In last night’s Swing Trader’s Insight, the comment for the eMini S&P futures was “cover breakout sales, (Taylor Trading Technique) Buy day. This meant we would look for the market to potentially trade lower, find a bottom, and then rally.
Taylor Trading Technique
In today’s Swing Trader’s Insight I noted the eMini S&P futures are on the Sell day of the Taylor Trading Technique cycle. This effectively gave us a buy signal for this morning.
In this morning’s Swing Trader’s Insight morning watch list I suggested we look to short the eMini S&P if the December futures dropped below 2098.00. We were looking for a short sale if an upside breakout failed.
January soybean futures have been trading around support in the 850 area. Sunday night they attempted a downside breakout below that level; the rejection of the downside move proved to be a Taylor Trading Technique Buy day.
The eMini S&P futures had a breakout setup for today; this fit well with today’s release of the highly anticipated release of the minutes of the last FOMC meeting.
The grain futures are often good trading markets for trade setups using the Taylor Trading Technique. Today’s Taylor Trading Sell Short day for the soybeans was a good example.
Today was a Taylor Trading Technique Sell Short day for the eMini S&P futures. It has been an interesting session so I thought I would go through how I saw the day.
When a market has a session with a strong directional move higher or lower, the following session usually has a move in the opposite direction (a Taylor Trading Technique cycle day) or residual momentum will continue the breakout move on the second day. Either pattern can be a trade opportunity.
The past two sessions in the stock index futures has been a good example of how the Taylor Trading Technique cycle works.
Failed breakout moves can be great trade setups for the futures markets and Taylor Trading Technique setups are often a variation of this. Today’s trade in the eMini Russell futures was a good example of this.