Another Record Week
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.
On a closing basis, another record week for the September Dow Jones [DJU9>DJU9] and S&P [SPU9>SPU9] futures. Obviously, we’re overbought here. However, just because we are overbought doesn’t mean we can’t go higher. Therefore, don’t fight the tape. Watch the Market Bias Page next week for three or more indicators pointing lower. Should this occur, it may be a good time to consider shorting the index futures.
September Coffee [KCU9>KCU9], on the Pullbacks From Lows List, is a three bar pullback that appears poised to resume its downtrend. Look for a shorting opportunity here.
Source: Omega Research.
August Gold [GCQ9>GCQ9], on the Pullbacks Off Lows List, is consolidating at lower levels and appears poised to resume its bigger picture downtrend. Look for a shorting opportunity here.
For you breakout players (or more appropriately breakdown players), December Corn [CZ9>CZ9], mentioned last night, hit life-of-contract lows again today. Continue to look for a shorting opportunity here or better yet, wait for a pullback.
Volatility Watch
The September Japanese Yen [JYU9>JYU9] still remains on all three Volatility Explosion Lists. Continue to watch for a larger-than-normal move as volatility reverts back to its mean.
Best of luck with your trading on Monday!
Dave Landry
PS-Reminder: Protective stops on every trade!