NDZ9 Action
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 .10 points lower and the Bond Market Futures are trading up 3 ticks.
The December Nasdaq 100 [NDZ9>NDZ9] hit all-time highs today (a) but reversed to close poorly (b). This may have breakout players trapped on the wrong side of the market. Look for a shorting opportunity here but use caution and remain nimble as shorting around life-of-contract highs can be dangerous.
The December Japanese Yen [JYZ9>JYZ9], mentioned last night and on the Momentum 5 List, still looks interesting to me. Continue to look for a buying opportunity here.
January Soybeans [SF0>SF0], on the Pullbacks Off Lows List, closed poorly and looks poised to break lower. Look for a shorting opportunity here.
December Live Cattle [LCZ9>LCZ9], on the Pullbacks Off Lows List, has formed an inverted cup and handle and looks poised to take out its recent lows. Look for a shorting opportunity here.
Volatility Watch
December Corn [CZ9>CZ9] remains on all three Volatility Explosions Lists. 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 Tuesday!
Dave Landry
PS-Reminder: Protective stops on every trade!