June 28, 2012
- in Uncategorized by schooloftrade
Economic News Review & Dollar Index Correlation Trading Strategy
800am EST
The news review this
morning in our live trade room shows us three big clues.
First, the news was bearish overnight, and if that market sentiment continues
into the US Session we will trade right along with the ‘bears’. Second, there is major news early today so we
need to be ready early, and no major news later in the morning so be aware
things will slow down a little earlier today.
Third, with the EU Summit again tomorrow, and the Holiday next week we
assume price action will slow down dramatically after 1030am EST today.
morning in our live trade room shows us three big clues.
First, the news was bearish overnight, and if that market sentiment continues
into the US Session we will trade right along with the ‘bears’. Second, there is major news early today so we
need to be ready early, and no major news later in the morning so be aware
things will slow down a little earlier today.
Third, with the EU Summit again tomorrow, and the Holiday next week we
assume price action will slow down dramatically after 1030am EST today.
Dollar index futuresare trading in the same narrow range this morning, and anytime we see a narrow range on
the dollar index we know to check the heat map because we may not get any
trading ranges on the market we want to trade.
Remember, a moving dollar index will give us moving markets to trade, so
stay patient today and wait for the best opportunities.
The
dollar index heat map says 0.0% and this tells us two things; first,
there is no strength to the dollar index correlation. Second, the markets we trade are assumed to
also be sloppy, range-bound, and narrow.
The dollar index moves everything else, with expectation to gold futures
and Crude Oil. Crude Oil has a market personality that will from time to time
take off and move without the dollar index.
