Only a few markets look 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 Globex S&P Futures are up 1.5 points and the Bond market is up 2 ticks.
There are only a few markets that look interesting to me tonight.
June Dow Jones Futures [DJM9>DJM9] and June S&P Futures [SPM9>SPM9], on both the New 10 Day Highs List and the Momentum 5 List, broke out of their recent high level consolidations today to close at all time highs and near the highs for the day. Don’t fight the tape, look to play them on the long side. One word of caution, tomorrow could be volatile as it is options expiration.
Volatility Watch
I’ve been talking about the volatility being relatively low in June Bonds [USM9>USM9] over the last few nights. Today, the volatility dropped lower which has Bonds back on the Volatility Explosion Low 6/100 Readings List. Continue to watch this market as it still has the potential to make a sharp move in either direction as volatility reverts back to its mean.
Once again, the June Yen [JYM9>JYM9] remains on both the Volatility Explosion: Low 6/100 Readings List and Volatility Explosion: Multiple Days Readings List. Continue to watch this market as the longer the volatility remains low the bigger the move (in either direction) as volatility reverts back to its mean.
Best of luck with your trading on Friday!
Dave Landry
Director of Research
TradingMarkets.com