August Lean Hogs
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 .80 points lower and the Bond Market Futures are trading up 3 ticks.
August Lean Hogs [LHQ9>LHQ9], on the Pullbacks Off Lows List, hit one week highs (a) but reversed to close poorly (b) today. Look for a shorting opportunity here as the trend remains down.
Source: Omega Research.
For you breakout players (or more appropriately breakdown players), both November Soybeans [SX9>SX9] and December Corn [CZ9>CZ9] formed bearish outside days at life-of-contract lows. Look for shorting opportunities here.
The September Swiss Franc [SFU9>SFU9], on the Turtle Soup Plus One Buy List, gapped to new lows on today’s open but reversed to close well. This may have breakout players trapped on the wrong side of the market. Look for a buying opportunity here.
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 Friday!
Dave Landry
PS-Reminder: Protective stops on every trade!