Blockchaind Node Monitoring and local testnet Im getting my self into blockchain. I have a few newbie questions:


I'm Running a few bitcoind Daemons on OpenStack VMs. 
Can i Monitor transactions coming in? Can I log all inputs and outputs and traffic of my daemon?
Can anyone point to good documentation regarding creating a testnet, joining testnets?
Any documentation to create more currency on local wallet/local testnet and spend currency in an automated way?
Can i Monitor transactions coming in? 


Yes. There are a couple of ways to do this.

Personally, I'd use the ZMQ pubsub capability and process the transactions with a separate program by subscribing to the ZMQ endpoint.


  Can i log all in and outputs and traffic of my Daemon?


Yes.


  Can anyone point to good documentation regarding creating a testnet, joining testnets?


You can run your own network using regtest.

To learn more about this, I suggest here.

Unsure what you meant by "joining testnets".


  Any documentation to create more currency on local wallet/local testnet and spend currency in an automated way?


You can create more bitcoins by mining blocks using the general block bitcoin-cli command. This is only usable in regtest. 

If you want bitcoins in testnet3, you will need to get them from a faucet or another bitcoin developer.

The regtest guide should contain instructions on how to generate more bitcoins for yourself to test.

To automate the entire process, I'll assume you have some basic scripting skills to invoke bitcoin-cli commands.