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

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The James’ Report: Professional Resources for Professional Traders

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

Dollar Index trading in a bull channel, inside the range from wednesday, and price wedge.

Dollar Index 13 range chart shows us a bear price channel, which is used for short term market sentiment.

Crude Oil futures shows us bull price channels, inside day, and a price wedge. buy the channel lows, but look for the support to break and then sell the break down to the next support level below.

Euro Futures trading in a price wedge, inside the range from yesturday and ready to break back up into the wedge above us. remember to use the dollar correlation with the euro.

crude Oil 21range chart shows us a bull price channel, buy the lows and sell the highs of this channel.

Crude Oil SPEED is very low for this time of the morning, lets stay patient.

DOLLAR-UPDATE! New Trigger Zone on the 13range of the dollar tells us this MAY be the reversal we need back HIGHER to start selling off on the Euro, Gold, Crude, and Russell

Russell Futures trading in a price wedge, inside the range from wednesday, so buy the lows, sell the highs, and look for this 89range wave short to trigger and look for selling retracements down to the wedge lows.

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Around the Globe this morning:

– European shares pared losses and traded in positive territory throughout the session. Rumors were rampant in the market today and included an emergency ECB meeting and a commitment from ECB to buy unlimited amount of Italian bonds following the creation of a new government. PM Berlusconi who said he would resign at the passage of austerity measures, fueled even more uncertainty in the markets which pushed Italy’s yields higher above the critical 7% level. Italy’s auction was the most expensive since September 1997.

– Fresh claims that Italy 2012 budget law to be approved by Saturday; PM Berlusconi to resign from post by Sunday with possible backing of Monti as the next PM

– Question arise on what can be done to limit the potential contagion effect from Europe as tools seem increasingly limited

– Renewed chatter that ECB might commit to buying unlimited amount of Italian bonds after a new government is installed

– China’s Oct Trade surplus lower than expectations but exports show weakest growth in eight months

– Japan machine orders weaker than expected

– BoE policy decision not expected to result in another policy change after Oct increase in its QE program

– Italy sold 12-month bills at 6.09% (highest since Sept 1997)

– Barclays issued a report, stating that when yields went above 7%, Greece lasted 13 days before needing a bailout; Ireland lasted 15 days, while Portugal took 49 days to request a bailout. The comments came as Italy yields have moved above 7%.

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Today’s Economic News:

Our day trading strategies today will depend on the news. We begin the day this morning at 830am EST with three major news events. Jobless Claims most important, followed by International Trade and Import/Export Prices.

We then move through the 930am US Open, into the 1030am Natural Gas Inventories, which we will not worry about b/c we don’t trade nat-gas (low volume), and then we have Ben Bernanke back on the stage late this morning at 1145am EST before we wrap up our day.

With news coming out of Europe regarding more stimulus, Bernanke speaking at 1145am, and the Veterans Day Holiday in the US on Friday, the end of our morning may be a little slow. Once the reaction from our 830am news and the US Open wears off we may have low volume, so look for clues in market sentiment from speed, average true range, and momentum.