Possible Buys In DJM9 And SPM9
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 1.50 points higher and the Bond Market Futures are trading up 1 tick.
Tonight, we have 4 indicators pointing higher on the Market Bias Page. Whenever you see 3 or more of these indicators pointing higher, it usually suggests an upside bias for the following day. Look for buying opportunities in the June Dow Futures [DJM9>DJM9] and the June S&P Futures [SPM9>SPM9].
June Live Cattle [LCM9>LCM9], on the Pullbacks Off Lows List, hit new 10-day highs today (a) but reversed and closed poorly(b). This may have breakout players trapped on the wrong side of the market. Look for a shorting opportunity as the bigger picture trend remains down.
Source: Omega Research.
Volatilty Watch
On the Volatility Explosions — Low 6/100 Readings List, the volatility has begun to drop off in both the June Swiss Franc [SFM9>SFM9] and the June D-mark [DMM9>DMM9]. Begin watching these contracts for a larger-than-normal move (in either direction) as volatility reverts to its mean.
Best of luck with your trading on Thursday!
Dave Landry
PS-Reminder: Protective stops on every trade!