Monday’s Futures Setups
The futures opened lower and then ended the
day on a sour note, closing near the lows. The Nasdaq Composite ($COMPQ) was
trading just below the session and weekly highs most of the day, battling to
stay above key support around 1200. The Dec. Nasdaq 100
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NDZ2 |
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News |
PowerRating)
closed just above the worst levels of the day at 861.50 down 10 or 1.15%.
The S&P 500 cash Index lost 27.59, or 3.2% to 827.36. General Electric, Philip
Morris and Wyeth were responsible for 15% of the loss. The Dow declined 295.67,
or 3.7%, to 7701.45. The Nasdaq Composite Index dropped 22.53, or 1.8%, to
1199.08.
For the week, the S&P 500 lost 2.1%, the Dow 3.6% and the Nasdaq 1.8%. The
benchmarks’ last weekly gains came Aug. 23.
The Dec. S&P 500 futures
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SPZ2 |
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Chart |
News |
PowerRating) dropped 3.38% closing near the lows of the day at 825.29 down 28.28.
The declines in the markets are showing that
investors are concerned that the expected rebound in corporate earning may not
happen.
The Dec.
10-year Treasury note
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TYZ2 |
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Chart |
News |
PowerRating) closed at 115 090 up 185 and the
30-year bond for Dec.
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News |
PowerRating) rose ’23 to 113 23. These were six-week
gains as some investors anticipated a weak economic recovery will prompt the
Federal Reserve to cut interest rates before year-end.
Possible
short candidates:
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Dec. cocoa |
possible turtle soup plus |
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Down
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Dec. cotton |
Pullback off of the |
Down |
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Dec. Nov. crude oil |
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Down |
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Dec. gold |
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Down |
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Oct. heating oil |
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Down |
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Possible long candidates:
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Dec. wheat |
Pullback from high |
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Dec. corn |
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Nov. frozen orange juice |
Pullback from high |
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Oct. live cattle |
Bullish Flag Pattern |
UP |
break above 70.20 |
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Oct. feeder cattle |
Saucer Pattern |
UP |
break up above 81.60 |
Please note that while there are
strong trends, one bar or a series of bars forming a setup can sometimes
indicate a contra move for the next day. This contra move may not be
long-lasting — maybe only for a day or two. Trading with the main trend is
always the highest probability trade.
Use stops on all your trades.