Nasdaq Gaps to All-Time Highs
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.
The March NASDAQ 100 [NDH0>NDH0], gapped open to all time highs on today’s open (a) but failed to hold above the open (b). This combined with some late day selling (see tonight’s Stock Market Outlook) suggests we could have downside pressure Monday morning. This may offer a shorting opportunity but only for the extremely nimble. In other words, if you are a daytrader, look for a day trade but don’t try to pick a longer term top here.
The grains-January Soybeans [SF0>SF0], March Corn [CH0>CH0] and Wheat [WH0>WH0]-remain on the Pullback Off Lows List. Continue to look for shorting opportunities here.
Volatility Watch
March Silver [SIH0>SIH0] remains on two of the Volatility Explosions Lists. Continue to watch for a larger-than-normal move (in either direction) as volatility reverts to its mean.
Gold [GCG0>GCG0] remains on the Volatility Explosions-Multiple Days List. As I said last night, the volatility often dries up in gold for quite some time before it explodes (when? usually the day after you quit watching it). Continue to watch for a larger-than-normal move (in either direction) as volatility reverts to its mean.
Random Thoughts
The March US Dollar Index [DXH0>DXH0] reversed yesterday’s sell off to rally and close well today. It now looks poised to take out its old highs. This might be the shot in the arm the bond market badly needs.
Best of luck with your trading on Monday!
PS-Reminder: Protective stops on every trade!
PPS- Shameless plug: My second installment on moving averages is scheduled to be published tomorrow under the Traders Learning Section. Check it out and let me know what you think.