Another Shot At Unleaded?

June 13, 2001
Dave Landry

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.

There’s not much to look at tonight. The index futures failed to
continue from Tuesday’s reversal, but this, in and of itself, isn’t
reason enough for me to consider shorting them. The dollar, which
appears to be correcting, is causing the inverse currencies to bounce,
but I don’t see a setup here either. Looking to some of the other
commodities, hogs and beans are overextend. Cotton might still be a
bottom play, but failed to show any life on Wednesday.

July unleaded gas (HUN1),
mentioned Monday as a potential short, faked lower before reversing on
Tuesday, and then reversed back in the direction of its downtrend on
Wednesday. This action suggests that its breakdown from a major top
remains intact. For those with a high tolerance for pain, look for a
shorting opportunity here.