NDZ9 Look Most Interesting
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 1.50 points lower and the bond market is trading up 1 ticks.
Last night, I talked about that fact that the cash S&P [$SPX>$SPX] had slipped below the 1400 level. Today, it rallied back to just below that level. This suggests that the bigger picture cup and handle is still intact. That, combined with 4 signals pointing higher on the Market Bias Page suggests an upside bias for index futures tomorrow. Out of all of the indices, the December NASDAQ 100 Futures [NDZ9>NDZ9] look most interesting to me as they are in their first pullback (a) since their meteoric run.
Although the December Yen [JYZ9>JYZ9] sold off today on the Japanese “talking†it lower, it still looks more like a high level consolidation to me than a bona fide sell off. Watch for a potential buying opportunity here.
On the Pullbacks Off Highs List, the January energies, Heating Oil [HOF0>HOF0], Crude Oil [CLF0>CLF0] and Unleaded Gas, all closed well and look poised to rally out of deep pullbacks. Look for buying opportunities here.
March Cotton [CTH0>CTH0], on the Turtle Soup Plus One Buy List, sold off to life-of-contract lows earlier today but reversed to close well. Look for a possible bounce and buying opportunity here.
Best of luck with your trading on Thursday!
Dave Landry
PS-Reminder: Protective stops on every trade!