IBM Announced Earnings
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 4.40 points higher and the Bond Market Futures are trading down 6 ticks.
After the close, IBM [IBM>IBM] announced better-than-expected earnings. The stock traded over 18 points higher in after hours trading. Based on fair value, the Dow is called to open 100-120 points higher tomorrow. Make sure you factor this into your index futures trading.
The June Canadian Dollar [CDM9>CDM9], on the Pullbacks From Highs List and the Momentum 5 List, closed well and appears to be poised to resume its uptrend. Look for a buying opportunity here.
Source: Omega Research.
Once again, June Crude Oil [CLM9>CLM9] broke out to new highs. Watch June Heating Oil [HOM9>HOM9] and Unleaded Gas [HUM9>HUM9] to see if they play catch up.
July Copper [HGN9>HGN9] on the Momentum 5 List, is in day two of a pullback off highs. The fact that it closed well suggests that it may be poised to resume its uptrend. Look for a buying opportunity here.
Recently, I’ve been talking about shorting opportunities in July Sugar [SBN9>SBN9] as it pulled back from lows. Today, it broke down to hit 14 year lows. What I find interesting is that the CNBC had a bearish report on sugar today. Like crude oil back in February, once the media begins talking about a bearish situation it often coincides with a bottom in the commodity shortly thereafter. Therefore, begin watching sugar for a possible buying opportunity.
Best of luck with your trading on Thursday!
Dave Landry
Director of Research
PS-Reminder: Protective stops on every trade!