Short-Covering Rally Strategy | Crude Oil, Emini, Nasdaq, Gold & Euro
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“Whether you think you can or think you can’t…you’re right.”
– Henry Ford
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Crude Oil is range-bound with a triangle, so the plan is to buy the low, sell the high, avoid the middle, and focus on failures tomorrow morning…
E-Mini S&P is bearish and sitting in a range, and we’re watching the range-expansion resistance levels overhead for selling-opportunities…
Nasdaq is bearish with a Spike & Channel, so we’re looking for selling-opportunities using buyer-failures up near the highs…
Gold is range-bound, and with the $1200 round number down at the low of the range, that’s my target for selling-opportunities tomorrow morning…
Euro is bullish with a Spike & Range, so we’re looking for buying opportunities using the ‘2-Try Rule’ below the range tomorrow morning…
We’re back in the action once again after a Storm-filled weekend, and with Quadruple Witchinglater this week we know we’ll most likely have some fireworks and lots of reliable trading-opportunities coming our way…
Crude Oil Day Trading Strategy
Crude Oil is range-bound with a triangle, hidden channel, and measured-move on the chart this evening…
The lower-highs and higher-lows are a tell-tale sign this market is balanced, sideways, and range-bound – telling us to focus on failures to buy the low, sell the high, and avoid the middle tomorrow morning…
And for added support and resistance levels, I’m also watching the measured-move and low of the hidden channel for more precise locations to find the best entry patterns…
It’s also important to remember tomorrow is the 18th of the month, which is important for Crude Oil because we usually see contract rollover around this time of the month – so we’re watching the volume roll from the 10-18 to the 11-18 and we won’t know which contract we’re trading until we get to our desks tomorrow morning…
E-Mini S&P Day Trading Strategy
E-Mini S&P is bearish with a channel, resistance trend-line, measured-move and trading-range on the chart this evening…
The channel tells us we’re bearish and to focus on selling at resistance…
The channel tells us to use “rotation” to sell off the highs, and when you combine the range-expansion, on top of this falling resistance trend-line, we create rock-solid resistance to sell overhead…
Which is good – because the measured-move at 93.50 tells me we’re too low to sell here, so we’re staying patient for price to push higher so we can sell it back down to the lows again tomorrow morning…
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E-Mini Nasdaq Day Trading Strategy
E-Mini Nasdaq is bearish with a Spike & Channel, trading-range, reversal-line, and measured-move on the chart this evening…
The Spike & Channel tells me the momentum is on the side of the bears, and that I should be focused on selling at the highs…
Those highs also line up with the 83.25 reversal-line, and the bottom of the short-term trading-range we saw earlier this morning… all of which make for excellent resistance levels to sell with…
And assuming we can get short off resistance, the measured-move is right below the prior week’s low, making an easy target for the seller’s tomorrow morning…
Gold Day Trading Strategy
Gold appears bullish at first glance, but the lack of follow-through on this recent pullback tells me it’s more likely a range going into tomorrow’s session…
The bulls had a strong run higher, but if you watched the price-action this morning you probably noticed there weren’t any decent pullbacks…
That tells me this was a short-covering rally, meaning that it wasn’t the buyer’s who were buying this higher, it was the sellers getting out of their positions from Friday’s drop…
The big clue came on the pullback the moving-average – you can see there weren’t any buyers to be found – an easy clue that buyers never really had control of this market, the bears were just letting the price sleep-walk higher…
Knowing this market appears bullish, but more importantly, the lack of follow-through at the moving-average, I’m expecting there to be sellers waiting for this next pullback to try going higher…
And once we see a signal of failure above the moving-average we’re going to look for selling-opportunities going back down to the 1200 round number tomorrow morning…
Euro Day Trading Strategy
Euro is bullish with a Spike & Range on the chart…
The spike is bullish, telling me the momentum is with the bulls and I should be focused on buying support levels…
The range tells me to look for those buying opportunities below the low using the ‘2-Try Rule’ with a seller-failure pattern…
And as for the target – we’re looking for a re-test of the range high with a runner up at last Friday’s high.
