Dow Looking Down
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 lower and the Bond Market Futures are trading down 3 ticks.
Tonight, we have three indicators on the Market Bias page pointing lower and a Turtle Soup Plus One Sell Setup in the September Dow Jones Futures [DJU9>DJU9]. This suggests a downside bias. Look for possible shorting opportunities in the September Dow Jones Futures [DJU9>DJU9] which rallied to marginal new highs today (a) but reversed to close poorly (b) and the September S&P Futures [SPU9>SPU9].
Source: Omega Research.
August Pork Bellies [PBQ9>PBQ9], on the Pullbacks From Lows List, reversed yesterday’s rally and closed poorly. This suggests that its longer term downtrend is still intact. Look for a shorting opportunity here.
September Coffee [KCU9>KCU9], on the Turtle Soup Plus One Buy List, hit new lows today but reversed to close well. This may have 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!