Markets got a bit of a scare as the ECB announced that it would no longer accept junk rated debt as collateral from Greek banks, tightening their access to capital. The ECB cited doubts as to the new Greek government’s commitment to reforms. US news was second tier in light of tomorrow’s employment report; January payrolls are forecast to have risen by 230K after a 252K gain in December. At 9:30 AM CT is the weekly EIA natural gas storage report; NG stocks are forecast to show a draw of 122 bcf last week.
March EMini S&P Futures: In last night’s STI I labeled today as a Taylor Trading Technique Buy day, and there was a good low penetration buy at Wednesday’s low. Next objectives are trend line resistance at 2047.90 and then yesterday’s high of 2049.25.
March EMini Russell Futures: Rallying out of a breakout setup (NR7). 1197.90 (Weds. high) is a breakout level but it will have already rallied a long way to get there, so be careful. Trade or Fade (my breakout trade advisory) has the upside breakout point at 1196.90.
March T Bonds: Yesterday was a weak rally in a weak market. At this point I’d be inclined to sell a break below yesterday’s low of 148-18 although I wonder how far traders will want to press it ahead of tomorrow’s payroll report.
March Euro: A Taylor Trading Buy day gave a good low violation buy last night. Will they press the upside with the payroll report coming tomorrow? For today, holding the 1.1400 area is bullish.
March Canadian Dollar: Taylor Trading Buy day, yesterday’s inside day makes this an interesting setup. Watch the 8000 area as a pivot point for a rally this morning.
April Gold: Breakout setup (ID, NR4). Watch trend line support art 1258.00 as the first downside reference price.
March Sugar: Breakout setup (ID, NR7); watch 14.35 (Weds. low) as the first downside reference price.
March Coffee: Sell Short day; look to sell a break of the session low of 163.60.
March Cotton: Breakout setup; watch the session high of 61.40 as the upside reference price.
March Crude Oil: Yesterday was a good example of how bear market rallies end. Today is a Taylor Trading Buy day. 47.95 is the Buy reference price and we can watch the 49.00 area as a pivot point this morning.
March Natural Gas: By the Taylor Trading cycle we would expect a Buy day, although it’s an awfully weak market. Look for a potential breakout trade after the 9:30 AM NG storage report; the recent low at 2.608 would be the downside reference price.
April Live Cattle: Breakout setup (ID, NR4).
April Lean Hogs: Yesterday it finally made the downside breakout from the 70.00 low; now let’s see if we can get rally to sell.
March Soybeans: Taylor Trading Buy day; I’m watching the last overnight low of 973-4 as a potential reference price.
March Wheat: Breakout setup, use the 522-4 high and the session open of 511-2 down.
Essential Guide for Futures Swing Trading
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