Spooz Stall?

March 8, 2002
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.

The March S&P futures
(
SPH2 |
Quote |
Chart |
News |
PowerRating) are beginning to stall out near
longer-term highs. This, combined with the overbought nature (low three-day
average TRIN, McCllelan Osc. and price itself) and very low VIX readings
suggests that they are due to correct. Therefore, for the nimble only, look for shorting opportunities should it continue to show signs of reversing.

Looking Ahead

Once again, May coffee
(
KCK2 |
Quote |
Chart |
News |
PowerRating), mentioned recently, still looks like it’s trying to
form a long-term bottom. If you are not a bottom fisher, continue to wait for a rally
followed by the first pullback.

The March Yen
(
JYH2 |
Quote |
Chart |
News |
PowerRating), mentioned recently for the bottom fishers, pulled
back from Thursday’s rally. This contract could set up soon on the first
reversal back in the direction of the breakout.