SchoolOfTrade.com Nightly-Newsletter 05/05/14 Click here to register for the Free Trial!

================================================= “The meeting of preparation and opportunity generates the offspring we call luck.”

Today’s Newsletter:

Markets Today: Crude Oil tumbles, Gold waits, Mini-Russell goes sideways

News Today: China Manufacturing, Non-Farm Payrolls, Violence in Ukraine

News for Tomorrow: International Trade, more from Ukraine

Trading Opportunities: Buy lows, sell highs on Mini-Russell, Short on Crude

Oil, and Buying on Gold Futures

The Markets Today:

Crude Oil:

Crude Oil opened the session today in the US right at the highs of Friday’s range

but then pushed lower the rest of the session, closing below the key $100/barrel.

We pushed below the previous week’s close at 99.81 and we can see the volume

footprint confirms the sellers were indeed in control all session.

Notice the previous week’s low at 98.80 is begging to be tested overnight or

tomorrow morning.

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Gold:

Gold moved Higher overnight in the London session, but once we opened the

session for the day here in the US it ran out of momentum and began to collapse

off those highs.

Look at the VERY narrow trading-range on Gold this morning, which tells us the

traders on Gold are waiting on something.

What could they be waiting for? Later this week we have an important ECB

meeting on Thursday, which is likely what traders are waiting for at this time.

Notice the previous week’s closing price down at 1300.4 will act like a price-

magnet and the previous week’s low down at 1272.0 will also be weighing on the

price if these buyers don’t pick up the pressure.

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Mini-Russell:

Mini-Russell gapped-down at the opening-bell this morning, tested the 1109.5

support from last Thursday, and then traded sideways for the remainder of the

session.

The biggest clue on this chart is where we finished the session today. We finished

the day near the previous week’s closing price, which is also where the most

volume was traded today.

The Mini-Russell is completely ‘balanced’ at this time, which tells us to buy-the-

lows at support and sell-the-highs at resistance until we find a trend to follow.

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News Today:

The markets got off to a rocky-start this week after a 4th consecutive month of

disappointing manufacturing news from China. This is quickly becoming a VERY

big concern for the global economy.

In addition to China, we heard about more violence in Ukraine, which surprisingly

didn’t impact Crude Oil Futures too much, which suggests the majority of Crude

Oil traders are concerned with China more than the issue in Ukraine.

April’s ISM Non-Manufacturing Index pushed higher again today to 55.2, which is

the fastest pace of expansion in eight months here in the US.

Remember that little issue with Target Stores losing MILLIONS of people’s

information over the Holiday Season? Yep…CEO Greg Steinhafel was forced to

step down today.

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This Day in History:

May 5, 1862: “Cinco de Mayo” is born. During the French-Mexican War, a poorly

supplied and outnumbered Mexican army under General Ignacio Zaragoza defeats

a French army attempting to capture Puebla de Los Angeles, a small town in east-

central Mexico. Victory at the Battle of Puebla represented a great moral victory

for the Mexican government, symbolizing the country's ability to defend its

sovereignty against threat by a powerful foreign nation.

May 5, 1961: The First American goes into Space. From Cape Canaveral, Florida,

Navy Commander Alan Bartlett Shepard Jr. is launched into space aboard the

Freedom 7 space capsule, becoming the first American astronaut to travel into

space. The suborbital flight, which lasted 15 minutes and reached a height of 116

miles into the atmosphere, was a major triumph for the National Aeronautics and

Space Administration (NASA).

May 5, 1904: Cy Young throws perfect game. Boston Red Sox pitcher Cy Young

throws a perfect game against the Detroit Tigers, who had fellow future Hall of

Fame pitcher Rube Waddell on the mound. This was the first perfect game of the

modern era; the last had been thrown by John Montgomery Ward in 1880. It was

the second of three no-hitters that Young would throw, and the only perfect

game.

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News Tomorrow:

Tomorrow’s (Tuesday) economic news begins in Australia overnight and then

moves into Europe and later into the US morning session.

We have a TON of important Red-Star News on the calendar, so we are expecting

to see some awesome trading opportunities tomorrow.

In Europe, we have a lot of news on the schedule, but the most important will be

the Retail Sales at 5:00am EST.

In the US, we have Red-Star News at 8:30am EST to get us moving quickly after

we open our Live Trade Room at 8:00am EST.

12:30am EST: (AU) RBA Announcement

3:50am EST: (FR) Manufacturing

3:55am EST: (DE) Manufacturing

4:00am EST: (EU) Manufacturing

4:30am EST: (GB) Manufacturing

5:00am EST: (EU) Retail Sales

8:30am EST: (US) International Trade

10:00am EST: (CAD) Ivey Manufacturing

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Day Trading Opportunities for Tomorrow:

Crude Oil:

Crude Oil Anchor Chart:

Crude Oil is pushing lower this evening after a down-trend in today’s trading

session pushed prices back below the $100/barrel big-round-number.

Our day trading strategy for Crude Oil is to sell short using the Wave

Pattern around the sell-zones overhead at 100.11 and 100.47.

We have profit-targets below us at 98.74, the lows of the price channel, 97.70 and

all the way down at 96.99.

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

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

Gold:

Gold Anchor Chart:

Gold pushed higher this morning in the London trading session and then has been

pulling back all day today in the US session.

We can clearly see a bullish trend on Gold, which means our day

trading strategy, will be to look for buying opportunities as this price

moves into the buy-zones below us at 1307.6, 1302.9, and even down

to 1293.9.

Furthermore, we can see a trend-line acting as support to use for buying

opportunities as this price pulls back as well.

Another thing to remember is that if these buyers don’t keep this price-action

above the 1298.5 key moving-averages we will be able to sell short down to

1293.9 and then look for another buying opportunity tomorrow morning.

We have a profit-target overhead at the 1317.9 sell-zone and we will be patiently

waiting for trading opportunities this evening and into tomorrow morning.

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 Anchor Chart:

The Mini-Russell is trading in a price wedge this evening after trading in a narrow

trading-range for most of the US session today.

We are in the middle of this trading-range right now, and if you look closely you

can see all the key moving-averages are flat and right on top of us.

Our day trading strategy for the Mini-Russell is to be patient and wait

for price to move to the LOWS so we can buy the lows using the buy-

zones at 1115.0, 1113.1, 1105.7, and even down at 1097.4.

In addition to buying the lows, we will also be looking for selling opportunities at

the highs of this range at 1130.4, 1133.1, 1136.4, and the major highs at 1153.5.

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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