Indices Oversold
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
market’s opening. Therefore, overnight events may alter the
outcome of these observations.
There’s not much to look at tonight (Monday). Natural gas, mentioned Thursday
night, gapped to new highs on Monday but didn’t hold above them (and doesn’t
offer any new entries). The Nasdaq 100 futures, mentioned last Wednesday and
Thursday, is now back to its old lows (a good place to lock in partial
profits). Corn, also mentioned Thursday, has begun to stall out in its
rally from a pullback.
For you breakout players, December cotton
(
CTZ0 |
Quote |
Chart |
News |
PowerRating)
is holding up well at high levels and looks poised to take out life-of-contract
highs.
face=”Arial, Helvetica”>
Volatility Watch
December gold
(
GCZ0 |
Quote |
Chart |
News |
PowerRating), remains a low-volatility
situation. Continue to watch for a larger-than-normal move (in either direction) as volatility
reverts to its mean.
Looking Ahead
The index futures are now very oversold. We could get
a tradable bounce over the next few days. Keep an eye on the Market
Bias Page for multiple-buy signals.
Best of luck with
your trading on Tuesday!
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!
P.P.S. Special thanks to Marc Dupee’
for his (as always!) well-thought and comprehensive coverage of the futures
market while I was away.