Brighter Potential
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 1.30 points higher and the Bond Market Futures are trading up 5 ticks.
The longer a future remains on the volatility explosion list(s) the larger the potential move as volatility reverts to its mean. Notice that December Gold [GCZ9>GCZ9] (which your were probably getting tired of me mentioning) had its largest range in months today as it exploded out of a low volatility situation.
For your breakout players, December Gold [GCZ9>GCZ9] may still have some upside potential left in it.
November Crude Oil [CLX9>CLX9], on the Pullbacks Off Highs and Momentum 5 Lists, is in a shallow pullback and looks poised to resume its strong uptrend.
October Feeder Cattle [FCV9>FCV9], on the Pullbacks Off Highs List, looks like it has the potential to resume its uptrend. Look for a buying opportunity here.
Volatility Watch
December Coffee [KCZ9>KCZ9] remains on the Volatility Explosions — Multiple Days List. Watch for a larger-than-normal move (in either direction) as volatility reverts to its mean.
Best of luck with your trading on Wednesday!
Dave Landry
PS-Reminder: Protective stops on every trade!