Index Futures To Correct?
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 overbought nature of the stock market, combined with sell signals and a
general stalling in price, suggests the December index futures are entering a
corrective phase. For the nimble daytraders, look for a shorting opportunity
here, but wait for signs of a reversal.Â
December wheat (WZ1),
mentioned recently, still looks poised to rally out of a pullback/cup and
handle.
Â
Volatility Watch
December corn (CZ1)
has been a low-volatility situation for quite a while. Watch for a large move
(in either direction) as volatility reverts to its mean.
Best of luck with your trading on
Thursday!
P.S. Reminder: Protective stops on
every trade!
Â
