Nasdaq Futures Still Vulnerable
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.
The December Nasdaq futures
(
NDZ0 |
Quote |
Chart |
News |
PowerRating), mentioned Wednesday night, look poised to challenge their old lose.
Continue to look for a shorting opportunity here.,
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December corn
(
CZ0 |
Quote |
Chart |
News |
PowerRating) sold off earlier on Thursday but reversed to close
well. This suggests its uptrend remains intact. Look for a buying opportunity
here.
December natural gas
(
NGZ0 |
Quote |
Chart |
News |
PowerRating) sold off hard on Thursday. This action
has likely knocked out the weak longs and has attracted some eager shorts (a
Trend Knockout). Look for a buying opportunity here if, and only if,
it can resume its uptrend and trade above Thursday’s high.
Volatility Watch
As you know, historical volatility is based on closing prices only.
Therefore, even with Thursday’s wide range in December gold
(
GCZ0 |
Quote |
Chart |
News |
PowerRating), it remains a low volatility
situation based on its closing price. Continue to watch for a larger-than-normal move (in either direction) as volatility
reverts to its mean.
Best of luck with
your trading on Friday!
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!