Pre-Holiday Trading
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 .40 points lower and the bond market is trading up 1 tick.
Tomorrow, we will likely experience thin pre-holiday trading. Therefore, use caution as lack of liquidity is the short-term trader’s worse enemy.
March Cocoa [CCH0>CCH0], mentioned last night and on the Pullbacks Off Lows List, still looks poised to resume its longer term downtrend. Continue to look for a possible shorting opportunity here.
March Bonds [USH0>USH0], mentioned last night (see archive) and on the Pullbacks Off Highs List, still look like they have the potential to rally out of a cup and handle formation. Continue to look for a buying opportunity here but wait for them to prove themselves by taking out the prior 1-2 bar highs as they did close poorly today.
The December Dollar Index [DXZ9>DXZ9] closed well and looks poised to resume its longer term uptrend. Look for possible shorting opportunities in the December Swiss Franc [SFZ9>SFZ9] and British Pound [BPZ9>BPZ9].
Best of luck with your trading on Wednesday!
Dave Landry
PS-Reminder: Protective stops on every trade!