Trading the Noise - Blue Line Morning Express
Morning Express

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E-mini S&P (June)

Yesterdays close:Settled at 2819, down 38.00

Fundamentals:U.S benchmarks are pointing higher this morning ahead of the long Memorial Day weekend. Price action began paring heavy losses ahead of the close yesterday after the S&P and Dow failed to crack below the May 13-14 low. Tech led the way lower once again and followed the exact path that we noted here to look for; continued pressure below 7391.75-7406 will certainly leave the bears in the drivers seat eyeing a direct test within a massive level of support at 7241-7276. We find the bounce into this morning very technical in nature given no significant changes on the fundamental landscape. In fact, if anything, the landscape has worsened after the Commerce Department said last night its considering a rule that would punish countries who undervalue their currency against the dollar. This was a clear shot at China, however, it was bubble wrapped after President Trump said a trade deal could include Huawei.

Dismal PMI data yesterday from the Eurozone and U.S echoed the trade war and gave the sellers a shotgun start. Today, the macro tone is not much different; April Durable Goods came in below expectations and Marchs reads were revised lower. The technicals will play a key role in todays path, but ahead of the long weekend with linger geopolitical risks and another poor data set, there is no true reason for buyers to step in or sellers to change their tone.

Technicals:The NQ traded to a new low and managed a direct hit on our major three-star support yesterday. The S&P and Dow did not make a new low and we now have a technical recovery on our hands. The S&P faces major three-star resistance today at ...Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.

Crude Oil (July)

Yesterdays close:Settled at 57.91, down 3.51

Fundamentals:Crude Oil sold off sharply yesterday in a manner reminiscent to its demise from October through December. Price action is showing some stability ahead of the long weekend given that geopolitical tensions in the Middle East are extremely relevant. Dismal PMI data yesterday was the straw that broke the camels back after another unseasonably like build in stockpiles according to the EIA on Wednesday. As we discussed here yesterday, the price action was extremely bearish, but we will be patient in order to fade a bounce and likely look to position Monday/Tuesday.

Technicals:Price action slipped sharply yesterday but stopped right at a pocket of major three-star support that aligns the .382 in the continuous contract and the July contract. Just as we mentioned above in the S&P section, we like to lean on .382 retracement as a tradable opportunity and to help define whether a market stays in its current or immediate trend. For Crude Oil, that trend has been higher all year. However, this is where we must understand the technical damage inflicted by yesterdays drop and have to believe todays recovery is a dead-cat bounce because off the .382 retracement. If the tape holds above ...Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.

Gold (June)

Yesterdays close:Settled at 1285.4, up 11.2

Fundamentals:Gold had a great session yesterday, again recovering from support aligning with the 200-day moving average. Yesterday, was a flagship fundamental day for the metal. First, Eurozone PMIs missed, and Gold came off its floor but was being held back by Dollar strength amidst the Euro weakness. After U.S PMIs missed, the ceiling was removed as the Dollar reversed gains. Treasury markets had a ball yesterday and the 30-year traded to the highest level since January 2018 and the 10-year the highest since November 2017. Still, Treasuries are certainly outpacing Gold as Chinese Yuan weakness remains the metals Achilles heel. The Commerce Department said last night its considering a rule that would punish countries who undervalue their currency against the dollar. This could lay groundwork for a solid rally in Gold if a trade war is achieved. Durable Goods today was the latest dismal piece of economic data, but Gold has failed to react, continuing to trade in a tight range.

Technicals:Price action settled out above major three-star resistance at ....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.


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Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results