Volatility Dropping In Bonds
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.
face=”Arial, Helvetica”>Join me, fellow TradingMarkets.com
content providers, and other traders and money managers at
the Trading Markets 2000 conference at the Venetian Hotel
Resort and Casino in Las Vegas on October 13-15, 2000.
face=”Arial, Helvetica”>At the time this is being published,
the S&P Globex futures are trading down 0.80 points and
the bond market is trading up 3 ticks.
For you breakout
players, the September Canadian dollar
(
CDU0 |
Quote |
Chart |
News |
PowerRating) is
consolidating after forming a cup formation and looks poised
to break higher. Look for a buying opportunity here.
September bonds
(
USU0 |
Quote |
Chart |
News |
PowerRating) haven’t moved much on a closing basis in
several days (illustrated by the red line in the chart
below). Should this action continue, it will likely create a
low-volatility situation.
width=”470″ height=”320″>
Follow-up/looking
ahead: I’m still watching the energies for potential setups
on the short side. For the nimble (i.e., daytraders), the
energies may offer shorting opportunities. For position
players, wait for a pullback.
Best of luck with
your trading on Thursday!
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!