Dollar Remains Vulnerable
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.
Once again, the Dollar looks poised to resume its continue its
breakdown out of a big picture topping formation. Look for buying
opportunities in the inverse currencies but avoid the Yen as it
remains weak.
September heating oil (HOU1)
looks poised to continue lower out of a pullback from lows. Look for a
shorting opportunity here.
For you bottom fishers, December cotton
(CTZ1)
appears to be forming a low level cup and handle. Look for a buying
opportunity here–or better yet–wait for a stronger rally (over the
next few days) and look to trade the first pullback.
Looking Ahead
Once again, August live cattle (LCQ1)
appear to be breaking down out of a topping formation and may set up
as a short over the next few days.
The index futures, especially the September Nasdaq 100 (NDU1)
and the S&Ps (SPU1)
tailed off after an early rally. This intraday reversal, combined with
market bias signals that will likely set up soon, suggests that their
recent lows will be challenged. For the nimble and aggressive, look
for a shorting opportunity here. For everyone else, wait for the
signals.
Best of luck with your
trading on Wednesday!
P.S. Reminder: Protective
stops on every trade!
