February 28, 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
—————————————————————————————
Professional traders strive for an empty
mind when they come to the markets each morning; When our minds are busy,
chaotic & noisy, we’re frantically trying to stay ahead of the game. When
we have a quiet mind you enable yourself to be the best; creative, resourceful,
inspired by the price action you see on your screens.
mind when they come to the markets each morning; When our minds are busy,
chaotic & noisy, we’re frantically trying to stay ahead of the game. When
we have a quiet mind you enable yourself to be the best; creative, resourceful,
inspired by the price action you see on your screens.
| Heat Map Futures Markets |
***Notes/Observations from around the
world***
–
European shares were higher as markets are optimistic ahead of the ECB’s second
longer term refinancing operations which would provide liquidity for European
banks. Gains were however limited after S&P downgraded Greece to Selective
Default status. As expected, German
parliament voted to approve the second bailout for Greece.
European shares were higher as markets are optimistic ahead of the ECB’s second
longer term refinancing operations which would provide liquidity for European
banks. Gains were however limited after S&P downgraded Greece to Selective
Default status. As expected, German
parliament voted to approve the second bailout for Greece.
–
S&P cuts Greece to selective default; market not concerned
S&P cuts Greece to selective default; market not concerned
–
Japan states its case on FX at recent G20 meeting in Mexico
Japan states its case on FX at recent G20 meeting in Mexico
–
German data continues to point country would avoid a technical recession
German data continues to point country would avoid a technical recession
– German Constitutional
Court bans use of small sub-parliamentary committee to fast-track bailout
actions
Court bans use of small sub-parliamentary committee to fast-track bailout
actions
–
Italy bond auction continues to show an improvement in yield
Italy bond auction continues to show an improvement in yield
Speakers:
–
ECB said to have suspended the use of Greek debt as collateral citing the
actions due to sovereign rating in light of PSI. The ECB noted that liquidity
requirement could be met by emergency liquidity assistance (ELA). The
collateral enhancement scheme would to take effect middle of March.
ECB said to have suspended the use of Greek debt as collateral citing the
actions due to sovereign rating in light of PSI. The ECB noted that liquidity
requirement could be met by emergency liquidity assistance (ELA). The
collateral enhancement scheme would to take effect middle of March.
–
German Constitutional Court stated that it was unconstitutional to use a small
sub-parliamentary committee that was created to fast-track actions taken by the
euro-zone bailout fund. The panel set up could decide whether Euro Zone aid was
‘in large part’ unconstitutional. The court noted that that it banned use of
small committee on EMU bailouts but the panel could decide on bond purchases on
secondary market via EFSF bailout fund
German Constitutional Court stated that it was unconstitutional to use a small
sub-parliamentary committee that was created to fast-track actions taken by the
euro-zone bailout fund. The panel set up could decide whether Euro Zone aid was
‘in large part’ unconstitutional. The court noted that that it banned use of
small committee on EMU bailouts but the panel could decide on bond purchases on
secondary market via EFSF bailout fund
–
EU17 Leaders Summit would not be called on Friday, March 2nd (There had
speculation that the 17 euro leaders would meet after the EU’s 27-nation summit
ends on Friday)
EU17 Leaders Summit would not be called on Friday, March 2nd (There had
speculation that the 17 euro leaders would meet after the EU’s 27-nation summit
ends on Friday)
–
ISDA was said to have been asked to determine if Greek sovereign credit event
has happened
ISDA was said to have been asked to determine if Greek sovereign credit event
has happened
–
S&P sovereign analyst Kramer commented that the Greek crisis was a process
that would take time and added there was a danger of pushing Greece too hard
and igniting nationalism. He noted that the periphery challenges would take
time to overcome and remained to be convinced whether Greece would leave the
EMU. The ECB LTRO had helped the sovereign bond markets and the ECB’s Greek
swap would have long-term effects
S&P sovereign analyst Kramer commented that the Greek crisis was a process
that would take time and added there was a danger of pushing Greece too hard
and igniting nationalism. He noted that the periphery challenges would take
time to overcome and remained to be convinced whether Greece would leave the
EMU. The ECB LTRO had helped the sovereign bond markets and the ECB’s Greek
swap would have long-term effects
–
S&P sovereign analyst Kraemer commented that Portugal had stronger
implementation capacity than Greece but added the country’s prospects of growth
were poor. He stated that if there was a probability of default then it was
higher in Portugal than any other EU country.
