Heads Up: The Fed
Each evening we focus on the most interesting aspects for the upcoming trading day. The comments are based on observations of the nightly updates of the Futures and Market Bias pages. They are provided for educational purposes only and are not intended to be direct trading advice. Also, keep in mind that these remarks are made up to 12 hours in advance of the markets opening. Therefore, overnight events may alter the outcome of these observations.
At the time this is being published, the S&P Globex Futures are trading 1.00 points higher and the Bond Market Futures are trading down 3 ticks.
Heads up, the Fed is in day two of their meeting. Any announcement from them other than the “expected†¼-point hike in the discount rate will likely cause tremendous volatility in index futures markets.
September Feeder Cattle [FCU9>FCU9], on the Turtle Soup Plus One Buy List, gapped to a new 20 day lows today (a) but reversed and closed well (b). This may have breakout (or more appropriately breakdown) players trapped on the wrong side of the market. Look for a buying opportunity here.
Source: Omega Research.
August Gold [GCQ9>GCQ9], hit new 10-day highs today but reversed to close poorly. Look for a shorting opportunity here as the long term trend remains down.
Volatility Watch
The September Japanese Yen [JYU9>JYU9], is now on the Volatility Explosions-Low 6/100 Readings List. Watch for a larger-than-normal move (in either direction) as volatility reverts to its mean.
Best of luck with your trading on Wednesday!
Dave Landry
PS-Reminder: Protective stops on every trade!