Eye On DJZ9
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 higher and the Bond Market Futures are trading up 2 ticks.
Today, the December Dow Jones Futures [DJZ9>DJZ9] broke out of an inverted head and shoulders formation. Look for a buying opportunity here or better yet wait for a pullback and confirmation on the Market Bias Page.
The oil complex-December Heating Oil [HOZ9>HOZ9], Crude Oil [CLZ9>CLZ9] and Unleaded Gasoline [HUZ9>HUZ9] all seem to be breaking down out of a falling top formation (a top followed by a lower top). Look for shorting opportunities here.
Volatility Watch
Draw a line at $2.00 on December Corn [CZ9>CZ9] and you’ll see that it hasn’t varied more than a few cents on a closing basis for the last 3 weeks. This action (or lack of action) is keeping the future on all three Volatility Explosions Lists. Continue to watch for a larger-than-normal move (in either direction) as volatility reverts to its mean.
BTW, don’t forget to sign up for Connors / Boucher Stock Market and Mutual Fund Timing Course (free to members of TradingMarkets.com). I have worked closely with Larry over the past 2 years and have recently gotten to know Mark. Both of these guys are incredible on the research front and even better as traders. I can’t wait to see what they are going to provide (they won’t give us a peak but rumor has it that it’s pretty awesome).
Best of luck with your trading on Friday!
Dave Landry
PS-Reminder: Protective stops on every trade!