Options Expire, Quadruple Witching & Greek Elections Prep

Professional traders understand that price action is never black and white, no matter how many details we try to analyze.  Professional traders don’t pay attention to talking-heads on television or guru’s on the internet, they know the answers they need are contained within the candlesticks.  Remember that reality plays a very little role in reading price action, the only important thing to look for is market sentiment.  If price is falling this may be a lack of buyers or strength in the sellers.  On the flip side, if price is making new higher-highs we know this may be caused by extreme buying pressure, but most often it’s the lack of strong sellers at the highs.  Remember to take a step back when you find yourself at the highs or the lows of a trading range and ask yourself; what is the market sentiment telling me right here? 

—————————————————————————————

The James’ Report:  Day Trading Strategies for Professional Traders

—————————————————————————————

News from Around the Globe Overnight:

– On a day on which quadruple witching will occur, European equity indices opened the session higher, led by gains in the IBEX-35 and the FTSE MIB, as all eyes are on the weekend elections in Greece. In terms of the Greek equity markets, the Athens Stock Exchange has traded lower by ~1%, after the index rallied by more than 9% on Thursday’s session. In terms of the Greek bond market, 10-yr yields have declined by over 70bps on the session (near 26.6%) Overall markets started with a positive on continued speculation that there could be a global policy response, if markets react negatively to the political events in Greece.

– G20 said to indicate that central banks are preparing for coordinated action to provide liquidity if necessary after the Greece weekend election; BOJ says not aware of coordinated action but always in contact with other CBs
– BOE activates its Extended Collateral Term Repo (ECTR) lending facility
– Russia cuts its FX Swap rates to increase liquidity and curb money market rate volatility. 
– BOJ maintains steady policy and asset purchases; raises economic assessment
– German Chancellor Merkel reiterates that Germany would reject any ‘quick fix’ to crisis solution at upcoming G20 including Eurobonds
– Moody’s downgrades Netherlands banking sector; Most outlooks now stable

read the complete morning prep
here