There were some weak earnings reports overnight (Samsung, Lufthansa) and Argentina fell into default; these served to pressure equities overnight. Additional pressure came from the Q2 employment cost index, which rose by much more than anticipated. The ECI isn’t normally a closely watched number; however, given the attention the Fed is paying to the labor market, this report had a big effect. At 8:45 AM CT we get the Chicago PMI for July; it is forecast to be up 0.7 to 63.3. The weekly EIA natural gas storage report is out at 9:30 AM; expectations are for an injection of 92 bcf. Tomorrow is a big data day; we have the July employment figures and July manufacturing ISM.
Sept. eMini S&P Futures: Wednesday was a doji bar and ROC was on a sell signal so the selloff wasn’t a shock. I suspect the best part of the selloff may have come and gone; look for a mean reversion (buy breaks, sell rallies) trade for the remainder of the session.
Sept. eMini NASDAQ Futures: In last night’s STI I labeled today a Taylor Trading Technique Sell Short day but is there more downside after last night’s selloff? Monday’s low of 3929.00 is a pivot point today; watch 3951.00 on the upside.
Sept. British Pound: It’s on a TTT Buy day signal; watch the Wednesday low of 1.6883 as the reference price.
Sept. Canadian Dollar: TTT Buy day; consider buying for a scalp if it rallies above the session high of 9163.
Dec. Gold: Watch last week’s low of 1289.40 as a pivot point today- it looks like a tempting buy however that’s fighting the trend. The 1294.50 level is a significant Fibonacci retracement level.
Oct. Sugar: Breakout setup; use Wednesday’s high and low for reference prices.
Sept. Crude Oil: TTT Buy day. 99.42 is the Buy day reference price; I would also consider buying on a move above the session high of 99.85. Clearing $100.00 should help the bulls; 100.40 would be the next rally target.
Nov. Soybeans: TTT Buy day, scalp only.
Sept. Wheat: Breakout setup, use the yesterday’s high (529-0) and the overnight low (523-4) as breakout reference prices.
Essential Guide for Futures Swing Trading
In this guide, experienced trader and broker Scott Hoffman explains the trading methods he uses to analyze and trade the futures markets and to publish his trade advisory, Swing Trader’s Insight.
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