February 27, 2012
- in Uncategorized by schooloftrade
Day Trading Strategies for Dollar Index , Euro, Crude, Russell and Gold futures
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The James’ Report: Day Trading Strategies for Professional Traders
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In a world filled with uncertainty,
never knowing what tomorrow will bring, professional traders have this luxury;
we know for certain that if we use a consistent method of trading we will
improve every day of our careers. It’s
the traders that cannot act consistently that need to worry about improving, so
follow your plan, whatever it is, because this always leads to success.
never knowing what tomorrow will bring, professional traders have this luxury;
we know for certain that if we use a consistent method of trading we will
improve every day of our careers. It’s
the traders that cannot act consistently that need to worry about improving, so
follow your plan, whatever it is, because this always leads to success.
Markets are trading sluggishly-narrow this
morning according to our real time heat map.
morning according to our real time heat map.
***Notes/Observations
from around the world***
–
German parliament votes today on second Greek bailout package; will pass but
dealers question the ‘cost’ of opposition support.
German parliament votes today on second Greek bailout package; will pass but
dealers question the ‘cost’ of opposition support.
–
Polls show that majority of Germans are
against the bailout
Polls show that majority of Germans are
against the bailout
–
The second ECB 3-year lending LTRO to take place on Wednesday, Feb 29th with
the expected take up around €500B
The second ECB 3-year lending LTRO to take place on Wednesday, Feb 29th with
the expected take up around €500B
–
Australia PM Gillard wins leadership vote.
Australia PM Gillard wins leadership vote.
–
Russia’s Putin assassination plot foiled in run up to March elections
Russia’s Putin assassination plot foiled in run up to March elections
–
high oil prices starting to weigh on equity markets
high oil prices starting to weigh on equity markets
–
Italy 6-month yield hits its lowest yield since Sept 2010
Italy 6-month yield hits its lowest yield since Sept 2010
–
G20 pressures Europe to increase its resources before the IMF commits
G20 pressures Europe to increase its resources before the IMF commits
–
EU pledged to reassess the EFSF and ESM bailout fund in March
EU pledged to reassess the EFSF and ESM bailout fund in March
–
European shares were trading lower as the week began. Oil prices continue to
worry markets as they their increase may hurt company’s prices and global
growth. G20 meeting also curbed the enthusiasm over Greece’s aid as countries
clearly stated that Europe must increase its firewall if additional IMF
resources were to be committed.
European shares were trading lower as the week began. Oil prices continue to
worry markets as they their increase may hurt company’s prices and global
growth. G20 meeting also curbed the enthusiasm over Greece’s aid as countries
clearly stated that Europe must increase its firewall if additional IMF
resources were to be committed.
Speakers:
– German coalition
spelled out its terms to support a second Greek bailout package when it voted
later today on the topic. The coalition stated that it was
seeking terms of the Greek aid to be met prior to any payment; and sought
support to restructure Greek economy. Germany also wanted an IMF role in Greece
‘as much as possible’
spelled out its terms to support a second Greek bailout package when it voted
later today on the topic. The coalition stated that it was
seeking terms of the Greek aid to be met prior to any payment; and sought
support to restructure Greek economy. Germany also wanted an IMF role in Greece
‘as much as possible’
–
German gov’t spokesperson commented that the German Cabinet fully supported
Greek aid package and did not discuss any potential Greek exit from EMU
German gov’t spokesperson commented that the German Cabinet fully supported
Greek aid package and did not discuss any potential Greek exit from EMU
–
Institute of International Finance (IIF) chief Dallara expressed confidence
that second Greek bailout would be implemented and saw neither any disorderly
Greek bond default nor exit from EMU. He added that the ECB should reflect on
CAC for Greek bondholders. Lastly it was reasonable to expected Portugal to
regain market access in 2013
Institute of International Finance (IIF) chief Dallara expressed confidence
that second Greek bailout would be implemented and saw neither any disorderly
Greek bond default nor exit from EMU. He added that the ECB should reflect on
CAC for Greek bondholders. Lastly it was reasonable to expected Portugal to
regain market access in 2013
–
China State Administration of Foreign Exchange (SAFE) commented that
international payments were moving towards balance and reiterated that
uncertainties remained in cross-border flows. The CNY currency rate had moved
towards equilibrium level and policy should be prepared for two-way capital
flow risk. The regulator reiterated that it would use macro tools to balance
cross-border flows and that
China State Administration of Foreign Exchange (SAFE) commented that
international payments were moving towards balance and reiterated that
uncertainties remained in cross-border flows. The CNY currency rate had moved
towards equilibrium level and policy should be prepared for two-way capital
flow risk. The regulator reiterated that it would use macro tools to balance
cross-border flows and that
–
France President Sarkozy: Syria’s Assad needs to step down; will pressure China
and Russia to lift UN veto
France President Sarkozy: Syria’s Assad needs to step down; will pressure China
and Russia to lift UN veto
–
European Foreign Ministers stated that they expected to take additional
decisions on Syria but concluded the initial priority must be agreeing on a
common opposition to negotiate with and resolving the situation with diplomatic
representation
European Foreign Ministers stated that they expected to take additional
decisions on Syria but concluded the initial priority must be agreeing on a
common opposition to negotiate with and resolving the situation with diplomatic
representation
Currencies:
–
The FX market price action in Europe started off more quiet than the Academy
awarding winner best picture “The Artist”. Overall the price action
was in a retracement mode during the European morning as dealers assessed the
Weekend G20 meeting and upcoming Parliamentary votes in Europe on the second
Greek bailout package. However, high oil prices came into focus and appeared to
threatened a fragile global economic. Risk aversion sentiment picked up as a
result.