S&P sovereign analyst Kraemer commented that Portugal had stronger
implementation capacity than Greece but added the country’s prospects of growth
were poor. He stated that if there was a probability of default then it was
higher in Portugal than any other EU country.
–
S&P sovereign analyst Kramer stated that would maintain negative US
sovereign outlook and watch for policy responses. He noted that had not seen
any progress on US public finances and unlikely would see such progress during
an election year. There was a danger that the US would lose sense of urgency as
economy improves
S&P sovereign analyst Kramer stated that would maintain negative US
sovereign outlook and watch for policy responses. He noted that had not seen
any progress on US public finances and unlikely would see such progress during
an election year. There was a danger that the US would lose sense of urgency as
economy improves
–
Bundesbank’s Lautenschlaeger reiterated that deficits cuts were the only way to
restore trust
Bundesbank’s Lautenschlaeger reiterated that deficits cuts were the only way to
restore trust
– Iran Foreign Min
commented that there were only two possibilities to deal with the nuclear
issue, confrontation or engagement> he added that Iran did not seek
confrontation and was confident of ‘peaceful nature’ of its nuclear program
commented that there were only two possibilities to deal with the nuclear
issue, confrontation or engagement> he added that Iran did not seek
confrontation and was confident of ‘peaceful nature’ of its nuclear program
–
ex-IMF official Prasad commented on the China 2030 report and stated that the
World Bank proposals on a future development path for China’s economy would
likely face strong opposition
ex-IMF official Prasad commented on the China 2030 report and stated that the
World Bank proposals on a future development path for China’s economy would
likely face strong opposition
Currencies:
–
The Euro was firmer in early European trading as more German data continued to
point that the country would avoid a technical recession. The German State CPI
were also coming in higher on a MoM basis reinforcing the ECB likely to be on
hold for the foreseeable future. The EUR/USD was steady at the
The Euro was firmer in early European trading as more German data continued to
point that the country would avoid a technical recession. The German State CPI
were also coming in higher on a MoM basis reinforcing the ECB likely to be on
hold for the foreseeable future. The EUR/USD was steady at the
–
The JPY was broader weaker as dealers focused on comments from Japan Fin Min
Azumi made during the Asian session that Japan was prepared to take firm
measures. The USD/JPY hovered above the 80.50 level throughout the session
while EUR/JPY hovered between 108.20-50 during the session
The JPY was broader weaker as dealers focused on comments from Japan Fin Min
Azumi made during the Asian session that Japan was prepared to take firm
measures. The USD/JPY hovered above the 80.50 level throughout the session
while EUR/JPY hovered between 108.20-50 during the session
Political/ In the
Papers:
Papers:
–
The Independent reported credit ratings firm Experian is expected to release a
lower UK Business Insolvency Index on Tuesday’s session. The index is expected
to be at 83.73 for January against the prior 84.01, indicating that
insolvencies declined to a new low for the year. Additionally, Experian is
expected to announce the rate of company collapses eased to 0.07% compared to
0.11% in December, with insolvencies at a similar rate this time last year.
The Independent reported credit ratings firm Experian is expected to release a
lower UK Business Insolvency Index on Tuesday’s session. The index is expected
to be at 83.73 for January against the prior 84.01, indicating that
insolvencies declined to a new low for the year. Additionally, Experian is
expected to announce the rate of company collapses eased to 0.07% compared to
0.11% in December, with insolvencies at a similar rate this time last year.
–
According to the FT, the trade body Oil & Gas UK announced exploration
activity in the North Sea declined by half last year to 15 wells, the lowest
reading since the mid-1960s. The annual production declined by 18%,
approximately 3x the average decline of 6% in recent years.
According to the FT, the trade body Oil & Gas UK announced exploration
activity in the North Sea declined by half last year to 15 wells, the lowest
reading since the mid-1960s. The annual production declined by 18%,
approximately 3x the average decline of 6% in recent years.
–
The Telegraph’s Ambrose Evans-Pritchard suggested China’s current economic growth model is not sustainable, and that
was necessary to lower government control of industries and increase
productivity in order to support growth. Recent comments by World Bank
president Zoellick also said China’s current growth model is not sustainable.
The World Bank forecasted Chinese growth could slow to 7% later this decade and
to 5% by the late 2020s.
The Telegraph’s Ambrose Evans-Pritchard suggested China’s current economic growth model is not sustainable, and that
was necessary to lower government control of industries and increase
productivity in order to support growth. Recent comments by World Bank
president Zoellick also said China’s current growth model is not sustainable.
