Stocks are staging a recovery rally although there’s no data to point to as a catalyst. European equities are higher on thoughts that the weakness in the Euro will boost European export prospects. China posted weak industrial production and retail sales reports; this raised hopes that the PBOC will get more aggressive about expanding stimulus measures. The only data due today is the weekly EIA petroleum inventory report at 9:30 AM CT; traders look for crude oil stocks to be up 4.2 million barrels with a draw in gasoline and distillate stocks. We also get the results of US bank stress tests (not sure when) and a 10 Year T Note auction at Noon CT.
March EMini S&P Futures: It’s a “cover breakout sales day so a Taylor Trading Technique Buy day is anticipated. For the time being I would watch the last overnight low of 2046.75 as a reference price with 2055.85 (50 day SMA) to be resistance. 2045.75 is a major Fibonacci retracement level and significant for determining the longer term trend.
March EMini Russell Futures: Treat today as a Taylor Trading Sell day- it can rally today and we should anticipate a Sell Short day for Wednesday. 1214.10 is old low and Fibonacci retracement resistance.
June T Bonds: Yesterday afternoon I was talking to a client about the bonds. We agreed that we should be looking for a Sell Short day trade for today, and it’s been a textbook move thus far. Yesterday’s high of 158-25 was the reference price; this lined up with old low resistance from mid-February. 157-03 is the first downside target.
June Yen: It’s the Sell day of the TTT cycle however with the daily trend down I might press it and look to sell today- look to be short if it’s below the Fibonacci retracement level at 8244.
June British Pound: I would look to short IF it takes out yesterday’s low of 1.5018.
June Canadian Dollar: It’s a “cover breakout sales” day; this tells us to anticipate a Taylor Trading Buy day, with 7869 as the reference price. However, I would be careful of the long side as it looks to be on the verge of more downside.
June Australian Dollar: Another “cover b.o. sales” / TTT Buy day. Watch 7571 (the previous 2015 low) as the reference price. Conservative traders should look for an opportunity to short it.
April Gold: Keep trading gold from the short side; look to short rallies into the low 1160s.
May Cocoa: It gapped lower on the open; rallying back over 2902 (Tuesday low) could boost a recovery rally.
May Sugar: Another market with a TTT Buy day recovery rally. I’d like to short it at higher prices (watch 13.18 and 13.31) however it’s been a slow mover lately.
May Coffee: Breakout setup (NR7, doji). Watch 1.3380 as a pivot point for the downside; watch for a break of the session low (1.3290) as a reference price for more downside.
April Crude Oil: The TTT would tell us to look for a Buy day today. I would prefer to stand aside for now and look for a potential breakout trade after the inventory report.
May Soybeans: Look to get short on a rally to the 1000-0 area.
May Wheat: Watch the 500-0 area 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.
THIS MATERIAL IS CONVEYED AS A SOLICITATION FOR ENTERING INTO A DERIVATIVES TRANSACTION.
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