Decent manufacturing PMI reports from China and Europe boosted the markets last night. In the US, weekly jobless claims rose by more than expected however the increase follows a big drop last week. At 8:45 AM CT we get the US manufacturing PMI; it is expected to be down 0.9 to 57.0 (The PMI has largely been supplanted by the ISM index but it’s still a data point today.) At 9:30 AM CT is the weekly EIA natural gas storage report; traders look for another above average injection of 97 bcf last week.
Dec. eMini S&P Futures: Wednesday was an NR7 day so we should anticipate a breakout move- look to buy a rally above 1943.75 (Weds. high) or a break below 1920.25 (Weds. low). By the Taylor Trading Technique today is a Buy day; I might also look to buy a failed selloff.
Dec. eMini NASDAQ Futures: Also had an NR7 yesterday so we should anticipate a breakout move. Use the overnight high of 3985.75 as the reference price for an upside breakout. Trade or Fade (my breakout trade advisory) has the upside breakout level at 3992.2
Dec. eMini Russell Futures: Taylor Trading Technique Buy. There was a low violation buy overnight. It might be too much of a reach for it to get back down that far today- watch support in the 1098 area and 1103.50 as a pivot point for extending the rally.
Dec. Yen: This is what makes trading the currencies so tough. I was looking for a selloff yesterday but it ended up with a doji and NR7, giving a breakout setup for today. Then the anticipated selloff came, but it was at 3 AM Chicago time. There’s a significant Fibonacci retracement level at 9307 and a close under there is bearish for the longer term trend.
Dec. Euro: Taylor Trading Technique Buy day. 1.2641 is the Buy day reference price; watch 1.2675 as a pivot point for the rally.
Dec. British Pound: It’s a “cover breakout sales” day so a TTT Buy day is anticipated. There was a double top at the most recent high of 1.6033; watch that as a resistance / pivot point on a rally.
Dec. Gold: The NR4 breakout setup trumped a TTT Buy day signal for today; yielding a downside breakout, and it’s testing support at 1233.80 (20 day EMA). The market’s inability to stay above $1250 is disappointing for the bullish case.
March Sugar: Breakout setup. Downside breakout reference prices are 16.36 (Tues. low and Fib support) and then 16.28 (16 Oct. low).
Dec. Cotton: Another breakout setup; watch 62.10 (Tuesday low) as the reference price for a downside breakout.
Dec. Crude Oil: “Cover b.o. sales” / Taylor Trading Technique Buy day. 80.22 was the Buy day reference price; the 81.55 area is the next rally target.
Dec. Natural Gas: Breakout setup. Trade or Fade has the first downside objective at 3.661. The weekly EIA NG storage report is out at 9:30 AM: Be cognizant of the potential for volatility after it and keep an open mind as to direction.
Dec. Live Cattle: It’s a TTT Sell day. Wednesday’s inside day and range contraction could give an upside breakout today- look to be long above 168.47 with a target of 169.75.
Nov. Soybeans: Buy day. 960-2 is the Buy day reference price; upside levels to watch are 967-4 and then 969-4.
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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