Today's Playbook - Blue Line Morning Express
Morning Express

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E-mini S&P (September)

Yesterdays close:Settled at 2978.50, up 0.25

Fundamentals:U.S benchmarks are on the positive side of flat this morning with Thursdays ECB interest rate decision and U.S CPI data looming. First, price action spiked late last night after China published a list of products that wont be subject to the 25% tariff. Unfortunately, these exemptions do not include agricultural products and are limited to the likes of feed for livestock and fish, grease and lubricating oil, and a range of pharmaceuticals among other things. This will go into effect September 17th and last for a year. The tape was broadly soft through the first half of yesterdays session on reports ECB President Mario Draghi wont announce as heavy dose a dose of stimulus as anticipated. It is a foregone conclusion that the ECB will cut rates deeper into negative by 10 basis points to -0.50%, but there are odds showing we could see more. Additionally, the ECB they are expected to announce a fresh wave of Quantitative Easing. If the ECB underdelivers, investors may not feel its enough to stave off deteriorating conditions. Offsetting the weakness was National Security Advisor Bolton being pushed out of the White House. Bolton, a long-know hawk, was the aggressive voice in President Trumps ear towards both China and Iran. His exit has been received as favorable to stocks. All in all, the market is right where it finished Friday and traders and investors alike await tomorrows news. The less closely watched PPI data is due at 7:30 am CT and Wholesales Inventories are out at 9:00 am CT.

Technicals:Price action in both the S&P and NQ broke below our major three-star support levels that help define the immediacy of the current uptrend. However, neither index closed below here, and this has allowed a technical wave higher for two reason; shorts got trapped who were forced to cover and now within the underlying uptrend there is a developing bull flag that bulls are now feasting their eyes on. The wave lower, though it broke major three-star support, did hold key support levels for both indices. Through the cash open, traders should keep a pulse on our pivot in the S&P at ...Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and actionable bias and levels.

Crude Oil (October)

Yesterdays close:Settled at 57.40, down 0.45

Fundamentals:Crude Oil reversed early gains yesterday after it was announced National Security Advisor Bolton was pushed out of the White House. Bolton was the hawkish voice in President Trumps ear and had a large impact on that path taken with Iran. The news was quickly seen as slight de-escalation of tensions with Iran although market participants know Iran has recently taken steps outside of the scope impacted by Boltons dismissal.

The private API survey after the bell reinvigorated the bullish tape as they reported a draw of 7.227 mb of Crude, -4.460 mb Gasoline and +0.618 mb Distillates. This is a very bullish report relative to analysts expectations of -2.686 mb Crude, -0.847 mb Gasoline and +0.072 mb Distillates. The large draw reported by API was clearly a surprise and especially so given the storm that pushed through the southern states. Its important to remember that its just a private survey and furthermore there is now a bullish bar set for todays report; something merely in line with the expectations or the slightest bit soft will be seen as bearish.

Technicals:It was no coincidence that Crude Oil sold off yesterday after achieving major three-star resistance at 58.45-58.86, our only major three-star resistance level for weeks. The tape could not pressure through minor support at ...https://www.bluelinefutures.com/free-triPlease sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and actionable bias and levels.

Gold (December)

Yesterdays close:Settled at 1499.2, down 11.9

Fundamentals:The pressure on Gold continues as both Treasury yields and the Dollar elevate. The latest to fuel the pair higher is U.S Core PPI data this morning coming in stronger than expected. Still, tomorrows ECB interest rates decision and U.S CPI are the highlight of the week and as we have noted, whats key is for Gold to hold a constructive fundamental and technical landscape ahead of these events. But furthermore, it must be understood that regardless of the landscape heading into it, the events still may not be favorable. However, holding construction will allow Gold to not battle with an arm tied behind its back through the events. For instance, a less dovish ECB which rallies the Euro can still help Gold on a currency basis if the landscape remains constructive ahead of such; see more in Technical section below.

Technicals:Yesterday was the lowest settlement in Gold since the August 7th surge. As we remain near-term cautious and long-term optimistic, our Bias has been more Neutral since trading below 1430. Still, yesterdays settlement held major three-star support at ...Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and actionable 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