Financial markets are looking ahead to tomorrow’s ECB meeting, where many expect the ECB to announce a new asset purchase / QE program. ECB Governing Council member Nowotny said “one should not get overexcited” about one policy meeting; his statement threw some cold water on QE expectations and pushed up the Euro today. In US data, December housing starts came in stronger than expected. The Bank of Canada makes a monetary policy announcement at 9 AM CT.
March EMini S&P Futures: Breakout setup (NR7, doji). Normally we would use yesterday’s high and low as reference prices however they are far away- we’d like to get in earlier. On the downside I would start with the 2007.00 area (trend line). On the upside watch 2014.00 as a pivot point and the overnight double top at 2018.25 as the first upside reference price.
March EMini NASDAQ Futures: Taylor Trading Technique Sell Short day; look to short on a break below the overnight low of 4149.00.
March T Bonds: Taylor Trading Sell day and yesterday was an NR4 day- a rally above 150-21 could lead to an upside breakout.
March Euro: Breakout setup (ID, NR4, doji); watch 116.46 and 115.46 as reference prices. With the ECB meeting tomorrow I wouldn’t expect a lot of follow through from a breakout move.
Feb. Gold: ROC actually came down on the recent rally; don’t press the short side yet.
March Silver: Overnight rally out of a breakout setup (NR4, doji). Trade or Fade (my breakout traded advisory, click the Trade or Fade tab on my page) has the upside breakout level at 1831.7 with a first rally target of 1862.4.
March Cocoa: Look to be short if it’s under trend line support at 2919.
March Sugar: Its recent pattern has been a consolidation day to give a breakout setup followed by a breakout rally- will we get a consolidation day today?
March Cotton: It’s a “cover breakout sales” day so a Taylor Trading Technique Buy day is anticipated; 57.77 is the reference price. Conservative traders can wait for a rally, which should be an opportunity to get short in a down trending market.
April Live Cattle: Look to be short if it’s under the 151.00 area.
April Lean Hogs: It’s a “cover breakout sales” day so a TTT Buy day is anticipated. The old low at 76.22 should now be resistance on a rally.
March Wheat: I would be starting to look to short it. ROC is on a sell signal and there’s Fibonacci retracement resistance at 545-0. On a further rally watch for resistance at 552-0 (100 day SMA).
March Corn: Sell Short day. Tuesday high of 391-0 is the reference price and there’s Fib resistance at 391-4. Consider shorting if it breaks under the overnight low of 388-2.
Essential Guide for Futures Swing Trading
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