Volatility Likely Tomorrow
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 S&P Globex Futures are trading 1 point higher and the Bond Market Futures are trading up 4 ticks.
Heads up, the Employment report is scheduled for release tomorrow. This, combined with the fact many market participants may have already begun their holiday, will likely cause volatility in the stock and bond market tomorrow early on. Use caution if you plan on trading these markets.
December Cocoa [CCZ9>CCZ9], on the Pullbacks From Lows List, hit new 10 day highs today (a) but reversed to close poorly (b). This suggests that its downtrend may still be intact. Look for a shorting opportunity here.
Source: Omega Research.
For you breakout players, October Sugar [SBV9>SBV9], on the Momentum 5 List, is just shy of 6 month highs. Look for a buying opportunity here.
December Cotton [CTZ9>CTZ9], on the Pullbacks From Lows List, closed poorly and looks poised to resume its downtrend. Look for a shorting opportunity here.
Best of luck with your trading on Friday!
Dave Landry
PS-Reminder: Protective stops on every trade!