There was weak economic news overnight. First, China reported that direct foreign investment showed an unexpected second month of decline in August. The German ZEW survey showed a large drop in German investor confidence in September. European stocks also are facing concern about economic growth; tighter sanctions against Russia add to the pain. In US news, August PPI showed that inflation isn’t a problem at the wholesale level. It’s day one of a two day FOMC meeting.
Dec. eMini S&P Futures: Breakout setup (NR7, doji). Chart based breakout levels are yesterday’s high of 1979.00 and low of 1968.00. Trade or Fade (my breakout trade advisory) has breakout levels at 1984.25 up and 1969.25 down.
Dec. eMini NASDAQ Futures: It’s a Taylor Trading Technique Buy day; Monday’s low of 4010.50 is the Buy day reference price.
Dec. T Bonds: Rallying out of a breakout setup. Monday’s high of 136-15 is the pivot point for the rally; clearing Fibonacci retracement resistance at 136-24 is key to extending the upside.
Dec. Yen: Breakout setup; watch last Friday’s low of 9318 as the reference price for a downside breakout.
Dec. Euro: Breakout setup; will it wait until Wednesday for the end of the FOMC meeting to move? Or will it wait for this weekend’s vote in Scotland?
Dec. British Pound: Breakout setup; watch the Fibonacci retracement level at 1.6151 as a pivot point for extending the selloff.
Dec. Canadian Dollar: Taylor Trading Technique Sell day so more upside could be expected today, with Fib resistance at 9058. We should likely anticipate a Sell Short day for Wednesday.
Dec. Gold: TTT Sell day. Fib and old low resistance from 1241.50 to 1242.50 stopped the rally; will the selloff begin early? Consider shorting it on a break below the 1235.00 area.
Dec. Coffee: Breakout setup; watch last week’s low of 180.40 as the reference price on the downside.
Dec. Cotton: It’s a “cover breakout sales” day; Monday’s low of 65.71 would be the reference price for a TTT Buy day reversal.
Oct. Crude Oil: TTT Sell day; watch trend line resistance at 93.05. We should likely expect a Sell Short day for Wednesday (possibly a breakout setup if the range stays this tight).
Oct. Natural Gas: Sell Short day; it continues to have trouble clearing the 50 day SMA. A break below the Fib level at 3.689 could lead to more downside.
Oct. Live Cattle: Breakout setup (NR4, doji), I’d watch for a potential breakout trade in Oct. Feeder Cattle as well.
Nov. Soybeans: It’s an “exit b.o. buys” day so a TTT Sell short day is anticipated. Last night’s rally stopped at resistance between 998-6 (Fib level) and 1000 (psychological resistance). There was a double bottom overnight at the session low of 987-2.
Dec. Bean Oil: TTT Sell Short day; I bring it up because I’d like to see a break in order to get long.
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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