Franc, Maybe Short Soon
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 1.70 points lower and the Bond Market Futures are trading down 1 tick.
The December Swiss Franc [SFZ9>SFZ9], on the Pullbacks From Highs and Momentum 5 Lists, looks poised to rally out of a pullback especially in light of a bearish pullback from lows in the Dollar [DXZ9>DXZ9]. Look for a shorting opportunity here.
December Cotton [CTZ9>CTZ9], on the Pullbacks Off Highs List, is also on the Volatility Explosion-Multiple Days List. This suggests that the move will be higher as volatility reverts to its mean. Look for a buying opportunity here.
Volatility Watch
Once again and even with today’s sell off, November Soybeans [SX9>SX9] remains on the Volatility Explosions-Multiple Days List. Continue to watch for a larger-than-normal move (in either direction) as volatility reverts to its mean.
December Corn [CZ9>CZ9] is now on the Volatility Explosions-Low 6/100 List. Watch for a larger-than-normal move (in either direction) as volatility reverts to its mean.
Best of luck with your trading on Friday!
Dave Landry
PS-Reminder: Protective stops on every trade!