Markets continue to digest yesterday’s FOMC meeting minutes release. The degree of dovishness was a surprise and brought stocks up off the mat. Stocks may need to correct some first, however the recent degree of bearish sentiment may mean the “pain trade” is for more upside. There are no major US economic releases due today and jobless claims were a nonevent. A number of Fed members are speaking today; maybe we’ll get more illumination on Fed thinking. At 9:30 AM CT is the weekly EIA natural gas storage report; traders expect an injection of about 110 bcf last week.
Dec. eMini S&P Futures: Wednesday was a Taylor Trading Technique Buy day (I went through this trade in yesterday’s webinar) so we have a TTT Sell day for Thursday. Given the size of yesterday’s rally it’s not surprising to see a selloff today; 1950.00 (the 100 day SMA) would be the next downside target. The real question is whether we’ve seen the end of the downtrend. I suspect not but time will tell.
Dec. eMini NASDAQ Futures: Another TTT Sell day. As with the Spoos, a selloff is not surprising today (for a “normal” TTT Sell day we often see two sided trade.) Watch 4010 as a pivot point for the down side.
Dec. T Bonds: Rallying out of a breakout setup (NR4, doji). 140-30 is a pivot point for the rally; there really aren’t any chart based objectives on the upside. If it sells off, the previous contract high of 140-16 would be important support. Trade or Fade (my breakout trade advisory) had the upside breakout level at 141-08 with a first target of 141-24.
Dec. Euro: It’s an “exit breakout buys” day so a Taylor Trading Technique Sell Short day is anticipated. 1.2755 is the SS Day reference price; the 1.2700 area is the first downside target.
Dec. British Pound: Another “exit b.o. buys” / TTT Sell Short day; 1.6173 is the reference price.
Dec. Gold: Still another “exit b.o. buys” / TTT Sell Short day with 1224.50 as the reference price. I think a break should represent a buying opportunity; the trend is turning up.
March Sugar: Taylor Trading Technique Sell day; I would consider buying on a rally above 17.12 (Tuesday swing high), anticipating an upside breakout.
Dec. Cotton: Good selloff out of a breakout setup; the break held Fibonacci retracement support at 63.06. I like the long side on a break however keep in mind there’s a USDA report tomorrow.
Nov. Crude Oil: It should be a TTT Buy day although we haven’t seen any bullish momentum yet. 86.83 is the Buy day reference price. Wednesday was an NR7 day- is that a pause before another downside breakout move or is it a sign of waning downside momentum?
Dec. Live Cattle: Breakout setup (ID, doji) – watch the overnight high of 169.15 as a reference price for an upside breakout.
Grain Futures: There’s a USDA supply demand (WASDE) report out tomorrow; trade accordingly.
Nov. Soybeans: Consider buying on a rally above the overnight high of 942-6.
Dec. Wheat: Breakout setup; watch the 500-0 level as a pivot point for the day session.
Essential Guide for Futures Swing Trading
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