Intel’s Effect
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.
At the time this is being published, the S&P Globex Futures are trading 10.00 points lower and the Bond Market Futures are trading up 5 ticks.
Heads up, after the close Intel [INTC>INTC] announced worse-than-expected earnings. This will likely weigh heavy on the index futures tomorrow.
Tonight we have four indicators pointing lower on the Market Bias Page. Once again, this suggests a downside bias for the stock market tomorrow. Therefore, you might want to look for shorting opportunities in the December Dow Jones [DJZ9>DJZ9], S&P [SPZ9>SPZ9] and NASDAQ 100 [NDZ9>NDZ9] futures.
The December British Pound [BPZ9>BPZ9] remains on the Volatility Explosions-Multiple Days List. This combined with the fact that it closed well and the fact that it is also on the Momentum 5 List suggests that the move will be higher as volatility reverts to its mean. Look for a buying opportunity here.
December Lean Hogs [LHZ9>LHZ9], on the Pullbacks Off Highs List, appears to be rallying out of its pullback. Look for a buying opportunity here.
Best of luck with your trading on Wednesday!
Dave Landry
PS-Reminder: Protective stops on every trade!