Down Opening Likely 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 6.00 points lower and the Bond Market Futures are trading up 3 ticks.
After the close, Intel [INTC>INTC] announced earnings that beat analysts estimates but warned of a shortfall for the second quarter. The fact that the stock is down over 3 points in Instinet combined with the weak Globex Futures suggests that we will have a down opening tomorrow. Make sure you factor this into index futures trading.
Once again, the energies, May Crude Oil [CLK9>CLK9], May Heating Oil [HOK9>HOK9] and May Unleaded Gas [HUK9>HUK9] remain strong. May Unleaded Gasoline [HUK9>HUK9], mentioned last night and up 107 points today, still looks like it has the most potential. Continue to look for buying opportunities here.
Today, the June Swiss Franc [SFM9>SFM9], broke lower but failed to hold at major lows creating a Turtle Soup Plus One Buy Setup. Look for a possible buying opportunity here as the breakout players may be trapped on the wrong side of the market.
Best of luck with your trading on Wednesday!
Dave Landry
Director of Research
PS-Reminder: Protective stops on every trade!