Fed Meeting 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 .10 points higher and the Bond Market Futures are trading down 1 tick.
Heads up, unless you’ve been away on vacation, you probably know that the Fed is meeting tomorrow. More than likely, this will likely cause extreme volatility in the both the stock and bond markets. Be careful out there.
November Orange Juice [OJX9>OJX9], mentioned recently and on the Pullbacks Off Highs List, is a pattern I call a “Trend Knockout†(TKO). This is where a strongly trending commodity sells off and takes out (at least) the prior two lows(a). The theory is that it “knocks out†the weak hands and clears the way for it to trade higher. Continue to look for a buying opportunity here.
Source: Omega Research.
The September Japanese Yen [JYU9>JYU9], on the Momentum 5 List, is also a TKO (see above). Look for a buying opportunity here.
For you breakout players, February 2000 Pork Bellies [PBG9>PBG9], mentioned last night and limit up today, appear to be breaking out of a pullback. Continue to look for a buying opportunity here.
Best of luck with your trading on Tuesday!
Dave Landry
PS-Reminder: Protective stops on every trade!