Three Fed speakers along with FOMC minutes will make a busy afternoon for Fed watchers.

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The James’ Report: Professional Resources for Professional Traders

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– dollar index trades lower this morning, with more room to drop on the way down. Downtrend on the dollar index means we are looking at buying opportunities at the high-percentage trades this morning, and remember, this can change quickly on the dollar index so keep an eye on the higher-highs or lower-lows on the dollar index looking for current short-term direction and the bias.

up-date @ 900am est

– crude oil trading inside the range from Tuesday right at the PHOD so we are looking for a transition right now. The bull price channel tells us to buy the lows of the price channel and buy the support below the lows of the price channel. It also reminds me to be careful trying to trade into the highs of the price channel. The price wedge tells me to buy the lows and sell the highs of the price wedge, which is also the highs and lows of the ‘inside day’ so buy the lows, sell the highs of the range. If price makes new highs I am buying pullbacks above PHOD up to the major resistance overhead where I will take profit and look for price-reversal trade to take it back down off new highs. If price drops to new lows I will buy the price wedge lows, the price channel lows, the support at 84.52, 83.97 PLOD at the lows. If we break these lows it will be signs of weakness and I will sell retracements aggressively if sellers are in control below the PLOD.

– gold futures trading in a transition this morning above and below the PHOD which gives us plenty of clues. We have a bull price channel, price wedge and buyers and sellers fighting for control at the PHOD. If price rises I’m buying pullbacks above the PHOD up to the price channel highs and the next level of resistance at 94.6. I need to be very careful buying above 94.6 because it will be buying into the highs of the bull price channel. I would rather sell the highs of the bull price channel. As price keeps rising I’m selling at resistance overhead, being very careful not to get wrapped up buying the highs at resistance. If price falls we will sell off below the PLOD and then take profit at the price wedge lows around 74.0 area, we will buy the major support inside the price channel 66.4, 58.2, 57.5 and 55.4 PLOD. I’m buying as price falls because of the bull price channel. Once price breaks the PLOD with new lower-lows I’m selling short down to the BMT which makes a great final target around 1645.8.

– euro currency futures are trading with easy clues this morning. We have an outside day which is above PHOD so we are bullish to begin with. Bear price channel & price wedge tells me that price will try and come back down into the price channel again below us. It appears that the buyers got price above the price wedge highs and price channel highs and now they have a hard time keeping it propped up at these highs, we will be waiting for the price-reversal. If price rises I’m selling at major resistance overhead 3791, 3833, 3925 first, and then with strength from the buyers I will buy pullback above those resistance levels as they become support. If price falls I’m buying the PHOD as support first, and then with new lower-lows below PLOD I will sell retracements as we tumble back into the price channel and the price wedge below us. The goal is to get price below PHOD, below the price channel highs, and then sell down to the PLOD and major support at 1.3557. the party really starts when we get below the PLOD 1.3557 and we can sell below the price wedge highs down into the range below us. Sellers are in control below the PLOD and we want to sell into the price wedge highs as well, so perfect location for short trades below PLOD.

– Russell futures are trading in a major bear price channel, price wedge that is minor, and outside day above the PHOD. We know the bear price channel says to sell the price channel highs, sell the resistance above the highs, and to expect price to fail above the highs and we look to sell the failure and the re-entry back into the price channel below us. We also know that if price can stay above the overhead resistance, it turns into support, and then if the buyers are strong enough we will buy pullback all the way up to the next level of resistance at 708.3 which makes a final profit target for the long trades and an excellent opportunity for a price-reversal trade selling this resistance. If price rises we’re looking for the failure, and then if the buyers are too strong we then buy pullback on the way to the next level of resistance. If price falls off these highs we consider this to be a failed breakout and we want to sell below the PHOD as the buyers failed and the sellers will be in control. I will sell down to the price wedge lows (faster timeframe) and use that as a profit target along with the 77.9 support right there with it. As price drops to the PLOD I will buy at support first, however, I’m looking at the short trade as the high-percentage trades below the PHOD and price channel highs so look for price to move through support and then sell retracement with new lower-lows. The BMT makes a great final target if we break below the PLOD. As price falls I’m buying short-term at major support such as 77.9, 73.5, 66.6, and 60.5 is the BMT. I’m expecting price to move lower, so keeping my eye on new lower-lows to sell retracement below this support and keep price moving lower.

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Around the Globe this morning:

– Slovakia Parliament rejects proposed changes to EFSF in first vote (New vote on EFSF may occur as early as Thursday)

– Senate passes legislation on China currency, as expected; China verbal on such action

– China equity markets continue to respond favorably from supportive hand

– Italy ‘s PM Berlusconi leadership in doubt after failing to pass the government’s 2010 budget review on Tuesday

– UK unemployment Claims not as high as forecasted

– Euro Zone Aug Industrial Production data better than expectations

– Former BoE member Sentence commented in a CNBC interview that further quantitative easing (QE) was a mistake as it would fuel more inflation and not economic growth

– According to the British think-tank the National Institute of Economic and Social Research (NIESR), the UK recovery is expected to be the weakest in almost a century.

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Today’s Economic News:

Day traders have a busy day ahead of them, however, most of it is later in the day, which will make for interesting price action early in the US Morning Session.

We don’t have any major news this morning before the end of the morning, however we have three different Fed Speakers (1:20, 1:30 and 2:15 respectively) and at 2:00pm EST today we have the Fed’s Meeting Minutes which will be on everyone’s radar today.

Volume today will be tough to predict exactly when it will be here, but we know there will be certain times this morning when opportunities will be present and we need to be ready for them. Our first alarm of the Day will be for the US Open at 930am EST and we need to watch the clock around 1045am EST for the market slowing down ahead of the lunch time session. Again, without any major news scheduled the variable is volume throughout the morning, so watch the speed and personality and prepare ahead of time.