Indices Overbought
nyEach 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.
Volatility Watch
March feeder cattle
(
FCH2 |
Quote |
Chart |
News |
PowerRating) are setting up as a low volatility situation.
Watch for a larger-than-normal move (in either direction) as volatility reverts
to its mean.Â
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Looking Ahead
The March Yen
(
JYH2 |
Quote |
Chart |
News |
PowerRating), mentioned recently, gapped higher on Monday. It
could set up as a Bow Tie on its first pullback.
May Coffee
(
KCK2 |
Quote |
Chart |
News |
PowerRating) looks like it might be trying to form a longer-term
bottom (see Friday’s commentary).
The index futures are getting very overbought (see my stock column for more
details). They could set up as shorts soon.
Best of luck with
your trading on Tuesday!
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!