Pound Seems Trending Down
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 .10 points lower and the Bond Market Futures are trading down 4 ticks.
The September British Pound [BPU9>BPU9], on the Pullbacks From Lows List, rallied earlier today (a) but reversed to close poorly (b). Look for a shorting opportunity here as the longer term trend remains down.
Source: Omega Research.
November Soybeans [SX9>SX9], mentioned last night and on the Pullbacks From Lows List, still looks like it has the potential to resume its downtrend. Look for a shorting opportunity here.
For you breakout players, both August Heating Oil [HOQ9>HOQ9] and Crude Oil [CLQ9>CLQ9] closed right at new closing highs. Look for a possible buying opportunity as they may play catch up to Unleaded Gas which was up sharply today.
Volatility Watch
The September Dmark [DMU9>DMU9] remains on the Volatility Explosions-Multiple Days List. The fact that it is also on the Pullbacks From Lows List suggests that the move may be lower as volatility reverts to its mean. Look for a shorting opportunity here.
The September Dow Jones Futures [DJU9>DJU9], on the Volatility Explosions-Multiple Days, have been trading sideways as of late. Because the trend remains up, look for a possible upside breakout as volatility reverts to is mean.
Best of luck with your trading on Friday!
Dave Landry
PS-Reminder: Protective stops on every trade!