Shorting Opportunties on March Corn and Wheat
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 2.10 points lower and the bond market is trading up 2 ticks.
February Natural Gas [NGG0>NGG0] hit 10-day highs today (a) but reversed to close poorly (b). This is right around the 50% retracement levels* from the last downtrend-from 3.060 to 2.230 (horizontal lines). This suggests this term may still be intact. Therefore, look for a shorting opportunity here.
March Corn [CH0>CH0] and Wheat [WH0>WH0], on the Pullbacks From Lows List, still look like they have the potential to resume their longer-term downtrends. Look for shorting opportunities here.
For you breakout players, March Copper [HGH0>HGH0], on the Momentum 5 List, is just shy of life-of-contract highs and looks poised to take them out. Look for a buying opportunity 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 (I told you that volatility could die here for quite some time). 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 Tuesday!
PS-Reminder: Protective stops on every trade!
* I’m not a big fan of retracement levels but do believe markets often take 2 steps forward and 1 step back. So 50% makes sense to me.