Volatility Explosion List(s)


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 2.60 points higher and the Bond Market Futures are trading up 3 ticks.

Today, we saw large moves in October Sugar [SBV9>SBV9], September Coffee [KCU9>KCU9], November Orange Juice [OJX9>OJX9] and the September Japanese Yen [JYU9>JYU9]. All of these commodities were on last night’s Volatility Explosions List(s). As you can see, it pays to watch futures on these lists as the potential for large moves exist as volatility reverts to its mean.

October Natural Gas [NGV9>NGV9], on the Pullbacks From Highs List, closed well(a) and appears poised to continue its strong uptrend. Look for a buying opportunity here.



Source: Omega Research.

For your breakout players, the September Japanese Yen [JYU9>JYU9], mentioned last night, is just shy of new highs. Continue to look for a buying opportunity here.

Over the past few nights, I’ve been talking about how the energies- October Heating Oil [HUV9>HUV9], Heating Oil [HOV9>HOV9] and Crude Oil [CLV9>CLV9]- were bullish pullbacks (see archives). Today, they all are just shy of life-of-contract highs. If you are a breakout player, continue to look for buying opportunities here.

December Gold [GCZ9>GCZ9], on the Pullbacks From Lows List and the Implosion 5 List, is a shallow pullback and looks poised to resume its downtrend.

Best of luck with your trading on Tuesday!

Dave Landry

PS-Reminder: Protective stops on every trade!