Some Downcast Eyes
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 7.10 points lower and the Bond Market Futures are trading up 4 ticks.
Heads up, after the close IBM [IBM>IBM] announced worse-than-expected earnings and a Y2K warning going forward. American Online [AOL>AOL] beat earnings estimates but not significantly (at least in the eyes of the street). And finally, Amgen [AMGN>AMGN] announced worse-than-expected earnings. The stocks are trading down 12 5/8, 4 and 7 1/8 points respectively in early Instinet after hours trading. This will likely weigh heavy on the index futures tomorrow.
December Wheat [WZ9>WZ9], on the Pullbacks Off Lows List, closed poorly(a) and looks poised to continue its downtrend. Look for a shorting opportunity here.
March Sugar [SBH0>SBH0] rallied to new 10-day highs today. This suggests that its bigger picture uptrend (pull up a weekly when you have a chance) may still be intact. Look for a buying opportunity here.
Volatility Watch
Even with today’s sell off, November Soybeans [SX9>SX9] remains 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 Thursday!
Dave Landry
PS-Reminder: Protective stops on every trade!