March Corn rallies
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 .20 points higher and the bond market is trading up 3 ticks.
There are several markets that look interesting to me tonight. Just use caution though, as the rest of the week will likely be thin as many extend their holiday.
March Corn [CH0>CH0], on the Turtle Soup Plus One Sell List, rallied to new 20-day highs today but reversed to close poorly. This suggests that the long term downtrend is still intact. Look for a shorting opportunity here.
March Wheat [WH0>WH0] and Soybeans [SH0>SH0], somewhat like corn, both gapped higher on today’s open but reversed to close poorly-forming outside days down. Look for shorting opportunities here as the long term trend remains down.
February Crude [CLG0>CLG0] and Heating Oil [HOG0>HOG0], mentioned last night, both closed well today and look poised to take out life-of-contract highs. Continue to look for buying opportunities here.
March Cotton [CTH0>CTH0], on the Pullbacks Off Lows List, rallied earlier today but reversed to close poorly. Look for a shorting opportunity here as the long term trend remains down.
Volatility Watch
At the risk of boring you, I’ll leave the following note in the Outlook for the rest of the week:
I’ve always had difficulty trading low volatility situations around holidays. Therefore, if you decide to trade these, I suggest you watch for a “headfake†(i.e. a false move) and then possibly look to trade in the opposite direction.
March Silver [SIH0>SIH0], 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.
February Gold [GCG0>GCG0], 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 Tuesday!
PS-Reminder: Protective stops on every trade!