SN9 and WN9 Action Today; Possible Buys
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 .30 points lower and the Bond Market Futures are trading up 4 ticks.
July Soybeans [SN9>SN9] and July Wheat [WN9>WN9], on the New 10 Day Lows List, both hit life-of- contract lows today (a) but reversed, rallied and closed well (b). This may have the last of the breakout players trapped on the wrong side of the market. Look for buying opportunities here.
Source: Omega Research.
Source: Omega Research.
For your breakout players (or more appropriately “breakdown playersâ€) both July Heating Oil [HON9>HON9] and July Unleaded Gasoline [HUN9>HUN9] both on the Implosion 5 List, appear to be breaking down out of failed pullbacks. Look shorting opportunities here as the trend followers may be looking to exit positions.
Volatility Watch
The June Japanese Yen [JYM9>JYM9] remains on all three Volatility Explosions Lists. Continue to watch for a larger than normal move (in either direction) as volatility reverts back to its mean.
Best of luck with your trading on Wednesday!
Dave Landry
PS-Reminder: Protective stops on every trade!