Spoo Slide?
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.
The S&P futures (SPU1)
appear to be stalling out near recent resistance and the 50-day moving
average. This, combined with market timing signals beginning to kick
in (see Wednesday’s stock outlook) suggests we could see a sell off
over the next few days. Look for a shorting opportunity here but don’t
fight the tape.
Once again, for you bottom fishers,
December cotton (CTZ1)
appears to be forming a low level cup and handle. Look for a buying
opportunity here–or better yet–wait for a stronger rally (over the
next few days) and look to trade the first pullback.
Looking Ahead
August live cattle (LCQ1)
continue to drop out of a topping formation. They will likely set up
as a short on the first bounce (pullback from lows).
Best of luck with your
trading on Thursday!
P.S. Reminder: Protective
stops on every trade!
