Day Traders prep for employment numbers and crude oil inventories

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The James’ Report: Professional Resources for Professional Traders

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– Crude oil futures very sloppy this morning, trading in a price wedge and inside day with sideways trading range. We are 2/3’s of the way to the PHOD and its having trouble. Sell the PHOD as resistance, and if we move higher buying pullback up to resistance at 79.64 and then selling again. If price drops, buying the lows of the price wedge, then selling retracements with new lower-lows.

– Gold futures trading in the lower third of the previous day’s trading range, inside day, with a price wedge and sideways trading range. We can see a recent double bottom which means we will expect price to go from highs to lows of the trading range, sell the highs, buy the lows of this trading range.

– Euro currency futures trading inside day, recently failed to break outside above PHOD, sell this failure at the highs as a bearish sign from the market. Look to sell the highs of the bear price channel if we keep moving higher. Selling retracements down to the lows of the price channel if these higher-highs fail.

– Mini-Russell Futures trading inside day, recently failed its attend to move above PHOD, look to sell this failure if we break back below the PHOD. Look for the 659.7 level as the next target if we keep rising above PHOD, buyers will be in charge.

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Around the Globe this morning…

– Moody’s cuts Italy rating. Sees more EU downgrades.
– EU considers wider Greek write downs. German Chancellor Merkel to meet Troika heads on Oct 6th.
– Japan mulling purchasing more EFSF bonds.
– European PMI Services drop to 2+ year lows

– European shares bounced back during the session amidst reports that the EU was considering several options and devising plans to recapitalize banks and avoid contagion. (another day, another idea)

– According to the Chartered Management Institute (CMI) survey of its 616 member, more than 66% expected the economy to move into a ‘double dip’ recession.

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Today’s Economic News:

Day traders have a busy morning with news today. We begin with 815am ADP Employment, followed by the 930am US open. After 930am we have 10:00am ISM non-Manufacturing, followed by a very important Crude oil inventories at 10:30am today.

We will be watching the market personality on crude oil futures this morning after 10am looking for clues ahead of the major news at 1030am. We use the 3 Phases of Crude oil inventories on Wednesdays. All eyes will be on the volume after 1030am today. If volume is moving quickly we will keep trading, and if it is slowing down we will look for clues for when the morning session is over. We will wait for the 1130am European close to see if we get anything at the end of the morning before we go into members training at 1145am today.