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

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Let’s review today’s day trading strategies together in the live trade room

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– European shares traded down pressured by weaker than expected Chinese PMI data. Fears of global slowdown coupled with the Eurozone crisis added to the weakness in global bourses. Various PMI from Europe were also mixed but even more worrying was the disappointing bond auction from Germany. Inf fact, Europe’s safe haven failed to attract bids for 35% of bonds offered, an increase from historical levels of 20%.

– Greece Central Bank issued an interim monetary report which bluntly stated that the country faced the risk of an Euro Zone exit. Public debt was no longer seen as sustainable and country’s Euro zone membership was at stake. Greece must choose between ‘uncontrolled downward trajectory’ outside euro zone or an ‘all out effect’ to fix economy within the Euro. Greece faced a growing credibility deficit and the new Greek gov must restore confidence. Fiscal adj must focus on spending cuts and it warned against possible further tax increases to reduce deficit. The central bank also warned that new EU aid package might be the last chance and that country’s unemployment was a threat to social cohesion.

– German Chancellor Merkel commented that money to defend the euro was limited and could not print money to defend euro.

– Moody’s sovereign credit chief stated that he expected the credit picture in Europe to continue to be quite negative for some time to come

– In recent months, deposits have been pulled from banks in countries including Italy and Spain. According to press releases, various large Spanish and Italian banks have had double-digit percentage drops in deposits from institutional clients. Data from the Bank of Spain revealed that in Q3 the deposit base at Spanish banks declined by €48 billion or 2%.

– Crude oil futures demand is down this morning on lack of demand globally

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Our day trading strategies today will depend on the news, and this morning we have a very busy day to look forward to.  Remember that this is a short week, so most of the news today and early next week will be pushed around from previous day’s of the week.

We begin our day with some major news at 830am EST today.  Durable Goods Orders, Jobless Claims and personal income are all coming out at 830am EST to start our day with a bang.  We then move through the 930am EST US Open at 930am EST and then directly into Consumer Sentiment at 955am EST.  We may not have time between the US Open and the Consumer Sentiment, so watch the clock closely during that time.  After 10am EST this morning we have a minor Natural Gas Report at 1030am EST followed by a very important Crude Oil Inventories report at 1100am EST today. 

The big variable today will be the volume after the 1100am EST news.  With the Holiday on Thursday we assume traders will be leaving their desks quickly after the final news of the day is released at 11am EST, so if that inventory number comes out as-expected, we may see a quick drop in volume as we head into the long weekend.  All the markets are closed on Thursday so there is nothing to wait around for this afternoon.

We will be watching the market personality closely after 1130am EST this morning and will need to really be careful not to force trades later in the morning.

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