DMark And Franc
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 1.10 points lower and the Bond Market Futures are down 3 ticks.
The September Dmark [DMU9>DMU9] and Swiss Franc [SFU9>SFU9] (a), on the Pullback From Highs List, are in day three of a pullback. Continue to look for a buying opportunity here, especially if the Dollar [DXU9>DXU9] resumes its slide.
Source: Omega Research.
September Wheat [WU9>WU9], on the New 10 Day Highs List, traded higher earlier today but reversed to close poorly and form an outside day down. This suggests that the news is now factored into the market. Look for a shorting opportunity here as those who got caught up in the hype may be trapped on the wrong side of the market.
Volatility Watch
September Bonds [USU9>USU9] are now on the Volatility Explosions – Multiple Days List. Watch for a larger-than-normal move (in either direction) as volatility reverts to its mean.
Best of luck with your trading on Wednesday!
Dave Landry
PS-Reminder: Protective stops on every trade!