Breakout of Bullish Cup and Handle
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.
Monday will likely be thin trading as many extend their holiday. Consider this if you decide to trade.
Today, the March S&P Futures [SPH0>SPH0] broke decisively to all time highs. This is constructive as it is also a weekly breakout out of a bullish cup and handle (or cup and mini triangle if you prefer). Look for buying opportunities going forward.
February Crude [CLG0>CLG0], on the Pullbacks Off Highs List, has pulled back after breaking out of a high level double bottom formation. Heating Oil [HOG0>HOG0] is a similar pattern. Look for buying opportunities here.
February Natural Gas [NGG0>NGG0], mentioned recently (see archives), appears to have resumed its downtrend. Look for a shorting opportunity here.
Volatility Watch
Note: I’ve always had difficulty trading low volatility situations around holidays. Therefore, if you decide to trade these, I suggest you watch for a “headfake†(i.e. a false move) and then possibly look to trade in the opposite direction.
March Silver [SIH0>SIH0], 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.
February Gold [GCG0>GCG0], 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, Today I got a peek at the new website layout (scheduled to go live sometime in January). In a word, fantastic. Easier to navigate, more indicators, more markets, more stock search engines, more content and a few new “facesâ€.
Best of luck with your trading on Monday!
PS-Reminder: Protective stops on every trade!
PPS-ENJOY YOUR HOLIDAY!!!!!!