Spoos Still Setup
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)
reversed after gapping above a resistance level.* This, combined with
market timing sell signals (see tonight’s stock outlook) suggests that
the contract remains vulnerable. Once again, 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.
August feeder cattle (FCQ1)
are consolidating at lower levels and look poised to make another stab
lower. Look for a shorting opportunity here.
Looking Ahead
The meltdown in August live cattle (LCQ1)
appears to remain intact. On the first bounce, it will likely set up
as a potential short.
Best of luck with your
trading on Friday!
*I’m basing this on recent
highs and the 50-day exponential moving average. What’s interesting
is, in her column tonight, Carolyn Boroden appears to have arrived at
a similar conclusion using different methods. Nice work Carolyn (and
I’m not just saying this because you gave me a plug).
P.S. Reminder: Protective
stops on every trade!
