Cotton Possible Short
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 .20 points lower and the Bond Market Futures are down 2 ticks.
December Cotton [CTZ9>CTZ9], on the Possible Turtle Soup Plus One Sell List, gapped higher on the open (a) but reversed to close poorly (b). This may have breakout players trapped on the wrong side of the market. Look for a shorting opportunity here.
Source: Omega Research.
September Dmark [DMU9>DMU9] and Swiss Franc [SFU9>SFU9], on the Momentum 5 List, are in day two of their pullback from highs. Look for a buying opportunity here, especially if the Dollar [DXU9>DXU9] resumes its slide.
September Bonds [USU9>USU9], on the Possible Turtle Soup Plus One Buy List, gapped lower to one month lows but rallied to close well. This may have the breakout players (or more appropriately breakdown players) trapped on the wrong side of the market. Look for a buying opportunity here.
Best of luck with your trading on Tuesday!
Dave Landry
PS-Reminder: Protective stops on every trade!