News and Crude Oil Prep

815am EST

We checked our heat map and learned that there is NO dollar
index correlation in play at this time, with the dollar index trading very
narrow according to the heat map.  We
also learn that the E-Mini-E-Mini-Russell, the Crude Oil futures are on our
trade list this morning with the most volatility, and the euro and gold futures
with the least.  We will try and be
patient trading gold and euro, while looking for high-percentage trades on the Crude
Oil and E-Mini-Russell.  This can easily
change, so we want to remind ourselves every 20-30 minutes to look at the market
personality and review the heat map.

830am (news came out flat for CPI)

Crude Oil futures is trading higher this morning, sitting on
the PHOD so we know the buyers are trying to push this higher, but we need to
wait and see what happens here first. 
Remember the importance of the PHOD when we test it for the first time
of the day.  We call this the ‘inside day
/ outside day transition’ and this is a very important level to be
watching.  We can see the price wedge just
below us almost BEGGING the price to drop into it below.  We can see the bullish AB=CD Pattern is about
the break if price goes above the “c” point at 88.98.  Remember, when we the C point we will usually
go quickly to the next level of resistance and the goal for a profit target if
we can get long with a wave-pattern above the 89.00 will be the 90.50 trigger-zone
highs, the bull price channel highs around 91.00 and then the ‘A’ point up at
92.53. 

The 55-range chart on Crude Oil futures really nails down our
day trading strategy for us today. 
First, if we make new higher-highs above 89.00 big round number we will
look for the fake-out breakout first like we always do above a price wedge and
then we will buy using a wave pattern.  We
will take profit at the next major resistance overhead which we now learn is
90.23, and 90.50 from the 144-range chart, and the bull price channel highs at
91.00.  if the buyers are strong we will
buy pullbacks with our favorite pattern all the way up to the price channel.  Another scenario is price may fall off these
highs, which technically will be the high-percentage trades to the short side with
this price wedge.  If the buyers cant
shrug off the sellers at the PHOD and the price wedge highs we can also assume
that this price will re test the PLOD later in the trading session.  We’re selling short with a 2step pattern or
followed by a wave pattern short below 88.00 with profit targets at support levels
below 87.27, 86.84, 86.41 PLOD as the final target.