S&Ps Stall
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.
At the time this
is being published, the Globex S&P futures are trading
down 1 point and the bond market is trading up 3 ticks.
There’s not too
much to look at tonight (Wednesday). The energies are in
strong trends, but offer no setups. Wheat, mentioned last
night, sold off, but failed to take out its recent lows. The
dollar still looks vulnerable, but failed to follow through
to the downside. And bonds reversed after what looked like a
nice continuation of a volatility move lower.
Considering the
above, there’s only one market that looks interesting to me
tonight.
On Wednesday, the
September S&P futures
(
SPU0 |
Quote |
Chart |
News |
PowerRating) stalled out after an
initial rally (a) on a benign CPI report. This poor action,
combined with low VIX readings and a CVR II sell signal on
the
Bias Page, suggests that there may be a shorting
opportunity for the nimble (i.e., for daytraders). Other
people may want to wait for additional confirmation (either
in price or in other indicators) before attempting an entry.
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Best of luck with
your trading on Thursday!
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!