Jobless Claims ready to give day traders opportunity this morning

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The James’ Report: Professional Resources for Professional Traders
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– Crude Oil Futures trade in the middle of Wednesday’s Range; Inside day, waiting for price to move higher or lower to the extremes.

– Gold Futures trading in the middle of Wednesday’s Range; Inside day, waiting for price to move higher or lower to the extremes.

– Euro Futures failed twice this morning to push new highs outside of Wednesday’s Range and currently sits in the middle of the range; waiting for price to test highs or lows again

– Mini Russell Futures are trading lower than Wednesday’s Range; Outside day, selling retracements down to major support levels below us starting at 642.0

– European stocks gained in a volatile session today erasing opening losses ahead of Germany’s vote to increase the flexibility of the EFSF. Nonetheless, investors are optimistic that policymakers will agree to a viable solution given that a failure to agree on Greece would bring financial apocalypse in the Eurozone. Banks led the rally while miners continue to trade down

– China Sovereign Wealth Fund (CIC) chairman stated that he was concerned about unraveling of Euro Zone debt situation and that China could not be expected to buy high-risk debt without clear picture of a program to work out the Euro Zone situation.

– BoE member Dale commented in a newspaper interview that ‘squeeze’ on UK households to rise due to inflation. He noted that household finances would get worse this autumn due to soaring energy bills in coming months and blamed increase in the cost of living on double-digit price rises by the energy giants. He reiterated the BOE view that inflation to rise to over 5% over the next few months and decline substantially in 2012

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Today’s Economic News:

Day traders will be looking at this morning’s jobless claims report as a signal of next week’s big NonFarm Payroll Report. We’ve been seeing rising claims the past 4 weeks so this week is on everyone’s radar to see if this increase trend will continue.

We begin the day at 830am with Jobless Claims and GDP. We then move through the US Markets opening at 930am and then 1000am Pending Home Sales will wrap up this morning’s news. With the GDP early this morning, and nothing to expect late in the morning we will expect volume to enter the markets early today, and then we will be watching speed and market personality after 1030am looking for the transition into lunch. We will wait for the 1130am European Markets to close before we call it quits this morning.

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Looking at the Charts:
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Our three price structures on Gold:

– Inside Day

– Price Wedge

– In the middle of the range

Our plan of attack is simple: as price rises to resistance we look for selling opportunities at the highs of the wedge and the highs of the range.

If price falls to the lows, we will buy the lows of the wedge and the range lows.

As long as we are within the previous day’s trading range we will fade the breakouts, selling as price rises and buying as price falls.

Crude Oil Futures are looking very familiar today, we’ve seen this structure before:

– Price Wedge

– Inside Day

– Sideways Range

This is going to be easy to find the best locations, the hard part is simply waiting for price to move higher or lower.

If price rises im selling at the highs of the wedge and the highs of the range. Selling PHOD as resistance and then buying pullbacks above the resistance.

If price falls im buying at the lows of the range and the wedge. I will buy the PLOD as support and the sell retracements below the PLOD as resistance.

Russell price structures are as follows:

– Inside Day

– Bear Price Channel

– Price Wedge

Inside day and price wedge tell me to sell as price rises, and buy as price falls. The Bear channel gives me a directional bias.

If price rises im selling at the wedge and channel highs, selling at major resistance, and selling the PHOD at 685.4

If price falls im buying the lows of the wedge, the lows of the range, and the PLOD 646.6. as price falls im looking for buying opportunities at major support.

Avoid the middle of the wedge, the BMT, and trading short with oversold, and long with overbought.