Friday Morning Briefing

Welcome to our morning briefing. Here we are reviewing short term setups ahead of the NYSE opening bell. If you are a scalper or swing trader then these setups may be of interest to you. As usual keep in mind that these are short term setups although they could be used as early entries for more longer term positions.

I’m only seeing a handful of short entries today and quite frankly I’m a bit relieved as I’ve been busier than a one-legged man in a butt kicking contest. As the spoos have been giving up more territory over night it’s time to take another peek at our P&F chart. You may recall our official P&F price objective which puts as near 1385 – assuming a fair value of -5.10 currently would put us near 1380 on the E-Mini.

As you know I have not been participating in equities for the past two days as the risk/benefit ratio seemed unpalatable to me, despite the P&F target. The ISEE equities reading of 94 didn’t really help matters either. So I’m patiently waiting for a low to be in place and some buy signals on the horizon. As of right now I’m not seeing much in terms of buying interest – that 25-hour has been busy in the past week but managed to hold. The 100-hour has remained virgin territory – untouched and bashfully waiting in the distance. Unless we see both of them captured we’ll probably descend into our P&F price objective.

AUD/JPY right at the hourly Maginot line – this could be a breach attempt but it’s also possible that we get a last kiss goodbye. So I want to be long here with a stop below the SMA. I would flip it if we start dropping again. The rising SMA does favor the bullish outlook.

Crude is running on 1 1/2 cylinders – right now it’s meekly testing a NLBL with the 25-hour SMA right above. I will remain short here until further notice. However, look how we are closing the distance to the 100-hour, so maybe we are starting to flatten out here?

Soybeans – touching the 100-hour – nice long entry with a stop below.

Cheers,