Traders react to Obama, Bernanke and Hurricanes

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The James’ Report: Professional Resources for Professional Traders

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– Bottom Drops out of Crude Oil as recovery fears overcome Hurricane Fears

– Gold finds resistance as traders take more profits and the Dollar rises after Obama

– China inflation in line with expectations

– Obama asks Congress for $447B in tax cuts, spending to increase jobs

– IMF said to be pushing a few, big measures to fix Greece’s finances

– Euro hits 6-month low against USD

– Deadline for investor deadline to participate in the Greek bond swap is today

– Bernanke’s speech on US economic outlook did not soothe investors’ worries over the global recession as Fed’s chairman gave no indication of further stimulus. President Obama urged the Congress to enact a $447B package of tax cuts and new spending in order to bring back to life the job market. However, investors remain skeptic believing that the Congress may not pass it due to lack of support from Republicans. Banks suffered the heaviest losses.

– Former Bank of England member Kate Barker sees significant risk of a UK double dip recession

– Rating agency Fitch warned it could downgrade the credit rating of China and Japan within two years.

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Today’s Economic News:

Looking at the news this morning for day traders, we know that today is Friday of this transitional week. We are expecting an active day today, however, Friday’s always tell us to watch the clock closely. We will expect volume early, then tapering off around 11am est this morning.

We do not have any major economic news today, so we will be looking for comments from the White House, the ECB, and possible Hurrican updates to give us trading opportunities today.

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Looking at the Charts:

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Our plan of attack for crude oil:

Outside day (below the PLOD) tells me to sell retracements with new lower lows and look for those runners to extend your trades. Expect breakouts on an outside day.

Price Wedge tells me to sell the highs of the wedge, buy the lows of the wedge, and avoid the middle.

The middle of this wedge is 86.50 so use that as a final target for your short trades, however, be very careful entering trades around that area.

Bear channel goes right along with the outside day below the PLOD. We want to sell retracements with new lower lows, and sell at resistance when price rises up.

As we keep making new lows im selling retracements, keeping an eye on the middle of the range around 86.50

Im also looking for price to rise and short positions at levels of resistance, however, if we rise up above the PLOD 88.36 then the BUYERS are back in charge and we begin looking to buy.

We aren’t THAT far outside of the range from Thursday, so if we fail at new lows and go back above the PLOD this is a very bullish sign and we will trade long up to the PHOD 90.23

Gold Futures gives us three price structures today:

Inside day tells me to buy the lows and sell the highs. Sell the PHOD as resistance. Buy the PLOD as support.

Price Wedge tells me the exact same thing.

Sideways range gives me resistance overhead to sell, and support below to buy as price tries to move higher or lower.

As price rises im looking to sell first, and then with strong buying i can buy pullbacks with new higher highs above 1856.0

The OPEN at 1894.9 is a great final target for buying opportunities. Beware trading again around the OPEN.

Also keep an eye on the highs of the wedge just below the OPEN as your final target, then look to sell the highs of the wedge, but beware trading around the open.