Trading the Noise - Blue Line Morning Express
Bill Baruch of Blue Line Futures - - Fri Feb 08, 8:19AM CST
Morning Express

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E-mini S&P (March)

Yesterdays close:Settled at 2704, down 7.50

Fundamentals:U.S benchmarks are gyrating through a healthy paring of gains and that is exactly what it is at this point, a health paring. After a nearly 18% run from the December lows, this is not even in healthy correction territory yet.Weaker global growth got the ball rolling yesterday as the market found itself extended and exhausted in the near-term with strong overheard technical resistance. However, it was the fresh trade headlines that added pressure. White House chief economic advisor Larry Kudlow said there was a sizable distance between the two sides. Furthermore, for now, it does not appear President Trump and Chinese President Xi will meet ahead of the March 1st deadline. Although it is unclear whether tariffs will increase immediately at that point or the deadline will get kicked, investors prepare for the less favorable outcome and take some of the premium out of the market. Additionally, traders want to keep an eye on another sizable distance. It appears all may not be well with the tariff truce between the U.S and the EU according to Bloomberg reports; if this continues to erode, it will certainly weigh on sentiment.

This mornings economic calendar boasted better trade numbers from Germany, but another poor Industrial Production read from the Eurozone, this time from Italy. On the earnings front, Hasbro, Phillips 66, Exelon and others headline the morning.

Technicals:Price action elevated into yesterdays settlement as shorts closed positions, but the market did not trade higher overnight. This leaves gap resistance and a major three-star level for the S&P 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 (March)

Yesterdays close:Settled at 52.64, down 1.37

Fundamentals:A whirlwind of Oil related news has ping-pong price action over the last 24 hours. Most importantly we want to point out strong technical support as a key catalyst in the price action; detailed in the Technical section below. Overall though, fears of weak global growth have weighed on the broad risk appetite and just as equity markets have had a historical run to start the year, Crude Oil is up 16% YTD; a health paring of gains on a very technically damaged chart should be expected and is almost necessary. Adding to uncertainty is a bill in Congress that was passed yesterday. It would make it possible for the U.S government to prosecute OPEC for manipulating or fixing prices. The idea behind such is that it would stop OPEC from agreeing to cut production and thus lift prices to levels that the White House finds unfavorable. Baker Hughes rig data is due at noon CT.

Technicals:Crude Oil finally broke below and closed below first key support at ...Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.

Gold (April)

Yesterdays close:Settled at 1314.2, down 0.2

Fundamentals:Gold is trading high this morning as a strong technical landscape and a partial return of Asian interest has lifted the metal. China is still on holiday, but Hong Kong did return. This is typically a time of year that Gold sees a slight consolidation lower with an absence of that Asian demand and after a seasonally bullish start to the year. The Dollar has held ground and is ultimately quiet, but it is important to note that Treasury prices have responded to global growth fears and slight weakness in the equity markets and this is also supportive to the metal as a safe-haven. Overall, if Gold can hold this ground into the close on the week, it will be a very healthy one at that.

Technicals:Our back the truck up buy target and major three-star support at 1306.3-1306.5 worked perfectly. Gold faces first key 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.