May Be Additional Downside Tomorrow
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 .50 points lower and the Bond Market Futures are trading up 1 tick.
Tonight we have three indicators pointed lower on the Market Bias Page. This combined with the fact that the Bond Market closed poorly suggests that we may have some additional downside tomorrow. Look for possible shorting opportunities in the June Dow Jones Futures [DJM9>DJM9] and June S&P Futures [SPM9>SPM9].
For you breakout players, or more appropriately break down players, September Bonds [USU9>USU9] made a new closing low today and is right at the well watched 6% yield level. Look for a shorting opportunity here.
Over the past week or so, July Cocoa [CCN9>CCN9], on the Momentum 5 List, has rallied over 30% from historic lows. Look for a buying opportunity here or better yet wait for a pullback before attempting an entry.
Source: Omega Research.
After recently rallies off lows, the energies appear to be stalling out. Look for shorting opportunities in July Crude [CLN9>CLN9], July Heating Oil [HON9>HON9] and July Unleaded Gasoline [HUN9>HUN9] (all of which are on the Pullbacks Off Lows List).
Best of luck with your trading on Wednesday!
Dave Landry
PS-Reminder: Protective stops on every trade!