Five indicators point higher
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 6.40 points lower and the bond market is trading up 6 ticks.
Tonight, we have 5 indicators pointing higher on the Market Bias Page. This, combined with the fact that the 3 day moving average of the NYSE TRIN is at its highest level (see the chart in my Stock Market Trading Outlook) since the day before the 10/18/1999 bottom suggests that we may be near the end of this corrective move in the indices. Although all of this is bullish, I’d remain nimble and wait for confirmation to the upside before buying as the Globex futures are trading lower at the time this is being published.
The March Canadian Dollar [CDH0>CDH0], on the Momentum 5 List, closed well today (a) and looks poised to resume its strong uptrend. Look for a buying opportunity here.
The March Swiss Franc [SF>SF], mentioned last night, gapped open to new 20-day highs but reversed to close poorly. This may have breakout players trapped on the wrong side of the market. Continue to look for a shorting opportunity here.
For you breakout players, January Feeder Cattle [FCF0>FCF0], on the Momentum 5 List, are consolidating just shy of life-of-contract highs. Look for a buying opportunity here.
Best of luck with your trading on Thursday!
PS-Reminder: Protective stops on every trade!