Day Trading Strategies for Dollar Index , Euro, Crude, Russell and Gold futures

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–  S&P Cuts 15 Global Banks

– Markets not impressed by EU Ecofin agreement on EFSF leveraging

– French Fin Min: President Sarkozy to unveil EU Treaty changes proposals on Thursday, Dec 1

-EFSF’s Regling: Leveraging up bailout fund will take time

-Ecofin agrees On Greek, Irish Loan Disbursements; IMF still needs to approve

– Economic data in Europe continues to highlight 2-speed recovery; Germany unemployment improves; Euro-Zone unemployment at record EMU level

– As expected,  European shares snapped the three-straight sessions rally pressured by declining banking stocks. S&P downgraded several big European and US banks by one notch as part of the overhauling of its criteria. The move could raise the already soaring funding costs.  Late last night, Eurozone finance ministers decided to leverage the EFSF in order to extend help to Italy and Spain should the countries need it. They also agreed to insure the first 20-30 percent of new bond issues for countries having funding difficulties and to create co-investment funds to attract foreign investors to buy euro zone government bonds.But the leverage amount fell significantly short of the €1T anticipated by the markets. EU leaders noted that the EFSF could be leveraged up to €250B and further increases would depend on market conditions.

– The USD found some traction during the session aided by numerous factors including S&P’s rating action on 37 financial institutions, Italy market regulator Consob criticising the EBA’s bank criteria, which “risks triggering a credit crunch” and renewed concerns that China might face a hard economic  landing.

– The British public sector workers began a massive 24-hour strike voicing their opposition towards pension reforms. Over 1,000 rallies, and up to 2 million public sector workers are expected to participate. Some press sources have put today’s strike efforts as the biggest day of industrial action since the 1979 Winter of Discontent. Various union leaders have continued to support the strike efforts, while government officials including the Chancellor of the Exchequer said the strikes will have harmful effects on the economy.

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Our day trading strategies today will depend on the news, and today we have opportunity all morning in the US Session.

We begin the day today with 815am EST ADP Employment Report, which is a preview of Friday’s Non Farm Payroll report, and then into 830am for Productivity and Costs, which will hopefully give us some early trading opportunities.

After we get through he 930am EST US market open, we will grab the Mini-Russell Futures and  wait for 945am EST Chicago PMI, and 1000am EST Pending Home Sales. 

Today is Wednesday so we have inventories for crude oil futures at 1030am EST today, so remember to sit on hands trading crude oil futures from 1015 to 1035am today making sure not to over-trade too close to the news.  I try and wait patiently for a few moment after the news comes out to see the overall market reaction, and then I jump into the trade.

After 1030am EST today we expect volume to slow down.  200pm EST today we have the Beige Book, which are the notes used in the Fed Meeting, so traders will be watching that report, and we expect volume to drop shortly after 1100am EST this morning because of that news this afternoon.

Also, today is a Wednesday so we are doing members-only after 1130am EST today as we review the automated trading systems in our private trainings.

insert news

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