Spoo Bounce To Continue?

September 5, 2001
Dave Landry

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.

Once again, we have a plethora of buy/repeat
buy signals on the Market Bias page. I’m now feeling better about these signals
based on the intra-day turnaround in the indices (see tonight’s Stock Outlook).
Therefore, look for buying opportunities in the September S&P futures
(
SPU1 |
Quote |
Chart |
News |
PowerRating).Â However, as mentioned recently, the
longer-term trend remains down. In other words, we’re still in a bear market.
Therefore, wait for confirmation in price and don’t overstay your welcome.

October heating oil
(
HOV1 |
Quote |
Chart |
News |
PowerRating), mentioned
Tuesday, looks like it has the potential to continue its rally out of a
pullback. Look for a buying
opportunity here.

Volatility Watch

As mentioned
recently, November soybeans
(
SX1 |
Quote |
Chart |
News |
PowerRating) remain set up as a low volatility situation. Although they could
break in either direction as volatility reverts to its mean, they still look
toppy to me. Therefore, continue to look for a
shorting opportunity here.