Coffee Doesn’t Look Perky
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.
December Coffee [KCZ9>KCZ9], on the Pullbacks Off Lows List, closed poorly and appears poised to resume its downtrend. Look for a shorting opportunity here.
Source: Omega Research.
The September NASDAQ 100 [NDU9>NDU9] futures broke out of a cup and handle formation today hitting all time highs. Look for a buying opportunity here or better yet, wait for a pullback before attempting an entry.
December Cocoa [CCZ9>CCZ9], mentioned last night, sold off sharply today and is just shy of life-of-contract lows. Continue to look for a shorting opportunity here.
For you breakout players, October Sugar [SBV9>SBV9], mentioned last night and on the Momentum 5 List, hit and closed at 6 month highs today. Continue to look for a buying opportunity here.
Volatility Watch
December Corn [CZ9>CZ9] is now on the Volatility Explosions — Low 6/100 Readings List. The fact that it closed poorly and that it is also on the Pullbacks Off Lows List suggests that the move may be lower as volatility reverts to its mean. Look for a shorting opportunity here.
Best of luck with your trading on Tuesday!
Dave Landry
PS-Reminder: Protective stops on every trade!