Cattle, Maybe A Buy
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 1.80 points higher and the bond market is trading down 4 ticks.
January Feeder Cattle [FCF0>FCF0], on the Turtle Soup Plus One Buy List, gapped lower on today’s open (a) to 20-day lows but rallied back strongly (b). This may have the shorts trapped on the wrong side of the market. Look for a buying opportunity here.
The March S&P Futures [SPH0>SPH0] have formed a pullback or if you prefer a big picture cup and handle pattern. Look for a possible buying opportunity here.
Volatility Watch
March Silver [SIH0>SIH0] is now on all three Volatility Explosions Lists. Watch for a larger-than-normal move (in either direction) as volatility reverts to its mean.
Best of luck with your trading on Tuesday!
Dave Landry
PS-Reminder: Protective stops on every trade!