Grains Look Weak
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 2.70 points lower and the Bond Market Futures are trading down 1 tick.
Tonight, the grains look weak to me. July Corn [CN9>CN9] and July Soybeans [SN9>SN9] both formed outside days and closed poorly after hitting new 10 day highs and July Wheat [WN9>WN9] is a three bar pullback from lows. Look for shorting opportunities in these contracts.
Source: Omega Research.
Once again, June Crude Oil [CLM9>CLM9] broke out to new highs. June Heating Oil [HOM9>HOM9] looks poised to break out to the upside as does Unleaded Gas [HUM9>HUM9] which has formed a high level “mini†cup and handle.
On the Momentum 5 List, the June Canadian Dollar [CDM9>CDM9], mentioned last night and up 27 points today, looks like it has the potential to take out its recent highs. Continue to look for a buying opportunity here.
Best of luck with your trading on Friday!
Dave Landry
Director of Research
PS-Reminder: Protective stops on every trade!