July 31, 2018
FOMC Trading Strategy | Crude Oil, Emini, Nasdaq, Gold & Euro
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Crude Oil is bearish with a strong bear channel, telling me to wait for selling-opportunities up above the moving-average using a buyer-failure pattern tomorrow morning…
E-Mini S&P is bullish but trading at the high of a range, so I’m looking for these bulls to fail using the ‘2-Try Rule’ for selling-opportunities back down to range lows tomorrow morning…
Nasdaq is bullish, but after a late-session rally we’re WAY TOO HIGH to start buying, so my plan is to wait for a pullback, and I have some BIG CLUES on this chart telling me that pullback may turn into a complete reversal tomorrow morning…
Gold is range-bound with a megaphone pattern ahead of tomorrow’s FOMC Announcement, so I’m staying patient and looking for selling-opportunities off the highs of the range tomorrow morning…
Euro is bearish with a Spike & Channel pattern, so I’m looking for selling-opportunities using bull-traps up above the highs tomorrow morning…
We’re headed into that bees’ nest known as FOMC Day tomorrow which has a distinct personality to it, and as always, I have a reliable plan of attack…
Crude Oil Day Trading Strategy
Crude Oil is bearish with a channel and a previous range low on the chart this evening…
The bear channel is steep, and relatively narrow, telling me this trend is STRONG for the bears, which tells me that any move higher is most likely going to be seen as a selling-opportunities for the bears…
Another big clue is this prior low from last Friday, which we identified last night as the sellers’ objective today, and as you can see, they clearly took profit as price bounced…
The bears have control, but I don’t want to sell at the market’s objective so my plan for tomorrow morning is to look for selling-opportunities up above the high of this channel so I don’t have to worry about selling into this major support area.
E-Mini S&P Day Trading Strategy
E-Mini S&P is bullish with a trading-range, ‘pendulum swing’, and major support trend-line on the chart this evening…
The trading-range is a big clue, telling me to sell the high, buy the low, and avoid the middle while using the ‘pendulum swing’ to anticipate the most reliable turning points on the chart for tomorrow morning…
The major support trend-line is also a big clue, reminding me that this market has a lot of bullish momentum, and the only way I can confidently sell this market off the highs of the range will be getting BELOW this trend-line and using it as resistance tomorrow morning…
E-Mini Nasdaq Day Trading Strategy
E-Mini Nasdaq is bullish with a wide bull channel and a possible trading-range on the chart this evening…
The wide channel is a HUGE clue – telling me the bulls have control, but the SIZE of this channel allows the bears to grab control as price rotates back down to the lows…
And speaking of the possible trading-range, we saw double-bottoms this morning, and what looks like it may be a double-top this afternoon before this rally going higher to finish the session…
Let’s be clear, the bulls have control, but their WAY TOO HIGH to buy this right now, and with some strength going lower the sellers have a great opportunity for a move going all the way back down to the low of this channel, and possibly the range tomorrow morning…
Gold Day Trading Strategy
Gold is range-bound and trading in the middle of an expanding triangle, also known as a megaphone pattern…
The megaphone pattern is rather simple to trade – wait for price to test the highs and lows of the range and then look for trading opportunities using failure patterns going back to the middle…
The big challenge for tomorrow morning is the FOMC Announcement due out @ 2pm EST, which is expected to make Gold trading rather challenging both before and afterwards tomorrow…
Euro Day Trading Strategy
Euro is bearish with a Spike & Channel and trading-range to work with this evening…
The Spike & Channel tells me to look for selling-opportunities up above the highs using traps and buyer-failures above the moving-average, while the trading-range reminds me to buy low, sell high, and avoid the middle with a ‘pendulum swing’ target down near the range-expansion level tomorrow morning…
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