Index Futures’ Week
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.
Wow, what an end to the week for the index futures! The December S&P and NASDAQ 100 futures hit all-time highs and the Dow Jones is just spitting distance away. However, I’d be cautious about getting bullish on Monday as the indices did “tail off†(closed off of their highs). This means that traders are willing to take profits into new highs. This tail is especially evident in the December NASDAQ 100 futures [NDZ9>NDZ9].
January Natural Gas [NGF0>NGF0], on the Pullbacks Off Lows and Implosion 5 Lists, close poorly today and looks poised to challenge its old lows. Look for a shorting opportunity here.
January Feeder Cattle [FCF0>FCF0], on the Pullbacks Off Highs List, close well and looks poised to rally out of a pullback. Look for a buying opportunity here.
February Pork Bellies [PBG0>PBG0], on the Pullbacks Off Highs List, appear to be rallying out of a deep pullback. Look for a buying opportunity here.
February Lean Hogs [LHG0>LHG0], mentioned last night, closed well today and look poised to challenge their old highs. Continue to look for a buying opportunity here.
Volatility Watch
The December British Pound [BPZ9>BPZ9] is now on the Volatility Explosions-Low 6/100 List. This, combined with the fact that it is also a pullback from lows that closed poorly suggests that the move will be lower as volatility reverts to its mean. Look for a shorting opportunity here.
Best of luck with your trading on Monday!
Dave Landry
PS-Reminder: Protective stops on every trade!