If you can stomach the volatility look to buy March NASDAQ futures
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.
The March Canadian Dollar [CD>CD], on the Pullbacks Off Highs, closed well today and looks poised to rally to its old highs. Look for a buying opportunity here.
The March NASDAQ 100 [NDH0>NDH0], closed well today and looks like it has the potential to continue its rally out of its sharp correction. Look for a buying opportunity here but only if you are willing to stomach the volatility.
March Orange Juice [OJH0>OJH0], on the Pullback From Lows List, is a 3-bar pullback that looks poised to challenge its old lows. Look for a shorting opportunity here.
One final thought, if you are an index futures trader, see the Stock Market Trading Outlook for Thursday. Notice that the market found bottom shortly after the 3-period moving average of the NYSE TRIN peaked out (similar to the 10/18/99 bottom) It doesn’t always work this well* but as you can see, it pays to look for these types of relationships when looking for the end of a corrective move.
Best of luck with your trading on Monday!
PS-Reminder: Protective stops on every trade!
*No matter what the gurus might have you believe, trading is an odds game at best.