Markets staged a “risk on” rally as Russia and Ukraine met for peace talks. There’s a growing sense that the Ukrainian crisis is cooling down and maybe coming to an end. A weak Chinese home sales report led investors to speculate that the PBOC will loosen monetary policy to stimulate the economy. Crude oil was pressured by reports that Kurdish forces are making gains against ISIS rebels in Northern Iraq. Grains are looking for news from this week’s Pro Farmer crop tour, which may give more insight into this year’s crop size. Corn is seeing some support from current demand. There is no US economic data today.
Sept. eMini SP Futures: By the Taylor Trading Technique today is a Buy day although there wasn’t any sort of low violation for a regular TTT Buy day setup. Friday’s high of 1961.00 is a pivot point; next support would be 1956.75.
Sept. eMini Russell: Friday’s high of 1152.50 is the primary rally objective; will tomorrow be a Sell Short day?
Sept. T Bonds: Sell Short day; the 8 August high of 140-11 should be support.
Sept. Euro: It’s an “exit breakout buys” day so a TTT Sell Short day is anticipated. I would consider shorting a break below Fibonacci support at 1.3378.
Sept. British Pound: It gapped higher out of a breakout setup. At this point I would use today’s high (1.6734) and low (1.6710) as reference prices for another breakout move.
Dec. Gold: Friday’s high range close complicated what might otherwise have been a TTT Buy day. The 100 day SMA at 1297.10 is a pivot point this morning.
Sept. Silver: It’s a “cover breakout sales” day; there was a good low violation buy overnight. Still, the daily trend is down so don’t overstay the long side.
Sept. Copper: Breakout setup (ID, NR4). I would buy if it rallies above the overnight high of 3.1130; downside breakout levels would be the overnight low of 3.0940 and then last Thursday’s low of 3.0825.
Oct. Sugar: I’d look to short it on weakness- the session low of 15.90 if you’re aggressive or Friday’s low of 15.82 if you want to wait.
Oct. Crude Oil: Friday was an inside day; I would look to short it when we see downside momentum. Trade or Fade (my breakout trade advisory) has the downside breakout level at 94.33 with a first downside target of 93.51.
Oct. Natural Gas: It gapped lower on the open last night and then rallied to fill in the gap- look to be long above Friday’s low of 3.793.
Nov. Soybeans: Treat the day session as a breakout setup; use the overnight high (1056-4) and low (1046-0) as reference prices.
Dec. Corn: TTT Sell Short day. Watch the overnight high of 381-0 up; 379-6 and then 375-6 down.
Essential Guide for Futures Swing Trading
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