Bounce Play In Index Futures?
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 Tuesday, the VIX reversed, after hitting six-day highs. This,
combined with the reversal from an oversold condition in price (in
both futures and cash, see tonight’s Stock Outlook), suggests that we
could see a bounce in the September index futures. Look for buying
opportunities here, but don’t overstay your welcome, as the VIX
remains at relatively low levels.
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For the nimble bottom fisher, July
cotton (CTN1)
stopped just short of life-of-contract lows before reversing to close
well. Look for a buying opportunity here.
Best
of luck with your trading on Wednesday!
P.S. Reminder: Protective
stops on every trade!
