Last Night, We Had Six Buy Signals
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 down 1.50 and the Bond market is up 1 tick.
Reminder, last night, we had six buy signals on the Market Bias Page. As a general rule, whenever 3 or more signals are pointing in the same direction it normally suggests a strong index futures bias. One word of caution for tomorrow though, most of the signals on the Market Bias Page are from yesterday and we may have already seen the majority of the move. Therefore, wait for follow though to the upside before attempting to trade index futures on the long side. Especially, in light of the fact that the S&P Globex futures are trading lower overnight.
Yesterday, the energies, May Crude Oil [CLK9>CLK9], May Heating Oil [HOK9>HOK9] and May Unleaded Gas [HUK9>HUK9], gapped to new highs and then proceeded to sell off. Today, they all reversed and closed well. Look for buying opportunities now that these contracts are pointed back in the direction of their uptrends.
For the bottom fishers, May Sugar [SBK9>SBK9] seems to be holding up right above major contract lows.
Look to go long on a rally off these levels.
After hitting new 10 day lows earlier today, May Wheat [WK9>WK9] turned around to hit 10 day highs. This action may have some shorts trapped on the wrong side of the market. Look to play on the upside should the rally continue.
Best of luck with your trading on Friday!
Dave Landry
Director of Research
TradingMarkets.com