Over the weekend the Bank of Portugal said it will provide bailout funds for Banco Espirito Santo. This led to a relief rally in Portuguese debt however European bullishness was tempered by a survey indicating a drop in European investor sentiment. There’s no significant US data due today so markets will likely continue to react to Friday’s jobs report and the various geopolitical issues. Grain markets were higher overnight, led by soybeans. The beans could use some moisture and current forecasts don’t show enough to assuage concerns, especially given some recent warm weather.
Sept. eMini S&P Futures: It’s a Taylor Trading Technique Sell day so a rally is / was in order. There are two objectives for the Sell day. First is Friday’s post jobs report high of 1926.75. Second is Friday’s session high of 1932.25. Given the daily down trend I’d be cautious with the long side today.
Sept. eMini Russell Futures: Another TTT Sell day; Friday’s high of 1122.30 would be the objective, and the 17 July low of 1123.80 would be next. We should likely anticipate a Sell Short day for Tuesday.
Sept. T Bonds: TTT Sell Short day; Friday’s high of 138-13 is the SS day reference price.
Sept. Yen: Sell Short day. I might look to sell if it broke below the session low of 9736- it doesn’t look like we’ll get a high violation sell setup.
Sept. Euro: It’s an “exit breakout buys” day so a TTT Sell Short day is anticipated. As with the Yen, if we want to short it we may need to do so on a break down.
Dec. Gold: TTT Sell day; watch the 24 July low of 1289.40 as a downside pivot point.
Sept. Coffee: TTT Buy day. There was a low violation buy this morning; aggressive traders might look to buy if it rallies above today’s high of 195.45. The volatility makes this a market for well-funded and risk tolerant traders only.
Sept. Crude Oil: Breakout setup (NR7, doji). For an upside reference price use the overnight high of 98.21; on the downside there’s the overnight low of 97.43 and then Friday’s low of 97.09.
Nov. Soybeans: It’s a “cover b.o. sales” day so the TTT Buy day was expected. In the grain markets, Sunday night often acts like a separate trading session. If that’s the case today then the day session would act as a TTT Sell day.
Sept. Wheat: It’s on the Sell Short day of the TTT cycle, although Friday’s close was far enough below the high that it gave the market room to rally. In the longer term I’m bullish on wheat however there’s now room for a pullback. A drop below the 28 July high of 543-2 could start a selloff.
Dec. Corn: It’s a “cover b.o. sales” day; last night’s gap lower open was a good trigger for the TTT Buy day. 369-4 is the next rally target.
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