What to know - Blue Line Morning Express
Morning Express

As you know, our whole report goes out each morning to clients and Free Trial subscribers berfore 7:00 am CT. Enjoy our Fundamnetals below. But please register for a Free Trial of 1 or all 5 of of our Blue Line Express daily commodity reports in order to get all of our great insight; Techinicals, Fundamenals, and proprietary Bias and Levels. E-mini S&P, Crude, Gold, Natural Gas and the 10-year.

Free Trial


If you are viewing on Barchart, the links may not work. Please copy and paste this in your browser:
https://www.bluelinefutures.com/free-trial

E-mini S&P (December)

Yesterdays close:Settled at 2808.75, down 7.75

Fundamentals:U.S benchmarks are retreating this morning after running into a brick wall of technical resistance ahead of yesterdays Federal Reserve policy meeting. For all intents and purposes, the Fed did not rock the boat, their statement was nearly identical to September. While highlighting a declining unemployment rate and household spending growth, they added that business investment has moderated. There is a 75.8% probability they hike in December. The Dollar traded higher and is holding those gains this morning. The question at this level is whether the post-election relief rally was for real or is the emerging market blood bath a sign of something worse? The MSCI Emerging Market Index is down another 2% this morning after shedding 2.6% yesterday. Around the world, major indices in Europe are down nearly 1% and those from Asia are also getting hammered with the Hang Seng leading the way down 2.39%. Furthermore, commodity prices have performed poorly. No need to look further than Crude Oil which finished yesterday in bear market territory and is eyeing its ninth straight losing session, something its never done before.

On todays economic calendar we look to PPI data at 7:30 am CT. The Core read, excluding food and energy, is watched most closely. This usually takes a back seat to CPI, however, with that not due until next Wednesday, PPI not topping expectations for three months running and CPI missing each of the last two months this will surely get more attention than usual. The first look at November Michigan Consumer data is due at 9:00 am CT, this is the freshest indicator each month.

Technicals:We cannot say we are surprised that the S&P is trading below 2800, we went ...Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.

Crude Oil (December)

Yesterdays close:Settled at 60.67, down 1.00

Fundamentals:Crude is eyeing its ninth straight losing session, something it has never done before. The price of WTI has already taken out the $60 mark this morning while Brent has taken $70. The sharp leg lower comes after EIAs weekly inventory report posted a seventh straight build and estimated that the lower 48 states added 400,000 bpd of production to an already record level of U.S output. Also, these builds have come as U.S Crude imports retreat from September and October highs. However, the market ignored robust Trade Balance data from China Wednesday night that was highlighted by record imports of Crude. The U.S Dollar remains broadly elevated against other currencies, most significantly the Chinese Yuan. This weekend, OPECs the Joint Ministerial Monitoring Committee meets in what may be their most significant meeting of late after it was reported this week that Saudi Arabia and Russia want to cut production in 2019. The group would be expected to make a recommendation for OPEC to consider as a whole. Baker Hughes rig count data is due at noon CT and traders want to eye unchanged on the session at 60.67 to break the losing streak.

Technicals:Yesterday, Crude finished 21.1% from its front-month high which is a technical bear market. For us, a bear market would not technically happen until a close below ...Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.

Gold (December)

Yesterdays close:Settled at 1225.1, down 3.6

Fundamentals:Gold is under pressure this morning due to Dollar strength on what was perceived as a hawkish statement from the Federal Reserves policy meeting. While the Dollar Index is up 0.2% on the week, the Dollar is 0.85% stronger against the Chinese Yuan and this has had a direct impact on Golds weakness. This morning, we look to PPI data at 7:30 am CT. This lesser watched inflation indicator will be important for the Dollars direction on the session, however, CPI next Wednesday is much more important. The first look at November Michigan Consumer data is due at 9:00 am CT, this is the freshest indicator each month. Analysts look to Consumer Sentiment peaking in September, traders should watch this read closely today.

Technicals:Although Gold did not close below the 100-day moving average yesterday, it is well below it this morning. This pins first key support in the mix at ...Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.


Sign up for 1 or all 5 of our Blue Line Express commodity reports!

Free Trial

Please do not hesitate to contact us with any questions on the markets, trading, or opening an account

Info@BlueLineFutures.com

312-278-0500

Follow us on Twitter:@BlueLineFutures

Follow us on Facebook:Blue Line Futures Facebook page

Subscribe to our YouTube channel:Blue Line Futures YouTube channel


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.