NDU9 Stall
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 .30 points higher and the Bond Market Futures are trading up 2 ticks.
On Friday, I mentioned that the September NASDAQ 100 [NDU9>NDU9] futures broke out of a cup and handle formation to hit all time highs. The fact they appear to have stalled out today, so soon after a bullish pattern, is concerning. Use caution if you are planning to play the long side on this one as the market may be talking.
December Bonds [USZ9>USZ9], on the Implosion 5 List, gave up most of Friday’s rally (a) and closed poorly today (b). This suggests its longer term downtrend is still intact (pull up a weekly or monthly when you have a chance). Look for a shorting opportunity here.
Source: Omega Research.
December Coffee [KCZ9>KCZ9], mentioned last night, appears to have resumed its downtrend. Continue to look for a shorting opportunity here.
For you breakout players, The October energies: Heating Oil [HOV9>HOV9], Unleaded Gas [HUV9>HUV9] and Crude Oil [CLV9>CLV9] all hit life-of-contract highs today. Look for a buying opportunity here or better yet, wait for a pullback before attempting an entry.
Continuing on the breakout theme, October Sugar[SBV9>SBV9], on the Momentum 5 List, hit new 6 month highs again today. Continue to look for a buying opportunity here.
Volatility Watch
December Corn [CZ9>CZ9] is now on the Volatility Explosions — Multiple Days List. Look 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!