Dollar Weak/Fed Watch
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 1.50 points higher and the bond market is unchanged.
There’s not much to look at tonight (Tuesday). The indices, bond market and
to some extent gold and the dollar will likely be held hostage by the Fed.
Natural gas broke to life-of-contract highs but failed to follow through. The
other energies look like they could challenge their life-of-contract highs but
that’s really not far away and certainly not worth the risk.
On
Tuesday, the dollar sold off and closed poorly. This suggests its recent rally
is only a retracement and its downtrend remains intact. Look for a buying
opportunity in the September Euro
(
ECU0 |
Quote |
Chart |
News |
PowerRating) and September Swiss Franc
(
SFU0 |
Quote |
Chart |
News |
PowerRating) but, as mentioned above, use caution as the Fed decision will likely
influence these markets.
August bellies
(
PBQ0 |
Quote |
Chart |
News |
PowerRating) sold off on Tuesday and close poorly.
This suggests they are poised to challenge their recent lows. Look for a
shorting opportunity here.
Best of luck with your trading on Wednesday!
PS-Reminder: Protective stops on every trade!