SchoolOfTrade.com Nightly-Newsletter 05/06/14 ============================================== “You cannot change your destination overnight, but with the right plan of action, you can change your direction right NOW.”

Today’s Newsletter:

Markets Today: Gold asleep, Crude Oil goes sideways, Mini-Russell drops

News Today: Strong news from Europe Manufacturing, US Trade Balance

News for Tomorrow: Janet Yellen & Crude Oil Inventories

Trading Opportunities: Selling opportunities on Gold, Crude Oil and Mini-

Russell

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The Markets Today:

Crude Oil:

Crude Oil opened this morning directly where we closed on Monday evening,

right in the middle of the range from Monday. This was a big clue for us that this

market-personality would most likely trade ‘sideways’ today and that is exactly

what happened.

We traded higher towards the end of the morning, only to run into resistance at

the $100/barrel big-round-number and tumbled right back to where we started

the session.

The big clue on this chart is the closing-print down at the lows of the

day and below $100/barrel.

Our plan for selling opportunities will continue into Wednesday with this closing-

print.

Trade Called Last Night:

Last night we called the trade short at 100.11-100.27 and that entry short

occurred just after lunchtime today. As of writing this, the trade is up over 50-

ticks of profit per contract and we are holding for tomorrow’s push back lower.

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Gold:

Gold is trading in a very narrow range this evening after a pathetic session in the

US gave us only 99-ticks of trading opportunities.

This Gold market is clearly waiting on something, and we can assume the ECB’s

Meeting on Thursday is holding us back from getting better price-action.

Look for selling opportunities tomorrow below the 1304.4 with a profit-target

below at the 1300.4 prior week close.

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Mini-Russell:

The Mini-Russell opened the session in the middle of the range from Monday,

chopped around in the middle for the morning and then collapsed in the

afternoon session.

We got 200-ticks of range today, which is very good, with most of the range

happening in the afternoon session and giving us easy selling opportunities on the

way lower.

Keep a close eye on the previous week’s low down at 1097.4. We will use that

level as a profit-target for the selling opportunities below the PLOD at 1103.6.

Trade Called Last Night:

Last night we called the trade LONG on the Mini-Russell at 1113.1 and that trade

earned over 70-ticks per contract, depending on your profit-target.

Remember, we call trades LIVE in our trade room, so come join us tomorrow!

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News Today:

Overall, economic news was very strong in Europe and the US on

Tuesday, with continued news from Ukraine and a surprise from

Twitter.

Global News:

In Europe we got strong manufacturing from most countries in the EU, and in the

US we had another strong Trade Balance report, suggesting that the global

market is still very strong amid a slowdown in China.

UKRAINE:

The pressure continues to build in Ukraine as fighting gets worse and there are

more talks about civil war and military confrontation. Although this should be

affecting Crude Oil we have not seen much buying pressure as a result of these

developments today.

EQUITIES:

IN equity markets, Twitter tumbled to record-lows after the 3-month ban on

insider-selling expired. By the end of the session ‘TWTR’ had lost 18% of its value,

and sunk the other e-mini futures markets in the process.

This issue with Twitter re-opened the debate over the value of Social Media

Companies while inside-sellers got RICH in the process.

CRUDE OIL:

Later in the day (4:30pm EST) we heard from the API Crude Oil Inventory report,

which will correlate to the EIA Inventory Report tomorrow at 10:30am EST.

The API Inventory report shows the first build in inventories in the last 5 weeks of

reports, suggesting that supply and demand are slowly coming back into balance

after the harsh winter weather interrupted the demand of gasoline.

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This Day in History:

May 6, 1937: Hindenburg Explodes in New Jersey

On this day in 1937, the German airship Hindenburg, the largest dirigible ever

built, explodes as it arrives in Lakehurst, New Jersey. Thirty-six people died in the

fiery accident that has since become iconic, in part because of the live radio

broadcast of the disaster.

