June DMark and June Swiss Franc
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.
Both the June Dmark [DMM9>DMM9] and June Swiss Franc [SFM9>SFM9] are Possible Turtle Soup Plus One Buy Setups. The fact that they recovered from an earlier sell off may have breakout players trapped on the wrong side of the market. Also, the fact that the Dollar Index [DXM9>DXM9] (an inverse currency) stalled out at new highs to form a Turtle Soup Plus One sell setup suggests that these currencies have the potential to rally of their lows.
May Coffee [KCK9>KCK9], has essentially traded sideways for past two months. Today, it exploded higher, hit a new 20 day high and closed well. It now looks to be poised for a breakout.
May Coffee. After a long base, May Coffee hit a new 20 day high and closed well. Source: Omega Research.
Last night, I talked about the energies, May Crude Oil [CLK9>CLK9], May Heating Oil [HOK9>HOK9] and May Unleaded Gas [HUK9>HUK9], being a possible buying opportunity after reversing from the prior day’s close. Today, they all made substantial moves upward and again appear on the Momentum 5 and 10 Day New High Lists. These markets continue to look higher.
Volatility Watch
May Silver [SIK9>SIK9] is now on both the Volatility Explosion — Low 6/100 Readings and Volatility Explosion — Multiple Days Lists. Keep an eye on the contract as the longer it stays on these lists the bigger the move (in either direction) as volatility reverts back to its mean.
Best of luck with your trading on Monday!
Dave Landry
Director of Research
TradingMarkets.com