September Bonds, Look To Short
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 .30 points higher and the Bond Market Futures are trading up 4 ticks.
September Bonds [USU9>USU9], on the Implosion 5 List and Pullbacks From Lows List, rallied earlier today on a benign CPI number but reversed to close poorly (a). Look for a shorting opportunity here as the long term trend remains down.
Source: Omega Research.
Both July Crude [CLN9>CLN9] and July Heating Oil [HON9>HON9] appear to be stalling out at new highs creating a possible double top. Look for a shorting opportunity here.
July Cocoa [CCN9>CCN9], on the Pullbacks From Highs List and mentioned last night, still looks like it has the potential to pivot out of its pullback. Look for a buying opportunity here.
Volatility Watch
July Coffee [KCN9>KCN9] is now on the Volatility Explosions-Low 6/100 Readings List. Because surprises normally happen in the direction of the trend the move may be lower as volatility reverts to its mean. Look for a shorting opportunity here.
Best of luck with your trading on Thursday!
Dave Landry
PS-Reminder: Protective stops on every trade!