Futures Markets Review: No Plan? No Chance

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK ( TheLFB-Forex) -- Major currencies continue to look weak against the USD, while just JPYremains strong. All however will have a testing time this week as markets price in one bail-out news headline after another. The eurozone has pledged massive amounts of money to swap bad debt for good, which will pressure EUR valuations over time, and will avert attention away from U.S.-based debt issues that really do not look much better.

Forex Update: EUR: Support, 1.3125; Resistance, 1.3395; Neutral 1.3245. GBP: Support, 1.5315; Resistance, 1.5540; Neutral, 1.5495. JPY: Support, 76.30; Resistance, 77.05; Neutral, 76.80.

Global futures trade has been flat ahead of ADP Employment Report and Institute for Supply Management data. Earnings season and nonfarm payrolls on Friday now come into focus, leaving mainly intraday trading opportunities available while the four-hour charts attempt to move out of their side-winding pattern of trade. Gold and silver bullion are still suffering the impact of margin requirement increases.

The 5%-to-7% daily trading range on silver continues unabated, while goldis holding a 3.5% trading range. It has been noted that all asset classes move as much in a day as they do in a week in the new-normal bail-out environment. Traders need to adjust target and stop loss areas now that price action is capable of stretching so far.

Commodity Update: Gold: Support, 1580; Resistance, 1675; Neutral, 1630. Silver: Support, 27.40; Resistance, 31.15; Neutral, 29.90. Oil: Support, 75.50; Resistance, 78.50; Neutral, 76.65.

G7 countries have created their own plunge-protection teams to support equity and bond markets and will be hard at work instilling confidence (again) this week. However, the upside equity moves are weak, volatile and not very well supported. The main global equity markets are technically in bear market status now that most have dropped more than 20% off their highs, with most plumbing the lows of the year.

Equity/USD Update: S&P 500: Support, 1085; Resistance, 1135; Neutral, 1101. Dax: Support, 5120; Resistance, 5390; Neutral, 5220. DXY: Support, 79.30; Resistance, 80.40; Neutral, 79.80.

The topsy-turvy world of global trade continues its path of one day up and one day down, in reaction to breaking news sentiment. The unique set of fundamental circumstances unfolding as a consequence of years of misdirected fiscal policies and institutional investment faux pas is likely to continue throughout the last quarter of 2011.

Whether equity bull or bear, bullion buyer or seller, or a bond investor on the long or short end of the curve, the outlook remains the same; intraday volatility increases as fair value is sought in milliseconds rather than historically over a period of days and weeks. Set a plan, or use our Trade Plans available each day, and bank early and often in the current environment.

There are near-term trade opportunities in all markets when buying at the low of the previous session and selling at the high. These trades are available as a strategy because of the lack of mid-term chart directional sentiment and momentum as a mass of red-flag news headlines hit the wires.

Fundamental expectation coupled with technical chaos will test the best-laid plans of many investors this week, and we are here to help. The unique aspect of our trade desk is the mix of old-world fundamental work coupled with new-world technical reviews. The structure allows us to filter out market noise and to concentrate on market mechanics.

At times of uncertainty the methodology holds steady, especially when coupled with access to 24-hour traded futures markets.

TheLFB is great for all skill levels. Receive market support, and get TheLFB trader advantage. Sign up today!

This commentary comes from an independent investor or market observer as part of TheStreet�s guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management. The London Forex Broadsheet (known as TheLFB) is a is a global forex trader portal based in the U.S. TheLFB's mission is to educate retail and institutional clients on the links that bridge the trader and investor to the free-flowing global market. It serves the needs and develops the skills of forex trading clients with its 30 years of trading and market experience.

TeamLFB maximizes a forex trader's day with support that instills discipline, confidence and structure, enabling the only daily variable to be market-driven. TheLFB service offerings include a mix of complimentary and subscription-based products that cover trade signals, professional grade currency and commodity analysis, comprehensive charting overviews, as well as daily trade desk video reviews. The trader news feed is a proprietary offering that gauges 24-hour market sentiment, guiding all levels of traders on the nuances of each new trading day.

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