Spooz Vulnerable Once Again
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 VIX dropped to multi-year lows and
continues to move away from its 10-day moving average For the nimble (e.g., daytraders), you might look for a shorting opportunity in the June S&P
futures
(
SPM2 |
Quote |
Chart |
News |
PowerRating). For everyone else, wait for the VIX to get 10% or more away
from its moving average and/or other sell signals to trigger.
Looking Ahead
The May crude complex, unleaded gas
(
HUK2 |
Quote |
Chart |
News |
PowerRating), heating oil
(
HOK2 |
Quote |
Chart |
News |
PowerRating) and
crude oil
(
CLK2 |
Quote |
Chart |
News |
PowerRating) reversed to sell off hard. This suggests that a meaningful
correction is under way. Watch for buying opportunities here should they show
signs of reversing back in the direction of the trend.
In the meats, April live cattle
(
LCJ2 |
Quote |
Chart |
News |
PowerRating) and feeder cattle
(
FCJ2 |
Quote |
Chart |
News |
PowerRating)
continue to probe lower. Once again, they could set up soon
on pullbacks.
Best of luck with
your trading on Friday!
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!