Pound Still Looking 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.
The September British Pound [BPU9>BPU9], mentioned last night and on the Pullbacks From Lows List, closed poorly today (a) and appears poised to challenge its old lows (around 1.5476). Continue to 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.
December Corn [CZ9>CZ9], closed poorly today reversing yesterday’s rally. This suggests its downtrend is still intact. Look for a shorting opportunity here.
For you breakout players, September Heating Oil [HOU9>HOU9] mentioned last night and on the Momentum 5 List, is just shy of its old highs. Continue to look for a buying opportunity as the long term trend remains up.
Volatility Watch
The September D-mark [DMU9>DMU9] and September Swiss franc [SFU9>SFU9] are on the Volatility Explosion Lists. As mentioned last night (for the D-mark), the fact that they are 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], mentioned last night on the Volatility Explosions-Multiple Days List, 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 Monday!
Dave Landry
PS-Reminder: Protective stops on every trade!