minutes and eventually between
London and Paris to two-and-a-half hours.
=========================================================
News Tomorrow:
 |
| News for Wednesday |
We have a lot of
important news to watch for tomorrow, but the party gets started later this
evening in China and then heads into the US.
important news to watch for tomorrow, but the party gets started later this
evening in China and then heads into the US.
Remember, all eyes have been on China’s disappointing
manufacturing news over the last 2 months, and this evening we have more news
from them to watch.
manufacturing news over the last 2 months, and this evening we have more news
from them to watch.
Also, tomorrow in the US we have Crude Oil Inventories, so
beware trying to force trades on Crude Oil before the news is released at
10:30am EST.
beware trying to force trades on Crude Oil before the news is released at
10:30am EST.
And finally, we have Janet Yellen on the microphone,
testifying in front of the Joint Economic Committee in Washington DC so we KNOW
people will be listening to each word and trying to find ways to trade from the
reaction.
testifying in front of the Joint Economic Committee in Washington DC so we KNOW
people will be listening to each word and trying to find ways to trade from the
reaction.
We have a day FILLED with news and most likely also filled
with trading opportunities tomorrow!
with trading opportunities tomorrow!
7:50pm EST: (JP)
BOJ
Meeting Minutes
BOJ
Meeting Minutes
9:30pm EST: (AU)
Retail
Sales
Retail
Sales
9:45pm EST: (CH)
PMI
Manufacturing (Very important!)
PMI
Manufacturing (Very important!)
8:30am EST: (US)
Productivity
& Costs
Productivity
& Costs
10:00am EST: (US)
Janet
Yellen Testimony in Washington DC
Janet
Yellen Testimony in Washington DC
10:30am EST: (US)
Crude
Oil Inventories
Crude
Oil Inventories
=========================================================
Day Trading Opportunities for Tomorrow:
Crude Oil:
 |
| Crude Oil Anchor Chart |
Crude Oil traded sideways for the majority of the session
today in the US. We had a spike higher
shortly after lunchtime, which gave us the entry short we talked about in last
night’s newsletter.
today in the US. We had a spike higher
shortly after lunchtime, which gave us the entry short we talked about in last
night’s newsletter.
As of this evening we are consolidating as the sellers try to
push this price-action lower.
Our day trading plan on
Crude Oil is to look for selling opportunities at the highs of this bear price
channel around 100.11, 100.27, 100.47 and 100.88 to capitalize on this long-term-trend
that is moving lower.
Crude Oil is to look for selling opportunities at the highs of this bear price
channel around 100.11, 100.27, 100.47 and 100.88 to capitalize on this long-term-trend
that is moving lower.
We will use the support levels below us as profit-targets starting
with the trend-line at the lows of the range, 99.10, 98.74, the price channel lows,
97.70 and 96.99 for a runner profit-target.
with the trend-line at the lows of the range, 99.10, 98.74, the price channel lows,
97.70 and 96.99 for a runner profit-target.
Short-Term Trading & Scalping:
Please join us tomorrow in our Live Trade Room for short-term trades called with exact entry and exit information.
Please join us tomorrow in our Live Trade Room for short-term trades called with exact entry and exit information.
=========================================================
Gold:
 |
| Gold Anchor Chart |
Gold has pulled-back off the highs from Monday, right into
our buy-zones but we don’t have any market-personality right now so we are
staying patient.
our buy-zones but we don’t have any market-personality right now so we are
staying patient.
We are waiting for buying opportunities with the correct
entry pattern, so all we need is to see these buyers show up and we can jump
into the next buying opportunity on our entry chart.
entry pattern, so all we need is to see these buyers show up and we can jump
into the next buying opportunity on our entry chart.
Short-Term Trading & Scalping:
Please join us tomorrow in our Live Trade Room for short-term trades called with exact entry and exit information.
Please join us tomorrow in our Live Trade Room for short-term trades called with exact entry and exit information.
=========================================================
Mini-Russell :
 |
| Mini Russell Anchor Chart |
Mini-Russell is pushing lower this evening on the anchor
chart so we are looking for selling opportunities as price-action pushes lower
into Wednesday morning.
chart so we are looking for selling opportunities as price-action pushes lower
into Wednesday morning.
We have major support at 1105.7, and we are at the lows of
this recent range, which means selling here will be very dangerous, we would
rather wait for price to move higher off these lows so we can see this market
at a premium price rather than at a discounted price.
this recent range, which means selling here will be very dangerous, we would
rather wait for price to move higher off these lows so we can see this market
at a premium price rather than at a discounted price.
Our day trading plan for
Mini-Russell is to sell short using a new lower-low or wait patiently for price
to move into the sell-zones listed above us at 1112.9 and 1117.9.
Mini-Russell is to sell short using a new lower-low or wait patiently for price
to move into the sell-zones listed above us at 1112.9 and 1117.9.
We have profit-targets below us at the lows of the bear price
channel along with 1101.8, 1097.4 and 1090.8
channel along with 1101.8, 1097.4 and 1090.8
Short-Term Trading & Scalping:
Please join us tomorrow in our Live Trade Room for short-term trades called with exact entry and exit information.
Please join us tomorrow in our Live Trade Room for short-term trades called with exact entry and exit information.
========================================================
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