February 1, 2012
- in Uncategorized by schooloftrade
Day Trading Strategies for Dollar Index , Euro, Crude, Russell and Gold futures
—————————————————————————————
The James’ Report: Day Trading Strategies for Professional Traders
—————————————————————————————
***Notes/Observations
from around the world***
from around the world***
–
European shares rose on the session lifted by mining stocks which rallied after
Chinese manufacturing rose to a 4-month high.
European shares rose on the session lifted by mining stocks which rallied after
Chinese manufacturing rose to a 4-month high.
–
Far East and European PMI manufacturing better than expected; China seen
avoiding a hard landing
Far East and European PMI manufacturing better than expected; China seen
avoiding a hard landing
–
Market starting to take notice that French President Sarkozy was lagging in
polls in the upcoming April elections
Market starting to take notice that French President Sarkozy was lagging in
polls in the upcoming April elections
–
More Doubts over Greek resolution
More Doubts over Greek resolution
Speakers:
–
German Fin Min Schaeuble commented in the German press that he assumed the ESM
size of €500B would suffice and reiterated that the ESM would be reviewed at
the March EU Leader Summit. He stated that Italy had made great strides under
the reign of PM Monti and reiterated that implementation of reforms was
necessary for Greece before additional aid is provided
German Fin Min Schaeuble commented in the German press that he assumed the ESM
size of €500B would suffice and reiterated that the ESM would be reviewed at
the March EU Leader Summit. He stated that Italy had made great strides under
the reign of PM Monti and reiterated that implementation of reforms was
necessary for Greece before additional aid is provided
– (EU) ECB Publishes Bank Lending Survey:
Banking sector tightened credit standards in Q4 amid worsening economic
conditions and sovereign debt crisis.
The tightening was widespread except in Germany with a big number of
banks experiencing significant Q4 funding problems. The ECB saw an
intensification of lending restraints in Q1. Hopes of better Q1 funding access
might reflect the 3-year LTRO operation
Banking sector tightened credit standards in Q4 amid worsening economic
conditions and sovereign debt crisis.
The tightening was widespread except in Germany with a big number of
banks experiencing significant Q4 funding problems. The ECB saw an
intensification of lending restraints in Q1. Hopes of better Q1 funding access
might reflect the 3-year LTRO operation
–
BoJ official Nakaso commented it was committed to continuing with zero interest
rate policy until price stability was within sight
BoJ official Nakaso commented it was committed to continuing with zero interest
rate policy until price stability was within sight
–
India said to have increased benchmark import price of gold to $55.6/gram; increased
import price of sliver to $1,067/kg
India said to have increased benchmark import price of gold to $55.6/gram; increased
import price of sliver to $1,067/kg
–
China said to implement lower RRR for some small lenders as Premier Wen seeks
to support small business
China said to implement lower RRR for some small lenders as Premier Wen seeks
to support small business
–
Soc Gen economist Wei commented that the recent China PMI data might delay a
RRR rate cut by the PBoC until March
Soc Gen economist Wei commented that the recent China PMI data might delay a
RRR rate cut by the PBoC until March
–
IMF’s Thomsen commented on Greece that discussions on the new program would be
completed very soon
IMF’s Thomsen commented on Greece that discussions on the new program would be
completed very soon
–
IAEA chief nuclear inspector Nackaerts commented that the recent Iranian visit
was ‘positive’ but added there was still work to do with Iran over its
contested atomic program. He stated that the IAEA was committed to resolving
all the outstanding issues and the Iranians said they were committed too
IAEA chief nuclear inspector Nackaerts commented that the recent Iranian visit
was ‘positive’ but added there was still work to do with Iran over its
contested atomic program. He stated that the IAEA was committed to resolving
all the outstanding issues and the Iranians said they were committed too
Currencies:
–
Better PMI data help to bring the Euro off its late Asian session lows of
1.3030 to test above the 1.3130 level ahead of the NY morning. The PMI data
help to sooth off the initial mood in Europe
of caution with lingering concerns over the Greek PSI negotiations and a
pending test of Portugal’s ability to raise short-term funds after a recent
surge in its long-term bond rates. There
have been concerns that the country might be forced to follow Athens and seek a
new bailout. Nonetheless the risk-on sentiment was prevalent throughout the
session.
