Focus-Points this morning:
· Traders begin a new month of November with Red-Star news from ISM Manufacturing
· Holiday in Europe leads to lower volume in overnight trading (All Saints Day)
· Analysts in Europe now predicting an ECB rate hike in the coming meeting next week
· Chinese PMI news beats expectations
· Gold is lower -.50% (1,316.00)
· Crude Oil is lower -.20% (96.20)
· EUR/USD is lower -.50% (1.3520)
· Hang Seng is higher +.20% (23,250)
· FDAX is lower -.15% (9,023.00)
· E-Mini S&P is lower -.40% (1,756.50)
· E-Mini Dow is lower -.50% (15,545)
Economic News on the schedule today:
This morning we finish up the week with the beginning of a new month of November. We know that the end of the week can be a big variable, and when that also includes the beginning of the month we know there may be some concerns over market personality this morning in the US trading session. On top of this, last night was Halloween here in the US, so we can expect to see a little ‘hangover’ this morning. All of these clues tell us to be aware that today MAY be a lower-volume trading session, so be prepared.
It's manufacturing Friday! The flash PMI manufacturing index was very soft which may point to a rebound for the final reading especially as the government reopened in the last half of the month. Both the ISM report and manufacturer unit vehicle sales were steady and strong heading into the government shutdown.
7:45am EST: Motor Vehicle Sales
8:58am EST: PMI Manufacturing Index
10:00am EST: ISM Mfg Index
Which markets will be affected by this news the most today?
Today’s news are both focused on manufacturing, and when we think manufacturing we think ‘factories’ and ‘products’ being sold from those factories. With manufacturing growing there will be more demand on Crude Oil, Natural-Gas, and other commodities. I also think that manufacturing will be a leading indicator for consumer confidence, which will impact Gold, Silver, and equities to include the e-mini’s.
Are any of these Red-Star news events today?
Yes, the news at 10:00am EST this morning, ISM Mfg Index, is indeed Red-Star news so we can expect there to be the most volume and volatility around that time today. We will look for trading opportunities to show up after the news is released at 10am, and we will always try to hold onto a ‘runner’ for a profit-target because we expect the move to be larger than normal.