Bonds, Outside Day Down
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 .60 points lower and the Bond Market Futures are trading up 1 tick.
December Bonds [USZ9>USZ9], on the Pullbacks Off Lows List, gapped higher on today’s open but sold off to form an outside day down (a). Look for a shorting opportunity here.
The December Japanese Yen [JYZ9>JYZ9], on the Pullbacks Off Highs List, gapped lower on today’s open but then rallied to close well. Look for a buying opportunity here but use caution as the possibility exists for a surprise currency intervention.
Volatility Watch
Once again, December Gold [GCZ9>GCZ9] 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.
The recent drift lower in December Coffee [KCZ9>KCZ9] has it 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 Tuesday!
Dave Landry
PS-Reminder: Protective stops on every trade!
PPS — Keep an eye out for the launch of TRADEHARD News this Wednesday. I got a chance to see it today and it’s amazing. It will take all of our trading to the next level.