Light Volume Day?
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 .40 points higher.
The day after Thanksgiving is historically a light volume day. This lack of liquidity can often make for difficult trading. Keep this in mind this should you decide to trade on Friday. Otherwise take a break, the markets will still be there on Monday.
The NY Mercantile Exchange (energies), CSCE (coffee, sugar, cocoa) and NYCE (cotton) will be closed on Friday. The remaining futures will have shortened trading hours.
Today the December S&P [SPZ9>SPZ9], on the Pullbacks of Highs List, rallied nicely (b) reversing yesterday’s sell off (a). This combined with the fact that there are 4 indictors pointing higher on the Market Bias Page suggests an upside bias for Friday. Look for a buying opportunity here.
The December Dollar Index [DXZ9>DXZ9], mentioned last night (see archive), broke out today. Continue to look for possible shorting opportunities in the December Swiss Franc [SFZ9>SFZ9] and British Pound [BPZ9>BPZ9].
Best of luck with your trading on Friday!
Dave Landry
PS-Reminder: Protective stops on every trade!
PPS-HAPPY THANKSGIVING!