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This is your weekly wrap for the Week of October 27th through the 31st.
Gold is currently trading at $1,174.50 (Z4) per troy oz., below the $1,180 critical support, will today be the big washout day?
The grain futures are often good markets to trade using the Taylor Trading Technique methods I use for the Swing Trader’s Insight advisory. Today there was a good setup in the soybean futures.
I hope everyone’s nerves are surviving this bean squeeze. It’s not really just beans, its in corn as well.
A basic principle of the Taylor Trading Technique is of action and reaction- that a move I one direction today is likely to result in a move in the opposite direction. That’s especially the case in a session after a market has made a breakout move.
After the grain markets traded lower overnight due to the Brazilian election and a great weekend for harvest, soymeal is leading the market higher by those who need supplies now.
This weekly feature examines chart formations, along with technical indicators, of two to three commodity markets. Breakouts of these formations may lead to trading recommendations published by the Trade Spotlight advisory service.
The Gold may decrease in next week’s action if the Fed hold its course and tapers as anticipated for the end of quantitative easing.
The Taylor Trading Technique relies on using a session’s predominant direction of movement to anticipate a market’s likely direction for the following session. If a session doesn’t show a clear direction and / or if it shows a contraction in trading range, we look for a breakout move in the following session. That’s what soymeal futures showed this morning.
Dec. e Mini S&P Futures: It’s a Taylor Trading Technique Sell Short day. 1961.25 is the SS day reference price; 1950.75 is the first downside target (100 day SMA) and 1943.00 is next.