Energies Appear Pivoting
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 lower and the Bond Market Futures are trading down 5 ticks.
On the Pullbacks Off Highs List, the energies, August Heating Oil [HOQ9>HOQ9], August Unleaded Gas [HUQ9>HUQ9] and August Crude Oil [CLQ9>CLQ9], all rallied nicely and appear to be pivoting out of their pullbacks. Look for buying opportunities here.
Source: Omega Research.
For you breakout players, October Sugar [SBV9>SBV9] mentioned over the past few nights and on the Momentum 5 List, is just shy of its 4 month highs. Continue to look for a buying opportunity here.
On the Turtle Soup Plus One Buy List, both the September Dmark [DMZ9>DMZ9] and the December Swiss Franc [SFZ9>SFZ9] gapped to new lows today but “hooked up†and closed well. Look for a buying opportunities here as the shorts may be trapped on the wrong side of the market.
September Bonds [USU9>USU9], on the Turtle Soup Plus One Buy List, took out their old lows (113 25/32) today but immediately reversed. Look for a buying opportunity here as they may be additional shorts looking to cover. Just wait for follow through to the upside (i.e. take out today’s high) as they are trading lower overnight.
December Cotton [CTZ9>CTZ9], on the Pullback Off Lows and Implosion 5 Lists, closed poorly today reversing yesterday’s rally. This suggests that it is poised to resume its downtrend. Look for a shorting opportunity here.
Best of luck with your trading on Thursday!
Dave Landry
PS-Reminder: Protective stops on every trade!