Tuesday 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.

What’s happening in equities this morning can best be expressed by what I’m seeing on the Dollar side. Quite a spike higher here and I hope you’re not short any Dollar pairs.

Yesterday’s EOD bear wedgie pushed the E-Mini above the 25-hour SMA. But in the wee hours of today’s session we’ve quickly reversed course and are now heading lower aggressively.

Roll up your sleeves, steel rats – we’ve got a lot of work ahead of us today:
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The only non USD FX pair that has not been sold to the smithereens already: EUR/AUD about to drop below the 100-hour SMA. You know what to do – be short with a stop above. If we recover today and push back above flip your position, the SMA is your line in the sand.

Wheat – also right at the hourly Maginot Line. You know what to do. Noobs: feel free to ask in the comment section if anything is unclear to you – a friendly rat (or yours truly) will be of assistance. I can’t repeat these things here every morning obviously.

Soybeans – approaching the 100-hour as well. Wait for it.

Corn – about to become suicidal itself. This is becoming our central theme again today. Loving it.

Bonds – we should expect some resistance over on ZB right now. If not, well then things may get really ugly in equities today.

Nutty gas – challenging its 25-hour. It’s a wild contract, don’t get over exposed, just trust me on this one. I would be short here until it can bust higher above the SMA.

Coffee a bit slow in comparison but also dropping below the 100-hour SMA. That Dollar is having an impact today. Good for my exchange rate, that’s for sure.

Copper about to commit seppuku – slowly sliding down the lower 100-hour BB. I’m not even sure this one is holding up. It hasn’t even as touched a NLBL for days now.

Cotton – at the line – same idea as all the above. It’s moving slower though, not as crazy as natgas. Doesn’t mean though it can’t scare the heck out of you – see last week’s candle. So don’t get over-exposed, you don’t want to ever face a margin call, especially when you’re in a thin contract.

Crude – forget the 25-hour – it’s now tracing below the lower 100-hour BB line. Getting ugly out there. Not a setup but worth following for general guidance.

Keep it frosty and keep it clean, folks – things may get emotional today.

Cheers,