Monday’s Futures Setups
The
Dow gained 6
to 7891, the Nasdaq
rose 13 to 1337 and the S&P 500 added 4 to 841. Better-than-expected University
of Michigan consumer sentiment bouyed the market, even though both it and the
Conference Board index are at nine-year lows. Lehman Brothers raised its
earnings estimate for Intel’s first quarter to 13 cents.
Long
Candidates:
|
Contract |
Setup |
Direction |
Trigger |
| Lumber ( LBH3 | Quote | Chart | News | PowerRating) |
oversold bounce | up | above Friday’s high |
| Canadian Dollar ( CDH3 | Quote | Chart | News | PowerRating) |
breakout from flag | up | above Friday’s high |
The Canadian dollar
(
CDH3 |
Quote |
Chart |
News |
PowerRating) broke out of its flag.
Bonds
(
USH3 |
Quote |
Chart |
News |
PowerRating) and 10-year notes
(
TYH3 |
Quote |
Chart |
News |
PowerRating)
are making new highs above a large triangle.
Lumber
(
LBH3 |
Quote |
Chart |
News |
PowerRating) may bounce.
Corn
(
CK3 |
Quote |
Chart |
News |
PowerRating) tried to rally, but was sent back. Wheat
(
WK3 |
Quote |
Chart |
News |
PowerRating) is close to its January lows. A break below these
levels would definitely not be bullish.
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Short
Candidates:
|
Contract |
Setup |
Direction |
Trigger |
| Coffee ( KCH3 | Quote | Chart | News | PowerRating) |
broke support | down | below Friday’s low |
| Copper ( HGK3 | Quote | Chart | News | PowerRating) |
double top | down | below Friday’s low |
Copper
(
HGK3 |
Quote |
Chart |
News |
PowerRating) is falling from a double top.
Coffee
(
KCH3 |
Quote |
Chart |
News |
PowerRating) broke below a small
consolidation/flag, and we’re now below the September lows. On a weekly chart,
coffee broke below the neckline of a large head and shoulders.
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. Be
advised that some futures contracts are prone to gaps.
Remember,
use stops on all your trades.
PS
I’ll be away next week, and will resume this column the following week.