Day Traders look for Durables goods data will offer the complete view of the August manufacturing sector

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The James’ Report: Professional Resources for Professional Traders

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– Crude Oil trading sideways, inside the range from Tuesday, and within our sell-zone from yesterday. Inside day and looking for a reversal back down into the bear channel below us.

– Gold Futures trading sideways, inside the range from Tuesday, and forming a price wedge. Buy the lows and sell the highs of the wedge, expect fake-out breakouts.

– Euro is trading bullishly at the highs of Tuesday’s range, inside day transition, and looking to fill the gap above it, all the way up to 1.3925 which is the high of the trading range. Waiting for confirmation above 1.3662 to buy pullbacks higher.

– Mini Russell is trading in the middle of Tuesday’s range, inside day, as well as the middle of the larger range. Patient to wait for price to move higher or lower, giving us better trading opportunities later this morning

– Influential German consultants said to have come up with a plan (Eureka) to save Greece

– European shares declined interrupting the 3-day rally as uncertainty over the European debt crisis persists. Investors were optimistic at the beginning of the week on hopes that European officials were finally beginning to tackle aggressively with the situation in Greece with new options and discussions. But political discord and German opposition may make negotiations on a new Greek bailout more difficult.

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Today’s Economic News:

Day traders have a busy day this morning with economic news, starting at 830am with Durable Goods Orders, and then later this morning with 10:30am Crude Oil Inventories.

Durables goods data will offer the complete view of the August manufacturing sector so that will affect a lot of markets, crude oil in particular, and then later in the morning we will use the 3 Phases of Crude Inventories to plan our trades around 10am.

We have Ben Bernanke speaking later this afternoon at 5pm EST, however the topic is not that important for day traders so we do not expect that to be an issue.

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Looking at the Charts:

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Euro futures have three clues for us today:

– Inside Day transition

– Bull Price Channel

– Bull Price Wedge

Inside day transition means that buyers pushed price above the PHOD and it FAILED to keep going higher. This is a strong bearish clue, so we sell the break below PHOD.

Now that we are inside the range from Tuesday we will trade within that range, so use the PHOD as resistance and the PLOD as support.

Bull price channel tells me that the higher % trades will be buying (long) today.

Bull price wedge tells me to buy the lows of the wedge and sell the highs.

If price rises i will sell the wedge highs and the range highs as resistance, including the PHOD 1.3662.

If we keep moving higher above the PHOD i will then buy pullbacks with new higher highs, as well as look for the buyers to fail and sell short with a price reversal.

I will also sell the highs of this bull channel.

If price falls im going to continue to sell retracements and 2step patterns on the way down off the highs of the range.

I will be looking to buy the lows of the wedge and bull price channel around 3590 down to 3535 (depends on when we test the lows)

Gold price structures are very easy this morning.

– Price Wedge, multiples

– Bear Price Channel (bias)

– Inside day, personality

Price wedge tells me to buy the lows and sell the highs of the wedge. Also, look for failures at new highs and new lows (fake-out breakouts).

Bear price channel tells me the higher percentage trades will be to the short side (selling).

Inside day tells me to buy the PLOD as support, sell PHOD as resistance, and to buy as price falls, sell as price rises.

The inside day and price wedge have always been very good to us. As price rises im looking for 2-step patterns to sell short. As price falls im looking for 2-step patterns to buy long.

If price rises im selling the highs of the bear channel 1654.6 area, selling the highs of the wedge 1660 area, 1670 area, and up to 1675 area for the shorts. I will also sell the PHOD 1679.2 as resistance, and if we break above the PHOD I will then look for the failure first, and then buy pullbacks with buyers in control.

If price falls on gold i will buy the lows of the wedge starting at 1646.5 area all the way down to 1644.7 major support.

As price drops im buying at major support, including the lows of the wedge, the major support at 1636.0 and the PLOD 1632.5