October Sugar May Resume Uptrend
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 higher and the Bond Market Futures are trading up 11 ticks.
October Sugar [SBV9>SBV9], sold off earlier today (a) but reversed to close well (b). This may have shaken out the weak longs, clearing the way for the contract to resume its strong uptrend. Look for a buying opportunity here.
Source: Omega Research.
The September Canadian Dollar [CDU9>CDU9], on the Turtle Soup Plus One Buy List, hit new 20 day lows but rallied to close well. This may have shorts trapped on the wrong side of the market. Look for a buying opportunity here.
Volatility Watch
The September Japanese Yen [JYU9>JYU9], is now on the Volatility Explosions-Multiple Days List. The fact that it closed poorly in a pullback from lows suggests that the move may be down as volatility reverts to its mean. Look for a shorting opportunity here.
Best of luck with your trading on Thursday!
Dave Landry
PS-Reminder: Protective stops on every trade!