Bernanke spoke about the budget yesturday and the markets listened, now today we have the Budget Report from the Fed @ 2pm EST, we would assume traders may be interesting in waiting for that information, so be aware of that possible slow down end of the morning into early afternoon ahead of this news.

As always im going to set my alarm 5 minsutes before the news, and then wait 5 mins after the news to see the reaction to the markets.

This morning we have seen news from BOE to leave rates unchanged, and we also heard from OPEC regarding raising the global demand on its oil production. Still waiting to see how the crude oil markets will react to that news as we speak…

Lets take a look at the markets we’re watching today…

Dollar Index Futures

The dollar index is trading in a transitional area at the moment. At the highs of the price channel, and the highs of the recent sideways range.

I will be watching the Dollar Index Futures Correlation tied to the markets we trade most. If the dollar rises to new highs im looking for selling opportunity. If price drops back down into this channel (the highest % move) we then will look for buying opportunities on other markets.

im also watching the speed and average true range (ATR) on the dollar index this moring to tell me when its safe to trade today.

Crude Oil Futures

Crude Oil futures are trading back at the lows of this massive price wedge in yellow trend line

We can see a trend line in blue coming down from the highs to show overhead resistance from yesturday’s price action.

We can see a sideways market from 86.00 up to 88.00 and we are at the LOWS of this range currently.

The combination of the blue and yellow trend lines create a very narrow Wedge Pattern.

The most important thing to consider is the narrow wedge, this will be a challenge if we cant break the highs or lows of the wedge.

remember how to trade a wedge… Buy the lows, sell the highs, and avoid the middle

If price breaks above the wedge im looking to sell 87.00 first. If price breaks new highs above that I will Buy a Pullback at support.

If price breaks to the lows of the wedge im looking to buy at 86.00 first, and then If price breaks new lows I will Sell a Retracement at resistance

Gold Futures

Gold is making our swing traders some easy money this moring with this 2-step price reversal pattern off the highs of the trading range (we discussed on wednesday)

You can see gold is coming off the highs of the massive price channel in pink trend lines.

We can see two sideways trading ranges. One above from 1357.1 up to 1368.7, and then the range below is from 1357.1 down to 1344.1.

Im going to use these range to make important trading decisions today.

See that first move to break new lows below 1357.1? we call that a Fake-out breakout, it stalled at the lows and reversed back up above 57.1

We always expect the lows to hold like this at least once, which is why we always follow this simple rule trading the gold futures like this

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

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

Buy the lows, sell the highs, and avoid the middle

Im buying 13571. first, and then will sell it if it becomes resistance overhead. Im going to sell the highs of 1364.8, but keep an eye on the support trend line in blue.

If price drops im buying support at 1354.5 (PHOD level) and 1348.9 on the way down.

remember this very simple rule..

buy at support and sell at resistance. if you can follow this rule today you will make profits with us.

Euro Currency Futures

three things to consider on the euro futures today

– price channel (pink)
– price channel (green)
– sideways market from 3731 down to 3600
– wedge pattern (blue)

the euro trading at the lows of the price channel, this will be major support at the big round number 1.3600 as well as the lows of the channel and the lows of the sideways range.

sideways range from 1.3731 down to 1.3600 is an easy way to trade today, buy the lows and sell the highs of this range.

We draw the blue trend lines from the previous highs and that creates a wedge pattern using the lows of the price channel and the trend lines as overhead resistance.

remember this simple rule: buy at support and sell at resistance.

its very easy to lose sight of this simple rule, so focus on the major support and buy at the support. Focus on the major resistance and sell when the price tests resistance.

E-mini Russell Futures

a few things to watch on the mini russell today

– sideways range from 813.1 down to 804.1

– wedge pattern from 797.5 down to 770.8

– big round number at the top of the wedge, 800.0

we will buy the lows of the sideways range first, and then look to sell the highs of the range if price moves up.

If price breaks new lows below 804.1 I will Sell a Retracement at resistance, support becomes resistance when its broken.

Im looking at major support at the big round number of 800.0, and its the top of the wedge, so this will be an excellent opportunity to buy. chances are high price will bounce off 800.0 and go back up to the highs of 813.1

Then if price can break into the wedge below we have plenty of selling opportunity all the way down to 770.8 which is the low of the wedge as major support.

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