Index Futures Could Set Up Soon

February 11, 2002
Dave Landry

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 Swiss Franc
(
SFH2 |
Quote |
Chart |
News |
PowerRating), mentioned recently, gapped higher but
reversed to close poorly. This action could suggest that its downtrend remains
intact.

Folow Up/Looking Ahead

The March index futures, mentioned recently on the long side, could set up
soon on the short side soon. Wait for timing signals and/or signs of a reversal
though.

Looking Ahead

March heating oil
(
HOH2 |
Quote |
Chart |
News |
PowerRating), mentioned recently as a potential longer-term
bottom, rallied sharply off of its lows. Watch for the first pullback here.

Volatility Watch

March coffee
(
KCH2 |
Quote |
Chart |
News |
PowerRating), mentioned Friday night
as potential volatility play, broke out sharply to the downside on Monday. If
you didn’t play this move, you might look to play a counter move should it come
all the way back to Monday’s high. In other words, watch for a “head
fake”.