Lack of Pertinent Set-ups
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.
As this is being published, the S&P Globex Futures are down slightly and the Bond market is up 6 ticks.
There are a lack of pertinent set-ups tonight and only a few markets that look interesting to me.
Obviously, the focus tomorrow will be on the June S&P [SPM9>SPM9] and June Dow Jones [DJM9>DJM9] index futures. After such a large down day, we could likely get a reversal off the open. Therefore, you might want to let them open and trade for a few minutes before attempting an entry strategy.
Today, the Energies May Crude Oil [CLK9>CLK9], May Heating Oil [HOK9>HOK9] and May Unleaded Gas [HUK9>HUK9] paused at or near new highs. As suggested last night, you might want to continue to wait for a pullback before attempting to enter these markets.
June Lean Hogs [LHM9>LHM9] stalled out and closed poorly after hitting new 20 day highs, making them a potential Turtle Soup + 1 candidate. Look for a possible shorting opportunity as breakout players may be trapped on the wrong side of the market.
Best of luck with your trading on Wednesday!
Dave Landry
Director of Research
TradingMarkets.com