PPI Tomorrow
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 .50 points lower and the Bond Market Futures are trading down 4 ticks.
Friendly reminder, tomorrow the Producer Price Index (PPI) will be announced. This will likely create volatility in both the index futures and the bond market.
The September S&P Futures [SPU9>SPU9], sold off earlier today (a) but rallied late in the day to close well (a). This combined with the fact that the market is oversold and that we have two buy signals on the Market Bias Page may create a buying opportunity.
Source: Omega Research.
Volatity Watch
Even with today’s move, September Bonds [USU9>USU9] remain on the Volatility Explosions-Low 6/100 Readings List. Watch for a larger-than-normal move (in either direction) as volatility reverts back to its mean.
July Copper [HGN9>HGN9] is now on the Volatility Explosions-Low 6/100 list and is also on the Pullbacks From Lows List. Look for a shorting opportunity here as the trend remains down.
Best of luck with your trading on Friday!
Dave Landry
PS-Reminder: Protective stops on every trade!