Sideways Markets Day Trading on Euro Futures for +196 ticks biggest day of 2010

Is it REALLY July right now? Aren’t we supposed to be having a hard time with trading in the summer?

Are you sure this isn’t a dream? Someone pinch me! 

We had the BIGGEST winning day of the YEAR today in the trade room, and what made today so amazing was that we didn’t do anything out of the normal.

830am EST

– Crude Oil futures are trading sideways from 78.00 down to 76.00

o Our slow timeframe on crude shows a well-defined double-bottom around 75.75, and we are right above the top of our trigger zone

 Breaking into the trigger zone will mean we should expect price to trade to the opposite extreme of the trigger zone.
o Fast timeframe shows us trending down in a downward sloping wedge pattern

 Trading at the low of day from yesterday as well as today, we’re looking for a bounce off this level, and we will use 2-step reversal trade pattern at the lows if we get the opportunity.

900am EST

– Euro futures coming off the new highs of 1.3000 from yesterday

o The slower timeframe shows us just below the sideways trading range, and just above the trigger zone,
which means we have to expect a drop in price coming soon

o The fast timeframe chart shows a strong downtrend off those highs, now testing the lows, and we will look for a reversal pattern off the lows, buying the lows of this trading range.

– We are looking for our first trade of the day on the euro, but the price action is moving very slowly
o We have breaker long and 2-step short on the 4-range for our scalpers
o We have a wave short and 2-step reversal long on the slower 13-range chart
o And we’re waiting for the major move back down on the 21-range and the wave short

1030am EST

– The dollar index (dx) is resting at its lows right now of 83.00, and we saw lots of BUYERS at that support level
– This tells us the negative correlation between the euro and the dollar = euro should fall, so we need to look for the short entries.

– Euro Futures:

– Looking for the reversal off the low of day, and getting above the trigger line on the 21-range chart.
– We have the dollar resting on support, so watch the dollar around 82.995 area, when that gets broken expect the Euro to launch!
– Entry long above 2895, looking for profit targets of 2920 (1/2), 2950 (1/4), and the final target all the way to the top at 2895 (1/4)
– The key will be to see the Dollar Index (DX) break this support, and we have our Price Alert technical indicator set to tell us when that break occurs.

Gold Futures:

– The gold futures are testing the high of day, and the high of the sideways trading range.
– I’m looking to sell these highs for a nice easy winning trade. I don’t like the idea of buying the highs because the high of day @ 1194.5 is a triple-top and this will be a very difficult spot to see clear entry confirmation.
– My entry will be short below 90.2, and I will take my first profit target at the 21range trigger line (88.5)
– I will take ½ my position off at 88.5, and then look to take ¼’s off my position as the trade works for us at 86.0 (recent swing high) and my final target of 83.5 which is all the way down to where the open of the day on gold is.
– We notice that SPEED of the TAPE is slowing at the highs on Gold, so look for this reversal to be a nice easy win!