Traders expecting optimistic GDP and Praying for better Jobless Claims data to get this market moving early

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The James’ Report: Professional Resources for Professional Traders

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– dollar index trading lower outside the range from Thursday, so we know this is a bearish market at this time. Bearish dollar index means bullish markets everywhere else so we buy pullbacks as the dollar index rises. Our hopes are that the dollar index bounces off the major support below it, giving us selling opportunities at the highs of the Euro, gold, Russell, and eventually the crude oil futures which are in the middle of their range this morning.

– euro currency futures are trading at their highs with the dollar index at the lows, and this is a perfect scenario to sell the highs on the euro if the dollar index starts to rise off support. Trading at the highs of the price channel we know its going to tough to buy at the highs, so look for deep pullbacks such as 21range wave patterns to get long, and remember the easier trades will likely come later as the dollar index comes up off support allowing us to sell these highs on the Euro.

Euro short term timeframe shows a very easy bull channel, we have a good plan of attack now, buy the channel lows, sell channel highs, and look for the break of the support levels outside the channel for the best selling opportunities.

– Gold futures trading in a bull price channel in the middle and we have a few options. If price rises we sell the price channel highs as resistance, and be very careful trying to buy at the highs. Use 21range and 34range wave patterns to buy deep pullback if the dollar index keeps dropping and we keep rising. If the price drops we have the buy zone at the price channel lows which makes for a great buying opportunity at the lows. If price moves below the price channel lows we will buy support until we break below the PLOD and then we look for the fake-out breakout first then followed by selling retracements with new lower-lows below PLOD. Selling even more below the 1694.0 the previous price wedge highs.

– crude oil futures are inside the range from Wednesday, so we want to buy the lows and sell the highs. We have a price wedge so sell the highs, buy the lows, and avoid the middle of the price wedge. If price rises I’m selling and if price falls I’m buying. If we get above the 94.65 I will look for fake-out breakout first and then with strong buyers I will buy a pullback. If we get below 90.00 PLOD I will look for fake-out breakout first and then sell retracement down into the zone below us and then look for price to move lower from there to sell again.

Russell Futures

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Around the Globe this morning:

– EU Summit produces mostly anticipated solutions

– European shares rallied in relief after EU leaders forge a deal preventing contagion from the Greek crisis

– Bank of Japan (BOJ) leaves rates unchanged but increases asset purchases

– Dealers question Sarkozy’s math on EFSF firepower

– Euro zone Sep M3 money supply growth accelerated more than expected

– Focus now shifts to USD GDP growth

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Today’s Economic News:

All eyes on GDP and Jobless Claims on Thursday morning. We begin the day with 830am news on Jobs and GDP which will get the volume going early this morning. We are anxious to see hwo the market reacts to Wednesday’s EU Leaders Summit, which supposedly produced some good results, we shall see how the markets react this morning.

After our 930am US Open we then move to 1000am Pending Home Sales followed by a minor Natural Gas Inventories at 1030am and Kansas City Fed at 1100am this morning. We will not worry about Nat Gas or the Kansas City fed, they are very small reports.

As always we will be watching for volume to slow down after 11am today looking for market personality clues to tell us when to call it quits this morning. We’ve had a great week, lets keep focused on our plan.