Only Two Markets Look Interesting
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 .10 points higher and the bond market is trading up 1 tick.
Once again, markets may be thin as many players are on vacation. Consider this should you decide to trade.
There are only two markets that look interesting to me tonight.
For you breakout players, March Copper [HGH0>HGH0], on the Momentum 5 List, sold off earlier today but reversed to close well and form a bullish outside day at life-of-contract highs.
Volatility Watch
I’ve always had difficulty trading low volatility situations around holidays. Therefore, if you decide to trade these, I suggest you watch for a “head fake†(i.e. a false move) and then possibly look to trade in the opposite direction.
Today, March Silver [SIH0>SIH0], which I’m sure you’ve been tired of hearing about, had its largest 1 day move in nearly 3 months as volatility reverted back to the mean. This is why it pays to watch low volatility situations.
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.
Best of luck with your trading on Thursday!
PS-Reminder: Protective stops on every trade!