Indices Still Vulnerable
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.
Once again, the VIX (and VXN) continue to hit fresh lows (see
tonight’s stock outlook for more information here). This action sets
up a CVR III and VI sell signal on the Market Bias Page. Therefore,
continue to look for shorting opportunities in the September index
futures on signs of weakness.
Follow Up/Looking Ahead
August lean hogs (LHQ1)
gapped to life-of-contract highs on Monday. If you have profits here,
you might want to lock in a piece.
The dollar is forming a high level "micro" cup and
handle. This action could set up shorts in the inverse currencies over
the next few days.
Best
of luck with your trading on Tuesday!
P.S. Reminder: Protective
stops on every trade!
