As I Said….
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 point higher and the Bond Market Futures are trading up 3 ticks.
Last night, I pointed out that we had three indicators pointing lower on the Market Bias Page and to look for possible shorting opportunities in the September Dow Jones [DJU9>DJU9] and S&P Futures [SPU9>SPU9]. As you’ve heard me say before, anytime we have three or more indictors pointing lower, it’s a good time to consider shorting the index futures. Obviously, the market doesn’t always follow through like it did to the downside today. However, as you can see, it pays to watch the Market Bias Page for when it does.
December Cotton [CTZ9>CTZ9], on the Pullbacks From Lows List, gapped higher on the open today (a) but reversed to close poorly (b). This suggests the longer term downtrend is still intact. Look for a shorting opportunity here.
Source: Omega Research.
August Pork Bellies [PBQ9>PBQ9], mentioned last night and on the Pullbacks From Lows List, still look like they have potential to resume their downtrend. Continue to look for a shorting opportunity here.
Volatility Watch
September Bonds [USU9>USU9] are now on the Volatility Explosions-Low 6/100 Day List. Watch for a larger-than-normal move here as volatility reverts to its mean.
August Gold [GCQ9>GCQ9] is now on all three Volatility Explosions Lists. Watch for a larger-than-normal move here as volatility reverts to its mean.
Best of luck with your trading on Wednesday!
Dave Landry
PS-Reminder: Protective stops on every trade!