Stocks are lower. Traders are worrying about the possibility of a China-US trade war. On Friday the US imposed trade penalties on the Chinese over Chinese tire exports to the US. The Chinese called the US move protectionist, and threatened retaliation. Trade friction and protectionism would be a bug problem for the recovering economy. I’d suspect that the trade issue is also weighing on Treasuries and the grains. There are no economic reports due today.
Dec. S&P: It has a narrow range and doji breakout setup. It’s already trading under the first breakout point at 1034; the first profit objective is 1022.50.
Dec T Bonds: Friday was a bearish bar; it formed a double top and closed in the low end of the range. It’s currently testing support at 120, the target for that break is 11916.
Dec Japanese Yen: It’s a momentum sell short day; watch support at 10993. This should be a beak to buy.
Dec Euro Currency/Swiss France/British Pound/Canadian Dollar: All had narrow range and doji breakout setups, but they’ve all dropped far below the downside breakout point.
Dec. Gold: Friday’s rally formed a double top at $1010. Trading under $1000 could keep the pressure on; support is at the old breakout point of 993.60.
Dec. Silver: It broke and regained the 1650 breakout area overnight; the next support is 1625. This should be a break to buy.
March Sugar: Held again at trendline support (at 2246 today). Look to sell a break of that point.
Dec. Cotton: it had a bearish bar Friday-a big rally that fell back on the close. For today watch support around 6020.
Nov Crude Oil: Downside followthrough to Friday’s breakout day selloff; last week’s low at 6776 is support.
Nov. Soybeans: A big crop and trouble with a big customer are weighing on beans.
Dec. Wheat: It looks ready to test the recent lows around 450; don’t look for that to hold.
Dec. Corn: More downside coming. Watch support at 311.
This is the morning update to my Swing Trader’s Insight advisory service. For information on STI, and to sign up for a free two week trial, visit here.
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