May 6, 1954: First “Four-Minute Mile”

In Oxford, England, 25-year-old medical student Roger Bannister cracks track and

field's most notorious barrier: the four-minute mile. Bannister, who was running

for the Amateur Athletic Association against his alma mater, Oxford University,

won the mile race with a time of 3 minutes and 59.4 seconds.

Fun Fact: This new world record lasted only 46 days, and Roger almost

NEVER trained for the event!

May 6, 1994: The ‘Chunnel’ Opens

In a ceremony presided over by England's Queen Elizabeth II and French President

Francois Mitterand, a rail tunnel under the English Channel was officially opened,

connecting Britain and the European mainland for the first time since the Ice Age.

The channel tunnel, or "Chunnel," connects Folkstone, England, with Sangatte,

France, 31 miles away. The Chunnel cut travel time between England and France

to a swift 35 minutes and eventually between London and Paris to two-and-a-half

hours.

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News Tomorrow:

We have a lot of important news to watch for tomorrow, but the

party gets started later this evening in China and then heads into the

US.

Remember, all eyes have been on China’s disappointing manufacturing news over

the last 2 months, and this evening we have more news from them to watch.

Also, tomorrow in the US we have Crude Oil Inventories, so beware trying to force

trades on Crude Oil before the news is released at 10:30am EST.

And finally, we have Janet Yellen on the microphone, testifying in front of the

Joint Economic Committee in Washington DC so we KNOW people will be

listening to each word and trying to find ways to trade from the reaction.

We have a day FILLED with news and most likely also filled with trading

opportunities tomorrow!

7:50pm EST: (JP) BOJ Meeting Minutes

9:30pm EST: (AU) Retail Sales

9:45pm EST: (CH) PMI Manufacturing (Very important!)

8:30am EST: (US) Productivity & Costs

10:00am EST: (US) Janet Yellen Testimony in Washington DC

10:30am EST: (US) Crude Oil Inventories

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Day Trading Opportunities for Tomorrow:

Crude Oil:

Crude Oil traded sideways for the majority of the session today in the US. We had

a spike higher shortly after lunchtime, which gave us the entry short we talked

about in last night’s newsletter.

As of this evening we are consolidating as the sellers try to push this price-action

lower.

Our day trading plan on Crude Oil is to look for selling opportunities at

the highs of this bear price channel around 100.11, 100.27, 100.47 and

100.88 to capitalize on this long-term-trend that is moving lower.

We will use the support levels below us as profit-targets starting with the trend-

line at the lows of the range, 99.10, 98.74, the price channel lows, 97.70 and

96.99 for a runner profit-target.

Short-Term Trading & Scalping: Please join us tomorrow in our Live Trade Room

for short-term trades called with exact entry and exit information.

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Gold:

Gold has pulled-back off the highs from Monday, right into our buy-zones but we

don’t have any market-personality right now so we are staying patient.

We are waiting for buying opportunities with the correct entry pattern, so all we

need is to see these buyers show up and we can jump into the next buying

opportunity on our entry chart.

Short-Term Trading & Scalping: Please join us tomorrow in our Live Trade Room

for short-term trades called with exact entry and exit information.

Mini-Russell :

Mini-Russell is pushing lower this evening on the anchor chart so we are looking

for selling opportunities as price-action pushes lower into Wednesday morning.

We have major support at 1105.7, and we are at the lows of this recent range,

which means selling here will be very dangerous, we would rather wait for price

to move higher off these lows so we can see this market at a premium price

rather than at a discounted price.

Our day trading plan for Mini-Russell is to sell short using a new

lower-low or wait patiently for price to move into the sell-zones listed

above us at 1112.9 and 1117.9.

We have profit-targets below us at the lows of the bear price channel along with

1101.8, 1097.4 and 1090.8

Short-Term Trading & Scalping: Please join us tomorrow in our Live Trade Room

for short-term trades called with exact entry and exit information.

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