October 17, 2013
- in Uncategorized by schooloftrade
Morning Prep 10/17/13; SchoolOfTrade.com
7:30am EST
Focus-Points this
morning:
morning:
·
US Govt Shutdown ends
· Senate voted overwhelmingly 81-18 in
favor of the end of govt shutdown and debt limit extension
favor of the end of govt shutdown and debt limit extension
· Analysts expect the Govt Shutdown to
cost the US GDP 0.6% this year
cost the US GDP 0.6% this year
· Traders are waiting this morning to
learn when the delayed news data will be released
learn when the delayed news data will be released
· September’s Non-Farm Payroll news is
one of the most anticipated news releases to be announced this week
one of the most anticipated news releases to be announced this week
· In Europe, UK Retail Sales rise to
new highs, while Spain’s bond auction was a big success
new highs, while Spain’s bond auction was a big success
· Chinese rating agency Dagong cuts the
US sovereign rating to A-, sending the dollar lower against the euro overnight
US sovereign rating to A-, sending the dollar lower against the euro overnight
· Gold reacts to the US rating cut by
pushing back above $1,300 in overnight trading
pushing back above $1,300 in overnight trading
· Wednesday’s Fed Beige Book: The Economy grew at a modest to moderate pace
in most districts, with most surveys completed before the shutdown
in most districts, with most surveys completed before the shutdown
Economic News on the
schedule today:
schedule today:
With the US Govt back open for operations this morning, we will be watching for global reaction to developments in
Washington to set the tone for today’s session.
Washington to set the tone for today’s session.
We
have a lot of news on the calendar this morning, however most of it has been
delayed by the US Govt Shutdown.
have a lot of news on the calendar this morning, however most of it has been
delayed by the US Govt Shutdown.
Traders
will be listening closely today and tomorrow to hear when this news will be
released. We can expect today’s price-action
to be subdued because of this lack of clarity on the news.
will be listening closely today and tomorrow to hear when this news will be
released. We can expect today’s price-action
to be subdued because of this lack of clarity on the news.
8:00am
EST: Richard
Fisher Speaks
EST: Richard
Fisher Speaks
8:30am
EST:Housing
Starts (delayed by Govt shutdown)
EST:
Starts
8:30am
EST: Jobless
Claims
EST: Jobless
Claims
8:15am
EST:Industrial
Production (delayed by Govt shutdown)
EST:
Production
10:00am
EST: Philly
Fed Survey
EST: Philly
Fed Survey
10:30am
EST:Nat
Gas Inventories(delayed by Govt shutdown)
EST:
Gas Inventories
11:00am
EST:Crude
Oil Inventories(delayed by Govt shutdown)
EST:
Oil Inventories
Levels this morning:
Euro Currency
Futures:
Futures:
VAH 3554 / VAL 3494
PHOD 3571 / PLOD 3475
Bullish = Open > 3571
Bearish = Open < 3475
 |
| Euro VIP Chart |
The euro traded in a very wide range on Wednesday, expanding the
range from Tuesday and finishing the session at the highs of the day. In overnight trading the Dollar-Index was
pushed lower after news from China’s rating agency cut the US rating to A-, sending
the Euro higher when compared to the USD.
This Euro strength may be short-lived this morning, we will be watching
for a price-reversal in the Dollar-Index which would send the Euro back into
the trading-range from earlier this week.
As with most markets this morning, after the US shutdown ended we must
be patient to wait and see how the global markets are going to react to
it. If the euro collapses in the US
trading session we will be selling short back to the range from Wednesday,
however if the buyers don’t give up on it we will continue to buy pullbacks with
the new bullish trend. Only time will
tell this morning!
range from Tuesday and finishing the session at the highs of the day. In overnight trading the Dollar-Index was
pushed lower after news from China’s rating agency cut the US rating to A-, sending
the Euro higher when compared to the USD.
This Euro strength may be short-lived this morning, we will be watching
for a price-reversal in the Dollar-Index which would send the Euro back into
the trading-range from earlier this week.
As with most markets this morning, after the US shutdown ended we must
be patient to wait and see how the global markets are going to react to
it. If the euro collapses in the US
trading session we will be selling short back to the range from Wednesday,
however if the buyers don’t give up on it we will continue to buy pullbacks with
the new bullish trend. Only time will
tell this morning!
Targets above: 3649, 3891
Targets below: 3637, 3625, 3611, 3602, 3592, 3585, 3572
Gold Futures:
VAH 1281.6 / VAL 1273.0
PHOD 1282.9 / PLOD 1268.6
Bullish = Open > 1282.6
Bearish = Open < 1268.6
 |
| Gold VIP Chart |
Gold Futures traded in a very narrow range on Wednesday, just
above the range from Tuesday and closing near the highs of the day. This price-action suggested that today would
be a breakout type of trading session, and it certainly did so overnight. In overnight trading Gold was affected by the
China rating cut, which pushed the Dollar-Index lower, euro and gold much
higher. It’s hard to tell how the market
personality will be this morning at the opening-bell at 820am EST. We may see these prices come all the way back
down into the range from Wednesday, or we may see this strength continue. In either scenario we must stay patient this
morning to see how the opening-print looks at 820am EST before we will be able
to tell what today’s trading session will bring.
above the range from Tuesday and closing near the highs of the day. This price-action suggested that today would
be a breakout type of trading session, and it certainly did so overnight. In overnight trading Gold was affected by the
China rating cut, which pushed the Dollar-Index lower, euro and gold much
higher. It’s hard to tell how the market
personality will be this morning at the opening-bell at 820am EST. We may see these prices come all the way back
down into the range from Wednesday, or we may see this strength continue. In either scenario we must stay patient this
morning to see how the opening-print looks at 820am EST before we will be able
to tell what today’s trading session will bring.
Targets above:
1315.4, 1318.6, 1322.2, 1323.6, 1330.8
1315.4, 1318.6, 1322.2, 1323.6, 1330.8
Targets below: 1312.0, 1303.3, 1300.4, 1296.0, 1293.4,
1287.1
1287.1
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Crude Oil Futures:
VAH 102.83 / VAL 101.77
PHOD 102.97 / PLOD 100.75
Bullish = Open > 102.97
Bearish = Open < 100.75
 |
| Crude Oil VIP Chart |
Crude Oil Futures traded higher on Wednesday breaking above
multi-day highs, however closing well off those highs at the end of the
session. With the news from the US govt
shutdown, we expected to see Crude Oil prices moving much higher in overnight
trading (see Gold and Euro above), but this morning we see prices are right
about un-changed since we closed on Wednesday.
If we open the day at 900am EST inside the range from Wednesday we can
assume that the market personality is in balance and we will wait patiently to
see who takes control after the opening-bell.
Please remember, news will be coming out periodically today and tomorrow
that will undoubtedly push these prices around, so we must be patient and wait
for our trading opportunities today.
multi-day highs, however closing well off those highs at the end of the
session. With the news from the US govt
shutdown, we expected to see Crude Oil prices moving much higher in overnight
trading (see Gold and Euro above), but this morning we see prices are right
about un-changed since we closed on Wednesday.
If we open the day at 900am EST inside the range from Wednesday we can
assume that the market personality is in balance and we will wait patiently to
see who takes control after the opening-bell.
Please remember, news will be coming out periodically today and tomorrow
that will undoubtedly push these prices around, so we must be patient and wait
for our trading opportunities today.
Targets above:
103.20, 103.55, 103.70, 103.90, 104.08
103.20, 103.55, 103.70, 103.90, 104.08
Targets below: 101.11, 101.06, 100.92, 100.75, 100.60,
100.00
100.00
