Euro zone CPI fell by 0.2%y/y in December, which was lower than expected. This bolsters the case for the ECB to initiate new quantitative easing as caused a stock market rally and Euro selloff. The ADP employment report showed a gain of 241K in private sector payrolls for December; this was higher than the 225K average forecast and added to the bullish equity sentiment. At 9:30 AM CT is the weekly EIA petroleum inventory report. Crude oil stocks are forecast to have increased by 1.8 million barrels last week; distillate and gasoline stocks are expected to show a big build as well. At 1 PM CT we get the minutes of the December FOMC meeting.
March EMini S&P Futures: It’s a Taylor Trading Technique Sell day so the rally was expected. Use the Friday low of 2009.50 as a pivot point this morning. We should likely anticipate a Taylor Sell Short day for Thursday.
March T Bonds: Watch 147-30 as a pivot point this morning, be thinking about a TTT Buy day for Thursday. 146-19 will be key support if the selloff continues.
March Yen: Sell Short day. 8381 is a Fibonacci retracement pivot point today; 8365 is next support. Thursday should be a Taylor Buy day.
March Euro: In last night’s Swing Trader’s Insight I labeled today as a breakout setup, and it broke out to the downside last night. It recently made a double bottom at the session low so it may want to retrace higher for a bit; see if we can short a retracement back to 11855 to 11860.
March Canadian Dollar: It’s a “cover breakout sales” day so a Taylor Trading Technique Buy day is anticipated, 8443 is the Buy day reference price. Treat longs as a scalp only.
Feb. Gold: Sell Short day; the 30 Dec. high at 1210.90 will be a pivot point for the selloff. The break should be a buying opportunity.
March Cotton: Sell Short day; consider shorting on a break under today’s low of 60.00.
Feb. Crude Oil: Taylor Buy day, 47.55 is the reference price. The weekly inventory report will be released at 9:30 AM CT; look for a potential breakout move (either direction) after it comes out.
Feb. Live Cattle: Sell day, watch last Friday’s high of 16687as a pivot point for extending the rally.
March Soybeans: Sell Short day, watch 1061-0 and 1057-0 as reference prices.
March Corn: Breakout setup; for breakout reference prices watch 409-4 and 402-2.
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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