Watch the Market Bias Page
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.
Tonight, in the Stock Market Trading Outlook, I joked about how Mr. Greenspan helped improve the accuracy of our Market Bias Indicators today. All jokes aside, it’s important to watch the Market Bias Page when trading index futures as events like these often provide the catalyst the market needs to get going. This is especially true when three or more are pointing in one direction.
Last night (see archive), I talked about the fact that the energies appeared to be in pullbacks versus sell offs. Today, they began to rally out of these pullbacks. Therefore, continue to look for buying opportunities in October Crude Oil [CLV9>CLV9], Heating Oil [HOV9>HOV9] and Unleaded Gas [HUV9>HUV9].
The September Japanese Yen [JYU9>JYU9], on the Pullbacks Off Highs List, is consolidating at higher levels and looks poised to resume its uptrend. Look for a buying opportunity here.
Source: Omega Research.
Volatility Watch
The longer a volatility remains low on a commodity, the bigger the move as volatility reverts to its mean. With that said, December Coffee [KCZ9>KCZ9] remains on the Volatility Explosions — Multiple Days List. Continue to look for a larger-than-normal move (in either direction) as volatility reverts to its mean.
November Orange Juice [OJX9>OJX9] remains on the Volatility Explosions — Multiple Days List. Look for a larger-than-normal move (in either direction) as volatility reverts to its mean.
The recent sideways action in October Sugar [SBV9>SBV9] has it on the Volatility Explosion — Multiple Days List. Look for a larger-than-normal move (in either direction) as volatility reverts to its mean.
Best of luck with your trading on Monday!
Dave Landry
PS-Reminder: Protective stops on every trade!