The dt Futures Blog is a great place to learn about commodity futures trading and investing. Insightful educationally-focused articles on topics ranging from choosing a futures broker to commodities trading strategies and risk management are published frequently.
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.
Gold is currently trading at $1,232.50 (Z4) per troy oz., off its highs at $1,255.00 creating a bear flag.
The Taylor Trading Technique often looks for retests of a previous day high or low for trade entry signals. However, in trending markets we may not get pullbacks. In these situations overnight activity can give us additional trade setups to look for.
Soybean meal has been leading soybeans higher along with the rest of the grain markets.