June Bonds Hit New 10-Day Lows
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 2.50 points lower and the Bond Market Futures are trading up 1 tick.
June Bonds [USM9>USM9] hit new 10 day lows this morning but reversed and closed well. This may have shorts trapped on the wrong side of the market. Look for a buying opportunity here.
June Unleaded Gas [HUM9>HUM9] sold off earlier today but recovered to close well. This may have shaken out the weak hands (longs with little patience or staying power). Look for a buying opportunity here.
For you breakout players, June Natural Gas [NGM9>NGM9], on the Momentum 5 List, formed a bullish outside day at significant new highs. Look for a buying opportunity here.
Volatility Watch
Both the June Dmark [DMM9>DMM9] and the June Swiss Franc [SFM9>SFM9] are on the Volatility Explosion — Low Multiple Days List. Watch these contracts for a large move (in either direction) as volatility reverts back to its mean.
The June Dow Jones Futures [DJM9>DJM9] on the Volatility Explosions — Low 10/100 Day Readings List, have been narrowing in range (another measure of volatility) over the past three days (a). Begin watching for a larger-than-normal move (in either direction) as volatility reverts back to its mean.
Source: Omega Research.
Best of luck with your trading on Tuesday!
Dave Landry
PS-Reminder: Protective stops on every trade!