Nasdaq Remains Overbought

March 6, 2002
Dave Landry

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 March Nasdaq 100 futures
(
NDH2 |
Quote |
Chart |
News |
PowerRating) remain overbought. For the nimble,
continue to look for shorting opportunities should it show signs of reversing.

Volatility Watch

May cotton
(
CTK2 |
Quote |
Chart |
News |
PowerRating) remains a low volatility situation. Watch for a
larger-than-normal move as volatility reverts to its mean.

Looking Ahead

May coffee
(
KCK2 |
Quote |
Chart |
News |
PowerRating), mentioned recently, still looks like it’s trying to
form a long-term bottom. If you are not a bottom fisher, wait for a rally
followed by the first pullback.

The March Yen
(
JYH2 |
Quote |
Chart |
News |
PowerRating), also mentioned recently for the bottom fishers,
appears to be rallying nicely off of its lows. Wait for the first pullback (or
Bow Tie) here.