Better PMI data help to bring the Euro off its late Asian session lows of
1.3030 to test above the 1.3130 level ahead of the NY morning. The PMI data
help to sooth off the initial mood in Europe
of caution with lingering concerns over the Greek PSI negotiations and a
pending test of Portugal’s ability to raise short-term funds after a recent
surge in its long-term bond rates. There
have been concerns that the country might be forced to follow Athens and seek a
new bailout. Nonetheless the risk-on sentiment was prevalent throughout the
session.
Political/
In the Papers:
In the Papers:
–
Germany was said to be continuing to push for budgetary controls over Greece.
During yesterday’s session, EU official Juncker said the issue of a Greek
budget commission was ‘off the table’.
Germany was said to be continuing to push for budgetary controls over Greece.
During yesterday’s session, EU official Juncker said the issue of a Greek
budget commission was ‘off the table’.
–
Telegraph’s Evans-Pritchard noted the resilience of the German labor market, which
illustrated the divide between the Northern and Southern European economies.
His comments on a FT Deutschland article suggested that Berlin is discussing
plans for a €1.5 trillion ‘mega fund’ in conjunction with the IMF, although
details were not disclosed. Markets are divided on whether Merkel is playing
hardball to get Greece to increase its fiscal discipline or if she is willing
to have Greece default and exit the EU.
Telegraph’s Evans-Pritchard noted the resilience of the German labor market, which
illustrated the divide between the Northern and Southern European economies.
His comments on a FT Deutschland article suggested that Berlin is discussing
plans for a €1.5 trillion ‘mega fund’ in conjunction with the IMF, although
details were not disclosed. Markets are divided on whether Merkel is playing
hardball to get Greece to increase its fiscal discipline or if she is willing
to have Greece default and exit the EU.
–
German Bundesbank board member Boehmler said a Greek default or EU exit would
cause significant turbulence in financial markets. The official was positive on
the reforms being made by Ireland and Portugal, but said Greece is the biggest
question mark. The German press article concluded with Boehmler stating that
the Bundesbank is ‘firmly convinced’ that the euro will outlast the debt
crisis.
German Bundesbank board member Boehmler said a Greek default or EU exit would
cause significant turbulence in financial markets. The official was positive on
the reforms being made by Ireland and Portugal, but said Greece is the biggest
question mark. The German press article concluded with Boehmler stating that
the Bundesbank is ‘firmly convinced’ that the euro will outlast the debt
crisis.
—————————————————————————————
Today’s Economic News:
Our
day trading
strategies today will depend on the news, and this morning we get
our day started with the ADP employment report, which leads our major news Non
Farm Payrolls on Friday morning. Job
creation is SO important to any economy and this report is simply the data
collected by ADP, the nation’s largest payroll services provider. We want the highest reading we can get with
the ADP report, and this will be used to interpret the NFP number on Friday.
day trading
strategies today will depend on the news, and this morning we get
our day started with the ADP employment report, which leads our major news Non
Farm Payrolls on Friday morning. Job
creation is SO important to any economy and this report is simply the data
collected by ADP, the nation’s largest payroll services provider. We want the highest reading we can get with
the ADP report, and this will be used to interpret the NFP number on Friday.
How
do we trade this news? A higher than
expected reading will be good for the recovery which means crude oil futures will
rise, euro currency futures will fall, and gold futures will likely fall as
well.
do we trade this news? A higher than
expected reading will be good for the recovery which means crude oil futures will
rise, euro currency futures will fall, and gold futures will likely fall as
well.
 |
| ADP Employment News |
One
of the biggest news this morning for crude oil futures (nope not bigger than
the inventories at 1030am today, is the ISM Manufacturing Index, which will be
a reflection of the strong news we’ve seen from New York and Philly Fed
Manufacturing Survey’s last 2 weeks. You
can see the end of 2011 was dismal for this report but much like other news
we’ve seen the start of 2012 is looking bright.
Will this strength in the manufacturing sector continue tomorrow?
of the biggest news this morning for crude oil futures (nope not bigger than
the inventories at 1030am today, is the ISM Manufacturing Index, which will be
a reflection of the strong news we’ve seen from New York and Philly Fed
Manufacturing Survey’s last 2 weeks. You
can see the end of 2011 was dismal for this report but much like other news
we’ve seen the start of 2012 is looking bright.
