Market Commentary Schooloftrade.com 10.13.10 Going through our morning routine… 1. 2. 3. 4.
Check Check your your news news for the day day ahea ahead d Look at your your charts, charts, slow timefr timeframe ame first, first, faster faster timefra timeframe me second second Start Start with with the dolla dollarr index index Then move move to other other marke markets ts that that are movin moving g this morni morning ng a. Crude oi oil b. Gold c. Russ Russel elll @ 93 930a 0am m d. Euro e. Aussie f. British pound
830am EST –
Dollar Dollar index index futures futures are are tradin trading g at the the lows of the weekl weekly y range range and and we see see the following: ○ At the weekly lows of the range ○ Very narrow trading range ○ Sideways trading (flat trigger line) ○ Outside day, that is sitting on the lows from yesterday, so it may become an inside day ○ At the top of the price channel, so looking for the dollar to drop down into the channel from the top
835am est
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News is out at 830am est and did very little to jump start the market this morning. The dollar dollar told us to be a little little patient patient this this morni morning ng while while the the dollar dollar heats heats up and the the rest of the markets decide where to go from here. Crude Crude oil future futures s spiked spiked last last night night on global global comme comments nts that that affecte affected d the dolla dollarr
845am est – – –
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Crude Crude oil futures futures are are tradin trading g in a sideways sideways range range with with a wedge wedge pattern pattern We are are trading trading at at the highs highs of of the wedge wedge,, so looking looking for a short short trade trade oppor opportunit tunity y selling the highs We can can see the the best best trades trades will will come come above above 83.00 83.00 because because there there is nice nice wide wide open open space for trades to run. Beware trading into trend lines, we have trend lines above and below us, so check the slower timeframes before you enter your trades today. 21 range chart shows a much cleaner wedge pattern with a clear entry short below 82.58 with targets down to the lows of the wedge. We also also can trade trade the break breakout out long long above above 83.02 83.02 with profit profit targets targets all all the way way up to to 84.00
915am est
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The markets markets are surpr surprisin isingly gly quiet quiet consid considerin ering g the dollar dollar just broke broke the the highs highs of its its trading range, sending the crude oil moving down for our first winner of the day. We’re We’re waiting waiting to to see where where crude crude oil goes goes next, next, and and finishi finishing ng our morni morning ng prep prep on gold. Gold futur futures es are are trading trading sidew sideways ays and and appear appear to to be exhaus exhausted ted after after a big big move UP from last night. Sidewa Sideways ys trad trading ing at at the the highs highs gives gives us two two optio options: ns: ○ I can sell the highs on a slower timeframe looking for the bigger move down ○ I can scalp buying the lows of the range and selling the highs of the range while this market goes sideways.
1030am est – –
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Gold future futures s are back back at new all-time all-time highs, highs, which which means means the the breakout breakout trade trade long long will will be higher risk (we don’t buy the highs, we sell the highs) Lookin Looking g for a rever reversal sal trade trade shor shortt I have have two two optio options ns ○ More aggressive entry below 67.5 will take your entry as close to the highs as possible, which is good ○ The more conservative entry short below 65.6 is going to have more potential because it clears the messy chop at these highs and get into a trade with plenty of room to run for me. ○ Targets will be 63.5, 62.3, 60.5 soft, and final hard target of 57.8 at the lows of the day’s trading range. Crude Crude oil future futures s are trading trading sidewa sideways ys at the the highs highs from from last last night night and we we have have two options for our day trades ○ Buy the breakout above 83.10 with targets of 25, 345, and 95 ○ I can sell the highs with a reversal short below 82.42 with targets 35, 15 (trend line), and then 65 for the final ¼ target. E-mini E-mini Russ Russell ell brok broke e out abov above e the high highs s from from last last night night We took took the the breakou breakoutt above above the the 700.00, 700.00, took took our our profit profit and and now looking looking for new opportunities. ○ We can continue to the upside with a breakout trade entry long above 703.5 with targets of 705.0 (AB=CD Pattern) and final target is the top of the channel at around 709.0 for the final ½ of your position ○ We can also look to take advantage of this sluggish market at the highs and sell short below 700.0 with targets of 98.3, 97.0, soft 93.2, and final hard 688.0 which is the trend line support. Euro futur futures es broke broke below below the the sideways sideways range range and now now looking looking to buy buy the lows of of this range above 42. Profit Profit should should be taken taken at at the trend trend line line for the the first first target target,, 65, and and final final hard hard target target of of 90 all the way to the highs of the range.
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