September 7, 2011
- in Uncategorized by schooloftrade
Traders look for clues day trading crude oil, gold, euro and russell futures
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The James’ Report: Professional Resources for Professional Traders
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– Gold continues to see profit taking after new highs made yesterday.
– Crude Oil gets a pop on new Hurricane News in the US
– Euro trading at the lows of its range, opportunities for buying
– US President Obama jobs plan looks like $300B in 2012 via combination of tax cuts, infrastructure spending and direct aid to state and local gov’ts
– German Constitutional Court upholds first Greek bailout package but adds it is not a blank check for future rescues
– European shares rallied after German Constitutional Court upheld the first Greek bailout package
– The Guardian reported that abandoning the Euro would cost Greece and Portugal about half of their GDP
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Today’s Economic News:
Looking at the news this morning we dont have much to work with on this transitional day of the week. Traders are still coming back from the long holiday weekend, and much of the news for Wednesdays have been moved around, for example, there is NO Crude Oil news this morning, it has been moved to Thursday.
With that said, we will treat this morning with caution, looking patiently for market personality early in the session, and then trying to be disciplined after 1030am this morning with fears of low volume stepping in before 11am.
We should see this volume come back to these markets after we hear from Obama and Bernanke on Thursday afternoon. Then, its off to the races!
We have 900am News from Canada this morning, similar to our ‘FOMC Announcement’ we have the Rate Statement to hopefully give us some volume on crude oil early this morning. We also have a late afternoon news event, the Beige Book at 2pm, which is very important, and most traders will be hitting the exits early in anticipation of this news event, another reason we dont expect to see much late-morning volume.
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Looking at the Charts:
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Our plan of attack on crude oil this morning:
– Outside day tells us to buy pullbacks with new higher highs
– Also reminds us to sell if we fail above the PHOD
– Bull Price Channel says to buy at support, and buy pullbacks with new higher highs
– Price Wedge tells me to sell the highs and buy the lows, avoid the middle of the wedge.
– Price wedge also reminds me to beware the fake-out breakout
o As price rises im selling, and as price falls im buying
o ‘Fade the Breakout’
– Double-top reminds me to buy at major support (use your adv price structures from our course materials)
– As price rises im selling highs of the wedge, 87.44, 88.00
– As price makes new higher highs I will buy pullbacks above 87.44
– If price falls im buying at major support 86.60 PHOD, 86.17, 86.00, 85.18, 85.00
– As price falls below the PHOD 86.60 the sellers are back in charge so looking to sell the failed outside day
– As price falls im buying at support first, and then with new lower lows im selling a retracement down to the next level of major support.
Plan of attack on gold this morning:
– If price rises im selling the highs of the range and the wedge 1843.0, 1847.0, 1850.0, 1853.5, 1857.0
– If we make new highs above 1857.0 we then look to go INSIDE the range above us, so look to be a buyer.
– If price falls im buying at the wedge lows and range lows 1830.2, 1825.2, 1818.2, 1816.0, 1813.6
– Once we get below the 1818.2 lows of the new range we then look to sell retracements with new lower lows, taking profit at the next level of support below.
Plan of attack on the Russell:
– If price rises above 693.6 we buy pullbacks because we’re above the ‘sell zone’ on the double-bottoms (very bullish)
– Final target 700 will be easy. (699.3 exact)
– Avoid entering trades around 700.00 and then wait to see where we go from there.
– If we go above 700 we have to buy pullbacks.
– If we fail and drop to new lows we then sell the new highs with the goal of getting back into the wedge and the range below us.
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