Bonds Away?
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 (Tuesday). The indices will likely be held hostage by the Cisco news.
The grains still look vulnerable, but for now are in reversal mode. Coffee may
be bottoming (see below), but its too early to pick a low here, and
just about everything else is too tough to call.
March bonds
(
USH1 |
Quote |
Chart |
News |
PowerRating) have formed a
cup and handle at their 50-day moving average. This action suggests that its
longer-term uptrend remains intact. Look for a buying opportunity here.
March beans
(
SH1 |
Quote |
Chart |
News |
PowerRating), mentioned
Monday night, still look vulnerable. Continue to look for a shorting opportunity
here but wait for follow through to the downside as they were up on Tuesday..
Looking Ahead
March coffee
(
KCH1 |
Quote |
Chart |
News |
PowerRating) once again appears to be
testing support near life-of-contract lows. This suggests that it may be trying
to put in a double bottom.
Best of luck with
your trading on Wednesday!
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!