Day Traders walking on eggshells as law makers look to approved the debt deal today

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The James’ Report: Professional Resources for Professional Traders

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– US debt deal reached but plan still needs to be approved by both houses in Congress (expected later on Monday)

– Market participants await the rating agencies view of the US debt agreement

– PMI Manufacturing data in Asia and Europe registers two-year lows in many instances

– French Budget Min stated that the agreement on US debt ceiling was good news for Europe

– The Telegraph’s Ambrose Evans-Pritchard argued that the EU is facing greater problems than the US. The debt crisis in the US and EU have been feeding into one another, which has led to risk aversion and worsened the problems in the EU peripheral bond markets. The risk of an economic disaster is higher in the EU than the US.

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Today’s Economic News:

Economic news for day traders is rather light this Summer Monday morning. We open the week coming off the approval (in theory) of the debt plan here in the US, however we know that more ‘aftershocks’ are likely to come in this morning off the news wires as more developments come out.

We begin the day with the idea that on a summertime Monday our job is to get into the rhythm of the day/week first, getting our confidence back, and setting us in the right direction for the rest of the day and week.

We begin the day with 930am US Markets Open, followed by 10:00am ISM Manufacturing Data and Construction Spending here in the US.

We will see the dead zone at 1030am this morning slow the markets down as the news is behind us, and we will look for volume to pick up again into the European Close at 11:30am est today.

We don’t know what to expect going into the late morning hours of 11am, so we will watch volume to ensure we only trade when speed and volume are at their best.