Three Markets Look Interesting
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.
For you breakout players, June Crude Oil [CLM9>CLM9], on the New 10 Day Highs List, broke out to new highs today, sold off (a) but recovered to close well (b). This may have shaken out the nervous longs, clearing the way for the contract to trade higher. Look for a buying opportunity here as the long-term trend remains up.
Source: Omega Research.
July Soybeans [SN9>SN9], on the Turtle Soup Plus One Buy List, sold off to new 20-day lows but recovered and closed well. This may have trapped shorts on the wrong side of the market. Look for a buying opportunity here.
Volatility Watch
Over the past few nights, I have been talking about the low volatility situation in the June Swiss Franc [SFM9>SFM9]. Today it traded lower but recovered to close relatively unchanged. This “head fake” to the downside may have the shorts trapped on the wrong side of the market. Look for a buying opportunity since a larger-than-normal move will likely occur as volatility reverts back to its mean.
Best of luck with your trading on Monday!
Dave Landry
PS-Reminder: Protective stops on every trade!