The FX market price action in Europe started off more quiet than the Academy
awarding winner best picture “The Artist”. Overall the price action
was in a retracement mode during the European morning as dealers assessed the
Weekend G20 meeting and upcoming Parliamentary votes in Europe on the second
Greek bailout package. However, high oil prices came into focus and appeared to
threatened a fragile global economic. Risk aversion sentiment picked up as a
result.
Political/ In the
Papers:
Papers:
–
Moody’s reported credit subordination could make it harder for Greece, Ireland,
Portugal to re-enter bond markets after 2013. Additionally, the ratings agency
said that the PSI deal would constitute a distressed exchange default (the risk
of Greek distressed debt exchange remains high).
Moody’s reported credit subordination could make it harder for Greece, Ireland,
Portugal to re-enter bond markets after 2013. Additionally, the ratings agency
said that the PSI deal would constitute a distressed exchange default (the risk
of Greek distressed debt exchange remains high).
–
The Telegraph’s Ambrose Evans-Pritchard commented on Spain’s deficit cutting
plan might be more difficult than originally envisioned. In order for Spain to
cut its budget deficit from 8% of GDP to 4.4% this year a move would require up
to €50B in further cuts.
The Telegraph’s Ambrose Evans-Pritchard commented on Spain’s deficit cutting
plan might be more difficult than originally envisioned. In order for Spain to
cut its budget deficit from 8% of GDP to 4.4% this year a move would require up
to €50B in further cuts.
– UK Chancellor Osborne, in a weekend interview
with Sky News, admitted the country has run out of money,
and that the coalition could do little for economy. The Chancellor said, ‘Any
tax cut would have to be paid for; in other words there would have to be a tax
rise somewhere else or a spending reduction’. Please note that the UK budget is
to be released on the 21st March.
with Sky News, admitted the country has run out of money,
and that the coalition could do little for economy. The Chancellor said, ‘Any
tax cut would have to be paid for; in other words there would have to be a tax
rise somewhere else or a spending reduction’. Please note that the UK budget is
to be released on the 21st March.
–
According to the FT, it is expected that investment banking companies will
continue to restructure their operations, and that compensation will fall
across the industry
According to the FT, it is expected that investment banking companies will
continue to restructure their operations, and that compensation will fall
across the industry
–
Price Waterhouse Coopers (PwC) anticipates the 2012 Olympics will bring
occupancy rates in the UK to nearly 84%, the highest level since the 1970′.
Price Waterhouse Coopers (PwC) anticipates the 2012 Olympics will bring
occupancy rates in the UK to nearly 84%, the highest level since the 1970′.
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Today’s Economic News:
This
morning we begin a new week of trading, and Monday’s are always the same; get in early, get back into your routine, and
be patient because the same reason you and I wanted our weekend to last forever
is the same reason why traders will be late entering the market today.
morning we begin a new week of trading, and Monday’s are always the same; get in early, get back into your routine, and
be patient because the same reason you and I wanted our weekend to last forever
is the same reason why traders will be late entering the market today.
We
don’t have any major news before 930am EST today this is another reason to stay
patient, work on getting your prep done on your slower timeframes for the best
areas to trade and then wait for price to come to you.
don’t have any major news before 930am EST today this is another reason to stay
patient, work on getting your prep done on your slower timeframes for the best
areas to trade and then wait for price to come to you.
After
930am EST this morning we have a minor news report Pending Home Sales at 1000am
EST and even though this is supposed to be a major news event it really is not
because we have so many manipulated home figures these days and too many
discounts and incentives from recent bailouts to know what the real value in
the market is. To make a long story
short we don’t trust these reports regarding the housing market so the news
will likely have little impact.
930am EST this morning we have a minor news report Pending Home Sales at 1000am
EST and even though this is supposed to be a major news event it really is not
because we have so many manipulated home figures these days and too many
discounts and incentives from recent bailouts to know what the real value in
the market is. To make a long story
short we don’t trust these reports regarding the housing market so the news
will likely have little impact.
The
most important news this morning in our opinion is the 1030am EST Dallas
Fed Manufacturing Index, which is something we consider to
be a leading indicator for the recovery which will have a big cumulative impact
on the dollar index and crude oil prices.
most important news this morning in our opinion is the 1030am EST Dallas
Fed Manufacturing Index, which is something we consider to
be a leading indicator for the recovery which will have a big cumulative impact
on the dollar index and crude oil prices.
Simply
put, if the manufacturing indexes are rising, this will lead to more jobs, and
more jobs mean more spending, and consumer spending is 75% of the US economy
(if not more) so we know these Manufacturing reports are early indicators of
things to come. More importantly, we use
these to ‘interpret’ the crude oil inventories reports later in the week.
put, if the manufacturing indexes are rising, this will lead to more jobs, and
more jobs mean more spending, and consumer spending is 75% of the US economy
(if not more) so we know these Manufacturing reports are early indicators of
things to come. More importantly, we use
these to ‘interpret’ the crude oil inventories reports later in the week.
This
morning’s key will be staying patient, and then waiting for the best price
action to come from 930-11am EST today.
We have a big week ahead of us with lots of news to look forward to, so
don’t let this Monday get you out of the game before it starts, be selective
while the day gets warmed up.
morning’s key will be staying patient, and then waiting for the best price
action to come from 930-11am EST today.
We have a big week ahead of us with lots of news to look forward to, so
don’t let this Monday get you out of the game before it starts, be selective
while the day gets warmed up.
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The
markets I’m following this morning are:
markets I’m following this morning are:
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for this type of data. We have partnered with TTN to provide a FREE Trial of this service by following
this link
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
