Hogs, Look To Short
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 1.70 points lower and the Bond Market Futures are trading down 2 ticks.
August Lean Hogs [LHQ9>LHQ9], on the Pullbacks From Lows and Implosion 5 Lists, closed poorly today and appears poised to resume its downtrend. Look for a shorting opportunity here.
Source: Omega Research.
Although September Copper [HGU9>HGU9], on the Pullbacks Off Highs List, closed poorly, the overall trend remains up. Look for a buying opportunity here.
Volatility Watch
The September Dmark [DMU9>DMU9] and Swiss Franc [SFU9>SFU9], both on the Volatility Explosions-Multiple Days List, gapped open and rallied earlier today but both reversed to close poorly. Because the longer term trend remains down, look for a possible shorting opportunity as volatility reverts to its mean.
Best of luck with your trading on Wednesday!
Dave Landry
PS-Reminder: Protective stops on every trade!