December 2, 2011 - Issue #612

In This Issue

1. TheTradeNews.com December 2011/January 2012 Outlook
2. Jim Wyckoff's Hot Market
3. Economic Calendar

1. TheTradeNews.com December 2011/January 2012 Outlook

The past year has been characterized by a series of false starts that ended in successive failures to restore confidence in the economy and markets. The shaky global economy, battered by the 2008 financial swoon, kept trying to get up off the mat only to be clobbered again by prevaricating politicians who failed to lead us out of crisis and by a series of once-in-a-generation events, which never allowed markets to gain any traction. The Japan earthquake, the Arab Spring, the debt ceiling debacle in Washington, and round two of the Greek crisis cut short nascent rallies in confidence. The equal and opposite reaction has been a mounting pile of uncertainty, growing as fast as the debt levels in troubled economies.

The failure to restore confidence has led to subpar growth in the G7 which is starting to erode the Asian economic boom as well. Economists have trimmed growth expectations for this year and next, with many now predicting Europe is bound for recession, which could in turn drag the US into a double dip, and dent China which relies on Europe as its biggest export market.

In the face of these dark clouds gathering, political leaders are failing to act boldly on a global scale. Washington remains at loggerheads over the most meager deficit reduction plans, Beijing has only started to realize it may need to brace for a hard economic landing, and Brussels keeps putting off its day of reckoning by agreeing to "plans for a plan." Central banks have papered over some of the politicians' mistakes, but can only do so much. The global economy will continue to suffer and may even spiral lower if political leaders continue to kick the can down the road and don't rally at this perilous moment to enact forceful strategies to restore confidence.

You can access the full article by filing out this quick form below.

2. Jim Wyckoff's Hot Market

U.S. Dollar Index Bulls Still in Near-Term Technical Control

The U.S. dollar index is a basket of six major world currencies rolled into one composite index and weighted against the greenback. See on the daily bar chart for the March U.S. dollar index futures that prices have pulled back this week, after hitting a two-month high on Monday. However, the dollar index is still in an uptrend on the daily chart and the bulls still have the overall near-term technical advantage. The dollar index bulls did suffer a potential fundamental blow this week when the major central banks of the world decided to make access to greenbacks easier for major world banks--in effect easing monetary policy, which could turn out to be U.S. dollar-bearish. The U.S. dollar index did sell off on the news Wednesday.

Jim has an excellent daily newsletter where he reviews different markets, alerts you for potential trades and much more. Included is his great bi-weekly newsletter with charts and a little longer term outlook. We recommend checking out his website, educational CDROM, and services at Jim Wyckoff

Disclaimer:

Trading commodity futures and options involves substantial risk of loss. The recommendations contained in this letter is of opinion only and does not guarantee any profits. These are risky markets and only risk capital should be used. Past performances are not necessarily indicative of future results. This is not a solicitation of any order to buy or sell, but a current futures market view provided by Cannon Trading Inc. Any statement of facts herein contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgment in trading!

3. Economic Calendar

Source: Moore Research Center, Inc.

* Please note that the information contained in this letter is intended for clients, prospective clients, and audiences who have a basic understanding, familiarity, and interest in the futures markets.

** The material contained in this letter is of opinion only and does not guarantee any profits. These are risky markets and only risk capital should be used. Past performances are not necessarily indicative of future results.

*** This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts herein contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgment in trading!