October 24, 2011
- in Uncategorized by schooloftrade
Started our week with a BANG! Day Trading Crude oil & Russell Futures
My goal on a Monday is NOT to jump into trades, but to get back into the rhythm of my day, start doing the little things that will prepare me for the BIG trades later on this morning.
Let’s get into our rhythm with the morning routine we always use. Members, log into your Advanced Course for a complete copy of this morning routine.
900am EST
Crude oil futures trading in a price wedge so we are fading the highs and the lows as price moves. Sell the highs, buy the lows, avoid the middle of the price wedge.
1030am EST
Dollar index now moving to new short term lower-lows which changes our opinion of value and the potential for the short side of the trades.
We need to stay away from the OPEN on the DOLLAR INDEX to get better price action.
OPEN = magnet = bad place to trade, very sloppy
1040am EST
The dollar index is right on top of the 12am OPEN on the 13range chart, which is giving us a strong clue of WHY things are sloppy right now.
In addition to the dollar index OPEN is the Crude oil futures and Russell both in the middle of the short term range we defined earlier today.
With the dollar index in the open, and the market we trade in the middle, we need to sit on hands and wait for…
– Dollar index to move away from the open
– Crude oil futures to test 89.89 for selling opportunities
– Mini-Russell Futures new higher-highs so we can buy pullback, or show us the price reversal pattern so we can sell.
1115am EST
AB=CD patterns on crude oil futures and Mini-Russell Futures tell us price should keep moving higher, however, we are overbought, price action is sluggish, and the dollar index isn’t moving very fast.
We need to wait for those PERFECT wave patterns to buy as this price keeps rising higher.
· Target for the Russell is 731.5 so keep looking to buy pullback.
· Target for crude oil futures 90.17 so look for buying pullback up to that level and then sell it short.
1120am EST
Dollar index making new lower-lows makes it hard to sell the highs.
We are overbought and sloppy moving higher, which makes it hard to keep buying new higher-highs.
