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

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

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– Stronger Dollar index leads to lower Gold futures prices

– Mixed recovery hopes lead to sideways ranges on crude oil futures

– European shares dropped in today’s session due to soaring Italian yields as the new leader, Mario Monti is struggling to form a government

– (UK) BOE inflation letter reiterated the view that CPI will move back towards the 2% target by the end of 2012. Significant risks to UK inflation outlook remained; while the UK economic has weakened. The uncertainties highlight the global and local economic risks have increased.

– Germany Govt Economic Advisor Bofinger (wisemen) commented that it was naive to believe that Italy could resolve crisis alone and that it was better for ECB to buy bonds than for the crisis to spiral. ECB should become backstop for bond markets if politics fai

 – European GDP data showing two-tier growth as France and Germany beat expectations while Dutch and Czech disappoint

– Peripheral, semi-core and Core spreads continue to widen against the German 10-year bund

– RBA likely to keep neutral rate policy for the time being

– IMF releases report on China’s banking sector: China vulnerable to asset bubbles. Banks could see systemic failure

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Our day trading strategies today will depend on the news.  This morning we have early morning news to kick off a busy day ahead.  We begin at 830am EST with Producer Price Index (PPI), Retail Sales, and the Empire State Manufacturing Survey.  All three of these news events will be on the radar of major money managers, so we do expect to see some volatility come into these markets early today.  We then move through the 930am EST US Open when we will grab the e-mini Russell and prep for the most action of the day from 930-1030am EST this morning.  At 10am EST we have business inventories which will be a good time to look for trading opportunities headed into the 1030-11am block of time this morning.  Once we make it through 11am EST this morning we will look for signs of markets slowing down, and we will look for market personality, average true range, and speed of the price action to tell us when the market is too dangerous to keep trading.

As always, we will wrap up the day with all your questions after 1130am EST this morning, lets have a great day!

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