Price Wedges give day trading opportunities Gold, Crude and Euro

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The James’ Report: Professional Resources for Professional Traders

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– Gold Futures trading lower this morning after news of Swiss currency peg

– Crude Oil rebounds after sharp drop after currency peg weakens the US Dollar

– Markets reacting after a sharp decline in European markets on Monday, Labor Day Holiday in the US

– Eurozone Q2 GDP was confirmed at a meager 0.2% q/q

– Swiss Central Bank (SNB) set a minimum exchange rate target of 1.20 against the Euro and would enforce the peg with the utmost determination and prepared to buy foreign currency in unlimited quantities. This was the fourth and most effective measure to date since Aug 3rd.

– ECB stated that it had been informed on SNB’s decision to peg the EUR/CHF at a minimum of 1.20 and added that the SNB’s action was its sole responsibility

– Some experts say Gold is not in a bubble

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Today’s Economic News:

Looking at the news this morning, this is our first day back after the Labor Day Holiday Weekend in the US. This means our main focus today will be getting back into the swing of things this morning, back in our routine, and building confidence once again for the months ahead of us.

Today we don’t have a lot of major news to look at. We begin the day with our US Markets opening at 930am EST, then followed by the only major news of the morning, 1000am ISM Non-Manufacturing Index.

Today will be a transitional day, so its hard to tell what the volume will look like after the 1030am hour this morning, so we will be keeping a close eye on speed and market personality heading into 1030am.

We will expect volume to increase dramatically this morning as traders come back to their desks from the long weekend, ending their summer.

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Looking at the Charts:

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We then use a faster 34range chart to plan our attack on crude oil:

– As prices rises I’m selling overhead resistance first, and then buying pullbacks carefully, avoiding the fake-out breakouts

– As price falls im buying at support first, then selling retracements with new lower lows, being cautious to avoid the fake-out breakouts

– As price rises im selling the 84.93, 85.00, 85.32, 85.39. and the PHOD 85.84

– As price makes new highs above those levels I can then consider buying a pullback assuming my entry rules confirm.

– As price falls im buying 83.45, 83.29 and the PLOD 83.20

– Im selling the highs of the wedge

– Buying the lows of the wedge

– If price breaks below 83.00 we are then at the highs of the narrow wedge below me, so looking to sell, but beware the narrow portion of the wedge below you will be too narrow to make profit from selling the highs and taking profit at the lows.