This is a sample of Brian’s email newsletter, The Cullen Outlook. This is the Pre-Dawn Targeting portion for Wednesday, January 28th.
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Happy Wednesday….Let’s ring the mid-week bell!
“You know you are up early when the Cocoa market isn’t even open yet” -me, this morning
A few small changes that current followers will notice is how I will be labeling the emails that you receive.
The early morning emails (like this one) will now be Pre-Dawn Targeting. These emails will pinpoint all of the formations that I see where I believe trading opportunities exist.
For those who are just getting started following along, all clients can look to trade these markets if these levels are reached.
Broker assisted clients feel free to call your broker to discuss or email in…self-directed clients are free to pull the trigger on their own if they agree.
Next, the trade idea emails that come out during the day will be called Trade Idea Snapshot. This is where I will continue highlighting ideas with entries and management throughout. Traders may follow the ideas “as-is” or adjust them to your own comfort levels.
As in the past, some markets from the Pre-Dawn will be highlighted as Trade Ideas in The Cullen Outlook, others will not. I typically use the Pre-Dawn email forum to get ALL of my ideas out to you with entry levels to trade and suggested exit points. As I have in the past, depending on time constraints, I will randomly choose to showcase a few throughout the week in the Snapshot emails.
Let’s get into Wednesday….
We have 3 positions on:
- Long the March Soymeal from 327.0
- Long the Aussie Dollar from 79.25
- Long the March KC Wheat 5.50 put from 10 cents
FOMC will release their monthly minutes later this afternoon. There are a few things that I will be looking for after this is released.
I like the downside to Bonds if we see a spike higher up to 151.00 and I like the downside of the Euro if we see another push up to 115.00 – 116.00 and selling April micro Gold on the next run up to near 1300.0
Let’s take a look at March COTTON:
After a strong day on Monday, we did not see any retracement in the market yesterday so I turn my attention to the upside for now. I like the 58.00 level but I do not know if we will see it and I don’t mind getting aggressive on the entry. Trade according to your own risk parameters and comfort level.
I like buying at around 58.50 (old support) while risking just under Friday’s low of 57.00 As far as objectives go, look for the 61.00 level to provide some resistance. If it can muster up enough strength to get through it, look for 62.50
What are we going to do with March NATURAL GAS?:
This 2.80 level has been very strong in the 3 weeks of 2015. And if we see it again this week, I would like to get involved there LONG. Buying at 2.80 with 2 mini contracts and risking to 2.70 would be $500.00 of risk. I think we test the 3.00 level again before long on its way to 3.20 There is a gap at 3.35 – 3.45 that needs to be filled.
April LIVE CATTLE:
How do you sell a market that was “limit up” the day prior? Short answer is very carefully! In my opinion, rallies in the Live Cattle market should be sold. If we can get above 151.50 today, I like the idea of getting short and risking 1.50 from entry. For an objective, look to the lower end of the 140s. We were involved in the downside of this market back in mid-December and I have been looking for another chance since our exit at 156.00 in the February contract. The congestion that I was monitoring in the February contract translates to the 153.00 – 151.00 in the April contract, which will be the new front month next week.
Old support becomes new resistance in March CRUDE OIL?:
If you are looking for a spot to get short the Crude market, look at the 46.25 level. This was support last week and we knocked on the door both trading days this week with no follow through. I like getting short Crude Oil at 46.25 if we see it today. Risking $1.50 would be plenty. Please note that there is the weekly Energy Report at 9:30a (cst) today. I do not mind trading ahead of the number but some may not be comfortable with the idea. As far as an objective goes, I think this market wants to ultimately trade to 40.00 but I will be trailing the stop order down if we get filled and begin to trade lower.
If you see anything that you want to get involved in, call or email your DT broker.
LET’S DO THIS!
Learn Futures Technical Analysis from a Pro with The Cullen Outlook
The Cullen Outlook is a futures trading newsletter for those wishing to follow the moves of Brian Cullen, an experienced technical trader. He’ll identify charts setups, provide direct trade recommendations and plans, and share other useful insights to help you become a better technical trader.
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