Reversals And Volatilty
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.
 From a momentum standpoint, there’s not
too much to look at again tonight. It is at these times, for purposes of this
column, I look to see if anything is setting up based on reversals or
volatility. With that said, two markets, one of each qualify.
For you bottom fishers, December cotton
(
CTZ1 |
Quote |
Chart |
News |
PowerRating) stabbed down to life-of-contract lows before reversing. This action
sets up a Turtle Soup Plus One buy signal.Â

In the volatility camp, December coffee
(
KCZ1 |
Quote |
Chart |
News |
PowerRating) is now a low volatility situation. Began watching for a
larger-than-normal move (in either direction) as volatility reverts to its
mean.Â

Best of luck with
your trading on Wednesday!
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!
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