May Cocoa… Possible Buying Opportunity


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 Globex S&P Futures are 1.2 points higher and the Bond Market Futures is up 1 tick.

There are only a few markets that look interesting to me tonight.

After hitting new lows earlier today, May Cocoa [CCK9>CCK9] rallied and closed well, forming an outside day and a Turtle Soup Plus One set-up. Look for a possible buying opportunity here.

May Coffee [KCK9>KCK9], now on the Momentum 5 List and mentioned Friday night as a potential breakout candidate (see archive for 3/26/99), hit 20 day highs again today and closed well. The contract still looks interesting as it is breaking out of a lengthy base.

Volatility Watch

May Silver [SIK9>SIK9] is now on all three Volatility Explosion Lists: Low 6/100 Readings, Low 10/100 Readings and Multiple Days Lists. This combined with the fact that it made a “head fake” (rallied earlier but failed and closed poorly today) suggests that the move may be to the downside as volatility reverts to its mean.

Best of luck with your trading on Tuesday!

Dave Landry

Director of Research
TradingMarkets.com