Fed Meets 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 .90 points lower and the bond market is trading up 3 ticks.
Heads up, as you probably know, the Fed is meeting tomorrow. Their decision on interest rates will likely cause extreme volatility in both the stock and bond markets. Let’s be careful out there!
Tonight we added the CVR VI, a new indicator developed by Larry Connors, to the Market Bias. For more
information on the indicator, see the Connors/Boucher Stock Market and Mutual Fund Timing Course (free to members of TradingMarkets.com).
December Live Cattle [LCZ9>LCZ9], on the Turtle Soup Plus One Sell List, broke to life-of-contract highs today (a) but reversed to close poorly (b). This may have breakout players trapped on the wrong side of the market. Look for a shorting opportunity here.
The December Dow Jones [DJZ9>DJZ9], mentioned last night, still looks poised to rally out of a loosely formed inverted head and shoulders formation. Look for a buying opportunity here. Just use caution as the Fed decision will obviously have an impact here.
January Natural Gas [NGF0>NGF0], on the Pullbacks Off Lows List, is consolidating at lower levels and looks poised to break lower. Look for a shorting opportunity here.
Best of luck with your trading on Tuesday!
Dave Landry
PS-Reminder: Protective stops on every trade!