Gold looks for Clues, Crude Oil tests Range Highs, and Euro is ready to be bought ahead of Jobless Claims

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The James’ Report: Professional Resources for Professional Traders

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– Crude Oil chops around its price channel highs, looking for selling opportunities

– Gold sideways in the middle of its bull price channel, looking for more clues

– Euro tumbles to the lows of its price wedge, look for buying opportunities

– European equity indices opened the session slightly higher on continued hopes that the Fed could provide additional monetary stimulus

– ECB’s Stark reiterated the view that the current financial crisis was not over for US or Europe and that debt-based growth models have failed

– Early whisper number for US ISM at 45.0 compared to the 48.5 consensus

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Today’s Economic News:

Traders will be watching the clock this morning on this Summer Thursday. We know that tomorrow is NonFarm Payroll Friday, as well as a long Holiday Weekend ahead.

We begin today with Jobless Claims at 830am, followed by the US Open at 930am, and then 1000am ISM Manufacturing Index.

The variables today will be the early morning and late morning volume. Stay patient this morning waiting for ‘personality’ to enter the markets after 830am, and then be disciplined not to overtrade after 1030am today. Expect volume to be slowing down by 11am, possibly earlier with tomorrow being Friday.

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Looking at the Charts:

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Our plan of attack on crude oil futures:

Inside day tells me to buy the lows and sell the highs of the range.

Selling PHOD 89.54, buy the PLOD 87.67m and buying pullbacks above the PHOD, and selling retracements below the PLOD.

Price Wedge tells me to buy the lows and sell the highs of the wedge. Buying 88.27, 88.15, 87.67 and selling 89.54, 89.25, 89.00 as the resistance.

Price wedge also reminds me to fade the breakouts, expect the fake-out breakouts.

Bull channel reminds me to be cautious trading long at the highs, and look to sell the highs of the channel.

We may see a bear channel, and if we can find it, we can use that as a guide to sell the highs of the bear channel.

We also know volume will be dropping early today.

Gold is incredibly similar to crude oil this morning.

Inside day tells us to buy the PLOD 1813.6, and sell the PHOD 1842.7.

If we break above the PHOD we buy pullbacks.

If we break below the PLOD we sell retracements.

Price Wedge also reminds me to sell the highs and buy the lows, avoid the middles.

Also looking to FADE the breakout, or looking for fake-out breakouts at the highs and lows.

Bull Channel reminds us that the higher percentage trade this morning will be buying the lows of the range, the wedge, and the channel.

Bull channel also tells us to buy support as price falls. So buying 1818.8, 17.3, 15.2, 13.6, and down as far as 1810.0

The OPEN and BMT are very close to each other so stay away from trades around the 1825-1826 because that is the middle of the range and the BMT/OPEN will be sloppy areas to trade.