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 live trade room

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– European shares dipped lower as yields soared higher. The high peripheral yields have been the main reason for losses in the equity markets which turned for the worse following the Spanish bond auction.

– Spain sold within the intended range but with higher yields and weaker bids – a failed test of investor confidence. Furthermore, a disturbing but realistic report from Fitch noted that US banks’ exposure to Europe is manageable but US banks could still be affected by European contagion.

– China said to have warned banks on property and local government loans

– Ambrose Evans-Pritchard said that France favors more ECB involvement in the EU debt crisis, while Germany has been opposed to any expanded role of the central bank. German officials believe that EU law prevents the ECB from being the lender of last resort” and they have concerns about the central bank extending itself any further. However, according to Professor Andre Sapir (Breughel Institute in Brussels), EU treaties do not explicitly give the ECB the role of lender of last resort, but they do not forbid it either. As the EU debt crisis has worsened, some advisers to Germany’s government have switched from their prior positions and now favor more ECB involvement.

– Fitch: US banks face contagion risk

– European banks are facing funding stress; Institutions turning to risky swaps for liquidity

– Better UK Oct retails sales data aided by Sales volumes boosted by earlier than usual promotions

– Spain 10-year auction is a disappointment and France 4-tranch note auction was tepid

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Our day trading strategies today will use the news, and today we begin our day with 830am Jobless Claims and Housing Starts.  This should get the volume going early for us today, so we will be ready to look for patterns after 830am.  We then move through the 930am US Open when we grab the Mini-Russell Futures and then head into the 10am hour where we have the Philly Fed Survey, which is another manufacturing index which will affect crude oil futures most.  We also have a very minor news report on Natural Gas at 1030am but will not need to worry about that news unless you are trading the Nat-Gas Futures contracts, which we are not. 

We will be looking for the best price action today after this 10am EST news and then will look for clues of the morning session coming to an end after 1130am EST today when the European markets close.

We will finish our day today with a live webinar, answering all your questions, so stick around after 1130am EST today.

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