Low Volatility In Sugar

June 14, 2001
Dave Landry

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.

There’s not much to look at again tonight.

The VIX is getting somewhat stretched to the upside. This action
creates a CVR III buy signal. However, keep in mind that this system
is best used as an overbought/oversold indicator–sort of a "get
ready". Therefore, for the nimble only (e.g. a day trade), look
for a buying opportunity in the June index futures. Just wait for some
signs of a bounce, and don’t overstay your welcome, as the market is
vulnerable.

Volatility Watch

July sugar (SBN1)
is now a low–volatility
situation. Watch for a larger-than-normal move (in either direction)
as volatility reverts to its mean.