Schooloftrade.

com Market Commentary 8-11-10

815am est

Crude Oil Futures:

- Slower timeframe shows a wedge pattern that has recently been tested and broken to the downside.
- Im looking for a short entry below 79.00 being sure not to fall victim to an early entry and a possible fake-
out breakout.
- This trade was called on our blog last night http://700bucksaday.blogspot.com/2010/08/nightly-review-
for-tomorrow-day-trading.html, so we have had plenty of time to prepare for this entry below 79.00
- Im seeing very slow speed of the time and sales and when I read the tape I can see we have very FEW big
money buyers and sellers today
- This is a concern because we need size and speed to make our day trading more effective.
- Our fast timeframes show us at the lows of the channel, and we can see plenty of buying opportunity at
these lows, but the speed of the market is very slow at this time of the morning.
- We have to remember that volume will always be a concern in the early morning of August.

Gold Futures:

- Our slower timeframe shows us at the highs of the wedge pattern with 2 levels above us for a short entry
at the highs.
- We also notice that the speed and the action in gold futures appear to be more than it was earlier this
week.
- Fast timeframe also shows a sideways wedge pattern and it also shows us at the highs of this wedge.
- Im looking to sell the highs of the wedge, but as of this moment we need to wait fro a break below 1206.3
for my scalping or day trading short entry.
- We took our first trade of the day for a small winner on gold futures when we saw the new test of the top
of the wedge
- We only got our first target filled and then bounced out of the trade on the retracement, and then speed
slowed down so we need to wait for better speed to proceed with Gold.

Euro Futures:

We had a nice move down from the short trade called on the blog last night from 3073 down to 2950

We now see the euro futures trading at the lows of this wedge pattern, and we need to be careful selling the lows
as a scalper or a day trader, so keep an eye on the big picture (34-range)

The fast timeframe shows a very well defined bearish channel pattern, which formed when the dollar broke highs
and the euro dropped afterwards.

1020am EST
 - We’re watching the euro and we’re using the dollar index to plan our entry
- Dollar is trying to break out of sideways chop, and when it does that will trigger the entry on the Euro (any
currency future will apply)
- Entered short on the euro when the dollar broke the highs, and then flattened our euro trade before
getting stopped out when we saw the dollar index MOMENTUM indicator turn and point DOWN, which
means the EURO should be going UP, and that’s when I need to get out of my short trade.

1030am EST

- We just watched the crude oil inventories news release and the crude market is sitting very slow and
sluggish.
- We often see very challenging price action on Crude Oil before and after the news release, and
considering the day its been today with low volume and difficult confirmation we will wait to see what
happens next.

1130am EST

- We’ve been trying to get a grip on crude oil futures as they keep dropping, but momentum is oversold
across all timeframes so we had to wait
- The euro also has been dropping with the dollar making new highs, and we grabbed a few ticks out of the
euro on the way down
- Now after 11am EST we are seeing a strong slowdown in volume, and it appears the momentum
indicators are showing a lagging result because of this low volume.