News out of Europe has been negative. The Ukrainian situation continues to deteriorate as the Ukrainian government said that a counteroffensive being waged by separatists in the eastern part of the country amounts to a Russian invasion. The Ukrainian PM Yatsenyuk called for help against Russia’s army and said that U.S. and EU sanctions aren’t working. A measure of EZ consumer confidence showed a larger than expected drop in August. In US news, Q2 GDP was revised upward while jobless claims came in about as expected. The fact that the US data didn’t help the markets indicates that geopolitics may be the important factor today. At 9:30 AM CT is the weekly EIA natural gas storage report, which is forecast to show an injection of 75 bcf last week.
Sept. eMini S&P Futures: Breakout setup (ID, NR7, doji). Yesterday’s low of 1993.50 was the first reference price for a downside breakout; now I would watch it on the upside. On the downside start with the overnight low of 1987.50.
Sept. eMini NASDAQ Futures: Another breakout setup. Use the last overnight high of 4065.75 as the reference price for an upside breakout and the overnight low of 4054.50 down.
Sept. eMini Russell: Yet another b.o. setup; on the upside use 1167.10 and then 1168.80.
Sept. T Bonds: Taylor Trading Technique Sell day; the August high of 141-21 is a pivot point for today’s rally.
Sept. Yen: Breakout setup; I would consider shorting it below yesterday’s high of 9636.
Sept. Euro: As I said in yesterday morning’s STI watch list, the rally was an opportunity to get short. Look to be short below the Fibonacci level of 1.3188.
Sept. Swiss Franc: TTT Sell day, short it on a break below the session low of 1.0920.
Sept. British Pound: As with the Swiss, a TTT Sell day- look to short on a break below the session low of 1.6565.
Dec. Gold: Rallied out of a breakout setup, resistance is from 1296.60 (100 day SMA) to 1297.60 (Fib retracement resistance).
Oct. Sugar: It rallied out of a gap lower open last night; it could extend the rally if it could clear Fib resistance at 15.73.
Dec. Cotton: TTT Sell Short day, watch for support at last weeks swing high of 66.67. Look to buy a break.
Oct. Natural Gas: It’s a TTT Sell day; the August high of 4.041 is a pivot point for a rally. Be alert for a potential breakout move after the 9:30 AM inventory report.
Oct. Live Cattle: It’s a “cover breakout sales” day so a Taylor Trading Technique Buy day is anticipated. Tuesday’s high of 149.00 is the first key level on the upside.
Dec. Wheat: TTT Sell Short day; failure to hold above the 570 area could lead to a selloff. The 560 area should be support.
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.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.