September Bonds, Additional Downside Likely
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 .70 points higher and the Bond Market Futures are trading up 1 tick.
September Bonds [USU9>USU9], mentioned last night and down 24/32 today, still look like they have additional downside. Look for a shorting opportunity here as the long term trend remains down.
Source: Omega Research.
The September British Pound [BPU9>BPU9] hit new 50-day lows today but reversed and closed well. This may have breakout players (shorts) trapped on the wrong side of the market. Look for a buying opportunity here.
August Feeder Cattle [FCQ9>FCQ9], on the Pullbacks Off Highs List, hit 10 day lows today but reversed to close well. Look for a buying opportunity here as long term trend remains up.
Volatility Watch
August Gold [GCQ9>GCQ9] is now on the Volatility Explosions-Low 6/100 Readings List. Look for a shorting opportunity here as surprises often happen in the direction of the trend.
Best of luck with your trading on Tuesday!
Dave Landry
PS-Reminder: Protective stops on every trade!