July Heating Oil, A Possible Short
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.
July Heating Oil [HON9>HON9], mentioned last night under “Volatility Watchâ€, dropped over 2 ½ % today. These are the types of moves that are possible as volatility reverts to its mean. If you are a breakout player, you’ll notice that it 50 day lows today and may still provide a opportunity on the short side.
July Soybeans [SN9>SN9], mentioned last night and on the Pullbacks From Lows List, rallied earlier today but closed poorly. Continue to look for a shorting opportunity as the long term trend remains down.
For you breakout players, July Sugar [SBN9>SBN9], on the Momentum 5 List, closed just shy of 6 week highs (a). Look for a buying opportunity here.
Source: Omega Research.
Best of luck with your trading on Tuesday!
Dave Landry
PS-Reminder: Protective stops on every trade!
PPS — Enjoy your holiday!