Greetings!
Todays trading action reminds of a subject I wanted to expand on. We started the day with a nice, two sided volatile action for the first 3 hours and then drifted into a choppy, directionless trading environment.
Know the type of trading enviroment you are in can help you decide which trading approach, style and indicators to use:
My opinion is that there are 3 main types of trading days (also sometimes during the trading day, you will have different trading environments).
- Most common is two sided trading action with swings up and down
- Strong trending day, mostly one directional – this type of trading day is the least common, many times will happen on Mondays and maybe 3-5 times a month at most – this type of trading day is most suitable for following trend indicators such as ADX, DMi and entry on pull backs
- Slow and/ or choppy trading day – this type of trading day is best suited for taking small profits from the market by either using counter trend signals, such as extreme reads on RSI, going for quick profits and tight stops.
Good trading.
Futures Trading Levels for July 15, 2009
Economic Reports for July 15, 2009
Economic
8:30am June CPI (last m/m 0.1%, y/y -1.3%; ex food energy last m/m 0.1%, y/y 1.8%), June CPI Core Index SA (last 218.910), July Empire Manufacturing (last -9.41)
9:15am June Industrial Production (last -1.1%), June Capacity Utilization (last 68.3%)
10:30am DoE Crude Oil/Gasoline/Distillate Inventories
2:00pm FOMC minutes
10:00pm Q2 China GDP
Events
8:00am FDA Oncologic Drugs Advisory Committee Meeting (JNJ related). MBA Mortgage Applications (7:00, last %). KLAC Analyst Briefing. CPB Investor Day. Trades Ex-dividend: YUM $0.19, PKI $0.07, LOW $0.09, EOG $0.145, HRL $0.19.
Earnings
Before the Open: ABT, AMR, ASML, CBSH, GCI, NITE, LUFK, MTOX, TXI, WWW, WOR, GWW. After the Close: CTAS, CCK, EWBC, JBHT, KMP, LSTR, PLCM, RECN, STLY, UFPI.
