Don’t Be A Hero
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.
Tonight we have 3 indicators pointing lower on the Market Bias Page. Although this is a negative for the stock market, don’t be a hero. Jumping in front of a freight train is a bad idea. Just keep this bias in the back of your head and IF the market begins to turn you might want to look to get short the December Dow Jones [DJZ9>DJZ9], S&P [SPZ9>SPZ9] or Nasdaq 100 [ND100>ND100] index futures.
The December Japanese Yen [JYZ9>JYZ9], on the Momentum 5 List, closed well today reversing yesterday’s sell off. This suggests that its uptrend may still be intact. Look for a buying opportunity here.
December Silver [SIZ9>SIZ9], on the Pullbacks Off Lows and Implosion 10 Lists, formed an outside day and closed poorly. This action combined with the fact that it has formed a big picture inverted cup and handle suggests that the future may be headed lower. Look for a shorting opportunity here.
Volatility Watch
By now you’re probably tired of me talking about Corn but I’ll mentioned it again anyway: December Corn [CZ9>CZ9] remains on all three Volatility Explosions Lists. Continue to watch for a larger-than-normal move (in either direction) as volatility reverts to its mean.
Best of luck with your trading on Monday!
Dave Landry
PS-Reminder: Protective stops on every trade!