Equities and the Euro rallied after Greek PM Tsipras said he is “more optimistic” after talks with EU leaders to reschedule Greek debt. The two sides have been far apart and traders are looking for a sign that a compromise is possible. If this follows the standard EU script, they will find an agreement at the last minute that serves to push the problem off until later, as if somehow things will miraculously improve down the road. The EU is still looking for concrete economic reform plans from Syriza, a party that has been big on tough rhetoric but short on actual governing experience. Asian stocks got a boost on thoughts that Chinese leaders will take action to make sure Chinese economic growth doesn’t drop below its 7.0% target. There is no US economic data due today; a couple of regional Fed Presidents have speeches scheduled. At 2 PM CT we get Cattle on Feed report from the USDA.
June EMini S&P Futures: In last night’s STI S&Ps were labeled as either a breakout day or a Taylor Trading Technique Buy day so the rally wasn’t a surprise. 2088 is a pivot point this morning, and there’s trend line resistance around 2095.50. Trade or Fade (my breakout trade advisory) has the upside breakout level at 2094.75.
June EMini NASDAQ Futures: Breakout setup (NR7, doji). 4435.00 was the first reference price for an upside breakout. The Trade or Fade breakout level is 4447.6 with a first target of 4476.
June T Bonds: It’s a Taylor Trading Technique Buy day but there hasn’t been a test of the low- I would consider being long if it’s above the overnight high of 163-23.
June Yen: TTT Buy day, 8271 is the reference price. Be careful; yesterday was an inside day and the longer term trend is down.
June British Pound: TTT Buy day, watch the previous overnight high of 1.4768 as a reference price this morning.
April Gold: If it closed higher in the range yesterday then I would have more confidence in a TTT Sell Short day today. As it is, a two sided trade appears the most likely scenario.
May Silver: TTT Sell Short day, 1620.5 is the reference price.
May Cocoa: It’s a “cover breakout sales” day so a Taylor Trading Buy day is anticipated. 2705 is the reference price with 2745 the first rally target.
May Coffee: TTT Sell Short day; watch the 140.00 level as a pivot point for the downside. Lower prices should be a buying opportunity- the longer term trend is up.
May Crude Oil: TTT Buy day; watch the 45.67 level as a pivot point for a rally.
June Lean Hogs: TTT Sell day; I might look to buy if it rallies above 75.07 (Thursday high).
May Wheat: TTT Sell day; let’s see if it can clear resistance in the 518 to 520 area.
Essential Guide for Futures Swing Trading
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