Greenspan 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, Alan Greenspan will deliver his Humphrey Hawkins testimony tomorrow. This will likely cause volatility in the Bond and Stock Index Futures.
Tonight, we have four indicators pointing higher on the Market Bias Page. This combined with the fact that the market is oversold from Tuesday’s slide suggests that the index futures may bounce tomorrow. Look for buying opportunities in the September Dow Jones [DJU9>DJU9] and S&P [SPU9>SPU9] futures.
October Sugar [SBV9>SBV9], on the Pullbacks Off Lows List, hit new 10 day highs today but reversed to close poorly. Look for a shorting opportunity here.
Source: Omega Research.
For your breakout players, the September Japanese Yen [JYU9>JYU9], on the Momentum 5 List, has begun to consolidate after a fast move from lows. Look for a possible buying opportunity here.
Volatility Watch
September Bonds [USU9>USU9] are now on the Volatility Explosions-Multiple Days list. This combined with the fact that Greenspan will speak tomorrow suggests that we will see a larger-than-normal move as volatility reverts to its mean.
Best of luck with your trading on Thursday!
Dave Landry
PS-Reminder: Protective stops on every trade!