SchoolOfTrade.com Day Trading Newsletter 05 07 14

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“Learn how to separate the majors and the minors. A lot of

people don’t succeed because they major in minor things.”

Today’s Newsletter:

Markets Today: Crude Oil reversal, Gold tumbles, Mini-Russell drops then

pops!

News Today: Janet Yellen shakes things up, Tensions ease in Ukraine, Crude

Oil Inventories drop.

News for Tomorrow: ECB Announcement, Jobless Claims in the US, and Janet

Yellen testimony.

Trading Opportunities: Short-Selling on Gold and Mini-Russell, scrap the

selling on Crude Oil and get to buying!

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The Markets Today:

Crude Oil:

We began the session on Crude Oil looking for selling opportunities this morning,

but that didn’t last long when we saw the opening-print at the highs of the range

from Tuesday. This BIG clue told us to scarp the short-selling and get ready for

buying opportunities today.

We got a boost at 1030am EST from Crude Oil Inventories, which came out with

lower inventories and higher demand, so we were looking in the right direction

from the opening-bell today.

Look closely at this chart and you can see we closed above the highs from

Tuesday (big clue for buyers) and we have two easy profit-targets above us at the

previous week’s open (101.17) and high (102.20) if these buyers continue to push

this price-action higher into Thursday.

Trade Called Last Night:

We scrapped the selling opportunities today when we saw the opening-print at

the highs of the range from Tuesday, which told us that something had ‘changed’

in the overnight session.

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Gold:

Just as we projected last night, Gold tumbled lower in today’s session, reacting to

comments from Janet Yellen (we assume) and ending the session well below the

previous week’s highs and on the way lower to last week’s lows down at 1272.0.

We notice that the volume profile suggests the most trading was done at 1297.6,

which means overnight we are likely to see a short-covering rally back to test this

area before trying to go lower.

Trade Called Last Night:

Last night we called the trade SHORT below 1301.3, with a profit-target down at

1293.9.

This trade earned over $800 per contract traded, and was EASY

money if you were with us from last night.

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Mini-Russell:

Mini-Russell pushed lower this morning, only to reverse at the end of the morning

session which gave us buying and selling opportunities in the same trading

day…very exciting stuff!

Look closely and you can see the Mini-Russell pushed below the lows from last

week at 1097.4 and the volume shows just about that level at 1099.5, so we know

that the big-round-number at 1100.00 is likely the price-magnet this evening and

into tomorrow.

Trade Called Last Night:

Last night we talked about selling opportunities on Mini-Russell if we made new

lower-lows, and that’s exactly what happened.

We saw lower-lows below the 1101.4 from last night’s chart, and found easy

selling opportunities down to the profit-target at 1097.4.

This trading opportunity earned over $400 per contract traded!

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News Today:

All eyes were on Janet Yellen and Crude Oil Inventories this morning

in our Live Trade Room, and these two news events gave us plenty of

trading opportunities to work with all day long.

Janet Yellen made very ‘dovish’ comments this morning, which sparked the late-

morning rally on the e-mini’s and sent Gold pushing lower.

One very interesting thing about Janet Yellen’s testimony this morning was that

she not satisfied with the quality of the jobs, and that she discounted the

surprisingly-higher Non-Farm Payroll report last Friday.

The comments from Janet Yellen were very bullish for Crude Oil and

the Mini-Russell, and bearish for Gold Futures.

Later in the session we heard from Crude Oil Inventories, which came

out much lower than expected, with a spike higher in DEMAND. Combine the

lower inventories with easing of tensions in Ukraine and you have some happy

Crude Oil traders buying to new highs.

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News Tomorrow:

Thursday morning will be another day filled with trading

opportunities, beginning this evening in Australia and China, then

moving into Europe and the US tomorrow morning.

We begin with news from Australia and China this evening. We have

Employment numbers being released at 9:30pm EST tonight in OZ, and then early

tomorrow morning we have Trade Balance from China, which will be a very

important news event for traders in Europe tomorrow morning.

We have European news starting at 3:00am EST but the BIG NEWS will be from

the ECB Announcement tomorrow morning at 7:45am EST and a Press Conference

following 30-minutes later.

In the US session we have Jobless Claims at 8:30am, and then we hear from Janet

Yellen once again at 9:30am EST as she testifies before the Budget Committee in

Washington DC.

9:30pm: (AU) Labour Force Survey

2:00am: (CN) Trade Balance

3:15am: (CH) Consumer Prices

7:00am: (GB) BOE Announcement

7:45am: (EU) ECB Announcement

8:15am: (EU) Press Conference following the Announcement

8:15am: (CA) Housing Starts

8:30am: (US) Jobless Claims

9:30am: (US) Janet Yellen Speaks

10:30am: (US) Natural Gas Inventories

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Day Trading Opportunities for Tomorrow:

Crude Oil:

Crude Oil has completely changed its trend in the last 24 hours from bearish now

to bullish as we go into Wednesday evening and Thursday morning.

We are above all the key moving-averages and we are making new higher-highs at

this time so we are ready to get long at the buy-zone of 100.39 or with any new

higher-highs.

Our day trading plan for Crude Oil is to buy pullbacks with each new

higher-high overnight and use the price channel highs and 101.40 as

our profit-targets.

If the buyers happen to fail, we are looking for selling opportunities back below

99.79 tomorrow morning with a profit-target for the sellers down at 98.74.

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 tumbled lower today and this evening we find our favorite ‘yellow metal’

trading at a discounted price (@ Lows) so we are looking for selling opportunities

to go with this down-trend but we’re waiting for the price to move into the sell-

zones overhead or make new lower-lows before we can start getting short again.

Our day trading plan on Gold is to sell short with new lower-lows or at

the zones above us at 1293.2, 1297.0, and 1300.8. We have profit-

targets below us at the lows of the price channel, along with 1281.4

and 1272.0.

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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Mini-Russell :

Mini-Russell is pushing higher this evening; however, we are still in a bearish

down-trend on the anchor chart so we are going to be looking for selling

opportunities until we can get above the 1112.0 resistance zone overhead.

Our day trading plan for Mini-Russell is to sell short in the range from

1107.5 up to 1112.0 and use the support levels below for profit-

targets at 1098.0 and 1088.5.

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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