June 2, 2011
Dollar Rollercoaster continues to give us high percentage day trading opportunities Crude Oil and Gold
The dollar index jumped late Wednesday on news out of Europe, which was compounded by a lack of confidence sentiment in Japan overnight in Asia, sending everything higher, and finally finding itself all the way back down to where the move originated, almost 18 hours later.
This type of move out of the dollar has been common, which further confirms our need to be able to trade these sideways markets that will be in our trading future for months to come.
Everyone’s eyes will be on crude oil this morning, we have inventories at 11:00am est this morning. All reports going into the news are reporting heavy stockpiles of crude oil coming from the lack of global demand and supply going into the warm (and busy) summer months ahead. It will be interesting to see how the market reacts today. Everyone trades this news on WEDNESDAY, and today is Thursday (the Holiday was Monday) so volume should be lower than normal, making this news event a ‘red flag’ on my list today. I will be watching this closely, being careful not to get caught in the whippy price action leading up to the news.
We begin our day today with Jobless Claims and Productivity Costs at 830am est. These are two important events which should be good for volume in the markets.
We then have to wait through the US Open at 930am to get to 1000am Factory Orders, 1030 Natural Gas Report, and then finally we get to the main event…Crude Oil Inventories at 1100am.
This means we may have to wait for some good Crude Oil trades, but you never know, and with news throughout the morning we have a good chance of an early morning move.
We have very important news on Friday morning, NonFarm Payrolls, which means we do not expect a golden lunch this morning as traders will be packing up early and preparing for Friday’s jobs report.
