October Sugar, Possible Buy
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.
For you breakout players, October Sugar [SBV9>SBV9], mentioned over the past few nights, once again hit new 4 month highs today. Continue to look for a buying opportunity here.
September Coffee [KCU9>KCU9], mentioned last night and down 2.70 today, still looks like it has additional downside. Continue to look for a shorting opportunity here.
Volatility Watch
September Bonds [USU9>USU9] are now on the Volatility Explosions-Low 6/100 Readings List. This is due to the fact that they have recently had an “orderly†move downward (a) on a close to close basis (remember historical volatility only uses the closing price in its calculation). Therefore, begin watching for a larger-than-normal move (in either direction) as volatility reverts back to is mean.
Source: Omega Research.
Best of luck with your trading on Monday!
Dave Landry
PS-Reminder: Protective stops on every trade!