Watch The Dollar Here
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 .70 points lower and the bond market is trading down 2 ticks.
The December Dollar [DXZ9>DXZ9], mentioned recently as a cup and handle, appears to be at an inflection point. It seems to be stalling out right at the late August and September highs (a). If it can break through these levels it may be worth looking for shorting opportunities in the December British Pound and the Swiss Franc [SFZ9>SFZ9].
December Bonds [USZ9>USZ9] hit the September highs (a) but failed to take them out and subsequently sold off to close poorly (b). This “outside day down†may have breakout players trapped on the wrong side of the market. Look for a possible shorting opportunity here.
December Wheat [WZ9>WZ9], on the Pullbacks off Lows List, gapped higher on the open today but reversed to close poorly. Look for a shorting opportunity here.
Best of luck with your trading on Wednesday!
Dave Landry
PS-Reminder: Protective stops on every trade!