April 6, 2011
- in Uncategorized by schooloftrade
‘Hidden’ news report when day trading crude oil futures
Live Trade Room Notes 04-06-11
830am est
– We see the dollar index is sitting on the trigger location of the head and shoulders pattern on the 34range chart
– We know from experience that when the dollar is at a transitional area like this it will result in sloppy sideways markets on crude, gold, Russell, euro, etc.
– We need to be aware that the dollar is trying to drop (buying opportunities)
– However, the dollar may have a hard time getting the lows to break.
– We’re at the highs of the price channel, so we have support below the dollar, and we are trading sideways on the 13range, which confirms the indecision.
– We know if the dollar drops this morning out of this sideways chop we will likely see new highs
– Buy the new highs waiting for pullbacks
Lets plan ahead on crude oil…
If prices rise:
– Selling the highs of the sideways range at 108.70
– Im then buying a pullback if we get new highs
If prices fall:
– Im buying the support at 108.00 and don’t forget this is a big round number, so use caution
– I will sell below 108.00 if we break new lows
– Look to also buy the 107.61, and use the 107.61 as a final profit target if you get the short from 108.00
925am est
– We’re waiting patiently for this market to wake up
– This lack of news this week and apparently the lack of direction for the 2nd quarter is having a drastic impact on the participation in the market this morning
– Very slow, not much volume, and not much movement
Lets plan our attack on the gold futures…
If price rises..
– Sell 1462.3 HOD, PHOD, top of the sideways range
– If we make new highs I will then buy a pullback above 1462.3
– Make sure to keep those trend lines above us in sight so we can use them as a profit target.
If price falls…
– Buying 1457.9 the next support level, as well as the lows of the bullish channel
– If we break new lows below 57.9 I cant sell very easily b/c of the trend line in green
– I will wait for price to test 1456.1 and buy the support as it holds.
945AM EST
– Took our first trade on the crude oil this morning for a +5/-5 scratch
– It missed the target on the HIGH RISK fast track by 2 ticks, and is very sloppy right now ahead of the news
– We need to stay patient, not force these trades, and live to trade another day.
