Low VIX
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.
face=”Arial, Helvetica”>For those of you planning to attend
the TradingMarkets2000 First Annual Traders Conference at the Venetian Resort, Hotel & Casino in Las Vegas on October 13-15, I’ll be speaking on Saturday afternoon following Jay Leno. I’ll also be at the cocktail party Friday night. Sign up soon, as space is limited.
my latest trading lesson.
At the time this
is being published, the Globex S&P futures are trading
down 0.30 points and the bond market is trading up 3 ticks.
Once again, the
VIX continues to hover around 13-month lows. This suggests
that there might be an upcoming shorting opportunity in the
September S&P futures
(
SPU0 |
Quote |
Chart |
News |
PowerRating). Just wait for
follow-through to the downside, as it did reverse on
Wednesday.
face=”Arial, Helvetica”>
width=”470″ height=”320″>
December cotton
(
CTZ0 |
Quote |
Chart |
News |
PowerRating) has begun to pull back from life-of-contract
highs. Look for a buying opportunity here.
Volatility
Watch
September bonds
(
USU0 |
Quote |
Chart |
News |
PowerRating), mentioned Tuesday night, still remain a fairly
low-volatility situation. Continue to watch for a
larger-than-normal move (in either direction) as volatility
reverts to its mean.
Best of luck with
your trading on Thursday!
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!