The World Bank forecasted Chinese growth could slow to 7% later this decade and
to 5% by the late 2020s.
—————————————————————————————
Today’s Economic News:
We
have quite a busy day this morning, starting with Durable Goods Orders at 830am
est, one of my favorite news reports because of its capacity to lead other news
events coming this week. Durable goods
tells us the purchasing orders that will need to be filled in the manufacturing
sector of the united states, which will require jobs and consume resources, all
good things for the recovery. Look for
crude oil to react well to this news report and we won’t even try to predict,
so sit back and react to the markets after 835am EST.
have quite a busy day this morning, starting with Durable Goods Orders at 830am
est, one of my favorite news reports because of its capacity to lead other news
events coming this week. Durable goods
tells us the purchasing orders that will need to be filled in the manufacturing
sector of the united states, which will require jobs and consume resources, all
good things for the recovery. Look for
crude oil to react well to this news report and we won’t even try to predict,
so sit back and react to the markets after 835am EST.
 |
| Durable Goods Orders News |
900am
EST this morning brings Home Price Index, another half-baked news report about
the housing markets we really wish we could leave off the calendar today b/c
any news that doesn’t talk about doomsday is considered ‘good’ news. The issue is that all the incentives, the
stimulus rebates, and the manipulation of the data released to the public make
it hard to trust what the numbers really mean, so we watch for it, but don’t
expect much of a reaction that we can trade.
EST this morning brings Home Price Index, another half-baked news report about
the housing markets we really wish we could leave off the calendar today b/c
any news that doesn’t talk about doomsday is considered ‘good’ news. The issue is that all the incentives, the
stimulus rebates, and the manipulation of the data released to the public make
it hard to trust what the numbers really mean, so we watch for it, but don’t
expect much of a reaction that we can trade.
930am
EST we have our US market open, and we will sit on hands from 915am through
930am EST waiting for the markets to open , and at that time we will answer
questions and look at additional markets such as the E-Mini-Russell which open
at 930am EST.
EST we have our US market open, and we will sit on hands from 915am through
930am EST waiting for the markets to open , and at that time we will answer
questions and look at additional markets such as the E-Mini-Russell which open
at 930am EST.
1000am
EST we have another vital news report for getting these markets moving,
Consumer Confidence . This monthly
report gives us a clue to the future of consumer spending which is a
significant portion of the US economy, so trader will be watching this report
closely and we can expect a decent reaction to the markets after its
release. We look at the chart below and
we can see the last 2 reading have been under estimates so we’re curious if
this downward trend will continue?
EST we have another vital news report for getting these markets moving,
Consumer Confidence . This monthly
report gives us a clue to the future of consumer spending which is a
significant portion of the US economy, so trader will be watching this report
closely and we can expect a decent reaction to the markets after its
release. We look at the chart below and
we can see the last 2 reading have been under estimates so we’re curious if
this downward trend will continue?
 |
| Consumer Confidence News |
In
addition to the Consumer Confidence at 1000am EST we also have Richmond Fed
Manufacturing Index, which is another one of those minor reports that add up to
big moves in the markets. Crude oil, for
example, will have inventories to report on Wednesday, and the reaction by the
traders will be based on how these news events come out, such as the Richmond,
Virginia Manufacturing index, which will also be added in with the Empire
State, Philly, and others. We look for the manufacturing sector to give us easy
clues for the demand of crude oil and the strength of the economy.
addition to the Consumer Confidence at 1000am EST we also have Richmond Fed
Manufacturing Index, which is another one of those minor reports that add up to
big moves in the markets. Crude oil, for
example, will have inventories to report on Wednesday, and the reaction by the
traders will be based on how these news events come out, such as the Richmond,
Virginia Manufacturing index, which will also be added in with the Empire
State, Philly, and others. We look for the manufacturing sector to give us easy
clues for the demand of crude oil and the strength of the economy.
This morning we expect to see some great
opportunities for profitable trades, but remember to keep an eye on market
personality, which can change throughout the morning. After 1030am EST we need to be looking for
clues that the end of the morning is coming and start to trade more
selectively, not taking additional risks and following our trade plan with
discipline not to over-trade. Let’s have
a great day!
opportunities for profitable trades, but remember to keep an eye on market
personality, which can change throughout the morning. After 1030am EST we need to be looking for
clues that the end of the morning is coming and start to trade more
selectively, not taking additional risks and following our trade plan with
discipline not to over-trade. Let’s have
a great day!
—————————————————————————————
Please SHARE this resource with
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
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
