Day Trading Strategies for Dollar Index , Euro, Crude, Russell and Gold futures

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The James’ Report: Day Trading Strategies for Professional
Traders

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Around
the Globe this morning:

–
European shares were trading in positive territory but failed to make any
impressive rally due to increasing concerns over the European debt crisis.
Germany’s first estimate of the Q4 GDP showed a contraction although Stats
office noted that 2012 domestic growth could remain robust. However, German
bond auction was well received, with a lower yield and higher bid-to-cover.

– Germany heading towards a technical recession

–
German Chancellor Merkel hosts Italian PM Monti later today

–
Bank proposed Greek bond swap nears deal

–
Germany 5-year BOBL auction yield below 1.0% for the first time ever

– Mitt Romney wins US
New Hampshire Republican Party Primary

Speakers:

–
Germany’s Stat Office commented that German economy started 2012 on a weaker
step but domestic growth could remain robust in 2012

–
Spain’s new government said to force banks to cut the values of foreclosed
homes by as much as half as part of its plan to clean up lenders’ balance
sheets

–
China Premier Wen reiterated the view that the global economic situation was
extremely complicated and that cooperation between US and China is beneficial
while confrontation hurt both countries

–
US Tsy Sec Geithner commented that he did have productive talks with Chinese
leaders and was encouraged by China’s growth trajectory. He also noted that
there has been encouraging signs of strength in US economy recently

–
US Official commented that China did recognize its excessive reliance on
external demand

And
spoke about continued appreciation of the CNY currency

–
EU’s Rehn reiterated his view that might be only at the beginning of the end in
dealing with EU crisis but still had chance of resolving the crisis but bold
decisions were needed. He hoped to conclude discussions on new treaty in coming
weeks and added that a fiscal stimulus in Germany was not the answer the situation
in the Euro Zone. Confident that Greece would reach an agreement with its
creditors in the coming weeks and the country would remain a member of the EMU

Currencies:

–
FX markets were quiet for the majority of the European morning ahead of the
Sarkozy-Lagarde and Merkel-Monti
meetings in Paris and Berlin. Dealers did note that overnight weakness in
EUR/USD still appeared reluctant to test immediately lower and was vulnerable
to any headline excuse for to rally. The
pair did remain within is recent hourly range

Political/
In the Papers:

– The FT reported that there are signs that
the strains in the European funding markets are easing. The benchmark
short-term EU bank lending rates (3-month Euribor) have declined for 14
straight sessions. In addition, the extra premium EU banks must pay to swap
Euros into US dollars has hit the lowest level since late October. This
suggests the ECB’s three-year lending program has helped improve money market
conditions.

–
The concerns among euro zone government officials that Greek bailout costs
could eventually rise is one of the factors which has slowed the debt talks.
There are concerns that EU governments might have to refinance Greece until the
country is able to return to the markets.

–
Certain Spanish banks are developing more properties, despite the declines in
housing prices. There are concerns that the moves to develop additional
properties could worsen Spain’s property glut. Certain banks have been
refinancing loans to developers which are unlikely to be repaid in order to avoid
write downs. Some analysts believe that
Spanish banks have yet to markdown their property assets to realistic levels.

–
The Telegraph reported that analysts at UBS have criticized the Bank of England
(BoE) for not having an emergency support plan for the banking system. The
analysts believe that the lack of a backstop for the banking sector has already
led to higher funding costs for UK banks. Some British banks are paying more to
issue debt than their EU peers.

–
IMF inspectors returned to Ireland to ensure bailout conditions related to
€67.5 billion are met. The fifth report, expected to be completed by
mid-February, is to focus on the government’s reluctance to sell off many
state-owned assets and initiating deep financial sector reforms promised in
prior agreements. The IMF inspectors will meet with government ministers,
Central Bank, NTMA and various think tanks.

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Today’s Economic News:

Our
day trading
strategies today will depend on the news, and this morning the
most important news we have is comes from crude oil futures and the inventories
data to be released at 1030am EST today.
This week has been slow because it’s the first week back from break for
many people, and today we should start seeing the rebound in volume and overall
consistency in the personality of the market.

The
key to day trading crude oil inventories is not to predict how the market will
react. Its often easy to anticipate ho w
the market will react to the news at 1030am however we need to be patient and
let the market as a WHOLE react to the news so we can follow along with the
move. Please note the Beige
Book news at 200pm EST may slow things down a little earlier than normal
today, considering it is a major news event.