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

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The James’ Report: Professional Resources for Professional Traders

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Let’s review today’s day trading strategies together in the trade room

Dollar Index correlation is breaking down this morning with the fear out of europe, so use the potential turning points as the best times to trade this morning.

Dollar 13range chart shows the bull trend channel, so use the highs and lows of this channel to look for the best times to trade this morning.

Crude Oil futures trading in bull price channels, and we are going to use the trigger zone from each swing low to swing high as our targets. Remember to use the Dollar Correlation.

Crude Oil 34range and 21range charts show very specific price levels for us to use for entries. make sure we look for the dollar index to confirm today

Russell Futures trading in a price wedge and bull trend channel on the 89range chart. Look for the dollar correlation at the highs and the lows of this wedge to confirm your entries.

Russell 34range shows us the exact entry locations, as well as the profit target on the long side if these lows hold. buy at support, and use the dollar correlation as your guide.

CRUDE OIL UP-DATE: New Trend lines create a price wedge, and new opportunities for us to use the dollar index correlation today

DOLLAR UP-DATE: New trend channel gives us new levels of support and resistance to look for ‘reversal points’ which we will use for our dollar correlation.

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Around the Globe this morning:

– European shares dropped in today’s session due to alarmingly high Italian yields. News that Italian PM Berlusconi will resign after failing to obtain the majority in yesterday’s vote was welcomed by bourses worldwide. But as the wind of change is felt throughout Europe, investors realize that the next successor of Berlusconi or Papandreou may still not be able to solve the domestic fiscal situation.

– Italy PM Berlusconi commented that there was no alternative to early elections and expected vote to occur in early Feb 2012. He noted that centre-right candidate for prime minister would be former Justice Min Angelino Alfano.

– The euro zone crisis remained in focus after Italian PM Berlusconi’s resignation and the price action suggested that the market lacked confidence in Italy despite PM Berlusconi’s resignation. The Italian bond yields surge to bailout trigger level while the Euro slumped against the major pairs.

– The Telegraph’s Ambrose Evans-Pritchard noted that Asian investors remain reluctant to invest in the EFSF unless the ECB is involved.

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Today’s Economic News:

Our day trading strategies today will depend on the news, and today we finally have some news to work with! After the first 2 days had nothing to look forward to, we welcome today’s potential volatility with some important news.

The day begins with the US Open at 930am EST, where we have Ben Bernanke making welcoming comments to the Conference on Small Business and Entrepreneurship. We have reason to assume that most major traders will be waiting for the US Open this morning to get the real party started, and even though Bernanke isnt speaking in front of the big audience, people may still be waiting to hear what he has to say. Once we make it through 930am we then look forward to crude oil futures inventories at 1030am EST. remember that we need to be very careful trading around 1030am with crude. Stay away from crude from 1015 through 1035, waiting patiently to see the MARKET’S reaction to the news, rather than trying to predict it’s outcome.

We will then look for clues after 1045am this morning looking for market personality, waiting to see when the morning will finish up around 1130am EST today.

Today is Wednesday so we will be members-only after 1130am EST today, with lots of important topics to cover with our members.