Possible Short In Cattle
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 .30 points lower and the Bond Market Futures is up 3 ticks.
August Live Cattle [LCQ9>LCQ9], gapped above its June 14th high (a) but reversed to close poorly(b). This may have breakout players trapped on the wrong side of the market. Look for a shorting opportunity here.
Source: Omega Research.
September Copper [HGU9>HGU9], hit new 10-day lows today but reversed to close well. Look for a buying opportunity here as the longer term trend remains up.
September Bonds [USU9>USU9] hit new 10-day lows today but reversed to close well. This may have breakout players (or more appropriately breakdown players) trapped on the wrong side of the market. Look for a buying opportunity here.
Best of luck with your trading on Tuesday!
Dave Landry
PS-Reminder: Protective stops on every trade!