Chinese and Euro Zone PMI reports both came in better than expected. The Chinese PMI keeps hopes alive for the world economy. The EZ PMI along with decent auction results of Portuguese debt is giving the euro big strength. In the US, The Challenger report showed that planned layoffs are at their lowest level in a decade. The ADP employment report said that payrolls fell by 10K; a rise of 15K was expected. This is a minor negative for stocks, but the August ISM Manufacturing report at 9 AM will be more important. The consensus is that it fell 1.5 to 53.0.
Sept S&P: Breakout setup (NR4, doji). The next rally target would be in the 1065 area.
Sept. NASDAQ: Another breakout setup (NR7, doji). Held trade over 1790 would be very bullish.
Dec. T Bonds: Sell Short day, also has a breakout setup (NR7). Consider the overnight low at 134-02 as the downside breakout point and the overnight open at 135-04 on the upside.
Sept. Yen: Trade or Fade labeled today a breakout setup (NR7). The last intermediate high at 1.1966 is a major breakout point.
Sept. Euro: Rallying over last week’s high at 1.2780 gave this Buy day rally extra fuel. Looks like a 123 bottom formed.
Sept British Pound: The 8/24 swing low at 1.5369 was the reference price for today’s Buy day move. 1.5451 is the first rally objective.
Sept. Canadian Dollar: Held the recent low at 9370, Buy day rally today. 9456 is a rally objective / resistance point.
Gold / Silver: I’m still bullish on precious metals, but would be cautious today after yesterday’s breakout rally. The last major high for Dec Gold was 1270.60; Dec. Silver has old high resistance at 19.55.
Oct Sugar: With yesterday’s doji it could still have a breakout move. Watch yesterday’s high at 20.25 as an upside breakout point; there’s also the recent high at 20.37.
Dec. Coffee: Breakout setup (ID, NR4). There are two upside breakout point to consider-yesterday’s high at 183.20 and Monday’s at 184.30.
Oct. Crude Oil: Buy day, 73.56 is the first rally objective. Can it form a higher low here? Inventory numbers are out at 9:30, which should give it direction.
Oct. Live Cattle: Buy day. Be careful here, it’s testing old high support in the 96.85 area. Breaking that could strengthen the down trend.
Nov Soybeans: Buy day after yesterday’s steamrolling. 1014 is a pivot point this morning, 1020 is the first rally objective.
Dec. Bean Oil: Keep an eye on the oil. The 40 cent area is major Fibonacci support, the market has been rotating around it for the past weeks. Clearing 40.64 would confirm a new up trend, new closes under the 40 cent area would signal a top.
Dec. Wheat: Buy day, still range bound. Last week’s low at 679-2 is the bottom of the range, 730 is the top. 706 is the first rally objective today.
Dec. Corn: Does yesterday’s doji mean it could still have a directional move today? The recent high has been 445-2, watch that for an upside breakout point today. I’d still watch the old high at 438-6 as the downside pivot point.
This is a sample of the analysis from my Swing Trader’s Insight advisory service. For information on STI, and to sign up for a free two week trial, visit here.
The information contained here includes information from sources believed to be reliable and accurate, but no guarantee is made as to accuracy, nor do they purport to be complete. Opinions are subject to change without notice. Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
