Volatility Watch
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
market’s opening. Therefore, overnight events may alter the
outcome of these observations.
Not much to look at again tonight. The December Canadian Dollar
(
CDZ0 |
Quote |
Chart |
News |
PowerRating),
mentioned Tuesday night, sold off sharply on Wednesday but began to rally off
its lows (creating a possible Turtle Soup Plus One-Setup–follow-through to the
downside will be key here. Bonds stopped their recent slide but it’s too
early to call a setup here. And the energies remain choppy.
The December
S&P’s
(
SPZ0 |
Quote |
Chart |
News |
PowerRating) stalled out at a key resistance level and may offer a
shorting opportunity but only for the nimble daytrader.Â
For the bottom-fishers, the December Swiss Franc
(
SFZ0 |
Quote |
Chart |
News |
PowerRating) is in its first pullback since
rallying from lows. Look for a buying opportunity here but don’t overstay your
welcome as the longer-term trend remains down.
face=”Arial, Helvetica”>
Volatility Watch
Once again, December coffee
(
KCZ0 |
Quote |
Chart |
News |
PowerRating) remains a low-volatility situation. Watch for a
larger-than-normal move (in either direction) as volatility reverts to its mean.
December gold
(
GCZ0 |
Quote |
Chart |
News |
PowerRating) has also had low 6/100 HV readings for quite some
time. Watch for a larger-than-normal move (in either direction) as volatility
reverts to its mean.
Best of luck with
your trading on Thursday!
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!