Bounce In Index Futures?

June 14, 2002
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.

As mentioned Thursday night: I’m sad to announce that this will be my last futures column.
However, due to the nature of my business (I am a CTA and co-manage a
hedge fund), I will still be following the futures. So, feel free to email me
(click on the link below or at dave@davelandry.com)
anytime if you would like to discuss the markets.

I believe that the index futures are in bounce mode based on the reasons
given in my stock column:

There are multiple reasons to believe
that we are in bounce mode. First, price itself: The fact that we reversed in
the face of negative news (and after hitting new lows for the year). Second, the
market is extremely oversold at these levels. And finally, there are some buy
signals that are beginning to trigger (namely in the VIX).Â Technology,
being the most oversold, will likely stand to benefit the most from this bounce.

Â Therefore, for the nimble and aggressive, look for buying opportunities
in the September Nasdaq 100 futures. Just don’t overstay your welcome since you
are fighting a longer-term downtrend.Â