Silver Looks To Rally
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 2.50 points higher and the Bond Market Futures are trading up 3 ticks.
September Silver [SIU9>SIU9], on the Pullbacks Off Highs List, closed well today(a) and appears poised to rally out of its pullback. Look for a buying opportunity here.
Source: Omega Research.
December Cotton [CTZ9>CTZ9] gapped to one month highs on the open today but reversed to close poorly. This may have the breakout players trapped on the wrong side of the market. Look for a shorting opportunity here.
Volatility Watch
September Coffee [KCU9>KCU9] is now on the Low 6/100 Readings List. This combined with the fact that it is also on the Pullbacks From Lows List suggests that the move may be lower as volatility reverts to its mean. Look for a shorting opportunity here.
December Gold [GCZ9>GCZ9], has been on the Volatility Explosion — Multiple Days List, for several days. Look for a larger-than-normal move as volatility reverts to its mean.
Best of luck with your trading on Wednesday!
Dave Landry
PS-Reminder: Protective stops on every trade!