Consider Shorting Index Futures
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 .80 points higher and the Bond Market Futures are trading up 2 ticks.
Tonight we have five indicators pointing lower on the HREF=”https://tradingmarkets.com.site/eminis/indicators/actionsigs/mbias.cfm”>Market Bias Indicators
page. As a general rule, whenever we have three or more pointing lower, it usually suggests a downside bias. Therefore, you might want to consider shorting the index futures. The September S&P Futures [SPU9>SPU9] look most interesting to me as they stalled out right around their one-month highs (a) and closed poorly (b).
Source: Omega Research.
For you breakout players, October Sugar [SBV9>SBV9] broke out to four-month highs today. Look for a buying opportunity here.
August Feeder Cattle [FCQ9>FCQ9], mentioned last night and on the Pullback Off Highs List, still looks interesting to me. Continue to look for a buying opportunity here as the long term trend remains up.
Volatility Watch
August Gold [GCQ9>GCQ9] is now on the Volatility Explosions-Multiple Days List. Look for a large move (in either direction) as volatility reverts back to its mean.
Best of luck with your trading on Wednesday!
Dave Landry
PS-Reminder: Protective stops on every trade!