Read Larry Connors' blog – Short Term Trading Strategies
Six signals from the Market Bias Indicators Page, all pointing down, were practically screaming that stock index futures could pull back from their torrid runs this morning. Nasdaq 100 futures (NDM1 | Quote | Chart | News | PowerRating) have rallied 15% this week in four consecutive up sessions and S&P futures (SPM1 | Quote | Chart | News | PowerRating) are up 6.5% on the week. Both are trading on the bottom of today's range in an intraday descending-triangle/head-and-shoulders pattern.
Interest rate futures are rallying as stock indexes pullback. Bonds had slipped as many as 7 big points since their March 22 high as traders adjusted positions to account for a change from a contracting to an expanding economic forecast (the Fed has cut interest rates four times this year and US short-term rates are now .25% below European rates at 4.5%). T-bonds (USM1 | Quote | Chart | News | PowerRating) have traded straight up since their opening down-tick and are currently up 13/32 at 100 30/32. 10-year notes (TYM1 | Quote | Chart | News | PowerRating) appear to be failing at intraday, triple tops after a run 7/32 higher.
June dollar index futures (DXM1 | Quote | Chart | News | PowerRating) gapped down below a head-and-shoulders top in a negative technical development for the DXM. The Japanese yen (JYM1 | Quote | Chart | News | PowerRating) is tempering the dollar's losses after Finance Minister Kiichi Miyazawa implied Japanese policy makers do not want too strong of a yen while the country tries to export its way to economic health. The yen had rallied for four straight days but is down .0057 to .8223. Notice the symmetry in the pullbacks.
Soybeans (SK1 | Quote | Chart | News | PowerRating) are rallying slightly out of their Turtle Soup Plus One Buy setup but the pattern of descending tops makes it look as if its descending-triangle setup will play out. Traditional measured-move analysis out of this pattern suggests a test of 415 (for additional information on calculating measured moves out of such patterns, see my article on the topic).
June lean hogs (LHM1 | Quote | Chart | News | PowerRating) are trading just above the trigger of their Pullback From Highs setup out of a narrow pattern, providing defined-risk entry. This chart could be interpreted as a bullish flag or bearish triple tops (H&S), so look to play either way.
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
15260 Ventura Blvd., Ste. 2200
Sherman Oaks, CA 91403
© Copyright 2009 The Connors Group, Inc.
