Slim pickings after Friday’s nearly across the board volatility:
Australian Dollar-already did breakout down Sunday night.
December Copper-Again, broke sharply in overnight activity
December Gasoline-A strong breakout under the recent 214 low
January Soybeans.
For more information on how to recognize and trade breakouts,go to the Trade or Fade homepage-see the link on the right, under “My Sites”
Markets I’m watching for breakouts:
Stock Indices-ESZ7, DJZ7, ERZ7
CDZ7-Canadian Dollar
SVZ7
WZ7, KWZ7-Wheat, both Chicago and KC.
See the Trade or Fade web site for how to trade breakouts:
http://trade-or-fade.danielstrading.com
December Cotton was a breakout candidate today-yesterday had a narrow trading range, and although it wasn’t an inside day (I like the ID/NR combination as a breakout signal), it was a doji, so I knew to be looking for a breakout trade on Wednesday. The chart below is of the day session only-you don’t have to stay up at night to catch every breakout!) That being said, more and more breakouts are occurring in the overnights markets.)
Here’s the list of futures that should be on your radar today as potential breakout candidates:
CDZ7
SFZ7 (already broke out in the overnight Globex session, good example of what a breakout trade looks like)
SVZ7
KCZ7 (Coffee, broke under Monday’s swing low of 127.50)
CTZ7
LCZ7
CZ7, CH8
WZ7, KWZ7
For more information on my breakout trading methods, visit the Trade or Fade website here:
http://www.danielstrading.com/content/cont.php?sub=brok_hoff_tofn&refid=192b
The NASDAQ futures are sharply higher in pre-market trade as technology stocks got good news yesterday in the form of good earnings from Intel and Yahoo. Yesterday’s chart pattern for the NASDAQ gave a good “heads up’ to expect this movement.
We’ve had no economic news out yet today; the minutes from the September FOMC meeting will be released at 1 PM Chicago time. This will provide an insight into then Fed’s thinking at their last meeting-was that cut a “one and done”, or are they leaning toward more? Traders are obviously hoping for some clarification on this.
Following a relatively trendless start to the session, S&Ps have stayed within a defined range-1570 is psychological resistance, and Friday’s high of 1573.50 is next. Support is Friday’s upside breakout point of 1561. These also line up well with today’s Trade or Fade numbers (see below). I would use a breakout of R-1 or S-1 as a breakout trade after the release of the minutes, as the minutes have a strong chance of affecting trader’s percepetions of the Fed’s bias, and hence, market direction.