European stocks are getting pounded this morning. Greece was down by about 10% when I last looked; traders are concerned about how Greece plans to exit the bailout framework. There is also concern about the popularity of a far-Left party in voter surveys; it is believed that they would be more confrontational with the EU and international lenders. In the US, Sept. retail sales showed the first decline since January- a decline was expected however the drop was larger than expected. Adding to that, the October Empire State manufacturing survey was weaker than expected. Add geopolitics to the mix (Ebola, ISIS) and we have a lot of angst to drive the markets. At 1 PM CT we get the Beige Book for the Oct. 28-29 FOMC meeting.
Dec. eMini S&P Futures: It’s a Taylor Trading technique Sell Short day so we should anticipate the market moving lower today. As Tuesday was an inside day, watch 1864.75 (Monday’s low) as downside pivot this morning, and then the 1850 area.
Dec. eMini NASDAQ Futures: Same Taylor Trading Technique Sell Short day and an inside day on Tuesday; watch 3792.50 as a pivot point for the selloff.
Dec. eMini Russell Futures: It’s an “exit breakout buys” day so a TTT Sell Short day was anticipated. Treat the 1055 area as a pivot point this morning; a move under 1047.80 could extend the selloff.
Dec. Yen: Breakout setup; look to be long above 9378.
Dec. Euro: Another breakout setup (ID, NR4); watch trend line resistance at 1.2740as the first reference price for an upside breakout.
Dec. Swiss Franc: Breakout setup, the double top at 1.0564 is the real key to an upside breakout.
Dec. British Pound: “Cover b.o. sales” / Taylor Trading Technique Buy day. Clearing the 3 October low of 1.5941 boosted the rally; the next target is 1.5993 (Fibonacci retracement level).
Dec. Canadian Dollar: As with Cable, a “cover b.o. sales” / TTT Buy day. Holding above the 8800 area helps the rally; 8825 (Tuesday low) is next.
Dec. Gold: Sold off and then rallied out of a breakout setup. 1238.60 is the first reference price for an upside breakout, $1241 to $1242 is next. Trade or Fade (my breakout trading advisory) has the upside breakout level at 1238.90 with targets of 1244.50 and 1252.00.
March Sugar: “Exit b.o. buys” /TTT Sell Short day; it sold off after a gap higher open (a Larry Williams Oops trade). If sugar is bullish (and I think it is); this break will represent a buying opportunity. The bulls need to keep it above the 16.50 area.
Nov. Crude Oil: “Cover b.o. sales” / TTT Buy day; 81.32 is the Buy day reference price.
Nov. Natural Gas: Taylor Trading Technique Buy day; 3.806 is the reference price. A more conservative play would be to wait for it to regain last week’s swing low of 3.815.
Dec. Live Cattle: TTT buy day; use 163.80 and 164.40 as reference prices.
Nov. Soybeans: Sell Short day; watch last week’s swing high of 955-0 as a pivot point for a selloff.
Dec. Wheat: “Exit b.o. buys” / TTT Sell Short day; watch Monday’s high of 586-6 as a pivot point for a selloff.
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.