Will this strength in the manufacturing sector continue tomorrow?
How
do we trade the ISM Manufacturing report?
A higher than expected reading will sends signs to consumers that they
have jobs waiting for them in machine shops and factories, and that will drive
demand for crude oil futures so crude prices will rise with higher
readings. On the flip side if this
number comes out lower than expected we can assume the demand for ‘black gold
futures’ will drop, and the real gold will rise out of fear of another recession.
do we trade the ISM Manufacturing report?
A higher than expected reading will sends signs to consumers that they
have jobs waiting for them in machine shops and factories, and that will drive
demand for crude oil futures so crude prices will rise with higher
readings. On the flip side if this
number comes out lower than expected we can assume the demand for ‘black gold
futures’ will drop, and the real gold will rise out of fear of another recession.
 |
| ISM Manufacturing Index News |
Crude
oil inventories is the biggest news of our morning and it’s a unique news event
in the sense that it has the entire market’s attention for almost 12
hours. No other market watches one
single news event like crude oil futures will be watching this report, and
because of that we trade it a little differently. First, we know today will be possibly
sloppier at the start of the morning considering that traders MAY be trading
lightly waiting for this news, but I wouldn’t worry too much as long as market
personality is there. By 1015am EST this
morning we need to be sitting on hands trading Crude because the volume will
drop and the price will get thin and whippy making it hard to make money ahead
of 1030am EST. I will trade crude today
until 1015am and then I need to wait for 1035am after the news is released to
enter my first trade. I do NOT want to
jump into the market too early after the news either because its easy to THINK
we know where price SHOULD go, but we still need to get the market’s ‘approval’
and then trade with the majority of the traders in the market. Simply put, even if I know where this price
is going I need to wait for the masses to confirm this as well, so I wait for
1035am EST to enter my first trade.
oil inventories is the biggest news of our morning and it’s a unique news event
in the sense that it has the entire market’s attention for almost 12
hours. No other market watches one
single news event like crude oil futures will be watching this report, and
because of that we trade it a little differently. First, we know today will be possibly
sloppier at the start of the morning considering that traders MAY be trading
lightly waiting for this news, but I wouldn’t worry too much as long as market
personality is there. By 1015am EST this
morning we need to be sitting on hands trading Crude because the volume will
drop and the price will get thin and whippy making it hard to make money ahead
of 1030am EST. I will trade crude today
until 1015am and then I need to wait for 1035am after the news is released to
enter my first trade. I do NOT want to
jump into the market too early after the news either because its easy to THINK
we know where price SHOULD go, but we still need to get the market’s ‘approval’
and then trade with the majority of the traders in the market. Simply put, even if I know where this price
is going I need to wait for the masses to confirm this as well, so I wait for
1035am EST to enter my first trade.
How
do we trade Crude oil inventories? We
need to take into account both the inventories number and the demand
number. The demand number is released
moments after the inventory number is released and the DEMAND is what
determines how I trade the news that comes out.
do we trade Crude oil inventories? We
need to take into account both the inventories number and the demand
number. The demand number is released
moments after the inventory number is released and the DEMAND is what
determines how I trade the news that comes out.
 |
| Crude Oil Inventories |
Today
is going to be another great opportunity to follow a simple trading plan, and
I’m looking forward to helping you follow your trade plan and profit along with
me as a member of our community today!
is going to be another great opportunity to follow a simple trading plan, and
I’m looking forward to helping you follow your trade plan and profit along with
me as a member of our community today!
 |
| Economic News for Day Trading Strategy |
Please SHARE this resource with
friends, they want to learn this too!
friends, they want to learn this too!
—————————————————————————————
I use TradeTheNews.com for my live news data, and
I highly recommend it to all of my clients looking for this type of data. We have partnered with TTN to provide a FREE
Trial of this service by following this link: https://www.tradethenews.com/?affiliate=sot
I highly recommend it to all of my clients looking for this type of data. We have partnered with TTN to provide a FREE
Trial of this service by following this link: https://www.tradethenews.com/?affiliate=sot
I’m
always improving this prep, I appreciate your feedback, please post it here!
