Dollar Poised To Rally
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.
As mentioned in my Stock Outlook, the VIX tailed higher, and
reversed along with the index price action on Friday. This action sets
up a CVR III-Modified (and CVR I & III signals on the Market Bias
Page). This, combined with the 3-day TRIN reversing from relatively
high readings, a very oversold McClellan Oscillator and a CHADTP buy
signal,suggests we could see a bounce (in the index futures).
Therefore, for the nimble only, look for a buying opportunity in the
September index futures. Just don’t overstay your welcome, as the
market looks vulnerable longer-term.
The Dollar reversed to close well, after tailing lower. This action
suggests its uptrend remains intact and sets up pullbacks from lows in
the September British Pound (BPU1),
the Euro (ECU1)
and the Swiss Franc (SFU1).
Look for shorting opportunities here.
Best
of luck with your trading on Monday!
P.S. Reminder: Protective
stops on every trade!
