Reversal Play In Indices?
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
market’s opening. Therefore, overnight events may alter the
outcome of these observations.
Overbought became more overbought
today (Thursday) in the index futures. Look for a shorting opportunity here but
don’t fight the tape–wait for signs of a reversal.
March corn
(
CH1 |
Quote |
Chart |
News |
PowerRating) rallied earlier
in the day (a) but reversed to close poorly (b). This action suggests that its
breakdown from highs remains intact. Look for a shorting opportunity here.
face=”Arial, Helvetica”>
February unleaded gas
(
HUG1 |
Quote |
Chart |
News |
PowerRating) has
formed a cup-and-handle that is also a Bow
Tie setup. Look for buying opportunities here.
The
March euro
(
ECH1 |
Quote |
Chart |
News |
PowerRating) seems to be finding support at high levels and looks
poised to resume its uptrend. Look for a buying opportunity here.
Best of luck with
your trading on Friday!
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!
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