Hogs May Get Less Lean
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 1.00 points higher and the Bond Market Futures are trading down 3 ticks.
December Lean Hogs [LHZ9>LHZ9], on the Pullbacks Off Highs List, hit new 3-week lows today (a) but reversed to close well (b). This suggests that its bigger picture uptrend may still be intact. Look for a buying opportunity here.
The December Japanese Yen [JYZ9>JYZ9], mentioned over the past few nights, still looks interesting to me. Continue to look for a buying opportunity here.
For you breakout players (or more appropriately breakdown players), December Cocoa [CCZ9>CCZ9], on the Implosion 5 List, broke to life of contract lows today. Look for a shorting opportunity here.
Volatility Watch
December Corn [CZ9>CZ9] 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.
BTW, make sure you sign up for the Connors/Boucher Stock Market and Mutual Fund Timing Course (free to members). Judging from what I’ve seen so far, it should be quite useful for stock, mutual fund and index trading.
Best of luck with your trading on Wednesday!
Dave Landry
PS-Reminder: Protective stops on every trade!