Schooloftrade.

com Market Commentary 7-16-10

830am EST

- Gold futures did exactly what we expected, it tested the high of its trading range, and then dropped right
back down into the center of the range
o Slow timeframe chart shows a wide sideways trading range (bracket)
o We’ve just broken below 1200, so expect a bumpy ride
o Fast timeframe trading in the middle of its new sideways range
 We took our first trade of the day by selling the HIGH of this range for a nice 17-tick
winner.
- Crude Oil Futures are trading sideways @ 76.50, which has been a thorn in our side for weeks now
o Big round numbers are important, 76.00, but half numbers like 76.50 sometimes can be a sae
haven for low volume markets, so they become very sloppy price levels.
 We don’t ALWAYS watch for these half levels, we only pay attention when we notice
consolidation around these levels.
o Slow timeframe shows a wide sideways trading range, and we are sitting on the big round
number of 76.00 so we will wait to get a little further away from this level.
o Fast timeframe chart

1000am EST

- Russell Futures are tumbling after breaking their support trend line from yesterday
o We notice on the slow timeframe when we apply our fibonnaci tool that we are now at the top
of the trigger zone, which means we expect price to 15.7, which is the bottom of this zone.
o Lets look at the FAST timeframe for a good entry short.
- All of our markets appear to be a little challenging at this point in the morning
o We saw some nice moves down, and we made some money on the way down
o But now we sit on the lows and we’re seeing some challenging price action
o So lets look at some slower timeframes and plan our attack!

1100am EST

- Here we are, OPEX Friday, Summertime Friday, and we’re having a great day!
- Russell futures are not triggering for us because we don’t see enough big money in the market
- Gold is trying to break overhead resistance and head back to the upside after its steep drop today
- Crude oil chopping around 76.00 and slowly moving up
- Euro futures are chopping around sideways all morning.

Looking for day trading and swing trading patterns:

Gold Futures:

- We have gold trading at its lows of the day, and lows of the week after breaking through and below 1200,
and now we look for price to return to its previous location earlier today
 o Entry long above 1194.5, and this will be a set of tight targets because we have some well-
defined overhead resistance
o We have a trend line overhead @ 94.0, and we need to make sure we can break above that level
first.
 First target @ 95.5 (1/2)
 Second profit target @ 97.5 (1/4)
 Third target @ 1195.5 just below the big round number, which will act like a magnet for
our trade!

Crude Oil Futures:

- We have the crude oil market in the middle of a sideways wedge candlestick pattern, and this means
consolidating, sideways and choppy price action, we need to wait!
o Our best option is to capitalize on the open space below 75.33 going down to 74.25
o Entry short below 33’s
o First target @ 75.05 (1/2) just above the big round number
o Second target @ 74.75
o Third and final target @74.30

Russell Futures:

- Many of our members are still short the Russell from 24.5 which we called on the blog and in the room
yesterday, this is a nice big winning day trade
- If you’re not short, lets look for the failure of this move down and take the reversal off these new lows
o Entry long above 20.7
o First target @ 24.0 (1/2)
o Second target at 28.0 (1/4) back into the consolidation around the open of the day
o Third and final target @ 33.0 (1/4) as we test the high of day from today’s trading range.

Aussie Dollar:

We’ve been waiting for this short entry for over a week now, the aussie has been sitting on the double-bottom for
some time, and we are about to test that double-bottom, which should act like a magnet for price!

- Entry short below 8640 and look for the first target 5 ticks above that double-bottom
o First target @ 8624 (1/2)
o Second target @ 8565 (1/4)
o Third target @ 8505 (1/4) just above the big round number will take us all the way back down.
 You can also read the tape around 8510 and look for the following:
 Greater speed on the pace of tape indicator
 Big money sellers @ 8505
 Momentum confirming pointing down on the 13-range or 21-range charts
 HOLD THIS TRADE!!!!!
o My next target @ 8420, the next big round number and the OPEN of
the day from 2 weeks ago.