Stocks sold off after Dallas Fed President Fisher (a known hawk) said the Fed should raise rates before the economy reaches full employment, noting that whenever the Fed has waited for full employment to raise rates, the economy has gone into a recession. We have been moving into a new market paradigm (US exit from the QE of the Great Recession) and Fischer added fuel to the fire, not that his comments were a big surprise. China reported February PPI fell by 4.8% y/y; a larger drop than forecast and the 36th straight month of decline in their PPI. With no financial news due today, look for markets to continue to adjust to the idea of “higher rates sooner than previously thought”.
March EMini S&P Futures: Overnight selloff out of a breakout setup (ID, range contraction). Look for the 2062.00 area to be first resistance today. Watch the 2057.00 level (50 day SMA) as a pivot point.
March EMini NASDAQ Futures: Another market with a selloff out of a breakout setup. Trade or Fade (my breakout trade advisory) has the first downside target at 4371.40 (met) and then 4341.90.
June British Pound: Monday was an inside day and the daily trend is down; look to short another break below 1.5023 (Monday low).
April Gold: It sold off and then came back from a breakout setup however that doesn’t put the bulls in charge- I would look to be short between 1168 and 1170. Only a move back above 1170 would take off some of the downside pressure.
May Cocoa: Look to be short if it’s under 2918 (Monday low).
May Coffee: Aggressive traders could look to press the short side if it’s under 134.15 (Monday low).
May Cotton: 62.10 is a significant Fibonacci retracement level; will it hold to force a recovery rally? Look to sell if we get higher prices.
April Crude Oil: Monday was an inside day; look to short it if it takes out 49.25 (Monday low).
Grain Futures: There’s a USDA supply / demand report out at 11 AM CT today; trade accordingly.
May Soybeans: It’s on a Taylor Trading Technique Sell Short day signal; with the daily trend down I’d be looking for an opportunity to short it.
May Wheat: Taylor Trading Sell Short day; watch 486-6 as a pivot point today.
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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