Market Bias signals are pointing lower for Monday
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 are only a few markets that look interesting to me tonight.
As would be expected after a day like today, the Market Bias signals are pointing lower for Monday. Look for shorting opportunities on the June Dow Jones futures [DJM9>DJM9] and the June S&P futures [SPM9>SPM9].
On the Pullback Off Lows List, May Silver [SIK9>SIK9] appears to be consolidating at lower levers. Watch for a resumption of the downtrend for a possible shorting opportunity.
Volatility Watch
The June Yen [JYM9>JYM9] is now on all three Volatility Explosion Lists: Low 6/100 Readings List, Low 10/100 Readings and Multiple Days Readings List. Continue to watch this market as the longer the volatility remains low the bigger the move (in either direction) as volatility reverts back to its mean. Also, notice that it is on the Possible Turtle Soup Plus One Sell Setups List. This suggests that volatility could resolve itself to the downside.
After opening slightly higher this morning, June Bonds [USM9>USM9], mentioned over the last few nights as low volatility situation, caved in to close 22/32 lower. These are the types of moves that are possible when low volatility markets begin to revert back to their mean.
Best of luck with your trading on Monday!
Dave Landry
Director of Research
TradingMarkets.com