Watching the coffee
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 2.00 points lower and the bond market is trading down 6 ticks.
For you breakout players, March Coffee [KCH0>KCH0], mentioned last night, rallied to life-of-contract highs today out of a deep pullback (a). Continue to look for a buying opportunity here or better yet, wait for the next pullback before attempting an entry.
March Sugar [SBH0>SBH0], mentioned last night, sold off to 4-month lows today and looks like it has resumed is longer term downtrend. Pull up a monthly chart on this one when you get a chance. Continue to look for a shorting opportunity here.
March Cocoa [CCH0>CCH0] hit 10-day highs today but reversed to close poorly. This suggests that its long term downtrend may still be intact. Look for a shorting opportunity here.
Best of luck with your trading on Wednesday!
Dave Landry
PS-Reminder: Protective stops on every trade!
PPS- Keep an eye on the December Japanese Yen [JYZ9>JYZ9]. If two interventions can’t keep it down, it’s likely headed higher.