June Bonds Seem Poised To Resume Downtrend
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 points lower and the Bond Market Futures are trading down 5 ticks.
After a brief rally off of major lows (a), June Bonds [USM9>USM9], on the Pullbacks From Lows List, appear poised to resume their downtrend. Look for a shorting opportunity here.
Source: Omega Research.
July Cotton [CTN9>CTN9], on the Turtle Soup Plus One Buy Setups List, hit new 50-day lows today but reversed and closed well. This may have breakout players trapped on the wrong side of the market. Look for a buying opportunity here.
Volatilty Watch
On the Volatility Explosions — Low 6/100 Readings List, the volatility continues to drop off in both the June Swiss Franc [SFM9>SFM9] and the June D-mark [DMM9>DMM9]. Watch these contracts for a larger-than-normal move (in either direction) as volatility reverts to its mean.
Best of luck with your trading on Friday!
Dave Landry
PS-Reminder: Protective stops on every trade!