Wheat futures had a breakout setup for Wednesday. As it turned out, this coincided with a decision by China to raise the import tariff on some US grain products. This resulted in a good breakout trade in wheat; I wonder this is also an example of the types of market moves we can expect with… Read more.
The EMini S&P futures had a breakout setup for Friday, which made sense in light of the monthly employment report due today. The breakout setup gave a good trade for the day session after a fake out in the premarket. Thursday’s bar for the S&P was an inside day, NR4 and a doji. These were… Read more.
Treasury Bond futures had a big rally on Thursday as they rallied out of Wednesday’s breakout pattern. This gave them a Taylor Trading Technique Sell Short day signal for Friday. Treasuries (Bonds, the 5 and 10 Year T Notes as well) had a breakout pattern Wednesday. They all showed range contraction from Tuesday as well… Read more.
Gold futures had followed the Taylor Trading Technique (TTT) cycle for the past two sessions. Today was a Taylor Trading Buy day and it stuck to the script for another day. Friday was a TTT Sell Short day (I wrote about that HERE) and the bar looks like a Sell Short day- the market opened… Read more.
Success in trading, as with many things in life, is contingent on preparation. For trading, preparation does two things for you. First, it allows you to identify trade opportunities when they occur, allowing you to act promptly. Second, preparation gives you confidence to act when trade opportunities arise, making it easier to do the right… Read more.
The markets are often thinly traded during the last week of the year. Sometimes this makes for markets with no real trade setups. Other times this thinness can mean volatility and opportunities. As I wrote about yesterday (go HERE), trading opportunities tend to be hit or miss at the end of the year. Many traders… Read more.
Holiday markets tend to be feast or famine for trading. Some tend to either do very little, providing no real trade opportunities. Other times they make big moves as less liquid conditions and the shortage of trading prospects can create explosive setups that attract short term traders when opportunities do appear. Today we saw both… Read more.
Markets often seem to follow Newton’s law of inertia- markets at rest tend to stay at rest. A number of markets had quiet sessions on Wednesday, and many of these markets remained relatively quiet Thursday. This meant a lot of those markets remained quiet today. Fortunately there were still some opportunities. Wednesday was “report day”… Read more.
Crude oil futures had a big selloff on Wednesday, falling out of a breakout setup as the weekly inventory report and hawkish Fed statement led to a broad based commodity rout. The selloff on Wednesday gave crude a Taylor Trading Buy day setup for Thursday and we saw the anticipated rally. In last night’s edition… Read more.
Although it didn’t “officially” have a breakout setup (no breakout patterns, per se), we still anticipated a breakout move for the stock index futures after the FOMC meeting ended. This meeting probably had the most uncertain outcome of recent meetings so a relatively large change in “fair value” was a likely outcome. For the EMini… Read more.