August 17, 2011
- in Uncategorized by schooloftrade
New Highs across all markets, looking for pullbacks as buying opportunities
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The James’ Report: Professional Resources for Professional Traders
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Crude Oil Futures trading at highs on assumption that demand will increase even in the face of economic conditions
Gold Futures push new highs this morning on Debt concerns in Europe
Euro is stronger this morning on rumors that ECB may have no choice but to keep rates low for the remainder of 2011
Russell Futures trying to break higher above a transitional area at the lows of a major bullish price channel.
More notes…
– BOE was unanimous in leaving interest rates unchanged (first time since May 2010)
– The Bank of England Minutes recorded its first unanimous vote on interest rates since May 2010.
– US Vice President Biden: Committed to maintaining fundamentals that ensure Treasury’s values
– Some traders have viewed the meeting between Germany’s Merkel and France’s Sarkozy as disappointing according to an article in the Telegraph. The disappointment is related to the failure of both leaders to address the issues of Euro bonds
– The Spanish press reported that since the start of the Spanish banking crisis, the six largest domestic banks have had total losses of €13 billion on their property portfolios
– The Telegraph Evans-Prichard commented on the slowing growth rates in the core EU countries; the sudden slowdown in the growth of EU countries is similar to the pattern that was seen before the collapse of Lehman Brothers in 2008
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Today’s Economic News:
We begin our day this morning with 830am news Producer Price Index, which will hopefully get this summer trading day underway early. We then move through the 930am US Open and into the 1030am Crude Oil Inventories. This means we need to be aware of the 3 Phases of Crude Oil Inventories today, so make sure you watch the clock.
Summer trading means we don’t see volume late in the morning, so today will be a wait and see what happens around 1045am. We may see volume all the way through 11am today after the 1030am news, but we may also see very little volume after 1045am if the news comes out within expectations.
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Looking at the Charts:
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Crude Oil Futures are trading at their range highs this morning on fears that demand will increase in the future even though the US Dollar has been falling and the economy slowing down.
We can see the we’re trading at the highs of the bull channel, so it will be sloppy here for a while until we can break out above 88.33 and start to find more buyers joining in. Bull channel says to buy the support levels below us as price drops, and to buy pullbacks with new higher highs. I will take profit at the next level of resistance overhead and then look to either sell the highs or wait for new higher highs and then buy a pullback.
Gold Futures are right in the middle of their major range, and at the highs of the short term range this morning after breaking out of the bear price channel. We can see the middle will be sloppier than the highs or lows, so be careful today. I will use the bull channel as my guide, buying at support if price drops and buying pullbacks if we get new higher highs.
Euro Futures are trading at the highs of a sideways range this morning. We want to sell these highs of 4472, 4514, 4547 and other minor levels of resistance we find overhead this morning. The US Dollar is making new lows today, so use that as your guide using the Dollar Correlation to help you look for clues the euro is going to move higher through resistance instead of dropping. Don’t forget about the minor trend line in the middle (green) to use as support to buy a pullback if price drops lower.
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