Energies In Pullbacks
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 .50 points higher and the Bond Market Futures are trading up 3 ticks.
The energies, November Crude Oil [CLX9>CLX9], Heating Oil [HOX9>HOX0] and Unleaded Gas [HUX9>HUX] are all in shallow pullbacks and look poised to resume their strong uptrends. Look for buying opportunities here.
The December British Pound [BPZ9>BPZ9], on the Turtle Soup Plus One Sell List, hit 6 month highs today but reversed to close poorly. This may have the longs trapped on the wrong side of the market. Look for a selling opportunity.
Volatility Watch
Once again, December Coffee [KCZ9>KCZ9] remains on the Volatility Explosions — Multiple Days List. Continue to watch for a larger-than-normal move (in either direction) as volatility reverts to its mean.
December Bonds [USZ9>USZ9] are now on the Volatility Explosions — Low 6/100 Readings List. Chances are, it won’t remain a low volatility situation for long. Therefore, 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!