Back to the futures markets after one week, as usual, we cannot be lazy. There are many things for us to care for our trading week. Now, just take a tour to see what have been going on in the markets!
In Financials market , as noted by PitGuru Frank LaMantia , when traders start buying defensive stocks this should be a stop sign for investors. One should ask how long do these traders plan on holding these stocks. It is always good to get a reference point to see where they think the market will turn around. From this, one can study the technicals and try to find some sort of rationalization in this market.
Kids will go back to school in the next few weeks, then the market could jump due to cyclical buying. This may be the good news that traders and investors are looking for. Since this event leads them to believe the winter months could bring profits to certain companies. So, September and October could be rally months and then sell-off before the holidays. Companies like Staples may get a jump in earnings due to back to school sales. Does this mean all defensive or cyclical stocks will be up? No, this means trends have formed in the past with various stocks at certain times.
Let’s watch the S&P for the resistance levels in the 1050 range if the market does sell-off. As Mr. Frank writes the S&P is trading at 1070 and is up a few points but things can change throughout the day rather quickly. Data will be announced this week so traders are testing the waters this morning with small buy orders. In term of finance, we cannot ignore one of the biggest industries in the financial world – Currency trading. To keep up with how the currency exchange rates are going is the daily job that any trader or investor need to know. Did you check for the update today? Don’t miss the news!
Leave the Fiancials markets, we go next to visit Energies to see how things are going in this market. As we know the energy complex was down in all sectors last week as initial jobless claims grew more than expected sending the equity markets lower, Euro lower, and thus the energy sector lower. Be reported, crude oil traded down to $73.30 and has liquidated $9 in the last two weeks as the economy hit some speed bumps recently with some key economic data. WTI spreads are inching higher after liquidating last week which is one good sign of a stabilizing market. Our expert – PitGuru Daniel Cronin – believes another reason to exit short positions and thinks about developing longs here is that the October Arb is climbing back as well after getting pounded to -120 last week the arb is now trading -50.
Gasoline and heating oil looks to stabilize here as well, so you may see some profit taking ahead of the GDP number this week as the market heads a bit higher. Mr. Daniel thinks that crude will try and reach $76.00 before listening to the GDP number and making a decision next on where to go.
Turn to Natural Gas, it looks weak after the worse than expected inventory report on Thursday as this market trades at $4.08 looking to head to the $4.00 level. According to our expert, he believes in looking to buy this market on the dip as the valuation is much too cheap down at these levels and recommends looking to get into some OTM calls as he thinks this market will try and rally before the GDP number.
You have just had a short view of energies and financial markets this week. For more details, I cannot show you here, just stop by to check out for their prices and other futures prices today. You will have more standard to decide your trading. The information is updated daily, you can be back to keep up with the market. Back to futures trading platform, how about Grains, Softs, Metals? You have not checked out these markets yet. Since activities in one market can influence to other prices, a full understanding of all will be help traders make right decisions. When you earning from trading in futures, you will need futures reviews. Just check out for the full support!