Weak Chinese data weighted on the markets last night as we kick off a big week for potentially market moving news. The OECD said it sees “significant risks” to the global economic recovery and cut its growth forecasts for the US and the EU. In US data, the Empire State manufacturing survey came in higher than expected for September while August industrial production was soft. The FOMC starts a two day meeting tomorrow; the Fed will update its economic forecasts and Fed Chair Yellen will have a press conference on Wednesday after the meeting.
Dec. eMini S&P Futures: It’s on the Buy day of the Taylor Trading Technique cycle. Friday’s low of 1979.50 is the “official Buy day reference price; watch last Wednesday’s low of 1973.75 as a pivot point for a rally. Upside objectives are 1985.50 and then 1980.
Dec. eMini NASDAQ Futures: Good TTT Buy day rally after a successful test of the bottom of the channel at 4045. 4062.50 will be a pivot point for extending the rally.
Dec. T Bonds: It’s a “cover breakout sales” day so a TTT Buy day is anticipated. Holding above 136-05 will help the bulls; next resistance is 136-10.
Dec. Euro: “Exit b.o. buys” / TTT Sell Short day. So far today it has held Friday’s low of 1.2918- sell a break below there?
Dec. British Pound: Breakout setup (NR4, doji); Friday’s high of 1.6263 and low of 1.6192 are primary breakout reference prices.
Dec. Australian Dollar: It gapped lower on the open last night; holding above Friday’s low of 8970 could encourage a rally. Treat longs as a scalp only.
Dec. Gold: Buy day. Friday’s low of 1228.10 is the Buy day reference price; the June low of 1241.70 is the primary objective / resistance for a rally.
Dec. Cocoa: It’s a TTT Sell day. The daily trend is down; I would consider shorting on a break below the session low of 3035.
Oct. Sugar: It’s a “cover breakout sales” day; Friday’s low 13.75 is the TTT Buy day reference price. I would like to short a rally.
Dec. Cotton: Big selloff out of a breakout setup; the Fibonacci retracement level as a reference price for the longer term trend. Regaining the 67.00 could lead to a rally.
Oct. Crude Oil: It was the Sell Short day of the TTT cycle however it looks like the selloff may have already come and gone. It rallied above an overnight double bottom at 91.74; the next upside level to watch is Fib resistance at 92.15.
Oct. Natural Gas: It’s a TTT Sell day; regaining the 3.900 area helped the bulls. Trade or Fade (my breakout trade advisory) labeled today a breakout day with the upside breakout level at 3.897 with targets of 3.952 and then 4.028.
Nov. Soybeans: Breakout setup; use the overnight high (985-2) and low (974-2) as reference prices.
Dec. Corn: Breakout setup; watch last Thursday’s low of 335-6 on the downside and 340-0 up.
Essential Guide for Futures Swing Trading
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