U.S. Overnight Preview: Markets Are Back Tomorrow

As expected, it has been a quiet day on the U.S. financial markets. Light volumes on the CME and CFE have promoted tight trading ranges for the popular asset classes. The highlight of the action has been the WTI crude oil market, where price is showing strength above $60.00. April gold is off moderately amid light volumes, just over 10,000 contracts for the session.

While equities and futures have been muted, the cryptocurrency markets are in full swing. Below are the numbers for the last 24 hours of action as of press time:

Coin                          Percent Change

Bitcoin (BTC)                    +4%

Bitcoin Cash (BCH)          +2%

Ethereum (ETH)               +1%

Litecoin (LTC)                   -2%

Ripple (XRP)                     Flat

One of the unique aspects of cryptocurrencies is the 24/7 cash market availability. Every other asset class has a set of defined business hours that govern trade. Not cryptos — they are always there, in some form or another, whenever one feels the need to trade them.

Economic Calendar

In the coming the U.S. overnight, the bulk of global liquidity providers are to return to the financial markets. Although it was a short break, expect to see a dramatic increase in participation over the next 24 hours.

Here are the events that have market-moving potential: 

Country                              Event

Australia                             RBA Minutes

Germany                             PPI (Jan.), ZEW Economic Sentiment (Feb.)

Switzerland                        Industrial Production (Q4)

Eurozone                            Consumer Confidence (Feb.)

The Reserve Bank of Australia (RBA) meeting minutes are to be released this evening. Shortly before they become public, RBA Assistant Governor Bullock will issue statements. If you are going to trade the Aussie amid the events, have your stops down and leverage in check ahead of the news items.

Overview

Holiday trading is a challenge. Spreads can be large, price action choppy, and technicals useless. Over the years, I have learned some expensive lessons in the midst of holiday trading. I finally realized that anything that casts doubt on whether or not a trade is to succeed (such as split liquidity) is a detriment. Subsequently, I rarely trade during a holiday session.

However, if you have an approach that performs well on holidays, more power to you. There are no rules in active trading, just make more money than than you lose!