Microsoft Announced Earnings
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 1.00 point lower and the Bond Market Futures are trading up 1 tick.
After the close, Microsoft [MSFT>MSFT] announced better than expected earnings. The stock initially traded higher but then sold off. There is a high likelihood that the index futures will follow Microsoft’s direction especially in early trading.
Although July Silver [SIN9>SIN9] hit new 10 day highs today, it appears to be stalling out at resistance (a). Look for a shorting opportunity here as the bigger picture trend remains down.
Source: Omega Research.
June Bonds [USM9>USM9], on the Pullbacks Off Highs List and mentioned last night, still look interesting to me. The fact that it has pivoted back up after making a bigger picture double bottom suggests that the trend remains higher.
July Soybeans [SN9>SN9], on the Momentum 5 List, rallied nicely out of a “mini†pullback and closed well. Look for a buying opportunity here.
Best of luck with your trading on Wednesday!
Dave Landry
Director of Research
PS-Reminder: Protective stops on every trade!