Daily Plan

Strategy – GER CPI, Spanish CPI, US GDP and US Initial Jobless Claims

Overview, previous session and overnight

Yesterday saw stocks bouncing back after Tuesdays selloffs, Dollar came under pressure as both Euro and Sterling respective central banks have changed once dovish tone to more hawkish view. Euro shifting view from deflationary to reflationary and Sterling looking to rise sterling value to combat inflation (cost push).

Overnight, equities remained bid, looking for positive follow through into the European session. Sterling and Euro respectively also remained bid.

Day ahead..

Dollar index has been pressured toward the downside for the passed two days, I would like to see a retracement to start selling the dollar again. Most majors apart from the Yen are posting gains against the dollar. Lets see how the morning plans out.

Equities should remain bullish again based on the recent upside would like to see a small pullback to levels where buyers are likely to bid the market back up.

We have German, Spanish CPI and US GDP to look forward to which might produce the moves we need to get to our target entry levels.

Bias

  • Long – Sterling, Euro, Equities, Eurostoxx, Dax, Dow30, Oil
  • Short – Gold, Yen, T-notes, Dollar

DX Chart: Notice the RSI divergence, we might see a pullback across the majors either today or tomorrow as the bulls in majors take profit before selling the dollar again.

DX.png

Data

  • 08:00 Spanish CPI
  • 13:00 GER CPI and HICPI
  • 13:30 US GDP

Trades

Euro Long

We have had a good run so far with euro strength, looking to stay with current sentiment and prefer a pullback setup from s1.

I like the 1.3500 handle and s1 support for the euro long, this area of support also correlates with the spike higher on the 14th. So long euro on the pullback.

Alternative view 1: enter long from pivot with less conviction

EURlong.png

Eurostoxx 50 Long

Range play from pivot. I really like the long off of pivot sentiment has been bullish since yesterday in equities so looking for a range play, I am hoping for a return to the bottom of the current range for the entry.

Alternative entry is a classic long if we break above r1

Eustx50Long.png

Sterling Long

I like the sterling long from S1, so trend play with a deep pullback. I will monitor how euro plays out for the correlation with sterling for the setups.

Alternative trade is from entry long with a pullback to pivot.

GBPLong.png

WTI Long

I am liking the pullback to pivot for an entry long, sentiment seems to be bullish after the drop in US output yesterdays DOE report.

Alternative trade would be the deeper pullback to 44.00 backed up s1.

OilLong.png

Alternative WTI

OilLong2.png


Disclaimer: There is substantial risk in trading. A loss incurred in connection with futures trading be significant. Target Alpha Trading makes no claims whatsoever regarding passed or future performance. Any Strategy is for educational purposes only.

0 comments on “Strategy – GER CPI, Spanish CPI, US GDP and US Initial Jobless Claims

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: