CPI Tomorrow
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 .80 points lower and the Bond Market Futures are trading down 4 ticks.
Heads up, tomorrow the CPI is scheduled for release. This will likely cause volatility in both the stock and bond market early on.
October Lean Hogs [LHV9>LHV9], on the Turtle Soup Plus One Buy List, sold off to new 20-day lows(a) but reversed to close well(b). This may have shorts trapped on the wrong side of the market. Look for a buying opportunity here.
October Sugar [SBV9>SBV9], mentioned last night and on the Pullbacks Off Highs List, still looks poised to resume its uptrend. Continue to look for a buying opportunity here.
Volatility Watch
The recent sideways action in December Gold [GCZ9>GCZ9] has it on the Volatility Explosions — Low 6/100 Readings 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!