Index Bounce?/Coffee Wakes Up
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
market’s opening. Therefore, overnight events may alter the
outcome of these observations.
Based on the oversold nature of the market combined with Monday’s action in
the VIX and TRIN (see my Stock Outlook for more details), there may be a
tradable bounce in the index futures. The December Dow Jones futures
(
DJZ0 |
Quote |
Chart |
News |
PowerRating), which stopped right at their 50% retracement level on Monday, may
offer the most opportunities.face=”Arial, Helvetica”>
December corn
(
CZ0 |
Quote |
Chart |
News |
PowerRating) looks poised to rally out of a pullback. Look for a
buying opportunity here.
March sugar
(
SBH1 |
Quote |
Chart |
News |
PowerRating) looks poised to resume its
downtrend. Look for a shorting opportunity here.
Volatility Watch
December coffee
(
KCZ0 |
Quote |
Chart |
News |
PowerRating) stabbed lower on Monday as volatility began to
revert to its mean. If the contract can reverse (trade above Monday’s
high), it may offer a buying opportunity as shorts would be trapped on the wrong
side of the market.
December gold
(
GCZ0 |
Quote |
Chart |
News |
PowerRating)
also remains a low volatility situation. Continue to watch for a larger-than-normal move (in either direction) as volatility
reverts to its mean.
Looking Ahead
Best of luck with
your trading on Tuesday!
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!
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