Simple Methods Work Best Day Trading Crude Oil Futures Euro Emini Russell

Gold Futures are trading off the all-time highs of 1276.5, and we see three reasons to be bearish (short side) on gold:

1. Top of the channel pattern, sell the highs
2. Top of the wedge pattern, sell the highs
3. We see a head and shoulders pattern (price reversal pattern)

When do we ignore the short side, and focus on the long side?

We will look for the long entries when we break the ‘shoulders’ of the head and shoulder pattern. (1273.4)

I’m going to add a price alert indicator to make sure I don’t miss the entry above the ‘shoulders’.

On gold we define the best opportunities above 73.4, and below 65.9, however, we don’t shy away from selling 73.4 (highs of the sideways range) and buying the lows of 65.9.

Crude Oil futures have an important news event today @ 1030 (inventories) so we may see a challenge today on this market.

Our 34-range chart shows us we are at the bottom of the wedge pattern @ 75.18, so we are looking for a buying opportunities at these lows.

If we break below 75.00 we will then be able to sell the highs of the range below us, and looking to cover those short position at the lows of 74.00 and down to 73.00 (bottom of the wedge)
900am EST

-The speed of the markets are very slow, we see red pace of tape across all our markets so we need to be patient and wait for some better SPEED to enter these markets.

We took our first trade of the day on the Fast Track Method with crude oil for a 10-tick winner, all we had to do was wait for momentum to confirm the short entry.

Euro futures are trading above their sideways range from earlier this month, and now trading sideways at these new highs.

Looking to sell the highs of this range at 29, buy the lows at 52, and keep away from the middle.

If we break out of this narrow trading range we can buy the break above, or sell the break below, keeping an eye on support at 2926 if we get short.
‘You’re mom warned you not to do these…”

– Buy the all-time highs on gold
– Don’t fiddle with your middle
– Never trust a trend line you don’t know very well
– Be careful around big round numbers

Russell Futures are still trading at their highs, we can see a head and shoulders pattern (price reversal pattern) and we are at the highs of the wedge, looking to sell the highs.

We need to wait patiently for the Russell to break the support trend line and then drop for us so we can get short.

945am EST

– We took our 2nd trade of the day on the Russell, but had to exit early at my point of entry when we saw the trade shows signs of a price reversal

o Slowing speed
o Momentum shifted against me
o Big buyers, against my short position

 Very important when we see something is not right, don’t hesitate, exit that trade.

950am EST

– Lots of divergence on the mini Russell right now

o Price rising when we see sellers and downward momentum
o Cause for concern, and a characteristic of wacky Wednesday

1015am EST

– Gold Futures are trading sideways at the all time highs, and we cant do very much b/c the only opportunity to buy is right in the middle of this narrow trading range.

o Best option on gold is to wait for the re-test of the highs or the lows and look to sell the 73.4 and buy 65.8

– Crude Oil is setting up for a reversal pattern using the 2-step entry.

– Watching my 13 range chart on crude oil, I can see overhead resistance at 50’s so this entry needs to be higher than 50 to be the best trade opportunity.

o Targets are ½ @ the trend line around 65, ¼ @ the big round number 75.95, and then soft final target @ 76.40, but look to hold this trade up to 76.95 with good speed of the tape and buyers.

– Russell is trading at the highs of the wedge pattern around 646.0, so im looking to sell these highs.

o We have support at 45.3 so be aware of that level on this short trade.

– Crude Oil Up-date: We now have a breaker long pattern on crude oil setting up with entry above 74, and targets ½ @ 95, ¼ @ 40, and then final target ¼ @ 76.95