Possible Buys In SPM9, DJM9
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 1.30 points lower and the Bond Market Futures are trading up 5 ticks.
After the close, Hewlett Packard [HWP>HWP], a Dow Jones Industrial Average component, announced better-than-expected earnings. This combined with the fact that three indicators on the Market Bias Page are pointing higher tonight suggests an upward bias for tomorrow. Look for buying opportunities in the June S&P [SPM9>SPM9] and the June Dow Jones [DJM9>DJM9] futures.
July Sugar [SBN9>SBN9], on the New 10 Day Highs List, hit 20 day highs today (a) but reversed and closed poorly (b). The may have breakout players trapped on the wrong side of the market. Look for a shorting opportunity here as the longer term trend remains down.
Source: Omega Research.
For you breakout players, July Natural Gas [NGN9>NGN9], on the Momentum 5 List, closed well today and appears poised to breakout of a high level consolidation. Look for a buying opportunity as the longer term remains up.
Volatility Watch
Even with today’s continued sell off, the June Japanese Yen [JYM9>JYM9] remains on all three Volatility Explosions Lists. Continue to watch for a larger than normal move (in either direction) as volatility reverts back to its mean.
Best of luck with your trading on Tuesday!
Dave Landry
PS-Reminder: Protective stops on every trade!