Patterns Building
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.
No new setups tonight. There are some markets that have some
interesting developments that could set up soon though.Â
Looking Ahead
The fact that the major indices can’t seem to rally from an
oversold condition, combined with low VIX readings, suggests that we
could see a shorting opportunity in the March index futures soon.
March silver (SIH2)
could set up as a failed pullback from highs/Bow Tie short soon.
March heating oil (HOH2),
mentioned recently, continues to hover around life-of-contract lows.
So far, it appears to be building a bottom. As mentioned recently, if
you are not a bottom fisher or a longer-term player, wait for the
first rally and pullback before considering an entry.
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The March Euro (ECH2)
and the British Pound (BPH2)
were creamed as the Dollar soared on Friday. These markets could set
up soon on the short side after a pullback.
March cotton (CTH2)
appears to be building a base and could become a low–volatility
situation and break out (either direction) soon.
Best of luck with your
trading on Monday!
P.S. Reminder: Protective
stops on every trade!
