June 27, 2012
- in Uncategorized by schooloftrade
Durable Goods orders higher, traders waiting for the Dollar Index Correlation
800am EST
We begin our day with the news this morning. Overnight news in Europe (here in the US) was
bearish and the market sentiment continues to be filled with bears today. We have news this morning here in the US and
we know that 1030am Crude Oil Inventories will likely be the most opportune
time of the morning session in the US today.
bearish and the market sentiment continues to be filled with bears today. We have news this morning here in the US and
we know that 1030am Crude Oil Inventories will likely be the most opportune
time of the morning session in the US today.
830am EST
Durable Goods come out much higher than expected which should
be bullish for commodity futures such as Crude Oil, but we will wait and trade
the market’s reaction to this news this morning.
be bullish for commodity futures such as Crude Oil, but we will wait and trade
the market’s reaction to this news this morning.
The dollar index is the first chart we begin our day with. We know the dollar index correlation is verystrong when there is market personality but today inside this low-volume week
we need to make sure we stay patient for the dollar index to start moving.
We can see a few big clues on this 144-range chart on the dollarindex. First, the bearish AB=CD Pattern overhead. Second, the price wedge in yellow, and third,
the Inside Trading Day which is also within a VERY narrow trading range. This tells us the market personality of the dollar
index is range-bound, narrow, and lacking confidence, and of course this makes
sense with the EU meetings this weekend.
The dollar index 21-range chart show us more
details on the short-term-trend and the market personality. We can see this slightly-bullish price
channel developing inside the range from yesterday, and it might as well be
considered a sideways trading range. We found
a new double-bottom and that provides overhead resistance all the way up to the
83.190 level.
