Friday, January 14, 2011

Currency Wars & Low Volume = Grid Lock (SPY)

The daily, er should i say nightly gyrations in the currency markets is really testing the patience of traders across the world. The low volume environment of the futures are making for violent swings in after hours trading and lack of cash session volatility or trend... gridlock..

 All of these traders are waiting on a few key events to take place.. Europe to collapse or Germany to bail them out. United States debt downgrade a definitive confirmation of a move higher in equities over 1280-1300 level or a break down into February.

Whichever scenario plays out we are not going to go anywhere until one of them does play out.

The 79-82 level in us dollar futures is the channel we need to get either above or below... Tomorrow we have quiet a bit of numbers coming...


Remember 3 day weekend coming up ... MLK day Monday.. They gonna suck VOL out ahead of time tomorrow starting probably around noon to account for weekend and monday theta...

8:30 CPI Dec 0.3% 0.4% 0.1%
Jan 14 08:30 Core CPI Dec 0.1% 0.1% 0.1%
Jan 14 08:30 Retail Sales Dec 1.0% 0.7% 0.8%
Jan 14 08:30 Retail Sales ex-auto Dec 0.8% 0.6% 1.2%
Jan 14 09:15 Industrial Production Dec 0.6% 0.4% 0.4%
Jan 14 09:15 Capacity Utilization Dec 75.7% 75.5% 75.2%
Jan 14 09:55 Mich Sentiment Jan 75.5 75.5 74.5
Jan 14 10:00 Business Inventories Nov 0.9% 0.8% 0.7%