October 23, 2013
- in Uncategorized by schooloftrade
Morning Prep 10/23/13; SchoolOfTrade.com
8:00am EST
Focus-Points this
morning:
morning:
· Weakness in Asian markets having a
negative impact on global equities this morning
negative impact on global equities this morning
· European stocks fall off 5-year highs
in overnight trading
in overnight trading
· Signs pointing to monetary tightening
in China have some analysts concerned about the US equities which are at
all-time highs
in China have some analysts concerned about the US equities which are at
all-time highs
· Spain emerges from a 2-year recession
· Analysts report that Tuesday’s Non-Farm
Payroll report severely ‘clouded’ the US economic outlook going into end of
2013
Payroll report severely ‘clouded’ the US economic outlook going into end of
2013
· Gold is lower
· Crude Oil is lower
· EUR/USD is lower
· E-Mini S&P is higher
Economic News on the
schedule today:
schedule today:
This morning we will hear from Import/Export prices along
with House Prices, however most traders in our live trade-room will be watching
for the Crude Oil Inventories today at 1030am EST.
with House Prices, however most traders in our live trade-room will be watching
for the Crude Oil Inventories today at 1030am EST.
8:30am EST: Import and Export Prices
9:00am EST: FHFA House Price Index
10:30am EST: Crude Oil Inventories
Levels this morning:
Euro Currency
Futures:
Futures:
 |
| Euro VIP Chart |
VAH 3794 / VAL 3736
PHOD 3795 / PLOD 3675
Bullish = Open > 3795
Bearish = Open < 3675
The Euro traded higher on Tuesday as the Dollar-Index got
pushed lower after Non-Farm Payroll news was released.
pushed lower after Non-Farm Payroll news was released.
The Euro traded in a very wide range and closed at the highs,
which suggests the buyers were in complete control from start to finish of the
session. The wide trading-range tells us
today will likely be a narrower range, possibly a range-bound market today.
which suggests the buyers were in complete control from start to finish of the
session. The wide trading-range tells us
today will likely be a narrower range, possibly a range-bound market today.
Ahead of the opening-bell price-action is trading at 3750
which is in the middle of the range, so we are expecting a 2-sided trade this
morning on the Euro. We will be watching
the first 15-minutes of price-action to get the clues we need to take our first
trades this morning.
which is in the middle of the range, so we are expecting a 2-sided trade this
morning on the Euro. We will be watching
the first 15-minutes of price-action to get the clues we need to take our first
trades this morning.
Targets above: 3780, 3794, 3810, 3830
Targets below: 3736, 3702, 3691, 3675
Gold Futures:
 |
| Gold VIP Chart |
VAH 1344.6 / VAL 1328.9
PHOD 1344.7 / PLOD 1312.9
Bullish = Open > 1344.7
Bearish = Open < 1312.9
Gold traded higher on Tuesday above the PHOD of 1319.7 and
closing the session near the highs of the day.
closing the session near the highs of the day.
We can see a very wide trading-range from the chart yesterday,
and with the bullish tone to the market personality we can assume that buyers
took control all day. The wide
trading-range tells us today is likely to be filled with range-bound-trading;
however we will wait to see the opening-print to see if the bulls are still in
control.
and with the bullish tone to the market personality we can assume that buyers
took control all day. The wide
trading-range tells us today is likely to be filled with range-bound-trading;
however we will wait to see the opening-print to see if the bulls are still in
control.
Targets above:
1341.3, 1344.6, 1348.5, 1353.4
1341.3, 1344.6, 1348.5, 1353.4
Targets below: 1324.2, 1320.7, 1314.2, 1303.4
Crude Oil Futures:
 |
| Crude Oil VIP Chart |
VAH 99.94 / VAL 98.65
PHOD 100.30 / PLOD 98.15
Bullish = Open > 100.30
Bearish = Open < 98.15
Crude Oil traded lower on Tuesday, extending the losses from
Monday’s trading session, and keeping price-action below the psychological
level of 100.00.
Monday’s trading session, and keeping price-action below the psychological
level of 100.00.
The clues we see from the VIP chart tells us that today is
likely to continue the bearish move lower, however the wide range on Tuesday
tells us that the price-action may be a little sideways this morning, but as
always we will wait to see how the opening-print looks to confirm those
concerns.
likely to continue the bearish move lower, however the wide range on Tuesday
tells us that the price-action may be a little sideways this morning, but as
always we will wait to see how the opening-print looks to confirm those
concerns.
Ahead of the opening-bell price-action is trading all the way
down to the 97.00 big-round-number, which is very bearish below the PLOD at
98.15. Look for sellers to continue this
push lower, and be open-minded to a price-reversal that moves us back up to
fill today’s opening GAP-down.
down to the 97.00 big-round-number, which is very bearish below the PLOD at
98.15. Look for sellers to continue this
push lower, and be open-minded to a price-reversal that moves us back up to
fill today’s opening GAP-down.
Targets above: 97.57, 97.96, 98.15, 98.65, 99.21
Targets below: 96.72, 96.61, 96.22, 96.04, 95.52, 95.24
Mini-Russell Futures:
 |
| Russell VIP Chart |
VAH 1114.6 / VAL 1110.4
PHOD 1120.5 / PLOD 1109.1
Bullish = Open > 1120.5
Bearish = Open < 1109.1
The Mini-Russell traded sideways on Tuesday with a very large
trading-range that went to new highs, followed by a collapse in price-action over
lunch and a closing-print in-balance right in the middle of the range.
trading-range that went to new highs, followed by a collapse in price-action over
lunch and a closing-print in-balance right in the middle of the range.
The narrow trading-range from yesterday suggests that today
has the potential to be a big-mover, but we will need to wait and see how the price-action
looks at the opening-bell.
has the potential to be a big-mover, but we will need to wait and see how the price-action
looks at the opening-bell.
As we prep before the opening-bell we can see the price-action
is trading lower this morning at 1104.0, which tells us we may have a bearish opening-print
with a gap-down. We will be watching
closely to see how the opening-print looks because the buyers may try to grab
control at the open and fill the gap back higher to yesterday’s closing price
of 1112.4.
is trading lower this morning at 1104.0, which tells us we may have a bearish opening-print
with a gap-down. We will be watching
closely to see how the opening-print looks because the buyers may try to grab
control at the open and fill the gap back higher to yesterday’s closing price
of 1112.4.
Targets above: 1107.9, 1109.1, 1110.4, 1112.6, 1114.6,
1116.2
1116.2
Targets below: 1100.0, 1095.3, 1092.2, 1090.7, 1085.2
E-Mini S&P Futures:
 |
| ES VIP Chart |
VAH 1751.00 / VAL 1745.50
PHOD 1754.50 / PLOD 1741.75
Bullish = Open > 1754.50
Bearish = Open < 1741.75
The E-Mini S&P continued to push higher on Tuesday making
new all-time highs in price above the 1754.00 mark.
new all-time highs in price above the 1754.00 mark.
We saw a wider-than-average trading-range on Tuesday, and
with the closing-print in the middle of the range we can assume today may be a
little sluggish and range-bound at the open.
with the closing-print in the middle of the range we can assume today may be a
little sluggish and range-bound at the open.
As we prep we see the price-action ahead of the opening-bell is
trading at 1740.25 which is the previous week highs. A move lower from here will give us a
gap-down at the open, and we have 2 possible scenarios to consider. First, the buyers may try to ‘fill the gap’
and push price higher at the open to test the 1749.50 closing-print from yesterday. Second, the sellers are in control below the
1742.50 PLOD, so we may see the sellers continue to push new lower-lows and we
will sell short along with them today.
trading at 1740.25 which is the previous week highs. A move lower from here will give us a
gap-down at the open, and we have 2 possible scenarios to consider. First, the buyers may try to ‘fill the gap’
and push price higher at the open to test the 1749.50 closing-print from yesterday. Second, the sellers are in control below the
1742.50 PLOD, so we may see the sellers continue to push new lower-lows and we
will sell short along with them today.
Targets above: 1742.50, 1745.50, 1748.50, 1751.00, 1754.50
Targets below: 1739.50, 1736.50, 1734.75, 1732.25,
1730.25, 1728.50
1730.25, 1728.50
