Bounce Time For Index Futures?

February 7, 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.

March copper
(
HGH2 |
Quote |
Chart |
News |
PowerRating), mentioned Wednesday night, appears to be breaking
out of a flag formation. This action suggests that its trend remains intact.

Based on the oversold nature of the stock market (see my stock commentary for
specifics), I believe we could see a bounce in the index futures. Therefore,
look to play the long side here but only on a reversal to the upside. Also,
remember, you are fighting the trend so keep the position(s) on a short leash.

Looking Ahead

March cotton
(
CTH2 |
Quote |
Chart |
News |
PowerRating) is challenging the top
of its recent base. It could set up soon on a breakout followed by a pullback.