New 10 Day Highs List grew
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.
As this is being published, the S&P Globex Futures are down 1 point and the Bond market is trading down 5 ticks.
Today, our New 10 Day Highs List grew as many commodities broke out to new highs. May Corn [CK9>CK9] and the Energies May Crude Oil [CLK9>CLK9], May Heating Oil [HOK9>HOK9] and May Unleaded Gas [HUK9>HUK9] are not only hitting 10 day highs but are also hitting 20 and 50 day highs (refer to the newly added Futures 10-,20-, & 50 Day High Levels and notice that today’s highs are equal to the 10, 20 and 50 day highs). This will likely have the breakout players piling on. You might want to wait for these contracts to pull back before entering.
May Copper [HGK9>HGK9] broke out to a 10 day high on a wide range day. Because this contract has recently been trading at major lows after an extended downtrend, the trend following shorts may be trapped on the wrong side of the market. Look for a possible buying opportunity.
On the Pullback Off Lows List, June Gold [GCM9>GCM9] which recently lost nearly four percent of its value in a virtual free-fall, appears to be consolidating at lower levers. Watch for a resumption of the downtrend for a possible shorting opportunity.
On the Pullback Off Highs List, the June British Pound [BPM9>BPM9] looks like it has completed a pullback after rallying off of major lows.
Best of luck with your trading on Tuesday!
Dave Landry
Director of Research
TradingMarkets.com