Day Trading Morning Prep Gold, Crude Oil, Dollar Index, Euro, E-mini Russell Futures

‘We are what we repeatedly do. Excellence, therefore, is not an act, but a habit’ – Aristotle

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Let’s begin our morning routine with the economic news for today’s trading session.

8:20 Gold & Currencies OPEN

9:00 Crude Oil OPEN

9:30 US Market OPEN

10:30 Crude Oil Inventories

10:30 E-mini Reversal

11:00 Transition into Lunch

11:30 European Close / Live Webinar in our Trade Room

Looking at the news today we know its wednesday so crude oil inventories are on our minds. we’ve had a sloppy week so far with very little economic news, so today may be a variable.

Im looking for different personalities in the crude oil market before 10am EST, we will then see prices go sloppy from 10am through 1035am, and then after 1035am we look for patterns, keeping in mind that AFTER 1030am may be even worse. we wont know how it looks until we see it, so stay patient ahead of the news, waiting for the highest percentage patterns on crude oil.

We have no other news today than 1030am, so once again, look out for the Dead zoneto be from 1045am-1130am EST.

Lets take a look at the charts we’re watching this morning…

Gold Futures

89range Gold Futures

Gold Futures pushes to new highs overnight after news from the Fed meeting minutes got buyers moving yesturday afternoon.

Today I open my 89range chart and I can see a massive price channel, and we are almost to the highs. this slower timeframe is excellent for stripping down the chart and allowing me to focus on the most important aspects.

In this case, i can see the price channel, and the highs are 1463.0 which were tested overnight. I want to look for selling opportunities at these highs, and I also know that around trend lines price action may be a little sloppy, as buyers and sellers compete for control.

34range Gold Futures

This means today may be a very good day, with potential for slop and chop at times when this trend line is being tested overhead.

Now that we know where we are, im going to zoom in on a faster timeframe now to see where the best price levels will be.

Lets take a look at a 34range chart on gold futures, i see a few things to consider:

Bullish Price channel in yellow
Major Price Channel in Pink
PHOD and PLOD
Dollar Correlation

The gold 34range shows price trading at the highs of this massive price channel in pink trend lines (referenced from the 89range), and we can also see price trading at the low end of the short term bullish channel in yellow.

We can easily see this is a strong uptrend, with our PHOD and PLOD below us, making this an Outside Trading Day. I will always use the PHOD and PLOD as important levels of support and resistance.

I also notice the dollar index (Dollar Index Futures Correlation) is trading at the lows of a Head and shoulders pattern, which means new lows on the dollar will likely result in new highs on the gold.

In review, im looking to accomplish the following:

watch the dollar to confirm more higher prices
keep buying with this strong up-trend
sell the highs for short term scalps
buy at support for long term moves up
buy pullbacks at new highs as price rises
Buy the PHOD support when its tested from above
Sell the PHOD when we break below it
Buy the PLOD support as price drops
Sell PLOD as resistance if it makes new lows
beware trading around the thick pink trend line, high of the big channel

Crude Oil Futures

Lets check out crude oil next..

89range crude oil

the 89range on crude oil futures tells us the following

we are in a strong up-trend
we are currently in a short term sideways range
we want to use this sideways range to our advantage

Now we know the BIG PICTURE on crude oil, but lets zoom in to use a faster timeframe for the best price levels.

crude oil 34range

Open your 34range chart and you see the following

inside trading day (PHOD and PLOD)
narow price wedge in pink trend lines
transitional area below 106.00
news @ 1030am

Inside days are always pretty simple. sell the PHOD and buy the PLOD. I want to sell at resistance above, and buy at support below.

If price breaks new highs I will Buy a Pullback at support

If price breaks new lows I will Sell a Retracement at resistance

We have to trade carefully around the price wedge, buy the lows and sell the highs, and avoid the middle of the wedge.

We have this wide open drop down to 106.00 which is the highs of a bearish price channel. Im looking to be a buyer as price drops, buying at support, and then selling a retracement as we break new lows.

if price rises to new highs above the PHOD we need to sell resistance first, and then buy pullbacks. we also see the highs of the bullish channel around 109.40 so use that as a final profit target.

dont forget the news @ 1030am, we want to stay away from the crude oil from 1015am through 1035am. and remember the personality may NOT be BETTER after 1030am.

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